PepsiCo has reported that its quarterly revenue rose 20.5% compared with the previous year as restaurant demand for its drinks returned.
The company also raised its full year adjusted earnings per share guidance. Shares of the company were up 2% in premarket trading Tuesday (July 13) following the earnings results.
PepsiCo’s fiscal second-quarter earnings per share (EPS) came in at $1.72 U.S. compared to $1.53 U.S. expected by analysts. The company’s revenue surged 20.5% to $19.22 billion U.S. versus $17.96 billion U.S. that had been anticipated.
The company’s North American beverage business reported revenue growth of 21%, the highest of all of PepsiCo’s divisions. Volume for its drinks soared 15%, and food service revenue, which includes sales to restaurants, stadiums, and college campuses doubled during the quarter.
Frito-Lay North America, which includes brands such as Doritos and Cheetos, saw revenue growth of 6%. Convenience stores and food service channels helped boost sales as consumers became more mobile.
Meanwhile, PepsiCo’s Quaker Foods business was the only division to report declining revenues in the quarter. Its sales volume fell 21%. The same time a year ago, the segment saw sales surge 23% as consumers ate more breakfast at home, fueling demand for its maple syrup and oatmeal products.
Following the strong quarter, PepsiCo said that it now expects earnings per share growth for all of its current fiscal year of 11%, up from its previous forecast of high-single digit growth. Analysts had been expecting full-year earnings growth of 7.2%.
