Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Common-Size Income Statement 

PepsiCo Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 27, 2025 Dec 28, 2024 Dec 30, 2023 Dec 31, 2022 Dec 25, 2021
Net revenue 100.00 100.00 100.00 100.00 100.00
Cost of sales -45.85 -45.45 -45.79 -46.97 -46.65
Gross profit 54.15% 54.55% 54.21% 53.03% 53.35%
Selling, general and administrative expenses -39.78 -40.49 -40.10 -39.89 -39.30
Gain associated with the Juice Transaction 0.00 0.00 0.00 3.84 0.00
Impairment of intangible assets -2.12 -0.04 -1.01 -3.66 0.00
Operating profit 12.24% 14.03% 13.10% 13.33% 14.04%
Other pension and retiree medical benefits income (expense) -0.14 -0.02 0.27 0.15 0.66
Interest expense -1.96 -1.75 -1.57 -1.30 -2.50
Interest income and other 0.77 0.75 0.68 0.21 0.16
Net interest expense and other -1.19% -1.00% -0.90% -1.09% -2.34%
Income before income taxes 10.91% 13.01% 12.48% 12.39% 12.36%
Provision for income taxes -2.08 -2.53 -2.47 -2.00 -2.70
Net income 8.83% 10.48% 10.01% 10.39% 9.66%
Net income attributable to noncontrolling interests -0.06 -0.05 -0.09 -0.08 -0.08
Net income attributable to PepsiCo 8.77% 10.43% 9.92% 10.31% 9.59%

Based on: 10-K (reporting date: 2025-12-27), 10-K (reporting date: 2024-12-28), 10-K (reporting date: 2023-12-30), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-25).

The common-size income statement reveals several noteworthy trends in the company’s financial performance over the five-year period. Overall, the company demonstrates a generally stable revenue structure, with fluctuations occurring in profitability and expense management. Gross profit margins exhibit improvement initially, followed by a slight decline, while operating profit experiences more volatility.

Gross Profit
Gross profit as a percentage of net revenue increased from 53.35% in 2021 to 54.21% in 2023, indicating improved efficiency in managing the cost of sales. However, this margin decreased slightly to 54.15% in 2025. The cost of sales remained relatively consistent, fluctuating between -46.65% and -45.45% of net revenue, suggesting stable production or procurement costs.
Operating Profit
Operating profit experienced a decline from 14.04% in 2021 to 13.10% in 2023, before recovering to 14.03% in 2024. A more significant decrease is observed in 2025, falling to 12.24%. This volatility suggests changes in the management of selling, general, and administrative expenses, as well as the impact of non-recurring items like impairment charges.
Selling, General and Administrative Expenses
Selling, general and administrative expenses consistently represent a substantial portion of net revenue, ranging from -39.30% to -40.49%. A slight decrease is observed in 2025 to -39.78%, potentially contributing to the lower operating profit margin in that year. The consistent high percentage indicates significant investment in these areas.
Non-Recurring Items
The “Gain associated with the Juice Transaction” contributed 3.84% to net revenue in 2022, representing a one-time boost to profitability. Impairment of intangible assets negatively impacted operating profit in 2022 (-3.66%), 2023 (-1.01%), 2024 (-0.04%), and 2025 (-2.12%), with the 2025 impairment having the most substantial impact. These impairments suggest potential write-downs of asset values.
Interest and Pension Expenses
Interest expense decreased from -2.50% to -1.30% between 2021 and 2022, then increased steadily to -1.96% in 2025, indicating a potential shift in the company’s debt structure or interest rates. Other pension and retiree medical benefits income (expense) fluctuated, moving from a positive 0.66% in 2021 to a negative -0.14% in 2025, suggesting changes in pension plan performance or accounting adjustments.
Net Income
Net income as a percentage of net revenue followed a similar pattern to operating profit, increasing from 9.66% in 2021 to 10.48% in 2024, before declining to 8.83% in 2025. This decline aligns with the decrease in operating profit and the increased impairment charges observed in the final year. Net income attributable to PepsiCo mirrors this trend, moving from 9.59% to 8.77% over the period.
Tax Rate
The provision for income taxes remained relatively stable, fluctuating between -2.00% and -2.70% of net revenue. This consistency suggests a relatively stable effective tax rate throughout the period.