India, July 10 -- PepsiCo shares fell about 5% on Thursday after the company reported quarterly results and warned that costs will become higher in the second half of the year. The company said commodity costs will rise in the coming months, even as it spends more money on promotions and lowers prices to attract customers looking for cheaper products.

Investors were disappointed because PepsiCo kept its full-year forecast unchanged instead of raising it, even though it beat revenue expectations. PepsiCo's North American food business reported a 2% drop in sales, showing that demand for snacks remains weak in its biggest market.

Food and beverage companies are facing higher costs for packaging and transportation because the Iran war has ...