PepsiCo (PEP, Financials), the food and beverage company behind Pepsi, Lay's, Doritos, Gatorade and Quaker, had a mixed second quarter as shoppers in North America became more cautious.
The company earned $2.20 per share on an adjusted basis, just below the $2.21 analysts expected. Revenue came in better than expected, rising 6.4% to $24.18 billion.
The stronger part of the quarter came from international markets, where demand for PepsiCo's snacks and drinks held up better. Globally, food volume rose 3%, while beverage volume increased 2%.
The weaker spot was North America. Food volume was flat, and beverage volume fell 4% as consumers dealt with higher prices and tighter budgets.
PepsiCo said its North American business was softer than expected and may take longer to improve.
Still, the company kept its full-year forecast. It expects organic revenue to grow 2% to 4% and core constant-currency earnings to rise 4% to 6%.
For investors, the story is simple: PepsiCo is still growing, but it needs U.S. shoppers to come back.