PepsiCo's profit dips amid turnaround push

For the period ended Sept. 8, PepsiCo said it earned $1.9 billion, or $1.21 per share. That's compared with $2 billion, or $1.25 per share, a year ago. Earnings from core operations were $1.20 per share, better than the $1.16 per share analysts expected.

Total revenue fell 5 percent to $16.65 billion, partly because of unfavorable currency exchange rates and the refranchising of its business in China and Mexico. That means that revenue in those countries is now recorded by PepsiCo's local partners.

Analysts expected revenue of $16.96 billion.

When excluding the impact of unfavorable currency exchange rates and other structural changes, the company said its revenue rose by 5 percent in the quarter. The increase reflected a 1 percent jump in sales volume and 4 percent bump in pricing.

PepsiCo expects costs for ingredients to moderate in the fourth quarter. But for the full year, the company still expects adjusted earnings to fall by 5 percent.

Shares of PepsiCo rose 19 cents to $70.49 in morning trading.