PepsiCo Inc. stock rose by 2.5% before the opening of the market on Thursday after the drinks giant surpassed expectations for the second quarter. It also raised its guidance, for the second consecutive quarter.

The company reported a net profit of $2.748 Billion, or $1.99 per share, for the third quarter. This is up from $1.429 Billion, or $0.03 per share, during the same period last year. The adjusted earnings per share came in at $2.09, which was higher than the $1.96 FactSet consensus.

Revenue increased to $22.322 from $20.225 billion, which was also higher than the FactSet consensus of $21.729 billion.

In a recent statement, Ramon Laguarta, Chief Executive Officer, said that “we will continue to focus our efforts on productivity initiatives in order to support further investments in brand building, innovation, digitalization and sustainability in order to win the market and strengthen our businesses over the long term.”

Cowen analysts praised the beat, raised guidance and maintained their outperform rating for the stock. It remains their number 2 overall pick.

Analysts led by Vivien AZER wrote in a report that “Revenues were above our expectations for most operating segments except Quaker.”

Frito-Lay North America’s revenue rose by 14%. Quaker Foods North America increased 1%, and PepsiCo North America’s beverage sales rose 10%.

Latin America revenue rose 18%. Europe revenue increased 13%. Africa, Middle East, and South Asia revenue decreased 8%. Asia Pacific, Australia New Zealand, and China saw a 1% increase in revenue.

PepsiCo’s most popular brands such as Lay’s Doritos Cheetos Ruffles and Doritos have seen double-digit growth in net revenues. These brands are also emerging and smaller brands that cater to consumers who want healthier options, like PopCorners SunChips Bare and Off The Eaten Path.

Frito-Lay has added options with lighter salted options, and smaller packs for consumers who are looking to control their portion sizes. The company has been diversifying its packaging and has recently introduced Frito-Lay Minis. These are bite-sized versions Doritos Cheetos Sun Chips in a canister.

The company also experiments with flavor, adding bolder, hotter combinations to existing brands. Flamin’ Hot is now available in Doritos as well as Cheetos and Funyuns.

Quaker Foods has seen double-digit growth in net revenue in the categories of grits and cookies, as well as lite snack, pancake syrups and mix categories.

PepsiCo Beverages is expanding its range of zero-sugar beverages and updating its sparkling, enhanced and ready-to drink teas. It is expanding its sports nutrition line to include powders, supplements and gummies.

Also, see: Is aspartame bad for you? What health experts have to say.

PEP -0.44% now expects organic revenue growth in fiscal 2023 of 10%. This is up from the previous 8%. It now expects that its core constant currency earnings per share will rise by 12%, compared to the previous guidance of a 9% increase. FactSet expects the core EPS to be $7.47, a rise from $7.27.

The company expects to return $7.7 billion in dividends to its shareholders this year. Dividends will be $6.7 billion and share buybacks $1.0 billion.

Stocks have gained 1.4% this year, up to Wednesday’s closing, while S&P 500 Spx, +0.74% is up 16%.

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