PepsiCo’s second quarter profits jump but customers slow their purchases after years of price hikes

AP Business Writer

PepsiCo reported higher-than-expected earnings in the second quarter but acknowledged that after raising prices every quarter for more than two years, customers are not buying as many of its snacks and drinks. PepsiCo said Thursday that North American demand for its Frito-Lay snacks was “subdued” during the quarter as customers become more value-conscious. The company plans to amp up deals and advertising in the second half of this year. PepsiCo said its net income rose 12% to $3 billion, or $2.28 per share. That beat Wall Street’s forecast. Revenue grew less than 1% to $22.5 billion, which was slightly lower than expected. PepsiCo shares fell 2%.