PepsiCo's Strong Quarter Boosts Stock and Earnings Outlook

PepsiCo's third-quarter results exceeded Wall Street profit estimates, with sales gains in all business segments except Africa/Middle East. Core earnings per share grew by 16% from the previous year, outpacing sales growth. The strong performance contradicts the sell-off in food-related stocks fueled by concerns about the impact of weight-loss drugs like Ozempic. PepsiCo lifted its full-year earnings outlook and expects sales and earnings growth in 2024 to be at the top end of its long-term targets, indicating confidence in the resilience of its product categories.