Analysis of Reportable Segments
PepsiCo Inc. operates in 6 segments: PepsiCo Foods North America (PFNA); PepsiCo Beverages North America (PBNA); International Beverages Franchise (IB Franchise); Europe, Middle East and Africa (EMEA); Latin America Foods (LatAm Foods); and Asia Pacific Foods.
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- Income Statement
- Statement of Comprehensive Income
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Analysis of Debt
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Segment Profit Margin
PepsiCo Inc., profit margin by reportable segment
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods |
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).
Segment profit margins exhibited varied performance between 2023 and 2025. Several segments experienced notable shifts in profitability, while others demonstrated relative stability. Overall, the period reveals a dynamic landscape of segment-level financial health.
- PepsiCo Foods North America (PFNA)
- PFNA demonstrated a consistent, albeit declining, profit margin over the observed period. Starting at 25.87% in 2023, the margin decreased to 24.13% in 2024 and further to 22.42% in 2025. This suggests potential pressures on input costs, pricing power, or increased competition within the North American food market.
- PepsiCo Beverages North America (PBNA)
- PBNA experienced a significant decline in profit margin. Beginning at 9.35% in 2023, the margin decreased to 8.29% in 2024 and sharply to 3.86% in 2025. This substantial reduction warrants further investigation, potentially indicating increased promotional activity, rising commodity costs specific to beverages, or shifts in consumer preferences.
- International Beverages Franchise (IB Franchise)
- The IB Franchise exhibited a strong upward trend in profit margin. Starting at 12.44% in 2023, the margin increased substantially to 29.97% in 2024 and continued to rise to 35.40% in 2025. This positive trajectory suggests successful international expansion, favorable currency exchange rates, or improved operational efficiency within the franchise.
- Europe, Middle East and Africa (EMEA)
- EMEA demonstrated relative stability with a slight upward trend in profit margin. The margin increased from 10.88% in 2023 to 11.83% in 2024, followed by a slight decrease to 11.68% in 2025. This indicates a generally consistent performance within the region.
- Latin America Foods (LatAm Foods)
- LatAm Foods showed a modest increase in profit margin, peaking in 2024 before a slight decline. The margin rose from 17.95% in 2023 to 19.42% in 2024, then decreased slightly to 19.05% in 2025. This suggests a generally healthy performance, with potential regional economic factors influencing the minor fluctuation.
- Asia Pacific Foods
- Asia Pacific Foods experienced a slight increase in profit margin from 6.71% in 2023 to 8.29% in 2024, followed by a minor decrease to 7.97% in 2025. This indicates a relatively stable, though modest, profitability within the region.
In summary, the period between 2023 and 2025 was characterized by divergent performance across segments. The IB Franchise demonstrated significant growth, while PBNA experienced a substantial decline. PFNA showed a consistent decrease, and EMEA, LatAm Foods, and Asia Pacific Foods exhibited relative stability with minor fluctuations.
Segment Profit Margin: PepsiCo Foods North America (PFNA)
PepsiCo Inc.; PepsiCo Foods North America (PFNA); segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
Analysis of PepsiCo Foods North America (PFNA) reveals a declining trend in segment profit margin over the observed period. Segment operating profit and net revenue figures demonstrate a corresponding pattern, offering insights into the segment’s performance.
- Segment Profit Margin
- The segment profit margin decreased consistently from 2023 to 2025. Starting at 25.87% in 2023, it fell to 24.13% in 2024, and further declined to 22.42% in 2025. This represents a cumulative decrease of 3.45 percentage points over the three-year period.
- Segment Operating Profit
- Segment operating profit exhibited a decreasing trend. It stood at US$7,247 million in 2023, decreased to US$6,619 million in 2024, and continued to decline to US$6,173 million in 2025. This indicates a reduction in the absolute profit generated by the segment.
- Net Revenue
- Net revenue for PFNA showed initial decline followed by stabilization. Revenue decreased from US$28,015 million in 2023 to US$27,431 million in 2024, but then increased slightly to US$27,528 million in 2025. The relatively stable revenue, coupled with the declining profit margin, suggests increasing cost pressures or pricing challenges within the segment.
