Pepsi profits fizz despite flat pizzas

PepsiCo made $1.7bn (£1.09bn) in 1994 on the back of increased sales in canned drinks, up on $1.5bn(£967m) in the previous year. But the performance of its restaurants, which include Taco Bell, Kentucky Fried Chicken and Pizza Hut was flat. Turno ver forthe year was $28.4bn, up from $25bn last year.

PepsiCo said that Pepsi-Cola and its snack food operarion, Frito-Lay, each had record performance in both volume and profits for the year.

Restaurant results, however, were "more modest." it said. KFC and Taco Bell were up, but profits were less good at Pizza Hut.

Fourth quarter worldwide beverage sales were $2,3bn, up 18 percent.

Operating profit from snack foods was $439.2 million, up 14 percent for the fourth quarter. Sales rose 24 percent to $2.7bn.

Fourth quarter worldwide restaurant operating profit fell three percent to $238.m. Sales rose 15 percent to $3.4bn..

Pizza Hut operating profit was $92.5 m, down 25 percent in the fourth quarter. Sales were $1.45 billion, up 12 percent.

The company is optimistic about current trading. PepsiCo said it anticipates "solid" operating performance in 1995.

However the company will add to concerns on Wall Street about the ramifications of the Mexico's economic upheavals by warning that it expects the devaluation of the Mexican peso to have an unfavourable impact on 1995 results. However, the devaluation didnot significantly affect 1994 operating results, it said.

The company reported 1994 fourth quarter earnings per share of $0.64 versus $0.55. Earnings for the full year were $2.18 per share in 1994, compared with $1.96 in 1993.

Operating profits totalled $959m in the 1994 fourth quarter, up 11 per cent.