The market liked PepsiCo's
The story behind those numbers is a bit more nuanced. It is also a little hard to pick apart because of the bottler acquisitions it completed early last year and the more recent acquisition of Wimm-Bill-Dann.
For the most part, the quarter looked good for Pepsi, with positive volume and revenue growth for most divisions and around the world. Snacks were a particular strength during the quarter with 2% growth in the mature North America market and faster growth in overseas markets -- including double-digit gains in India and China. Emerging markets in general were strong with snacks and beverages posting strong growth in Mexico, Argentina, Russia, Turkey, India, China, and the Middle East.
As with prime beverage competitor Coca-Cola
As compared with the rest of the company, the Quaker Foods division looked sickly as both volume and revenue posted significant declines. Operating profit for the segment rose, but most of the gain was due to an accounting change.
That darn inflation
Finally, we can't have a discussion of a food, beverage, or consumer-products company without touching on rising commodity costs. The problem is everywhere -- Coke, Unilever
In my coverage of Procter & Gamble's
Always a challenge, but still shining
There will always be challenges for a business to overcome, and Pepsi has its share right now -- most notably the cost pressures. However, this is still a great company with great brands, and it's posting strong growth around the world. The stock has a nice 2.8% dividend, and while I won't pound the table on the price, 15.5 times expected 2011 earnings isn't terrible for a quality company like this.
Coca-Cola is a Motley Fool Inside Value recommendation. Unilever is a Motley Fool Global Gains pick. Coca-Cola, McDonald's, PepsiCo, Procter & Gamble, and Unilever are Motley Fool Income Investor selections. Motley Fool Options has recommended a diagonal call position on PepsiCo. The Fool owns shares of Coca-Cola, and PepsiCo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
Fool contributor Matt Koppenheffer owns shares of McDonald's, but does not own shares of any of the other companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool's disclosure policy assures you no Wookiees were harmed in the making of this article.