The observed decline in segment profit margin, despite relatively stable net revenue, warrants further investigation. Potential contributing factors could include rising input costs, increased marketing expenses, or shifts in product mix towards lower-margin items. The consistent decrease in operating profit reinforces the need to understand the underlying drivers of this trend.
Segment Profit Margin: PepsiCo Beverages North America (PBNA)
PepsiCo Inc.; PepsiCo Beverages North America (PBNA); segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
Analysis of PepsiCo Beverages North America (PBNA) segment performance between 2021 and 2025 reveals a significant decline in profitability. While net revenue demonstrated consistent growth, segment operating profit and, consequently, the segment profit margin experienced a marked downward trend.
- Segment Operating Profit
- Segment operating profit was not reported for 2021 and 2022. In 2023, it stood at US$2,584 million. This decreased to US$2,302 million in 2024, and experienced a substantial reduction to US$1,089 million in 2025. This represents a significant contraction in profitability over the observed period.
- Net Revenue
- Net revenue for PBNA exhibited a consistent upward trajectory. From US$27,626 million in 2023, it increased to US$27,769 million in 2024, and further to US$28,197 million in 2025. This indicates continued growth in sales volume or pricing within the segment, despite declining profitability.
- Segment Profit Margin
- The segment profit margin followed a distinct downward trend. Starting at 9.35% in 2023, it decreased to 8.29% in 2024, and experienced a substantial decline to 3.86% in 2025. This suggests that while revenue increased, the segment’s ability to convert revenue into profit diminished considerably. The decrease in margin indicates rising costs, pricing pressures, or a shift in sales mix towards lower-margin products.
The divergence between revenue growth and profit margin decline warrants further investigation. Potential contributing factors could include increased input costs, heightened promotional activity, or changes in the competitive landscape. The substantial decrease in segment profit margin in 2025 is particularly noteworthy and requires detailed analysis to understand the underlying drivers and potential mitigation strategies.
Segment Profit Margin: International Beverages Franchise (IB Franchise)
PepsiCo Inc.; International Beverages Franchise (IB Franchise); segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
The International Beverages Franchise segment demonstrates a clear positive trend in profitability from 2023 through 2025. Segment operating profit and net revenue both increased consistently over this period, resulting in a substantial improvement in segment profit margin.
- Segment Operating Profit
- Segment operating profit is initially reported at US$567 million in 2023, increasing to US$1,462 million in 2024, and further rising to US$1,769 million in 2025. This represents significant year-over-year growth, indicating improved operational efficiency or increased demand within the segment.
- Net Revenue
- Net revenue for the International Beverages Franchise also exhibits consistent growth, moving from US$4,559 million in 2023 to US$4,879 million in 2024, and reaching US$4,997 million in 2025. While the rate of revenue growth slows slightly between 2024 and 2025, it remains positive.
- Segment Profit Margin
- The segment profit margin shows the most dramatic change. Starting at 12.44% in 2023, it increases substantially to 29.97% in 2024, and continues to improve to 35.40% in 2025. This indicates that the segment is becoming increasingly efficient at converting revenue into profit, or that pricing strategies are proving effective. The consistent increase suggests a sustainable improvement in the segment’s financial performance.
The combined trends of rising operating profit, increasing net revenue, and expanding profit margin suggest a strengthening financial position for the International Beverages Franchise segment. Further investigation into the drivers of these improvements, such as cost controls, sales volume increases, or favorable pricing dynamics, would be beneficial.
Segment Profit Margin: Europe, Middle East and Africa (EMEA)
PepsiCo Inc.; Europe, Middle East and Africa (EMEA); segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
The Europe, Middle East and Africa (EMEA) segment demonstrated positive performance between 2023 and 2025. Segment operating profit and net revenue both increased over this period, resulting in a generally improving profit margin.
- Segment Operating Profit
- Segment operating profit increased from US$1,764 million in 2023 to US$1,971 million in 2024, representing a growth of approximately 11.77%. This upward trend continued into 2025, with operating profit reaching US$2,106 million, a further increase of approximately 6.85% from the prior year.
- Net Revenue
- Net revenue for the EMEA segment also exhibited consistent growth. It rose from US$16,210 million in 2023 to US$16,658 million in 2024, an increase of roughly 2.76%. The growth accelerated in 2025, with net revenue reaching US$18,025 million, representing a growth of approximately 8.24% compared to 2024.
