PepsiCo reported mixed quarterly results as North American demand for its snacks and drinks declined for the fifth straight quarter.

Shares fell more than 2% in premarket trading.

The company reported adjusted earnings per share of $1.96, slightly beating the $1.94 expected.

Revenue came in at $27.78 billion, just below the expected $27.89 billion.

Net income rose to $1.52 billion, or $1.11 per share, from $1.3 billion, or 94 cents per share, a year earlier.

Net sales dropped 0.2%, but organic revenue increased 2.1%.

Global volume rose 1% for both snacks and beverages, but U.S. demand remained weak.

Frito-Lay North America’s volume fell 3% as consumers cut back on snacking.

Pepsi’s North American beverage unit saw a 3% decline in volume, though Gatorade gained market share and Mountain Dew Baja Blast hit $1 billion in annual sales.

Quaker Foods North America’s volume fell 6% due to a prior recall, but improvement is expected in 2025, CNBC has reported.

Pepsi forecasts a low-single digit increase in organic revenue and mid-single digit growth in core earnings for 2025.

Written by B.C. Begley