PepsiCo (PEP) lowered its sales outlook for the year, forecasting organic revenue growth in the low single digits below the previously expected 4% growth. As Yahoo Finance's Brooke DiPalma reports, PepsiCo's third-quarter revenue trailed behind Wall Street's estimates, coming in at $23.3 billion, versus the $23.8 billion expected.
CEO Ramon Laguarta said in the release that Pepsi's performance was impacted by "subdued category performance trends in North America," the impact of recalls at Quaker Foods North America, and business disruptions from "rising geopolitical tensions in certain international markets." In a phone interview with Yahoo Finance, Laguarta said consumers are "very challenged" and they are making a "lot of trade-offs" when it comes to food. Those tradeoffs are weighing on the snacks business most acutely, Laguarta explained.
PepsiCo shares dipped nearly 1% in pre-market trading. Read the full story here.