PepsiCo
PepsiCo, Inc. is an American multinational food and beverage corporation that manufactures, markets, and distributes snacks, soft drinks, and other convenience foods worldwide.[1] The company operates in more than 200 countries and territories, with its products consumed by consumers more than one billion times a day.[2] Tracing its roots to the Pepsi-Cola Company founded in 1898 by pharmacist Caleb Bradham in New Bern, North Carolina, PepsiCo was formed in 1965 through the merger of Pepsi-Cola and Frito-Lay, Inc.[3][4] Headquartered in Purchase, New York, PepsiCo reported net revenue of nearly $92 billion in 2024, driven by its complementary portfolio of beverages and convenient foods.[5][6] Its major brands include Pepsi, Lay's, Gatorade, Doritos, Cheetos, Quaker, and Mountain Dew, among hundreds of others that generate significant market share in their categories.[2] PepsiCo's growth has been marked by strategic acquisitions, such as Quaker Oats in 2001 and Tropicana in 1998, expanding beyond carbonated soft drinks into sports drinks, snacks, and nutrition products, while facing ongoing competition from rivals like The Coca-Cola Company in the beverage sector.[7] The company employs over 318,000 people globally and emphasizes operational efficiency and portfolio diversification to sustain its position as a leader in the consumer packaged goods industry.[8]History
Origins and Founding
Caleb Bradham, a pharmacist in New Bern, North Carolina, developed the original formula for what became Pepsi-Cola in 1898 while operating a drugstore at the corner of Pollock and Middle streets.[9] The beverage, initially known as "Brad's Drink" from his experiments starting around 1893, was a syrup mixed with carbonated water, containing ingredients intended to aid digestion, including pepsin and kola nuts.[10] Bradham renamed it Pepsi-Cola in 1898, drawing from "pepsin" for its purported digestive benefits and "cola" referencing the flavor profile similar to other sodas of the era.[11] The drink gained local popularity when served from Bradham's soda fountain, leading to expanded production and bottling rights granted to franchisees across North Carolina and beyond by the early 1900s.[12] On December 24, 1902, Bradham incorporated the Pepsi-Cola Company under North Carolina law, with himself as president, formalizing operations initially in the back room of his drugstore before moving to a larger facility.[13] By 1903, the company had trademarked the name and begun national distribution efforts, though it remained a regional player amid competition from Coca-Cola.[9] Bradham's venture emphasized the beverage's health claims, marketing it as a tonic for relieving dyspepsia and providing energy, reflecting the era's patent medicine trends where pharmacists often created and sold proprietary elixirs.[12] The company's growth stalled during World War I due to sugar shortages and price controls, culminating in bankruptcy in 1923, after which assets were sold to Charles Guth, who reformed the business under Loft, Inc.[10] This early trajectory laid the groundwork for Pepsi-Cola's survival and eventual role in the 1965 merger forming PepsiCo, Inc., though the founding entity predated the conglomerate by decades.[2]Formation of PepsiCo and Mid-20th Century Growth
Pepsi-Cola Company, established in 1902 following the invention of the beverage in 1898, navigated financial challenges in the early 20th century but achieved notable recovery and expansion by the mid-20th century. Post-World War II, the company innovated in marketing, debuting the first nationwide radio jingle, "Nickel, Nickel," in 1940, which emphasized its value pricing and propelled brand recognition amid rising consumer demand for soft drinks.[10] Profits had dipped to a postwar low of $1.3 million in 1950 upon the arrival of president Herbert Steele, yet the proliferation of supermarkets facilitated bulk packaging and distribution efficiencies, driving sales growth through the 1950s as Pepsi captured a larger share of the U.S. cola market, second only to Coca-Cola.[14] International efforts began modestly, with exports to Canada in 1949, laying groundwork for broader global reach.[15] Parallel to Pepsi's beverage focus, the snack sector burgeoned with the formation and growth of Frito-Lay precursors. The Frito Company originated in 1932 when Charles Elmer Doolin purchased a corn chip recipe, while H.W. Lay & Company launched potato chip production around 1938 in Nashville, Tennessee.