Beverage and snack giant PepsiCo (PEP) has reported mixed financial results for this year’s second quarter as consumers in America continue to tighten their purse strings.
The company, whose products include Pepsi soft drink and Lays potato chips, reported earnings per share (EPS) of $2.20 U.S., which fell short of the $2.21 U.S. expected on Wall Street.
Revenue in the period totaled $24.18 billion U.S., which topped the $23.95 billion U.S. consensus expectation of analysts. Sales were up 6.4% from a year earlier.
Management blamed the mixed results on weak North American demand for its food and beverage products, which was partially offset by strong international sales.
Executives at PepsiCo said that consumers in the U.S. were pressured in the year’s second quarter by high gasoline prices due to the war in Iran.
As a result, Pepsi’s volume growth came from its international markets. The North American food business reported flat volume and North American beverages saw volume fall 4%.
PepsiCo has tried to stimulate sales in the U.S. by cutting prices on its Lay’s, Tostitos, Doritos, and Cheetos chips by as much as 15%.
The company has also given some of its iconic brands, such as Gatorade and Lay’s, fresh branding to help draw consumers’ attention and boost sales.
“Our North America business was softer than we anticipated in the second quarter, and we now expect a more gradual improvement in performance trends for the balance of this year,” said PepsiCo Chief Financial Officer (CFO) Steve Schmitt in the company’s earnings release.
PepsiCo reiterated its previous guidance that calls for revenue growth of 2% to 4% and earnings per share growth of 4% to 6% this calendar year.
PEP stock has risen 6% in the last 12 months to trade at $142.50 U.S. per share.
