PepsiCo saw 2% volume growth in the North American food business|Mike Mozart|CC BY 2.0

PepsiCo’s first-quarter results on Thursday surpassed Wall Street expectations, with revenue reaching $19.44 billion, beating the $18.94 billion forecast. The sales signal recovery in its food division.

The company posted 2% volume growth in the North American food business—encompassing Frito-Lay and Quaker Oats—marking its first increase in over two years.

Pepsi had faced consumer pushback when it increased prices in 2022 due to inflation. The turnaround follows recent price cuts of up to 15% on brands like Lay’s and Doritos.

Internationally, the company saw 9% volume growth across Asia, Europe, Africa, and the Middle East regions.

Despite geopolitical volatility and conflict-related uncertainties, PepsiCo reiterated its full-year organic revenue growth forecast of 2% to 4%.