By Jennifer Maloney

People are grabbing a soda at the convenience store again.

PepsiCo Inc.'s revenue grew 5.3% for the latest quarter as its beverage business rebounded and strong demand continued amid the pandemic for its snacks and packaged foods.

"Mobility has clearly risen," the company's finance chief Hugh Johnston said in an interview. "People are getting comfortable with how to protect themselves in the new environment and live their lives."

The company's namesake sodas and other drinks have been hurt during the Covid-19 pandemic by the closures of offices and restaurants, and a decline in trips to gas stations convenience stores. But that changed in the third quarter: Revenue for PepsiCo's North American beverage division climbed 6% to $5.96 billion, bouncing back from a decline of 7% in the previous quarter.

Sales in restaurants and offices remain down "by a lot" but revenue grew in convenience stores and gas stations, Mr. Johnston said. The company's food business, meanwhile, has benefited as Americans cook and snack more at home. Among the products selling well: Tostitos, pancake mix and Cheetos Mac 'N Cheese.

In PepsiCo's Frito-Lay North America division, which makes Doritos, Lays and other snacks, sales rose 7% to $4.4 billion in the third quarter. And sales ticked up 6% for its Quaker Foods North America division, which makes Rice-A-Roni and Aunt Jemima products.

PepsiCo Thursday issued new financial guidance for the year, after withdrawing its 2020 guidance in April. The company now projects organic revenue growth, which adjusts for currency effects and strips out acquisitions, of about 4%. On that basis, revenue rose 4.2% in the quarter, which ended Sept. 5.

"The consumer trends in mobility and behavior around away-from-home versus in-home are stable enough" to predict how the company will fare through the end of the year, Mr. Johnston said.

For the latest quarter, net income attributable to PepsiCo was $2.29 billion, or $1.65 a share, up from $2.1 billion, or $1.49 a share, last year. The results were better than analysts' forecasts and PepsiCo shares rose slightly premarket.

Write to Jennifer Maloney at jennifer.maloney@wsj.com

(END) Dow Jones Newswires

10-01-20 0906ET