- Segment Profit Margin
- The segment profit margin showed an improvement from 10.88% in 2023 to 11.83% in 2024. While still positive, the margin experienced a slight decrease in 2025, settling at 11.68%. This suggests that while profitability continues to grow in absolute terms, the rate of profit generation relative to revenue experienced a minor deceleration in the most recent period.
Overall, the EMEA segment’s financial performance indicates a healthy growth trajectory. The consistent increases in both operating profit and net revenue are encouraging. The slight dip in profit margin in 2025 warrants further investigation to determine its underlying causes and potential implications.
Segment Profit Margin: Latin America Foods (LatAm Foods)
PepsiCo Inc.; Latin America Foods (LatAm Foods); segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
The Latin America Foods segment demonstrated positive performance between 2021 and 2025. Segment operating profit and net revenue figures are initially unavailable for 2021 and 2022, but become available starting in 2023. A consistent upward trend in both operating profit and net revenue is observed from 2023 to 2024, followed by a slight decline in 2025.
- Segment Profit Margin
- The segment profit margin exhibited a clear increasing trend from 2023 to 2024, rising from 17.95% to 19.42%. This indicates improved profitability during that period. However, the margin experienced a modest decrease in 2025, settling at 19.05%. While still representing a strong profit margin, the 2025 figure suggests a potential stabilization or slight erosion of profitability compared to the prior year.
Net revenue remained relatively stable between 2023 and 2025, fluctuating within a narrow range of approximately $10.55 to $10.58 billion. The increase in segment operating profit from 2023 to 2024, coupled with relatively constant net revenue, contributed to the margin expansion observed during that timeframe. The slight decrease in operating profit in 2025, despite similar net revenue, explains the corresponding decrease in segment profit margin.
Overall, the Latin America Foods segment appears to be a consistently profitable contributor, with a strong margin profile. The recent stabilization of net revenue and slight margin contraction in 2025 warrant continued monitoring to determine if this represents a temporary fluctuation or the beginning of a more sustained trend.
Segment Profit Margin: Asia Pacific Foods
PepsiCo Inc.; Asia Pacific Foods; segment profit margin calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment operating profit | |||||
| Net revenue | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
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).
1 2025 Calculation
Segment profit margin = 100 × Segment operating profit ÷ Net revenue
= 100 × ÷ =
The Asia Pacific Foods segment demonstrated increasing financial performance between 2021 and 2025. Segment operating profit and net revenue figures were initially unavailable but began to be reported in 2023, showing consistent growth through 2025. The segment profit margin, calculated from these figures, exhibited a positive trend overall, though with a slight decrease in the most recent year.
- Segment Operating Profit
- Segment operating profit increased from US$301 million in 2023 to US$377 million in 2024, representing a growth of 25.25%. While still positive, growth slowed in 2025, with operating profit decreasing slightly to US$369 million. This suggests potential challenges in maintaining the rapid growth rate observed between 2023 and 2024.
- Net Revenue
- Net revenue for the Asia Pacific Foods segment showed consistent growth over the analyzed period. Revenue increased from US$4,485 million in 2023 to US$4,549 million in 2024, a growth of 1.46%. This growth continued into 2025, with revenue reaching US$4,629 million, representing a further increase of 1.98%. The consistent revenue growth indicates a strengthening market position or increased demand for products within the region.
- Segment Profit Margin
- The segment profit margin increased significantly from 6.71% in 2023 to 8.29% in 2024, indicating improved profitability. However, the margin experienced a slight decline in 2025, decreasing to 7.97%. This decrease, despite continued revenue growth, suggests potential increases in the cost of goods sold or operating expenses that offset the revenue gains. Further investigation into cost structures would be beneficial.
Overall, the Asia Pacific Foods segment appears to be a growing and profitable contributor. While the slight decrease in segment profit margin in 2025 warrants attention, the overall trend remains positive. Continued monitoring of both revenue and cost factors will be crucial to understanding the segment’s future performance.
Segment Capital Expenditures to Depreciation
PepsiCo Inc., capital expenditures to depreciation by reportable segment
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods |
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).