[16] These entities capitalized on the Depression-era demand for affordable, shelf-stable snacks, expanding regionally before merging in 1961 to create Frito-Lay, Inc., which dominated the U.S. market with brands like Fritos corn chips and Lay's potato chips, achieving combined annual sales approaching $150 million by the mid-1960s through automated production and vending machine distribution.[17] PepsiCo emerged on February 25, 1965, through the merger of Pepsi-Cola Company and Frito-Lay, Inc., a strategic consolidation valued at approximately $240 million in stock that diversified Pepsi's portfolio beyond carbonated beverages into high-margin snacks, enabling shared logistics and cross-promotional synergies.[2] The combined entity reported initial revenues exceeding $500 million, reflecting the mid-century consumer shift toward convenience foods and beverages, and listed on the New York Stock Exchange shortly thereafter, funding further expansion.[18] This formation marked a pivotal causal step in PepsiCo's trajectory, leveraging postwar economic prosperity, suburbanization, and television advertising to sustain double-digit growth rates into the late 1960s.[14]Key Acquisitions, Divestitures, and Global Expansion
In the 1970s and 1980s, PepsiCo pursued diversification beyond beverages and snacks through acquisitions in the restaurant sector, acquiring Taco Bell in 1977, Pizza Hut in 1978, and Kentucky Fried Chicken in 1986, which collectively generated significant revenue but required substantial capital investment for expansion.[14] These moves aimed to leverage synergies in foodservice distribution but faced challenges from intensifying competition and operational complexities.[19] By 1997, PepsiCo divested these restaurant chains, spinning them off as Tricon Global Restaurants (later Yum! Brands), in a transaction that provided the company with $4.5 billion in cash and allowed refocus on higher-margin core businesses of snacks and beverages.[20] This divestiture marked a strategic pivot, as restaurants had become capital-intensive with slowing growth, enabling PepsiCo to allocate resources toward product innovation and international markets rather than real estate and franchising.[21] In 1999, PepsiCo further streamlined by spinning off its largest bottler, the Pepsi Bottling Group, to reduce bottling costs and improve flexibility.[14] Post-divestiture, PepsiCo executed targeted acquisitions to strengthen its portfolio and support global expansion. In 1998, it acquired Tropicana Products from Seagram for $3.3 billion, gaining a leading position in the premium orange juice market and diversifying into non-carbonated beverages.[22] This was followed in 2001 by the $13.4 billion stock acquisition of Quaker Oats, which added Gatorade—the top U.S. sports drink—and expanded healthy snack options, facilitating entry into nutrition-focused segments amid rising health trends.[23] More recently, in 2018, PepsiCo purchased SodaStream for $3.2 billion to capitalize on at-home carbonation systems, aligning with consumer shifts toward customizable, low-sugar drinks and sustainability goals by reducing single-use plastics.[24] However, reflecting declining demand for packaged juices, PepsiCo sold a majority stake in Tropicana and its North American juice brands to PAI Partners in 2021 for $3.3 billion.[25] Global expansion accelerated through these deals and organic efforts, with early exports beginning to Canada in 1949 and extending to Latin America and Asia by the 1950s via local bottling partnerships.[15] Key acquisitions like Gamesa cookies in Mexico (1990) and Walkers crisps in the United Kingdom bolstered regional dominance in snacks, while international 7-Up rights in 1986 enhanced beverage variety abroad.[26] By leveraging such moves, PepsiCo established operations in over 200 countries, with international markets contributing substantially to revenue growth through localized production and adaptation to regional tastes.[2]Recent Strategic Developments (2010s–2025)
