Thu Jul 17 11:10:00 UTC 2025: Okay, here’s a summary and news article based on the provided text:

**Summary:**

PepsiCo exceeded analyst expectations for both earnings and revenue in its latest quarterly report, despite experiencing a decline in demand in North America. While net income decreased compared to the previous year, excluding certain charges, earnings per share were strong. The company’s overall volume declined, particularly in its North American food and beverage segments. PepsiCo is addressing these challenges through strategic initiatives like focusing on protein-rich and multicultural products, improving in-store placement, and implementing cost-cutting measures. The company reaffirmed its full-year outlook, expecting steady core earnings and low-single-digit organic revenue growth.

**News Article:**

**PepsiCo Beats Expectations Despite Weak North American Demand; Shares Rise**

**PURCHASE, NY -** PepsiCo (PEP) reported stronger-than-expected earnings and revenue for the second quarter on Thursday, sending shares up approximately 2% in premarket trading. The positive results come despite persistent challenges in North America, where the company is facing weaker demand for its iconic food and beverage products.

The beverage and snack giant reported net income of $1.26 billion, or 92 cents per share, a decrease from $3.08 billion, or $2.23 per share, a year earlier. Excluding restructuring and impairment charges and other items, the company earned $2.12 per share, surpassing analyst expectations. Net sales rose 1% to $22.73 billion, with organic revenue (excluding acquisitions, divestitures, and currency effects) increasing by 2.1%.

However, PepsiCo acknowledged softening demand, with worldwide volume down 1.5% for food and flat for beverages. North America continues to be a trouble spot. The North American food division, including Frito-Lay and Quaker Foods, saw a 1% volume decline, while the domestic beverage segment reported a 2% drop.

“Our North American business is improving,” stated CEO Ramon Laguarta. He highlighted the success of the company’s namesake soda, with volume for Pepsi rising during the quarter and Pepsi Zero Sugar experiencing double-digit volume growth.

To reinvigorate North American sales, PepsiCo is focusing on capitalizing on the protein trend and expanding its multicultural product offerings through brands like Siete Foods and Sabra. The company is also working to improve product availability and shelf placement in stores.

Cost-cutting measures are also underway, including the closure of two North American food manufacturing plants and initiatives to improve transportation and logistics efficiency. The company is also reviewing its marketing spending to maximize return on investment and seeking ways to integrate its North American food and beverage divisions for greater efficiency.

PepsiCo reaffirmed its full-year guidance, projecting core constant currency earnings per share to be roughly unchanged from the previous year and organic revenue to grow by a low-single-digit percentage. This outlook comes after the company lowered its earnings forecast last quarter, citing new tariffs, economic volatility, and a more cautious consumer.

Read More