(Reuters) – Pepsico (NASDAQ:) posted a surprise drop in third-quarter revenue on Tuesday and cut its forecast for annual sales growth, as cautious consumer spending in North America weighs on demand for its sodas and Frito-Lay snacks.
Shares of the company fell about 1% in premarket trading.
The packaged food giant expects fiscal 2024 organic sales to grow in a low single-digit range. It had previously forecast a 4% rise.
Quarterly revenue was hurt by subdued trends in North America, fallout from product recalls in Quaker Foods business earlier this year and business disruptions due to rising geopolitical tensions in certain international markets, CEO Ramon Laguarta said.
Quaker Foods North America segment saw organic revenue slump 13% during the quarter, following an 18% decline in the second quarter.
Net revenue came in at $23.32 billion in the quarter ended Sept. 7 from $23.45 billion last year.
Analysts estimated a 1.3% jump in revenue to $23.76 billion, according to data compiled by LSEG.
