PepsiCo (PEP, $169.39) raised its full-year revenue and earnings forecast Wednesday after stronger-than-expected third-quarter sales driven by higher prices. It came out with quarterly earnings of $1.97 per share, beating the Zacks Consensus Estimate of $1.85 per share. This compares to earnings of $1.79 per share a year ago.
For the quarter that ended Sept. 3, PepsiCo said revenue rose 9% from a year ago to $21.97 billion, topping Wall Street expectations. Despite prices surging 17% as the company tried to recoup double-digit price increases for raw ingredients as well as higher spending on transportation – it said higher prices don’t seem to be deterring customers, who consider brands like Frito-Lay and Cheetos an affordable treat.