PEPSICO REPORTS FIRST QUARTER NET EARNINGS OF 28%

     Despite "a continuing struggle" in their restaurant
businesses, PepsiCo reported "strong" first quarter earnings that
exceeded Wall Street estimates and led to the company's highest
stock price in more than a year, according to this morning's N.Y.
TIMES.  The report, which had overall net earnings up 28% and
operating profits up 14.3%, led to a $1 increase for Pepsi stock
on the NYSE yesterday.  Pepsi continues to do well in snack food
and beverages, "but the restaurants are not a boon to them,"
according to Jesse Meyers, publisher of The Beverage Digest.
Mountain Dew and Pepsi "led the company's domestic soft-drink
segment" and  Lipton teas and other non-carbonated's grew 25%.
Also strong were Frito Lay snack products, up 17%.  But despite
two "splashy product introductions" of the stuffed crust at Pizza
Hut, and Border Lights at Taco Bell, analyst Ron Paul said
PepsiCo "still can't seem to get all of its three restaurant
businesses going together at the same time,"  (Glenn Collins,
N.Y. TIMES, 5/3).  Salomon Brothers' Andrew Conway: "They're
moving out of the woods, but the restaurant issues aren't behind
them" (WALL STREET JOURNAL, 5/3).