Shareholders of one of the leading soft drinks company in the world had reasons to smile in the third quarter of 2011. PepsiCo Inc. reported that its third-quarter profit rose four percent propelled by higher prices and strong sales on its products especially outside of the United States.
The Purchase, New York based company revealed it earned some $2 billion, or $1.25 per share, for the period ended Sept. 3. The earnings are higher than their $1.92 billion, or $1.19 per share, in 2010. Among the products sold by Pepsi includes Mountain Dew, Diet Pepsi and Lay’s potato chips.
PepsiCo was formed in 1965 with the merger of the Pepsi-Cola Company and Frito-Lay, Inc. PepsiCo has since expanded from its namesake product Pepsi to a broader range of food and beverage brands, the largest of which include an acquisition of Tropicana in 1998 and a merger with Quaker Oats in 2001 – which added the Gatorade brand to its portfolio as well.
Pepsi shares are trading much higher on their earnings release this morning before the open, up $1.55 to $62.50, up 2.54%.