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

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

How Gott's Roadside evolves the menu while honoring the restaurant's 25-year legacy

The Latest

Financing

Sticky's Finger Joint declares bankruptcy

Leadership

Dave & Buster's names a CFO, Wienerschnitzel adds a development chief and more restaurant executive moves

Marketing

New research shows a wait for a table can be a potent restaurant draw

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

Exclusive Content

Financing

Despite their complaints, customers keep flocking to Chipotle

The Bottom Line: The chain continued to be a juggernaut last quarter, with strong sales and traffic growth, despite frequent social media complaints about shrinkflation or other challenges.

Operations

Hitting resistance elsewhere, ghost kitchens and virtual concepts find a happy home in family dining

Reality Check: Old-guard chains are finding the alternative operations to be persistently effective side hustles.

Financing

The Tijuana Flats bankruptcy highlights the dangers of menu miscues

The Bottom Line: The fast-casual chain’s problems following new menu debuts in 2021 and 2022 show that adding new items isn’t always the right idea.

Trending

Financing

Sticky's Finger Joint declares bankruptcy

Leadership

Dave & Buster's names a CFO, Wienerschnitzel adds a development chief and more restaurant executive moves

Marketing

New research shows a wait for a table can be a potent restaurant draw

More from our partners

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

Case study: Labor-Saving Ingredients Aid Innovation