PepsiCo reported quarterly earnings this morning, exceeding analysts' core EPS estimate of $1.74 a share - reporting $1.86 a share. Market reaction to the report has been positive thus far, with shares up 1.21% in premarket trading.

Chairman and CEO Ramon Laguarta commented, "Given our year-to-date performance, we now expect our full-year organic revenue to increase 10 percent (previously 8 percent) and we continue to expect core constant currency earnings per share to increase 8 percent."

Given increased pricing, supply chain constraints and increased input costs, it's pretty remarkable to hear such news. This is essentially due to PepsiCo's brand power and the ability for the company to pass their increased costs onto the consumer.

The PepsiCo family of brands includes products like its flagship sodas (Pepsi, Mountain Dew, Orange Crush), Quaker & Frito-Lays.

I mysely have experienced the "sticker shock" at seeing the price of a 12-pack of Pepsi at almost $10 recently. My favorite bag of chips is now almost $5. Personally, I have cut back on these snack items. I wait until they're on sale to buy. But the majority of consumers will buy no matter what the price. People are creatures of habit and that includes their choices of sodas and snack foods.

Are you a Coke or Pepsi person?

PepsiCo referred to a "ceiling price" for their products, a price that can't be raised any higher or else face backlash from the retailers selling their products. Next quarter will certainly be interesting, as the cost of some raw materials has temporarily cooled off.

Tomorrow we will see the June CPI release to see if inflation may be peaking, or if there still may be more pain ahead. PepsiCo stock is down 1.45% year-to-date, but for where the United States stands with inflation and recessionary concerns, that's really not too shabby compared to some other stocks.