# PepsiCo, Inc. (PEP)

> PepsiCo makes and sells snack foods and beverages through its own operations and independent bottlers and distributors.

- Exchange: Nasdaq · Sector: Consumer Staples · Industry: Beverages Non Alcoholic
- Headquarters: Purchase, New York
- Founded: 1965
- Employees: approximately 306,000 (as of December 27, 2025)
- SEC CIK: 0000077476 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000077476))
- Full page: https://inspectstocks.com/stocks/pep
- Data as of: price 2026-09-25; newest filing used 2026-07-09; latest fiscal period ended 2026-06-13

## Grade

**A** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $93.9B | $86.4B |
| Revenue growing recently | passed | $93.9B | $91.9B |
| Free cash flow positive | passed | $7.7B |  |
| Free cash flow growing overall | passed | $7.7B | $5.6B |
| Free cash flow growing recently | passed | $7.7B | $7.2B |

Business quality (the + / − mark): 3 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 8.8% |  |
| Healthy profit margin | failed | 8.8% |  |
| Strong operating margin | failed | 12.2% |  |
| Good return on equity | passed | 40.4% |  |
| Debt under control | failed | 2.93 |  |
| Turns sales into cash | passed | 8.2% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $93.9B |
| Net income, trailing twelve months | $8.2B |
| Free cash flow, trailing twelve months | $7.7B |
| Net margin | 8.8% |
| Operating margin | 12.2% |
| Return on equity | 40.4% |
| Debt to equity | 2.93 |
| Diluted EPS, trailing twelve months | $6.00 |
| Share price | $128.63 |
| Market value | $175.6B |
| Price / earnings | 21.4x |
| Price / sales | 1.9x |

## What the business does

PepsiCo sells foods such as Lay’s potato chips, Doritos, Cheetos, Quaker oatmeal and Sabra dips, and beverages such as Pepsi, Gatorade and Mountain Dew. It makes and distributes some products itself, sells beverage concentrate to bottlers, and works with distributors, retailers and foodservice businesses to get products to buyers. Management tracks unit volume as a measure of consumer demand; in the 24 weeks ended June 13, 2026, PepsiCo Beverages North America unit volume declined 3%, while International Beverage Franchise unit volume grew 3%.

### How it makes money

- **PepsiCo Beverages North America: beverages sold in the United States and Canada** (30.0% (year ended December 31, 2025)) — Sells branded drinks, fountain syrups and beverage concentrate to retailers, distributors and bottlers. Products include Pepsi, Mountain Dew, Gatorade and Aquafina.
- **PepsiCo Foods North America: foods sold in the United States and Canada** (29.3% (year ended December 31, 2025)) — Makes and sells snacks, dips, cereals and other foods, including Lay’s, Doritos, Cheetos, Quaker and Sabra, to distributors and retailers.
- **Europe, Middle East and Africa: foods and beverages** (19.2% (year ended December 31, 2025)) — Makes, distributes and sells foods and drinks, including Walkers, Lay’s, Cheetos and Pepsi; in some markets it operates its own bottling plants.
- **Latin America Foods: foods sold in Latin America** (11.2% (year ended December 31, 2025)) — Makes, distributes and sells foods including Sabritas, Gamesa, Lay’s, Doritos and Quaker.
- **International Beverage Franchise: beverage concentrate and SodaStream products** (5.3% (year ended December 31, 2025)) — Sells beverage concentrate to independent bottlers outside North America and sells SodaStream sparkling-water makers and related products.
- **Asia Pacific Foods: foods sold in Asia Pacific** (4.9% (year ended December 31, 2025)) — Makes, distributes and sells foods including Lay’s, Doritos, Cheetos, Quaker and Kurkure.

### Products

- **Snack foods and dips** — Chips, crackers, dips and other snacks sold under brands including Lay’s, Doritos, Cheetos, Fritos, Ruffles, Tostitos and Sabra.
- **Cereals and other packaged foods** — Cereals, oatmeal, granola bars, pasta, rice, syrups and mixes sold under brands including Quaker and Pearl Milling Company.
- **Branded drinks** — Finished beverages such as Pepsi, Mountain Dew, Gatorade, Aquafina, Bubly and Propel.
- **Beverage concentrate and fountain syrup** — Concentrated drink ingredients and syrup sold to bottlers and foodservice customers, who use them to make or serve branded beverages.
- **SodaStream** — Home sparkling-water makers and related products.
- **Tea, coffee and dairy drinks** — Ready-to-drink tea and coffee sold through joint ventures, including Lipton and Starbucks-branded products, and dairy products sold under brands including Agusha, Chudo and Domik v Derevne.

### Customers

- Walmart and its affiliates, including Sam’s Club, buy products across PepsiCo’s segments; together they accounted for approximately 14% (2025, high) of consolidated net revenue.
- Grocery, drug, convenience, discount, mass-merchandise and membership-store retailers buy products for resale in their stores.
- Independent distributors buy products and deliver them to retailers and other local customers.
- Authorized independent bottlers buy concentrate or finished beverages and, under agreements for specified territories, make or sell PepsiCo-branded drinks.
- Foodservice and vending distributors and operators supply PepsiCo products to restaurants, workplaces, schools and stadiums.
- Consumers can buy products through retailers and e-commerce websites and mobile shopping applications.

### Competitors

- The Coca-Cola Company (KO) — Branded beverages sold in many of the same markets.
- Keurig Dr Pepper Inc. (KDP) — Branded beverages and drink products.
- Monster Beverage Corporation (MNST) — Energy drinks and other beverages.
- The Campbell’s Company (CPB) — Packaged foods and snack foods.
- Mondelēz International, Inc. (MDLZ) — Packaged snack foods.
- Conagra Brands, Inc. (CAG) — Packaged foods and snacks.

### What it depends on

- PepsiCo sells through independent bottlers, distributors and retailers; its beverage bottler agreements give bottlers rights in specified geographic areas.
- Walmart and its affiliates represented approximately 14% (2025, high) of consolidated net revenue; PepsiCo says losing this customer could materially affect its North American food and beverage businesses.
- Production depends on ingredients such as potatoes, corn, oats, sugar and oils, packaging such as plastic, aluminum, glass and paperboard, and fuel and energy; many are bought in open markets.
- The company uses water in manufacturing and depends on supplies of water across its operations.

### What could go wrong

- Changes in consumer demand, competition or retailer decisions could reduce sales or shelf space. PepsiCo identifies Walmart as a key customer, and says its loss could materially affect its North American food and beverage businesses.
- Disruptions or price increases affecting ingredients, packaging, transport or labor can raise production and delivery costs. The latest quarterly report cites geopolitical disruption, tariffs and commodity-cost volatility; PepsiCo may not be able to pass higher costs on without affecting sales.
- Taxes or rules on ingredients, nutrition, marketing and packaging could increase costs or restrict how PepsiCo makes, labels, sells or packages products in the more than 200 countries and territories where it operates.

## More on this company

- [Overview](https://inspectstocks.com/stocks/pep)
- [Financial statements](https://inspectstocks.com/stocks/pep/financials)
- [Competitors](https://inspectstocks.com/stocks/pep/peers)
- [Earnings](https://inspectstocks.com/stocks/pep/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.