An examination of segment capital expenditures to depreciation reveals varying investment patterns across PepsiCo’s reportable segments between 2023 and 2025. Generally, a decreasing trend is observed in the ratio across most segments, suggesting a potential shift towards more efficient capital allocation or a slowdown in capital-intensive projects relative to depreciation expense.
- PepsiCo Foods North America (PFNA)
- The PFNA segment exhibits a notable decrease in the ratio, moving from 1.81 in 2023 to 1.08 in 2025. This represents a substantial reduction, potentially indicating a stabilization of capital assets or a decrease in new investments relative to the depreciation of existing assets within this segment.
- PepsiCo Beverages North America (PBNA)
- The PBNA segment also demonstrates a declining ratio, from 1.68 in 2023 to 1.23 in 2025. While the decrease is less pronounced than in PFNA, it still suggests a similar trend of moderating capital expenditure relative to depreciation.
- International Beverages Franchise (IB Franchise)
- The IB Franchise segment shows a less consistent pattern. The ratio increased slightly from 1.11 in 2023 to 1.36 in 2024, before decreasing to 1.14 in 2025. This suggests potential fluctuations in investment activity within this segment, possibly related to specific regional projects or market conditions.
- Europe, Middle East and Africa (EMEA)
- The EMEA segment’s ratio decreased modestly from 1.85 in 2023 to 1.36 in 2025. This decline, while present, is less dramatic than observed in the North American segments.
- Latin America Foods (LatAm Foods)
- The LatAm Foods segment shows a decrease in the ratio from 2.25 in 2023 to 1.61 in 2025. This segment began with the highest ratio among those analyzed and experienced a significant reduction, indicating a substantial change in capital expenditure patterns.
- Asia Pacific Foods
- The Asia Pacific Foods segment started with the highest ratio at 2.64 in 2023 and experienced the largest absolute decrease, falling to 1.68 in 2025. This substantial decline suggests a significant shift in investment strategy or a maturation of capital assets within this region.
Overall, the observed trends suggest a company-wide pattern of decreasing capital expenditure relative to depreciation, particularly pronounced in the North American and Asia Pacific regions. Further investigation would be required to determine the underlying drivers of these changes, such as shifts in strategic priorities, changes in asset lifecycles, or broader economic factors.
Segment Capital Expenditures to Depreciation: PepsiCo Foods North America (PFNA)
PepsiCo Inc.; PepsiCo Foods North America (PFNA); segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for the period of 2021 through 2025 reveals a notable declining trend. Capital expenditure figures are available beginning in 2023, alongside corresponding depreciation and amortization values, allowing for the calculation of the segment capital expenditures to depreciation ratio.
- Capital Expenditures and Depreciation
- Capital spending within this segment totaled US$1,444 million in 2023, decreasing to US$1,306 million in 2024, and further declining to US$1,051 million in 2025. Depreciation and amortization exhibited an increasing pattern, rising from US$798 million in 2023 to US$862 million in 2024, and reaching US$969 million in 2025.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio began at 1.81 in 2023, indicating that capital spending was 1.81 times greater than depreciation and amortization. This ratio decreased to 1.52 in 2024, suggesting a narrowing gap between capital spending and depreciation. By 2025, the ratio had fallen to 1.08, signifying that capital spending was only 1.08 times greater than depreciation and amortization. This represents a substantial reduction in the relative level of capital investment compared to the depreciation of existing assets.
The observed trend suggests a potential shift in investment strategy, a possible slowdown in growth initiatives requiring significant capital outlay, or an increased focus on maximizing the utilization of existing assets. The decreasing ratio could also indicate a higher proportion of maintenance-type capital expenditures relative to expansionary investments. Further investigation into the nature of these capital expenditures would be necessary to determine the underlying drivers of this trend.
Segment Capital Expenditures to Depreciation: PepsiCo Beverages North America (PBNA)
PepsiCo Inc.; PepsiCo Beverages North America (PBNA); segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for the period of 2021 through 2025 reveals a consistent downward trend. Capital spending and depreciation figures are available beginning in 2023, allowing for a calculation of the relevant ratio. The ratio demonstrates decreasing investment relative to the depreciation of existing assets over the observed timeframe.
