PepsiCo Gains After Fritos-Hungry Buyers Stock Up on Comfort

  • Snack foods carry company in spring quarter as beverages lag
  • Soda giant sees return to organic revenue growth this quarter
Pepsico Beats as Consumers Come Back to ‘Big Trusted Brands’: CFO
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PepsiCo Inc. reported a stronger-than-expected spring as homebound consumers looking for comfort stocked up on snack foods -- and its current-quarter forecast was even more bullish.

As Covid-19 raged across the U.S., Americans seeking out familiar flavors filled their shelves with salty, crunchy treats, driving double-digit sales growth for brands like Tostitos, Fritos and Cheetos. Even newer snacks like fruit-chips line Bare and Off The Eaten Path, a maker of black bean and chickpea crisps, saw double-digit growth. Beverage sales were one key weakness, as both in-restaurant and grab-and-go gas station sales lagged during the lockdowns.