Regardless of whether you think Frito-Lay's planned low-carb chips will be a sensation or the new definition of "yuck," PepsiCo (NYSE:PEP) reported some pretty bubbly numbers Thursday, with profits up 30%. The foamy revenues were a result of lower costs associated with its Quaker merger, higher volume, and a weak dollar -- though both its snack and beverage divisions showed pizzazz.

The company's fourth-quarter earnings came in at $897 million, or $0.51 per share, as compared to $689 million, or $0.39 a share in the same quarter last year. Revenues rose 9.4% to $8.07 billion.

However, some news agencies reported these earnings missed expectations by a penny, and that Pepsi's first-quarter guidance of $0.43 to $0.44 per share was shy of what Wall Street has been expecting (although the company generally has not given quarterly guidance since last year).

Among its trump cards, Pepsi lauded Vanilla Pepsi, which goes head to head, of course, with none other than Coca-Cola's (NYSE:KO) Vanilla Coke. (How did Fools feel about the dueling drinks? Check out Rex Moore's test of taste buds at Fool HQ in Vanilla Warfare.)

The big success, however, seemed to be Gatorade, which booked double-digit gains. In its conference call (transcript courtesy of CCBN StreetEvents), Pepsi said a large part of that was attributed to off-season merchandising of the sport drink in channels like Wal-Mart (NYSE:WMT) and club stores, which include Costco (NASDAQ:COST) and BJ's Wholesale Club (NYSE:BJ).

As Fool LouAnn Lofton observed after the company's third-quarter earnings, this company may have been around a while, but it certainly hasn't lost its ability to tweak its product lines to consumer tastes and trends. More recently, J. Graham explored some of the good things going for the venerable company.

Traditionally known as a purveyor of snacks and drinks that evoke fun more than fitness, Pepsi's got lots of plans to tempt the dieters among us. For example, the company banished evil trans-fats, is currently testing low-carb Doritos and Tostitos in Phoenix, and launched soy chips through its Quaker line.

Although many might be wondering about the appeal of Pepsi's sugary carbonated drinks in the current health environment, its stable of healthier choices seem to be doing quite well, including Aquafina and Propel Fitness Water.

With its keen eye for strong consumer trends, Pepsi's still got a healthy grasp on the products that will bring more growth.

Coke or Pepsi? Choose your discussion board.

Alyce Lomax does not own shares of any of the companies mentioned; she welcomes your feedback via e-mail.