Why An Uncertain Presidential Election Outcome And Threat Of Higher Interest Rates Doesn't Scare Pepsi - TheStreet

Why an Uncertain Presidential Election Outcome and Threat of Higher Interest Rates Doesn't Scare Pepsi

Pepsi just lifted its full-year profit outlook, despite several major external threats.
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A contentious U.S. presidential election cycle is nearing an end and the Federal Reserve could hike interest rates at one of its final two policy meetings for the year. Yet, beverage and snack giant PepsiCo (PEP) - Get Report still sees smooth sailing ahead despite the threat of a more volatile stock market and global economy in the wake of each major event's outcome. On Thursday, PepsiCo hiked its full-year profit outlook for the second time this year. It now forecasts full-year earnings of $4.78 a share, up from $4.71 a share previously. "We have built a product portfolio to weather these challenges -- whether it's the innovation capabilities that we have built, the advertising increases or the productivity that we are driving we just have the classic virtuous cycle working inside PepsiCo right now," explained PepsiCo Vice Chairman and CFO Hugh Johnston in an interview when asked why the company has such confidence in its outlook. He added, "We have pretty good geographic balance, too." It's hard to argue with Johnston's sense of confidence.