In 2010, PepsiCo completed the $7.8 billion acquisition of its two largest bottlers, The Pepsi Bottling Group and PepsiAmericas, to enhance control over distribution, production efficiency, and direct-to-consumer channels amid intensifying competition in carbonated soft drinks.[27] Under CEO Indra Nooyi, who led from 2006 to 2018, the company intensified its "Performance with Purpose" framework, emphasizing reduced-sugar formulations, nutritional improvements, and sustainability metrics to counter declining soda volumes, which fell 32% in the U.S. from 2010 onward due to health concerns and shifting consumer preferences toward low-calorie alternatives.[28] [29] Nooyi's strategy pivoted resources toward snacks and non-carbonated beverages, with Frito-Lay North America driving revenue growth as beverage segments stagnated.[30] Ramon Laguarta succeeded Nooyi as CEO in 2018, refocusing on operational agility and portfolio optimization amid persistent beverage market contraction.[31] In 2021, PepsiCo launched the pep+ (PepsiCo Positive) initiative, an end-to-end transformation integrating sustainability into business operations, targeting net-zero emissions by 2040, net water positivity by 2030, and reduced virgin plastic use through packaging innovations.[32] However, by 2025, the company revised these goals downward, citing insufficient external investments in recycling infrastructure and emerging technologies, while facing criticism for inadequate progress on plastic reduction and repeated rankings as a top global plastic polluter.[33] [34] pep+ emphasized positive agriculture practices and healthier product formulations, yet empirical shortfalls in emissions and waste metrics drew accusations of prioritizing financial performance over verifiable environmental outcomes.[35] Acquisitive moves supported diversification, including the 2025 purchase of Poppi, a prebiotic soda brand, for $1.95 billion to capture demand for functional, low-sugar beverages amid core cola sales erosion.[36] Net acquisition/divestiture activity turned negative, reaching -$4.408 billion for the twelve months ending September 2025, reflecting costs from integration and selective exits of underperforming assets.[37] In September 2025, activist investor Elliott Management disclosed a significant stake and proposed operational reforms, including divestitures of low-margin brands like Starry and reinvestment in core products to address stagnant growth and market share losses to competitors such as Dr Pepper.[38] These pressures highlighted causal links between over-diversification and diluted focus, with Elliott advocating for streamlined SKUs to boost efficiency and profitability.[39]Business Operations
Organizational Structure and Divisions
PepsiCo maintains a divisional organizational structure organized around geographic and product-based segments, enabling localized management of its global operations while aligning with centralized corporate governance under the CEO and board of directors. As of its 2024 fiscal year reporting, the company operates through seven reportable segments, which encompass its primary business activities in snacks, beverages, and related foods across North America and international markets.[40] This structure supports scalability and responsiveness to regional consumer preferences, with each segment led by a president or equivalent executive reporting to the global leadership team.[41] The Frito-Lay North America (FLNA) division focuses on savory snacks, including brands such as Lay's, Doritos, and Cheetos, primarily in the United States and Canada, generating approximately 20% of PepsiCo's total net revenue in 2024.[42] Quaker Foods North America (QFNA) handles cereal, rice, and pasta products under the Quaker brand, also serving the U.S. and Canada markets, though it represents a smaller portion of revenue amid competitive pressures.[42] PepsiCo Beverages North America (PBNA) oversees carbonated soft drinks, juices, and sports drinks like Pepsi, Gatorade, and Tropicana in the same region, accounting for a significant share of beverage sales through owned bottling operations.[42] Internationally, the Latin America (LatAm) segment manages both food and beverage portfolios across Mexico, Brazil, and other countries, benefiting from strong snack demand but facing currency volatility.[40] The Europe division covers snacks and beverages in Western and Eastern Europe, with key markets in the UK, Russia (prior to divestitures), and Germany.[40] Asia Pacific, Australia/New Zealand, and China Region (APAC) includes diverse operations from Walkers crisps in the UK to local beverages in China and India.[40] Finally, Africa, Middle East, and South Asia (AMESA) addresses emerging markets with products adapted for local tastes, such as in Saudi Arabia and India, where growth is driven by population expansion despite infrastructural challenges.[40] These segments incorporate numerous subsidiaries for manufacturing and distribution, such as consolidated bottlers in PBNA and franchise partners internationally, with over 700 subsidiaries worldwide as listed in SEC filings.[43] The structure underwent refinements in 2024–2025, including recast reporting for international bottling to better reflect operational integration, without altering the core divisional framework.[44]Manufacturing, Supply Chain, and Logistics