- Capital Spending
- Capital spending decreased from US$1,723 million in 2023 to US$1,344 million in 2025. This represents a cumulative reduction of approximately 22.0% over the three-year period. The largest year-over-year decrease occurred between 2023 and 2024, with a reduction of US$182 million.
- Depreciation and Amortization
- Depreciation and amortization exhibited a steady increase from US$1,025 million in 2023 to US$1,093 million in 2025. This represents a cumulative increase of approximately 6.6% over the three-year period. The increase between 2024 and 2025 was relatively small, at US$24 million.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio declined consistently from 1.68 in 2023 to 1.23 in 2025. This indicates that capital investments are becoming a smaller proportion of the depreciation expense. A ratio below 1.0 in subsequent periods would suggest that capital spending is less than the annual depreciation, potentially indicating a reliance on existing assets or a shift in investment strategy. The decrease from 1.44 in 2024 to 1.23 in 2025 is particularly notable, representing a 14.6% reduction in the ratio.
The observed trend suggests a potential shift towards maximizing the utilization of existing assets rather than significant expansion through new capital investments. Further investigation would be required to determine the underlying drivers of these changes, such as strategic priorities, operational efficiencies, or external economic factors.
Segment Capital Expenditures to Depreciation: International Beverages Franchise (IB Franchise)
PepsiCo Inc.; International Beverages Franchise (IB Franchise); segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for the International Beverages Franchise reveals a generally increasing trend over the observed period, with some fluctuation. Capital spending and depreciation figures are available beginning in 2023, allowing for calculation of the relevant ratio from that year forward.
- Capital Spending
- Capital spending within the International Beverages Franchise increased from US$110 million in 2023 to US$148 million in 2024, representing a significant year-over-year increase. This was followed by a decrease to US$124 million in 2025. The 2025 figure remains above the initial value recorded in 2023.
- Depreciation and Amortization
- Depreciation and amortization exhibited a more stable pattern. It rose from US$99 million in 2023 to US$109 million in 2024 and remained constant at US$109 million in 2025. The consistent depreciation suggests a relatively steady stream of assets contributing to the expense base.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio increased from 1.11 in 2023 to 1.36 in 2024. This indicates that capital spending grew at a faster rate than depreciation, suggesting increased investment in new assets relative to the expense recognized on existing assets. The ratio then decreased slightly to 1.14 in 2025, as capital spending decreased while depreciation remained stable. The ratio in 2025, while lower than 2024, still indicates capital spending exceeding depreciation, implying continued investment in the segment.
Overall, the International Beverages Franchise demonstrated a pattern of investment, as evidenced by capital spending exceeding depreciation. The increase in the ratio from 2023 to 2024 suggests a period of accelerated investment, while the subsequent decrease in 2025 indicates a moderation of that pace. Continued monitoring of these trends will be important for assessing the long-term capital allocation strategy within this segment.
Segment Capital Expenditures to Depreciation: Europe, Middle East and Africa (EMEA)
PepsiCo Inc.; Europe, Middle East and Africa (EMEA); segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for the Europe, Middle East and Africa (EMEA) region reveals a fluctuating relationship between investment in capital assets and the expense recognized for the use of those assets over the examined period. Capital spending and depreciation figures are initially unavailable but become available starting in 2023.
- Capital Spending
- Capital spending in the EMEA segment exhibited an initial increase from US$831 million in 2023 to US$880 million in 2024. A subsequent decrease to US$744 million is observed in 2025.
- Depreciation and Amortization
- Depreciation and amortization expenses within the EMEA segment demonstrated a consistent upward trend from US$448 million in 2023 to US$477 million in 2024, and further increasing to US$549 million in 2025. This suggests a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio, which indicates the level of investment relative to the depreciation of existing assets, stood at 1.85 in 2023 and remained relatively stable at 1.84 in 2024. A notable decline to 1.36 is observed in 2025. This decrease suggests that capital spending is growing at a slower rate than depreciation expense, or that capital spending has decreased while depreciation expense has increased, potentially indicating a shift in investment strategy or a greater proportion of assets reaching the end of their useful lives.
The ratio’s decline in 2025, coupled with the increase in depreciation, warrants further investigation to understand the underlying drivers and potential implications for future asset performance and capital allocation within the EMEA segment.
