PepsiCo (PEP) had a good first quarter, with EPS of $1.61 representing a 7% increase above expectations of $1.52. The top line was also good with organic growth up 2.7%. Sales came in at $18.25 billion exceeding expectations of $18.07 billion. The company reiterated their guidance for organic revenue growth of 4% and EPS growth of 8% for the year.

Despite the positive report, the stock was down 2.97% today. This was likely due to concerns about the weakness at Frio Lay North America, where volumes were down 2%. The company was facing difficult comparisons at Frito Lay from the year ago period, however, management was confident about their Frito brands going forward.

After strong relative performance in recent weeks, it’s not surprising that the stock was a little weak today despite the positive report. I expect we’ll see PEP realize solid growth over the remainder of the year, with the shares continuing to outperform. PEP is a buy below $170; My target is $193.