PepsiCo operates over 1,000 manufacturing facilities worldwide for producing snacks, beverages, and other convenience foods, with 291 facilities company-owned as of 2024; the remainder involve contract manufacturers, co-packers, and joint ventures to support a distributed production model.[45][46] Beverage manufacturing includes concentrate plants, such as those in Arlington, Texas, Cork, Ireland, and Singapore, followed by bottling operations conducted by PepsiCo or licensed bottlers, which accounted for 35% of consolidated net revenue in 2024.[42] To streamline its footprint under the 2019 Multi-Year Productivity Plan, the company closed four U.S. bottling plants in 2024—impacting sites in Cincinnati, Chicago, Harrisburg, Pennsylvania, and another location—affecting nearly 400 workers, and ceased manufacturing at its Detroit facility in 2025, leading to 83 layoffs.[47][48] The supply chain emphasizes sourcing raw materials like potatoes, corn, and sugar from diverse suppliers, mitigated by fixed-price contracts, purchase orders, and commodity derivatives to counter price volatility, with no major shortages reported in 2024 despite risks from climate events and labor issues.[42] In 2021, PepsiCo launched its pep+ strategy for end-to-end transformation, targeting over 40% absolute reduction in greenhouse gas emissions by 2030 through regenerative agriculture across 3.5 million acres and sustainable sourcing of nearly 70% of key crops.[49][50][51] Technological integrations include SAP S/4HANA for enterprise resource planning, SAP Integrated Business Planning, robotics for packaging, AI-driven optimization from farm to factory, and blockchain for traceability to reduce packaging waste and enhance resilience.[52][53][54] Logistics rely on a mix of direct-store-delivery (DSD) for beverages, broker-warehouse systems for snacks, and third-party providers to distribute products across over 200 countries, with Walmart comprising 14% of net revenue in 2024.[42][55] The network features owned and leased warehouses and distribution centers, including a 400,000-square-foot facility opened in Smyrna, Tennessee, in 2024 as the second-largest U.S. site, and a 1-million-square-foot expansion in Houston in 2025; distribution costs reached $16 billion that year.[56][57][42] Fleet operations combine company-owned and third-party vehicles, with cold chain technologies ensuring product freshness and ongoing decarbonization efforts varying by country to handle complex, high-volume flows.[58][59]Products and Brands
Beverages Portfolio
PepsiCo's beverages portfolio encompasses a broad array of carbonated soft drinks, sports and hydration products, bottled waters, juices, ready-to-drink teas and coffees, and emerging functional beverages, primarily managed through its PepsiCo Beverages North America (PBNA) division, which operates in the United States and Canada, alongside international beverage operations in Latin America, Europe, and Asia Middle East Africa.[42][2] In 2024, the overall beverages segment contributed approximately 42% to PepsiCo's consolidated net revenue of $91.854 billion, reflecting its central role in the company's operations despite facing volume pressures from shifting consumer preferences toward lower-sugar and functional options.[42][60] Key brands in the portfolio include flagship carbonated soft drinks such as Pepsi, Pepsi Zero Sugar, Diet Pepsi, Mountain Dew, and Diet Mountain Dew; sports drinks like Gatorade and Gatorade Zero; hydration products including Propel; and lemon-lime sodas like 7UP.[42][2] Non-carbonated offerings feature purified waters under Aquafina and flavored sparkling waters via Bubly, alongside juices from Tropicana and Naked Juice.[42] Partnerships extend to ready-to-drink Lipton teas through a joint venture with Unilever and bottled Starbucks coffees, while SodaStream provides at-home carbonation systems and flavors.[42][2] Energy and other specialized drinks include Sting Energy and international variants like Mirinda.[42] In 2024, PBNA reported net revenue growth of 0.5%, with 1% organic growth driven by net pricing actions, though unit volumes declined 3% overall—2% for carbonated soft drinks (CSD) and 4% for non-carbonated beverages (NCB)—amid declines in water (mid-single digits), Gatorade (low-single digits), and Lipton teas (high-single digits).