PepsiCo Profit Advances on Cheetos, Higher Prices

Net income increased to $1.70 billion, or $1.05 a share, in the three months ended June 14, exceeding analysts' average estimate by 4 cents. Sales jumped 14 percent to $10.9 billion, Purchase, New York-based PepsiCo said today.

Sales of Cheetos, Ruffles and SunChips gained even as Chief Executive Officer Indra Nooyi raised prices to counter a 10 percent increase in commodity costs this year. The company, the world's second-biggest soda maker, benefited from its 60 percent snack-market share as cash-strapped U.S. consumers added chips to meals at home instead of eating out.