Dive Brief:
- PepsiCo topped analysts expectations for the first quarter, as net income rose 13%.
- The profit surge was driven by cost-cutting at the global beverage and snack-food giant. Revenue was up just 0.3% to $12.6 billion.
- Sales volume at Frito-Lay North America rose 3%, well above the 2% gain seen in snack sales volume globally.
Dive Insight:
PepsiCo's earnings come as the company faces continuing pressure from activist investor Nelson Peltz to spin off the snacks business as a way to enhance shareholder value. PepsiCo's board and CEO have been clear -- repeatedly -- that they plan no such thing. Instead, PepsiCo's leadership said it would focus on reducing costs.
Today's earnings report could be read as vindication for PepsiCo's approach. But that's unlikely to quiet the famously combative Peltz.