PepsiCo Profit Rises 21% on Snack Sales

PepsiCo Inc. said fourth-quarter profit rose 21% because of lower costs and increased sales at the company’s Frito-Lay snacks unit.

Net income climbed to $805 million, or 46 cents a share, from $667 million, or 37 cents, a year earlier. Revenue rose 7% to $7.46 billion, led by a 4% increase in snack-food sales, PepsiCo said.

John Compton was named president of a new Frito-Lay salty-snack division that includes the Doritos and Cheetos brands.

Investors have expressed concern that growth may be slowing at Frito-Lay North America, which generates about two-thirds of the company’s profit and is PepsiCo’s biggest unit, while the company’s share of the U.S. soft-drink market declines.

Shares of PepsiCo, which makes Pepsi and Mountain Dew, fell 86 cents to $40.22 on the NYSE.