[42] Operating profit for PBNA fell 11% to $2.302 billion on a reported basis, influenced by higher commodity and logistics costs, restructuring charges of $238 million under the extended 2019 Productivity Plan, and prior-year impairment effects including SodaStream goodwill.[42] Core operating profit stood at $3.104 billion, supported by productivity savings and portfolio shifts toward "better-for-you" options.[42] Strategically, PepsiCo emphasizes innovation in functional hydration, such as Gatorade Hydration Booster and personalized powders for Gatorade and Propel, alongside expansion of zero-sugar variants like Pepsi Zero Sugar and Gatorade Zero to address health-conscious demand.[42] The company integrates recycled PET packaging across approximately 60 countries and leverages SodaStream for customizable, lower-calorie home beverages.[42] These efforts align with broader goals of achieving 2% organic revenue growth in 2024, offsetting volume challenges through pricing and product diversification.[42]| Category | Key Brands and Examples |
|---|---|
| Carbonated Soft Drinks | Pepsi, Pepsi Zero Sugar, Mountain Dew, 7UP, Mirinda[42] |
| Sports and Hydration | Gatorade, Gatorade Zero, Propel[42] |
| Waters and Sparkling | Aquafina, Bubly, LIFEWTR, SodaStream[42] |
| Juices and Teas | Tropicana, Naked, Lipton ready-to-drink, Starbucks bottled coffee[42] |
Snacks and Convenience Foods
PepsiCo's snacks and convenience foods are primarily produced and marketed through its PepsiCo Foods North America (PFNA) division, which encompasses Frito-Lay North America (FLNA) and Quaker Foods North America (QFNA).[42] FLNA focuses on savory snacks, including potato chips, tortilla chips, corn chips, and extruded snacks, while QFNA specializes in oat-based and grain-derived convenience products such as oatmeal, cereals, and bars.[2] In 2024, PFNA contributed significantly to PepsiCo's overall net revenue of nearly $92 billion, with FLNA alone generating around $25 billion.[2][61] Frito-Lay, acquired by PepsiCo in 1965, operates as the world's largest snack food company by distribution and sales volume.[62] Its flagship brands include Lay's potato chips, Doritos tortilla chips, Cheetos cheese puffs, Fritos corn chips, Ruffles ridged chips, and Tostitos tortilla chips, which together drive the majority of savory snack sales.[2] These products emphasize flavored, shelf-stable snacks targeted at impulse and on-the-go consumption, with Lay's standing as one of PepsiCo's highest-revenue brands, exceeding $1.7 billion in annual sales as of 2017 data.[63] FLNA maintains a dominant position in the U.S. salty snack category, historically capturing over 50% market share in certain segments through extensive flavor innovation and distribution networks.[14] Quaker Foods, integrated into PepsiCo following the 2001 acquisition of Quaker Oats for $13.8 billion, provides a range of convenience-oriented products centered on oats and grains.[62] Core offerings include instant oatmeal varieties, ready-to-eat cereals, chewy granola bars, rice crisps, and baked flats in flavors like apple cinnamon and banana honey nut.[64] These items cater to breakfast and snacking occasions, with expansions into new categories such as Quaker Chewy Granola cereals launched in 2023.[65] Quaker's portfolio emphasizes nutritional claims tied to whole grains and fiber, though it operates in a competitive landscape with other cereal and bar producers.[2] The combined snacks and convenience foods segments leverage PepsiCo's integrated supply chain for potato and grain sourcing, flavor development, and global distribution adaptations, such as localized variants like Lay's Dill Pickle in Canada.[66] In fiscal 2024, these categories demonstrated resilience amid fluctuating consumer demand, with reported operating profit margins for FLNA at 43% on a divisional basis.[42] PepsiCo continues to innovate in healthier options and sustainable packaging within this portfolio to address evolving preferences for reduced sodium and plant-based snacks.[2]Emerging and Diversified Offerings
