PepsiCo Inc. lowered its profit outlook, saying its recovery in North America is taking longer than expected. The maker of Doritos, Lay's and Gatorade now expects core constant currency earnings per share to grow between 1% and 2% this fiscal year, down from a previous forecast of growth at the low end of 4% to 6%. The company said it faces higher costs in North America in particular, and it is working to revitalize sales of its salty snacks while contending with consumers under economic pressure. In February, PepsiCo lowered prices on certain medium, grocery-store sized bags of its marquee brands, but it will be raising some prices in the coming months. Chief Executive Ramon Laguarta said in prepared remarks that the company's business in North America performed below expectations and represents a meaningful opportunity for improvement. Shares of PepsiCo have declined 14% this year through Wednesday's close, compared with a 14% increase in the S&P 500 Index.
PepsiCo IncPepsiCo cut its full-year core EPS growth outlook to 1-2% from 4-6% on higher North America costs.
