PepsiCo Inc. says its net income dipped 5 per cent in the third quarter, as the food and beverage maker worked to turn around its business and bolster its flagship brands.

The company stood by its guidance for the year, however, and profit came in above Wall Street expectations.

PepsiCo says it earned $1.9 billion, or $1.21 per share, for the period. That's compared with $2 billion, or $1.25 per share, a year ago. Earnings from core operations were $1.20 per share, better than the $1.16 per share analysts expected.

Revenue fell 5 per cent to $16.65 billion, partly because of unfavourable currency exchange rates and the refranchising of its business in China and Mexico. That was short of the $16.96 billion Wall Street expected.