Segment Capital Expenditures to Depreciation: Latin America Foods (LatAm Foods)
PepsiCo Inc.; Latin America Foods (LatAm Foods); segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for Latin America Foods reveals a declining trend over the observed period. Capital spending and depreciation both increased in absolute terms, but at differing rates, resulting in a decreasing ratio.
- Capital Spending
- Capital spending within Latin America Foods began to be reported in 2023 at US$814 million. It decreased slightly to US$809 million in 2024, and then experienced a more substantial decline to US$672 million in 2025.
- Depreciation and Amortization
- Depreciation and amortization also commenced reporting in 2023 at US$362 million. It increased to US$382 million in 2024 and continued to rise to US$417 million in 2025. This consistent increase suggests a growing asset base subject to depreciation.
- Segment Capital Expenditures to Depreciation
- The ratio of capital expenditures to depreciation was 2.25 in 2023. This indicates that, in that year, capital spending was 2.25 times greater than the depreciation expense recognized. The ratio decreased to 2.12 in 2024, signaling a slower rate of capital investment relative to depreciation. By 2025, the ratio had fallen to 1.61, representing a further reduction in capital spending relative to depreciation. This suggests a shift towards utilizing existing assets more efficiently or a potential slowdown in expansionary capital projects within the segment.
The observed decrease in the segment capital expenditures to depreciation ratio warrants further investigation to understand the underlying strategic decisions driving this trend. Potential factors could include project completion, a shift in investment focus to other segments, or changes in the asset base’s composition.
Segment Capital Expenditures to Depreciation: Asia Pacific Foods
PepsiCo Inc.; Asia Pacific Foods; segment capital expenditures to depreciation calculation
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital spending | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
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).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital spending ÷ Depreciation and amortization
= ÷ =
Analysis of segment capital expenditures to depreciation for the Asia Pacific Foods segment reveals a declining trend over the observed period. Capital spending figures are initially unavailable for 2021 and 2022, becoming available in 2023. Depreciation and amortization figures follow the same pattern, appearing from 2023 onwards. The resulting ratio, segment capital expenditures to depreciation, demonstrates a clear pattern of decrease.
- Capital Spending
- Capital spending within the Asia Pacific Foods segment began at US$312 million in 2023 and remained constant in 2024. A decrease to US$257 million is observed in 2025.
- Depreciation and Amortization
- Depreciation and amortization exhibited an increasing trend. Starting at US$118 million in 2023, it rose to US$133 million in 2024 and further increased to US$153 million in 2025.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation decreased from 2.64 in 2023 to 2.35 in 2024. This downward trend continued, with the ratio reaching 1.68 in 2025. This indicates that capital spending is growing at a slower rate than depreciation and amortization, or that depreciation and amortization are growing at a faster rate than capital spending.
The observed decline in the ratio suggests a potential shift in investment strategy, a change in the age of the asset base, or an increased focus on utilizing existing assets rather than acquiring new ones. Further investigation would be required to determine the underlying drivers of this trend.
Net revenue
PepsiCo Inc., net revenue by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods | |||||
| Total segment |
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 reported segment net revenue demonstrates consistent growth between 2023 and 2025. While earlier years are absent, the three years presented reveal distinct performance patterns across the various business units. Overall segment net revenue increased from US$91,471 million in 2023 to US$93,925 million in 2025, representing a cumulative growth of approximately 2.67%.
- PepsiCo Foods North America (PFNA)
- PFNA experienced a slight decrease in net revenue from US$28,015 million in 2023 to US$27,431 million in 2024, followed by a modest recovery to US$27,528 million in 2025. This suggests potential market saturation or increased competition within the North American food sector, though the 2025 figure indicates stabilization.
- PepsiCo Beverages North America (PBNA)
- PBNA consistently increased its net revenue over the observed period. From US$27,626 million in 2023, revenue grew to US$27,769 million in 2024 and further to US$28,197 million in 2025. This indicates strong performance and potential market share gains within the North American beverage market.
- International Beverages Franchise (IB Franchise)
- The IB Franchise demonstrated steady growth, increasing from US$4,559 million in 2023 to US$4,879 million in 2024 and reaching US$4,997 million in 2025. This consistent upward trend suggests successful expansion and increasing demand for the company’s international beverage offerings.
