Demand for PepsiCo snacks and drinks remain weak in North America

PepsiCo's revenue fell slightly in the fourth quarter as North American consumers continued to pull back on purchases of Frito-Lay snacks and drinks.

The Purchase, New York, company reported revenue of $27.78 billion for the October-December period Tuesday. That was short of Wall Street's forecast of $27.89 billion, according to analysts polled by FactSet.

PepsiCo warned last fall about "subdued" demand in North America. That was partly because of a big recall of Quaker Oats granola bars and cereals. But customers have also been skipping snacks — or switching to cheaper brands — after years of price increases.

PepsiCo's snack food and beverage volumes both climbed 1% globally in the fourth quarter, with strong growth in Africa and Asia. But snack food and beverage sales dropped 3% in North America.

Net income rose 17% to $1.5 billion. Adjusted for one-time items, PepsiCo earned $1.96. That was higher than the $1.94 analysts forecast.