PepsiCo Shares Rise With Earnings Forecasts

PepsiCo Inc. shares have risen by 17% since the start of the year, driven by Wall Street predictions that the soft-drink and snack-food giant’s first-quarter earnings will beat expectations. PepsiCo shares, $42.56 on Wednesday, were at $36.25 on Dec. 31. Some analysts are predicting that the stock will go as high as $52 in the coming year. Pepsi’s stock surge is being driven by strong soft-drink sales and the introduction of new Frito-Lay snacks, such as the no-fat chips made with olestra. The Purchase, N.Y.-based company also is viewed as healthier after having spun off its Taco Bell, KFC and Pizza Hut restaurant holdings to Tricon Global Restaurants Inc. in 1997. PepsiCo is expected to earn 23 cents a share this quarter, according to analysts surveyed by IBES International Inc.