- Europe, Middle East and Africa (EMEA)
- EMEA exhibited the most substantial growth among the reported segments. Net revenue increased from US$16,210 million in 2023 to US$16,658 million in 2024, and significantly to US$18,025 million in 2025. This suggests a strong and expanding market presence within the EMEA region.
- Latin America Foods (LatAm Foods)
- LatAm Foods experienced a slight, consistent decline in net revenue, decreasing from US$10,576 million in 2023 to US$10,568 million in 2024 and further to US$10,549 million in 2025. This warrants further investigation to determine the underlying causes, such as economic conditions or competitive pressures.
- Asia Pacific Foods
- Asia Pacific Foods showed consistent, albeit modest, growth, increasing from US$4,485 million in 2023 to US$4,549 million in 2024 and reaching US$4,629 million in 2025. This indicates a stable and growing market within the Asia Pacific region.
In summary, the overall trend indicates positive revenue growth, driven primarily by strong performance in the PBNA and EMEA segments. The LatAm Foods segment presents a potential area of concern due to its consistent decline, while PFNA demonstrates relative stability. Continued monitoring of these segment-specific trends is recommended.
Segment operating profit
PepsiCo Inc., segment operating profit by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods | |||||
| Total segment |
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).
Segment operating profit exhibited varied performance across the reporting periods. Overall, total segment operating profit increased from 2023 to 2024, but decreased in 2025.
- PepsiCo Foods North America (PFNA)
- PFNA demonstrated a declining trend in operating profit from 2023 through 2025. Operating profit decreased from US$7,247 million in 2023 to US$6,619 million in 2024, and further to US$6,173 million in 2025. This represents a cumulative decrease of approximately 15% over the two-year period.
- PepsiCo Beverages North America (PBNA)
- PBNA experienced a significant decline in operating profit between 2024 and 2025. From US$2,302 million in 2024, operating profit decreased substantially to US$1,089 million in 2025. Prior to this, operating profit increased from US$2,584 million in 2023 to US$2,302 million in 2024.
- International Beverages Franchise (IB Franchise)
- The IB Franchise showed consistent growth in operating profit throughout the observed period. Operating profit increased from US$567 million in 2023 to US$1,462 million in 2024, and continued to rise to US$1,769 million in 2025. This represents a substantial increase of over 300% from 2023 to 2025.
- Europe, Middle East and Africa (EMEA)
- EMEA exhibited a steady upward trend in operating profit. Operating profit increased from US$1,764 million in 2023 to US$1,971 million in 2024, and further to US$2,106 million in 2025.
- Latin America Foods (LatAm Foods)
- LatAm Foods demonstrated moderate growth in operating profit. Operating profit increased from US$1,898 million in 2023 to US$2,052 million in 2024, with a slight decrease to US$2,010 million in 2025.
- Asia Pacific Foods
- Asia Pacific Foods showed modest growth in operating profit from 2023 to 2024, increasing from US$301 million to US$377 million. Operating profit then decreased slightly to US$369 million in 2025.
The decrease in total segment operating profit in 2025 was primarily driven by the significant decline in PBNA, coupled with the decrease in PFNA. These declines were partially offset by the continued growth observed in the IB Franchise and EMEA segments.
Capital spending
PepsiCo Inc., capital spending by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods | |||||
| Total segment |
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).
Capital spending across reportable segments exhibited distinct patterns between 2023 and 2025. Overall, total segment capital expenditure decreased over this period, though variations existed among individual segments.
- PepsiCo Foods North America (PFNA)
- PFNA demonstrated a consistent decline in capital spending from US$1,444 million in 2023 to US$1,051 million in 2025. This represents a decrease of approximately 27% over the three-year period, suggesting a potential shift in investment strategy or a completion of significant capital projects within this segment.
- PepsiCo Beverages North America (PBNA)
- PBNA followed a similar downward trend, with capital expenditure decreasing from US$1,723 million in 2023 to US$1,344 million in 2025, a reduction of roughly 22%. The magnitude of the decrease, while substantial, was less pronounced than that observed in PFNA.
- International Beverages Franchise (IB Franchise)
- The IB Franchise experienced more volatility. Capital spending increased from US$110 million in 2023 to US$148 million in 2024, before decreasing to US$124 million in 2025. This suggests potentially smaller, more frequent investments, or project-based capital allocation within this segment.
