Shares of Pepsi are up two percent, after the company posted better-than-expected fourth-quarter results despite the effects of a stronger dollar.
Strong sales from its Frito Lay business helping Pepsi top estimates in the fourth quarter, despite a drop in profit and revenue…. The stronger dollar weighing on results. Sales from its North American snack division climbed three percent and accounted for more than 20 percent of sales in fiscal 2013... that business helping its stock outperform rival Coca-Cola--which reported results that also topped estimates on Tuesday. Pepsi shares rose two percent in early trading. Growth in Pepsi's beverage division which has struggled due to weak demand for soda also rose in the quarter. RBC Capital's Nik Modi says: "We would characterize this quarter as solid, particularly on margins and in Pepsi Americas Beverages where like other consumer staples players an improving US consumer and accelerating c-store trends have been a key tailwind to growth." Pepsi has been under pressure from activist investor Nelson Peltz to split up its snack business from the beverage arm. It called a truce with Peltz's Trian Fund Management last month-opting to ad one of Trian's advisory partners to its board. Pepsi announced plans to buy back shares worth up to $12 billion by 2018. It warns of continued pressure from foreign exchange in 2015.