PepsiCo has expanded into functional beverages and nutrition-focused snacks through strategic acquisitions and product innovations, targeting consumer demand for healthier alternatives amid scrutiny over traditional sugary and high-calorie offerings. In March 2025, the company announced the acquisition of Poppi, a prebiotic soda brand emphasizing gut health with low-sugar, naturally flavored sodas containing apple cider vinegar and inulin fiber, for $1.95 billion; the deal closed in May 2025, integrating Poppi into PepsiCo's beverage portfolio to bolster its presence in the rapidly growing functional drinks segment, projected to expand due to rising interest in digestive wellness.[67][68] This move complements earlier efforts like the 2018 SodaStream acquisition, which enabled at-home carbonation for customized low-calorie beverages, though Poppi represents a more direct entry into prebiotic formulations.[67] In the snacks category, PepsiCo acquired Siete Foods in October 2024 for $1.2 billion, gaining a lineup of grain-free, gluten-free Mexican-inspired products such as almond flour tortillas, cassava-based chips, and bean dips, which align with trends toward plant-based and allergen-friendly options without artificial additives.[69] This acquisition enhances diversification beyond conventional potato and corn snacks, emphasizing higher-protein and fiber-rich alternatives like multigrain varieties, as part of a broader push into "better-for-you" categories that accounted for increasing revenue shares by 2025.[70][71] New product launches underscore these efforts, including Pepsi Prebiotic sodas with added fiber for gut support and Gatorade variants with reduced sugar and no artificial ingredients, alongside protein-fortified items like Starbucks bottled coffees targeting active consumers.[72] In October 2025, PepsiCo outlined plans to accelerate such innovations, including expanded protein-infused beverages and snacks, to counter softening demand in core segments by appealing to health-conscious demographics.[73] These offerings reflect PepsiCo's response to empirical shifts in preferences, evidenced by category growth rates in low-sugar and functional foods outpacing traditional lines from 2020 to 2025, though their long-term impact depends on sustained consumer adoption amid competitive pressures from niche brands.[70][74]Financial Performance
Historical Revenue and Profit Trends
PepsiCo's net revenue has demonstrated steady long-term expansion, rising from $57.838 billion in 2010 to $91.854 billion in 2024, reflecting a compound annual growth rate of approximately 3.7%, attributable to organic volume increases, pricing actions, and contributions from acquisitions such as the 2010 purchase of Pepsi Bottling Group and PepsiAmericas, which boosted scale in North American bottling operations.[60] This growth trajectory aligns with broader consumer staples sector dynamics, where incremental gains stem from diversified portfolios in beverages and snacks amid varying economic conditions, though tempered by currency fluctuations and competitive pressures in mature markets.[60] Key periods of acceleration include 2011, with a 15.01% surge to $66.504 billion following integration of bottling assets and emerging market penetration, and 2021's 12.92% rise to $79.474 billion, supported by pandemic-driven demand for packaged foods and recovery in out-of-home consumption channels.[60] Conversely, modest contractions occurred in 2015 (-5.45%) and 2016 (-0.41%), linked to divestitures like the North American nutrition business sale and unfavorable foreign exchange impacts, while 2024's 0.42% increment to $91.854 billion signals a deceleration amid inflationary cost pass-through challenges and softening volumes in certain international regions.[60] Net income trends reveal greater volatility than revenue, influenced by non-operating factors such as tax reforms and restructuring charges, with reported figures fluctuating from a low of $4.857 billion in 2017—impacted by U.S. Tax Cuts and Jobs Act repatriation costs—to a peak of $12.513 billion in 2018, boosted by related tax benefits.[75] Excluding such one-time items, underlying profitability has trended upward, as evidenced by core constant currency earnings growth in recent annual reports, reflecting operational efficiencies and margin expansion from productivity initiatives.[75] From 2020 to 2024, net income recovered and stabilized, increasing from $7.120 billion to $9.578 billion, driven by revenue leverage and cost controls despite input cost inflation.[75] The following table summarizes annual revenue and net income from 2010 to 2024:| Year | Revenue ($B) | YoY Growth (%) | Net Income ($B) | YoY Growth (%) |
|---|---|---|---|---|
| 2010 | 57.838 | - | 6.314 | - |
| 2011 | 66.504 | 15.01 | 6.436 | 1.94 |
| 2012 | 65.492 | -1.52 | 6.171 | -4.11 |
| 2013 | 66.415 | 1.41 | 6.740 | 9.24 |
| 2014 | 66.683 | 0.41 | 6.503 | -3.52 |
| 2015 | 63.056 | -5.45 | 5.452 | -16.15 |
| 2016 | 62.799 | -0.41 | 6.329 | 16.07 |
| 2017 | 63.525 | 1.16 | 4.857 | -23.24 |
| 2018 | 64.661 | 1.81 | 12.513 | 157.66 |
| 2019 | 67.161 | 3.87 | 7.314 | -41.54 |
| 2020 | 70.372 | 4.78 | 7.120 | -2.66 |
| 2021 | 79.474 | 12.92 | 7.618 | 7.01 |
