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Shares rose 2% in premarket trading after the company also beat second-quarter results.
Packaged food companies, including PepsiCo, have hiked prices to counter a jump in costs of everything from commodities such as sugar to transportation costs caused by supply chain snags and the Russia-Ukraine war.
Meanwhile, U.S. consumers have been spending on sodas and snacks from the company and rival Coca-Cola (NYSE:KO) even as rising interest rates and food prices hammered non-essential spending.
In April, the Frito-Lay maker said it would raise prices in some regions still experiencing higher inflation.
PepsiCo’s average prices jumped 15% for the quarter ended June 17, while organic volume slipped 2.5%.
The company said it expects 2023 organic revenue to rise 10%, compared with prior forecast of an 8% increase.
It estimated annual core earnings per share of $7.47, compared with earlier expectation of $7.27.
The 7UP maker’s net revenue rose to $22.32 billion from $20.23 billion in the second quarter, compared with analysts’ average estimate of $21.73 billion, according to Refinitiv data.
