A globally recognizable brand for beverages and snacks reported third quarter on October 10. Its equity per share (EPS) was $2.25, $0.10 better than expert consensus. Q3 sales totalled $23.45 billion, which slightly beat average estimates of $23.43 billion. The number was by $1.13 billion higher than in Q2 and adder more than $5.5 billion compared to Q1. More importantly, the company's management raised its forecast for annual return for the third time in 2023, with a view to further lifting its selling prices, even though PepsiCo successfully undertook similar moves on its major markets, based on resilient demand on packed food. Average prices for a range of PepsiCo products rose by 11% from early June to early September, while organic volume fell 2.5%. Nevertheless, there will be some modest level of price increases coming when the company will get into next year.

"I do think that as a company we are executing better and better", based on both "the raise and guidance", and as "we have made investments in manufacturing capacity", PepsiCo CFO Hugh Johnston said. Go to market systems, supply chain, these all seem like ways of running the business better in terms of costs. "We reinvest back in the business... but I wouldn't dismiss the role of innovation... and things we have got going on in Quaker [oats] and in Funyuns [onion flavoured chips] and in Doritos [tortilla chips]", Hugh Johnston added, listing a set of snacks.

Snacks business helped counter falling demand in the beverages unit, as the Frito-Lay North America, a subsidiary of PepsiCo that manufactures, markets and sells corn chips, potato chips etc, gained 7% in terms of organic revenue, despite pure physical volumes slightly fell. PepsiCo also focused on selling more "profitable volume", feeling that consumer preferences are evolving towards some smaller packages amid inflation pressure and lessened real income of households. Spending on natural products categorized as "affordable luxuries" is limited in favour of cheaper food and carbonated drinks.

As a result, shares of PepsiCo gained 1.88% on October 10, soon after the corporate news. Rival Coca-Cola was also up 2.17%. PepsiCo is still down by more than 16% compared to 2023 peaking prices of mid-May, and there is enough space for a potential recovery during the nearest 3-6 months.