PepsiCo
By: Ashley Cleary, Sylvia LaBrie, Andrea Baril,
Marie-Michele Lachance
Overview




Company Overview
History of Pepsi
Growth
Existing Mission and Vision
statement
 Income Statement
 Balance Sheet
History
 In 1965: PepsiCo, Inc. is founded by Donald M. Kendall, President and CEO of
Pepsi-Cola and Herman W. Lay, Chairman and CEO of Frito-Lay, through the
merger:
 Pepsi-Cola In 1898: Caleb Bradham, a New Bern, North Carolina, pharmacist,
created "Brad's Drink," a carbonated soft drink he created to serve his
drugstore's fountain customers.

 The Major products of the companies are:
 Pepsi-Cola Company
 Fritos brand corn chips, Lay's brand potato chips, Cheetos brand cheese
flavored snacks, Ruffles brand potato chips, Rold Gold brand pretzels.
 Mountain Dew
Global
• Pepsi products are in almost 200 countries throughout the world
• There are 22 different brand lines that account for at least $1 billion
per year per brand
Mission Statement
 Their mission is to be the world's premier consumer
products company focused on convenient foods and
beverages.They seek to produce financial rewards to
investors as they provide opportunities for growth
and enrichment to their employees,their business
partners and the communities in which they
operate. And in everything they do,they strive for
honesty, fairness and integrity.
Vision Statement
PepsiCo's responsibility is to continually improve all
aspects of the world in which they operate environment, social, economic - creating a better
tomorrow than today."
Their vision is put into action through programs and a
focus on environmental stewardship, activities to
benefit society, and a commitment to build
shareholder value by making PepsiCo a truly
sustainable company.
Opportunities
1. Opening in market for less costly products
2. Growth opportunities in developed countries as well as international
nonestablished countries
3. Pepsi recently reacquired ownership of its two largest bottlers, Pepsi
Bottling Group (PBG) and PepsiAmericas (PAS)
4. Compete in more than one industry (non-alcoholic beverage industry, the
salty or savory snack food industry, and the breakfast food industry)
5. Growth in the carbonated drink market is the largest in Asia and Europe
6. The world's demand is experiencing a growth with the sports drinks,
bottled water, and energy drinks
Threats
1. Fierce competition from Coca-Cola, which owns the largest piece of the
market share
2. The downturn in economy, which lead customers to shift away from
bottles of water to tap water.
3. Because of the recession, customers are finding cheaper alternatives to
the national brands.
4. Customers are getting more conscious and concerned about their eating
habits and general health.
5. Campaign against plastic containers has impacted the sale of bottled
beverages
6. Highly dependent on supplies of clean water, to prevent contamination
Market Share
6%
14%
PepsiCo
Coca-Cola
Others
80%
Strengths
1. Strong brand equity
2. Well-known worldwide
3. Innovating company
4. Ethical, socially responsible, and sustainable company
5. Strong advertising company with more than 40 slogans and songs
6. PepsiCo as the largest part of the market share after Coca-Cola
7. PepsiCo owns a wide variety of smaller brands which able them to
offer a large product range from beverages to snacks
Weaknesses
1.PepsiCo production is really expansive because of the need to
constantly develop new products to meet the changing customers
demands
2. PepsiCo is experiencing a lack of focus towards Pepsi sodas
3. PepsiCo is experiencing product recalls
4. PepsiCo has a low employment productivity and a weak distribution
5. PepsiCo depends too much on the US market
6. PepsiCo is far behind Coca-Cola in the international market
Income Statement
(in millions except per share amounts)
Net Revenue
Cost of sales
Selling, general and administrative expenses
Amortization of intangible assets
Operating Profit
Bottling equity income
Interest expense
Interest income
Income before Income Taxes
Provision for Income Taxes
Net Income
Less: Net income attributable to noncontrolling
interests
Net Income Attributable to PepsiCo
Net Income Attributable to PepsiCo per Common
Share
Basic
Diluted
2009
$43,232.00
$20,099.00
$15,026.00
$63.00
$8,044.00
$365.00
($397.00)
$67.00
$8,079.00
$2,100.00
$5,979.00
$33.00
$5,946.00
$3.81
$3.77
(In millions except per share amounts)
Assets
Current Assets
Cash and cash equivalents
Short-term investments
Accounts and notes receivable, net
Inventories
Prepaid expenses and other current assets
Total Current Assets
Property, Plant and Equipment, net
Amortizable Intangible Assets, net
Goodwill
Other nonamortizable itangible assets
Nonamortizable Intangible Assets
Investments in Noncontrolled Affiliates
Other Assets
Total Assets
Liabilities and Equity
Current Liabilities
Short-term obligations
Accounts payable and other current liabilities
Income taxes Payable
Total Current Liabilities
Long-Term Debt Obligations
Other Liabilities
Deferred Income Taxes
Total Liabilities
Commitments and Contigencies
Preferred Stock, no par value
Repurchased Preferred Stock
PepsiCo Common Shareholders' Equity
Common stock, par value 1 2/3 cents per share
(authorized 3,600 shares, issued 1,782 shares)
Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss
Repurchased common stock, at cost (217 and 229
shares,respectively)
Total PepsiCo Common Shareholders' Equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity
Balance Sheet
2009
$
$
$
$
$
$
$
$
$
$
$
$
$
$
3,943.00
192.00
4,624.00
2,618.00
1,194.00
12,571.00
12,671.00
841.00
6,534.00
1,782.00
8,316.00
4,484.00
965.00
39,848.00
$
$
$
$
$
$
$
$
464.00
8,127.00
165.00
8,756.00
7,400.00
5,591.00
659.00
22,406.00
$
$
41.00
(145.00)
$
30.00
$
250.00
$ 33,805.00
$ (3,794.00)
$ (13,383.00)
$ 16,908.00
$
638.00
$ 17,442.00
$ 39,848.00
Financial Trends
1-Dec-09
1-Dec-08
1-Dec-07
1-Dec-06
1-Dec-05
1-Dec-04
1-Dec-03
1-Dec-02
Avg P/E
14.7
20.6
19.6
18.3
23.3
21.2
21.6
27.7
Price/
Sales
2.22
2.02
3.24
3
3.1
3.07
3
2.96
Price/
Book
5.68
7
7.17
6.67
6.87
6.45
6.67
7.53
Net
Profit
Margin
(%)
13.7
11.9
14.4
16
12.5
14.2
13.2
11.8
Book
Value/
Share
$10.74
$7.80
$10.74
$9.38
$8.61
$8.05
$6.96
$5.53
Adapted from www.moneycentral.msn.com
Debt/
Equity
0.47
0.68
0.24
0.18
0.37
0.26
0.19
0.29
Return Return
on
on
Equity Assets Interest
(%)
(%)
Coverage
35.4
14.9
20.3
42.5
14.3
21.2
33
16.4
32.1
36.7
18.9
27.2
28.6
12.9
23.1
30.9
14.9
31.5
30
14.1
29.3
31.5
12.8
24.1
Internal Assessment
Stock Price History
Revenue Distribution