- Europe, Middle East and Africa (EMEA)
- EMEA showed a slight increase in capital expenditure from US$831 million in 2023 to US$880 million in 2024, followed by a decrease to US$744 million in 2025. The 2025 value represents a decrease of approximately 10% from the 2023 level.
- Latin America Foods (LatAm Foods)
- LatAm Foods exhibited a relatively stable pattern, with capital expenditure at US$814 million in 2023 and US$809 million in 2024, before decreasing to US$672 million in 2025. This represents a decrease of approximately 17% from the 2023 level.
- Asia Pacific Foods
- Asia Pacific Foods maintained a consistent capital expenditure of US$312 million in both 2023 and 2024, before decreasing to US$257 million in 2025. This represents a decrease of approximately 18% from the 2023 and 2024 levels.
The overall decrease in total segment capital expenditure from US$5,234 million in 2023 to US$4,192 million in 2025 indicates a company-wide reduction in capital investment. The declines were most significant in PFNA and PBNA, potentially reflecting a maturation of investment in these established markets. The variations in other segments suggest localized investment strategies responding to specific regional opportunities and challenges.
Depreciation and amortization
PepsiCo Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 27, 2025 | Dec 28, 2024 | Dec 30, 2023 | Dec 31, 2022 | Dec 25, 2021 | |
|---|---|---|---|---|---|
| PepsiCo Foods North America (PFNA) | |||||
| PepsiCo Beverages North America (PBNA) | |||||
| International Beverages Franchise (IB Franchise) | |||||
| Europe, Middle East and Africa (EMEA) | |||||
| Latin America Foods (LatAm Foods) | |||||
| Asia Pacific Foods | |||||
| Total segment |
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).
Depreciation and amortization expense across PepsiCo’s reportable segments demonstrates a consistent upward trend from 2023 through 2025. This increase is observed across all reported segments, suggesting a company-wide pattern of investment in long-lived assets or a shift in accounting practices related to asset lives. The largest absolute increases in depreciation and amortization are concentrated in the PepsiCo Foods North America and PepsiCo Beverages North America segments.
- PepsiCo Foods North America (PFNA)
- Depreciation and amortization within this segment increased from US$798 million in 2023 to US$969 million in 2025, representing a growth of approximately 21.4%. This suggests significant capital expenditure or asset acquisitions within the North American food operations.
- PepsiCo Beverages North America (PBNA)
- This segment exhibits a steady increase in depreciation and amortization, moving from US$1,025 million in 2023 to US$1,093 million in 2025, a rise of roughly 6.6%. The consistent, though less dramatic, growth indicates ongoing investment in beverage production and distribution infrastructure.
- International Beverages Franchise (IB Franchise)
- The IB Franchise shows a modest increase in depreciation and amortization, rising from US$99 million in 2023 to US$109 million in 2025, a growth of approximately 10.1%. This suggests relatively stable capital investment within this franchise.
- Europe, Middle East and Africa (EMEA)
- Depreciation and amortization in the EMEA segment increased from US$448 million in 2023 to US$549 million in 2025, representing a growth of approximately 22.5%. This increase is substantial and may indicate significant investment in this region.
- Latin America Foods (LatAm Foods)
- This segment experienced an increase in depreciation and amortization from US$362 million in 2023 to US$417 million in 2025, a growth of approximately 15.2%. This suggests expanding operations and associated capital investments in Latin American food markets.
- Asia Pacific Foods
- Depreciation and amortization in Asia Pacific Foods rose from US$118 million in 2023 to US$153 million in 2025, representing a growth of approximately 29.7%. This is the highest percentage increase among all segments, potentially indicating rapid expansion and investment in the Asia Pacific region.
- Total Segment
- Overall, total segment depreciation and amortization increased from US$2,850 million in 2023 to US$3,290 million in 2025, a growth of approximately 15.4%. This confirms the company-wide trend of increasing depreciation and amortization expense.
The consistent increases across all segments suggest a broader pattern of capital investment. Further investigation into the nature of these investments, such as the acquisition of new assets or changes in estimated useful lives, would provide a more comprehensive understanding of these trends.