PepsiCo's stock fell sharply during Thursday's intraday session, dropping 5.05% as investors reacted to the company's second-quarter earnings report that showed weaker-than-expected performance in its core North American market.

The beverage and snacks giant reported core earnings per share of $2.20, narrowly missing the $2.21 analyst estimate, despite revenue of $24.18 billion beating expectations. More concerning to investors was the company's disclosure that North American business was softer than anticipated, with organic volume declining 4% as tightening consumer budgets due to rising inflationary pressures weighed on demand.

CEO Ramon Laguarta noted that higher gas prices are cutting into consumer snack budgets, while the company also warned of higher input cost inflation in the second half of the year. PepsiCo maintained rather than raised its full-year guidance, expecting organic revenue growth of 2% to 4% and core constant currency EPS growth of 4% to 6%, which disappointed investors looking for more positive signals about future performance.