| 2022 | 86.392 | 8.70 | 8.910 | 16.96 |
| 2023 | 91.471 | 5.88 | 9.074 | 1.84 |
| 2024 | 91.854 | 0.42 | 9.578 | 5.55 |
Key Metrics and Shareholder Value
PepsiCo's return on equity (ROE) stood at 52.97% for fiscal year 2024, indicating strong profitability relative to shareholders' equity amid leverage from debt financing.[76] The company's net profit margin reached 10.4% in 2024, derived from net income of $9.58 billion on revenue of $91.85 billion.[77] Free cash flow generation totaled $7.19 billion for the year, providing resources for reinvestment and shareholder distributions after capital expenditures.[78] The firm has prioritized shareholder returns through dividends and share repurchases, distributing $73 billion over the decade ending 2024, with dividends comprising the majority at $55 billion.[79] PepsiCo raised its annualized dividend to $5.69 per share in February 2025, up 5% from $5.42, marking continued growth in payouts that averaged 7% annually over the prior five years.[80] [81] Share repurchases were more modest, totaling $1.0 billion in the first three quarters of 2025, reflecting a conservative approach amid organic growth priorities.[82]| Key Metric | 2024 Value | Notes/Source |
|---|---|---|
| Revenue | $91.85 billion | +0.42% YoY[83] |
| Net Income | $9.58 billion | Supports EPS growth[77] |
| Free Cash Flow | $7.19 billion | Funds returns and capex[78] |
| ROE | 52.97% | Annual figure[76] |
| Dividend per Share (Annualized, post-2025 increase) | $5.69 | Yield ~3% at prevailing prices[80] |
2024–2025 Results and Outlook
PepsiCo reported full-year 2024 revenue of $91.9 billion, flat compared to $91.5 billion in 2023, reflecting a combination of modest organic revenue growth offset by unfavorable foreign exchange impacts and divestitures.[84] Net income attributable to common shareholders rose 5.6% to $9.58 billion, driven by operational efficiencies and lower input costs in some areas, though adjusted earnings per share missed analyst expectations.[84] Operating profit increased to $12.9 billion, supported by stronger performance in international markets, which accounted for about 40% of net revenue and delivered robust growth.[85] Net cash provided by operating activities declined 7% to $12.5 billion, attributed to working capital changes and higher interest payments.[86] In the fourth quarter of 2024, revenue totaled $27.8 billion, slightly below the $27.9 billion consensus estimate, while adjusted earnings per share reached $1.96, exceeding forecasts of $1.94.[87] Key challenges included persistent volume softness in North American beverages amid consumer price sensitivity following inflation and shifts toward healthier options, partially mitigated by pricing actions and strength in snack categories like Frito-Lay.[80] The company announced a 5% increase in its annualized dividend to begin with the June 2025 payment, marking the 53rd consecutive annual raise.[80] For 2025, PepsiCo affirmed guidance for low-single-digit organic revenue growth, reflecting expectations of volume recovery in core markets through targeted marketing and product innovation, tempered by macroeconomic uncertainties.[82] Core constant-currency earnings per share are projected to be approximately even with 2024 levels, incorporating assumptions of stable input costs but potential headwinds from currency fluctuations and competitive pressures.[88] This outlook, reiterated after third-quarter 2025 results showing sequential improvements in beverage volumes, implies a modest 0.5% decline in core EPS under certain scenarios, prioritizing long-term margin expansion over short-term growth acceleration.[82][89]Governance and Leadership
Executive Team and Board of Directors
Ramon Laguarta serves as Chairman of the Board and Chief Executive Officer of PepsiCo, positions he has held since February 2019 and October 2018, respectively; a 25-year company veteran, Laguarta previously led PepsiCo's Europe and South Asia operations and has focused on portfolio transformation toward sustainable growth in beverages and snacks.[41][90] The senior executive team includes Steven C. Williams as Chief Executive Officer of PepsiCo Foods North America (PFNA), overseeing the company's largest snacks division with responsibility for Frito-Lay North America since 2019.[91] Silviu Popovici serves as Chief Executive Officer for Europe, managing regional operations across more than 30 countries.[92] Rebecca Schmitt acts as Executive Vice President and Chief People Officer, handling global human resources and talent strategies.