Despite softer demand for snacks and beverages in North America, PepsiCo delivered third-quarter revenue that exceeded analyst expectations.

For the quarter spanning July through September, PepsiCo's revenue grew 2.6% to $23.94 billion. According to FactSet analyst data, this figure surpassed Wall Street's prior expectations of $23.84 billion.

PepsiCo reported that in the North American market, sales of its Frito-Lay snacks and other food products declined 2% during the quarter, while beverage sales dropped 3%. However, the company saw sales increases in Latin American and Asian markets.

Earlier this year, PepsiCo indicated that inflation and changing consumer preferences had weakened demand for the company's beverages and snacks. To address market perceptions of "overpriced products," PepsiCo has been expanding distribution of value brands like Chester's and Santitas, while accelerating product reformulation efforts to gradually remove artificial colors from its products.

For the quarter, PepsiCo's net profit declined 11% to $2.6 billion. Excluding one-time items, the company reported earnings per share of $2.29, which also beat analyst expectations of $2.26.

The Purchase, New York-based company is currently facing pressure from activist investor Elliott Investment Management, which recently acquired $4 billion worth of PepsiCo shares.

Last month, Elliott Investment Management wrote to PepsiCo's board, pointing out that market share losses in the company's North American beverage business, along with slowing growth and declining profits in the North American food business, have negatively impacted overall company performance.

Elliott has recommended that PepsiCo streamline its food and beverage portfolio to reallocate resources toward core brands like Mountain Dew or new products such as protein snacks. Additionally, the firm suggested PepsiCo consider franchising its North American bottling operations—a strategy competitor Coca-Cola implemented in 2017.

PepsiCo Inc. shares rose slightly in pre-market trading.

Also on Thursday, PepsiCo announced the appointment of Walmart executive Steve Schmitt as its new Chief Financial Officer. Schmitt previously served as CFO of Walmart's U.S. division.

Current CFO Jamie Caulfield, who has been with PepsiCo for over 30 years, plans to retire on November 10. Following his retirement, he will continue with the company in an advisory capacity through May 15 of next year.