“Full-year organic revenue is now expected to rise by a low single-digit percentage, down from PepsiCo’s previous target of 4%,” the company said in a statement today.

Volumes for most divisions slipped in the third quarter, which led to organic revenue growth of 1.3%, below analyst estimates.

PepsiCo, which makes Lay’s potato chips and Lipton teas, is struggling as higher prices across the economy have caused consumers to rein in spending, or switch to cheaper store-branded options.

“The company expects inflation to moderate, but consumers “to remain value conscious,” it said.

“PepsiCo will focus on tightly managing our costs to better align with the subdued growth environment that we are currently operating in,” said CEO Ramón Laguarta in a statement.

He also cited “business disruptions due to rising geopolitical tensions in certain international markets,” as boycotts in the Middle East continue to impact American brands.

The company continues to suffer setbacks related to the Quaker Oats recall late last year.

Still, PepsiCo saw modest volume growth in Europe and its Asia Pacific region.

Shares were flat in premarket trading and were down 2% so far this year as of yesterday’s close.

“That compares with a 20% increase in the S&P 500 during that time.

“The Pepsi maker still expects earnings to grow by at least 8% this year on a constant currency basis,” Laguarta said.

Core earnings per share rose 5% to US$2.31 in the third quarter from a year earlier on a constant currency basis.