Pepsi loses fizz as coronavirus hits restaurant customers

Company still plans dividend payout of $5.5 billion

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PepsiCo Inc. said Tuesday it had net income of $1.338 billion, or 96 cents a share, in its fiscal first quarter to March 21, down from $1.413 billion, or $1 a share, in the year-earlier period.

Revenue rose to $13.881 billion from $12.884 billion. The FactSet consensus was for earnings of $1.03 and revenue of $13.192 billion.

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"Despite a strong first quarter, there is still a great deal of uncertainty that exists in relation to COVID-19, including how geographies, retail channels and consumer behaviors will evolve over time," the company said in a statement. "Due to this uncertainty, the company's previous financial outlook regarding fiscal year 2020 is no longer applicable."

The company is still expecting to return $7.5 billion to shareholders in fiscal 2020, split between dividends of $5.5 billion and share buybacks of $2.0 billion. Shares rose 0.9% premarket and are down 1.6% in 2020, while the S&P 500 has fallen 11%.