Continue to Site >>>

PepsiCo raises estimate of Quaker merger synergies

By Restaurant Business Staff on Aug. 13, 2001
AUGUST 13, 2001?PepsiCo, Purchase, NY, has raised to $400 million its estimate of annual synergies to be achieved by 2005 from its recently completed merger with The Quaker Oats Co, Chicago. This is $170 million more than PepsiCo?s original estimate of $230 million. Between $140 million and $175 million of the synergies are anticipated by the end of 2002. PepsiCo?s acquisition of Quaker Oats, which closed August 2, created a $25-billion food and beverage company, making it the fifth largest in the nation.

For Quaker Foods North America, the company is targeting volume growth of 1-2 percent and revenue growth of 2-3 percent for 2002-2005. Overall company revenues are expected to increase more than 7 percent, and operating profits, 11 to 12 percent--raising the bottom and top of the range by one percentage point from before the merger announcement.

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Lettuce Entertain You shares new initiatives, Eggs Up Grill makes menu moves, and the dish on pizza styles and Brooklyn food

Menu trends at RLC, how a St. Louis chef is elevating sushi, and hot sauces and LTOs in the spotlight

An inside look at the James Beard Awards, McAlister's menu expansion and creamsicle drinks

So long Menu Feed, welcome to Menu Talk

The Latest

Premium
Financing

For Starbucks, 2 years of change hasn't yielded promised results

Marketing

For restaurants, value messaging is more important than ever

Operations

Wingstop is doing great. Here's how CEO Michael Skipworth says the chicken chain can do even better

Listen to your daily news: RB PodcastsNew episodes weekdays
RB Daily
A Deeper Dive
Menu Talk
Restaurant Rewind
Working Lunch

Exclusive Content

Financing

For Starbucks, 2 years of change hasn't yielded promised results

The Bottom Line: The coffee shop giant’s sales struggles worsened earlier this year, despite a flurry of efforts to improve operations and employee satisfaction.

Food

Nando's Americanizes its menu a bit as U.S. expansion continues

Behind the Menu: Favorites like mac and cheese, bowls and salads join the fast casual’s Afro-Portuguese-rooted dishes, including the signature peri-peri chicken.

Financing

The consumer is cutting back, but not everywhere

The Bottom Line: Early earnings from major restaurant chains suggest the consumer has taken a distinct turn for the worse so far in 2024.

Trending

Premium
Financing

For Starbucks, 2 years of change hasn't yielded promised results

Marketing

For restaurants, value messaging is more important than ever

Operations

Wingstop is doing great. Here's how CEO Michael Skipworth says the chicken chain can do even better

More from our partners

How restaurants can set themselves apart as banquet venues

How to use the plus-one strategy to build unique LTOs

How restaurants can make margin improvements that improve the bottom line

Ensuring Food Safety: How Better Equipment Helps

Investing in beverage programs without maxing labor: Why innovative products matter more than ever