PepsiCo reported a 2 percent fall in second-quarter profit as carbonated soft drink volumes declined 2 percent in North America.
The company's net income fell to $1.98 billion, or $1.29 per share, in the 12 weeks ended June 14 from $2.01 billion, or $1.28 per share, a year earlier.
Excluding items, PepsiCo earned $1.32 per share.
Revenue rose 0.5 percent to $16.89 billion.
Shares of PepsioCo were higher in premarket trading following the report. (Click here to track its shares in premarket trade following the report.)
On Tuesday, PepsiCo's beverages competitor Coca-Cola reported quarterly earnings that beat estimates by a penny a share, a sign of "steady progress" in North America, Chairman and CEO Muhtar Kent told CNBC.
Nelson Peltz, the founding partner and CEO of Trian Fund Management, holds a stake in PepsiCo through his fund. He has urged Pepsi to spin off its beverage business and last week hinted at a potential for a proxy contest at the firm in an interview at the Delivering Alpha conference hosted by CNBC and Institutional Investor.
On Tuesday, rival Coca-Cola told CNBC it is "making steady progress" in North America, where the Coke brand grew for "the first time in a long time."
Read MoreCoca-Cola earnings beat by a penny a share
—By Reuters with CNBC