PepsiCo raises forecasts after Q3 boosted by higher prices

By DEE-ANN DURBIN
AP Business Writer

PepsiCo raised its full-year revenue and earnings forecast Wednesday after a stronger-than-expected third quarter sales driven by higher prices. The Purchase, New York-based snack and drink maker said its sales volumes were down 1% from the July-September period a year ago. But pricing surged 17%. PepsiCo said it’s trying to recoup higher price increases for raw ingredients as transportation and marketing. The company said higher prices don’t seem to be deterring customers, who consider brands like Frito-Lay and Cheetos an affordable treat. The company said third-quarter revenue grew 9% to $22 billion. It now expects full-year revenue to rise 12%.