[93] In finance, Steve Schmitt was appointed Executive Vice President and Chief Financial Officer effective November 10, 2025, succeeding Jamie Caulfield upon his retirement; Schmitt, a former Walmart executive, brings expertise in retail finance and operations.[94] Christine Tammara joined as Senior Vice President and Controller in May 2025, serving as Principal Accounting Officer.[41] PepsiCo's Board of Directors comprises 15 members as of early 2025, including the CEO and 14 independent directors nominated for election at the annual shareholder meeting on May 7, 2025; the board emphasizes expertise in consumer goods, finance, technology, healthcare, and global markets to oversee strategy, risk, and governance.[95][96]| Director | Principal Occupation | Director Since | Key Expertise |
|---|---|---|---|
| Ramon L. Laguarta | Chairman and CEO, PepsiCo | 2018 | Consumer packaged goods, global operations |
| Segun Agbaje | CEO, Guaranty Trust Holding Company Plc | 2020 | Financial services, emerging markets |
| Jennifer Bailey | VP Internet Services, Apple Inc. | 2023 | Digital payments, consumer marketing |
| Cesar Conde | Chairman, NBCUniversal News Group | 2016 | Media, omnichannel marketing |
| Ian Cook | Former Chairman and CEO, Colgate-Palmolive | 2008 | Consumer products, risk management (Presiding Director) |
| Edith W. Cooper | Co-Founder and CEO, Medley (ex-Goldman Sachs) | 2021 | Human capital, fintech |
| Susan M. Diamond | Former CFO, Humana Inc. | 2023 | Healthcare finance, auditing |
| Dina Dublon | Former EVP and CFO, JPMorgan Chase | 2005 | Banking, risk management |
| Michelle Gass | President and CEO, Levi Strauss & Co. | 2019 | Retail, consumer branding |
| Sir Dave J. Lewis | Former CEO, Tesco PLC | 2020 | Retail, supply chain |
| David C. Page, MD | Professor, MIT | 2014 | Medical research, nutrition |
| Robert C. Pohlad | President and CEO, Pohlad Holdings | 2015 | Beverages, investments |
| Daniel Vasella, MD | Former Chairman and CEO, Novartis AG | 2002 | Healthcare, regulatory affairs |
| Darren Walker | President, Ford Foundation | 2016 | Philanthropy, public policy |
| Alberto Weisser | Former Chairman and CEO, Bunge Limited | 2011 | Agribusiness, commodities |
Ownership and Shareholder Composition
PepsiCo, Inc. is a publicly traded corporation listed on the Nasdaq stock exchange under the ticker symbol PEP, with no single controlling shareholder or dominant individual owner. Ownership is highly dispersed, primarily among institutional investors who collectively hold the majority of shares. As of September 2025, institutional ownership accounts for approximately 73% to 79% of outstanding shares, reflecting the company's appeal to large asset managers due to its stable dividend history and diversified consumer goods portfolio.[98][99][100] The largest institutional shareholders include Vanguard Group, Inc., which owns around 10% of the company, followed by BlackRock, Inc. and State Street Corporation, each holding significant stakes through index funds and other vehicles tracking broad market benchmarks. Specific funds under these managers, such as Vanguard Total Stock Market Index Fund (3.14% as of June 30, 2025) and Vanguard 500 Index Fund (2.77% as of June 30, 2025), contribute to this concentration, underscoring the influence of passive investment strategies on PepsiCo's shareholder base. Other notable holders include JPMorgan Investment Management (2.34%) and Charles Schwab Investment Management (approximately 2%). This institutional dominance implies that proxy voting and governance decisions are largely shaped by these entities' policies, often aligned with long-term value preservation over short-term activism.[101][98][102] Insider ownership remains minimal, at about 0.19% to 0.48% of shares as of October 2025, primarily consisting of restricted stock units and grants to executives and directors such as CEO Ramon Laguarta and board members. This low level indicates limited direct alignment incentives beyond performance-based compensation, with recent transactions including stock awards on October 1, 2025, valued at approximately $200,000 per insider for multiple directors. The remaining shares, roughly 20% to 25%, are held by retail investors and other public float, contributing to a broad but fragmented non-institutional base.[98][103][104]| Category | Approximate Ownership (%) | Key Holders/Notes |
|---|---|---|
| Institutional | 73–79 | Vanguard (~10%), BlackRock, State Street; 4,000+ institutions total |
| Insider | 0.19–0.48 | Executives and directors; minimal influence |
| Public/Float | 20–25 | Retail and other non-institutional |