Stock Analysis on Net
Stock Analysis on Net

PepsiCo Inc. (NASDAQ:PEP)

Common-Size Income Statement 
Quarterly Data

PepsiCo Inc., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Dec 27, 2025 Sep 6, 2025 Jun 14, 2025 Mar 22, 2025 Dec 28, 2024 Sep 7, 2024 Jun 15, 2024 Mar 23, 2024 Dec 30, 2023 Sep 9, 2023 Jun 17, 2023 Mar 25, 2023 Dec 31, 2022 Sep 3, 2022 Jun 11, 2022 Mar 19, 2022 Dec 25, 2021 Sep 4, 2021 Jun 12, 2021 Mar 20, 2021
Net revenue 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -46.77 -46.43 -45.34 -44.23 -47.44 -44.58 -44.08 -45.19 -47.03 -45.52 -45.34 -44.76 -47.94 -46.92 -46.55 -45.88 -48.04 -46.53 -46.21 -45.01
Gross profit 53.23% 53.57% 54.66% 55.77% 52.56% 55.42% 55.92% 54.81% 52.97% 54.48% 54.66% 55.24% 52.06% 53.08% 53.45% 54.12% 51.96% 53.47% 53.79% 54.99%
Selling, general and administrative expenses -41.11 -38.11 -38.60 -41.35 -44.43 -38.71 -37.93 -39.92 -43.62 -37.34 -38.27 -40.51 -43.57 -37.75 -36.52 -40.62 -41.81 -37.82 -37.51 -39.39
Gain associated with the Juice Transaction 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.06 0.06 20.51 0.00 0.00 0.00 0.00
Impairment of intangible assets 0.00 -0.56 -8.18 0.00 -0.03 -0.10 0.00 0.00 -3.31 -0.03 0.00 0.00 -5.59 0.00 -6.72 -1.49 0.00 0.00 0.00 0.00
Operating profit 12.12% 14.91% 7.87% 14.41% 8.10% 16.60% 17.99% 14.89% 6.04% 17.12% 16.39% 14.73% 2.91% 15.26% 10.27% 32.51% 10.15% 15.65% 16.28% 15.60%
Other pension and retiree medical benefits income (expense) -0.76 0.11 0.18 0.13 -0.64 0.18 0.25 0.32 0.24 0.26 0.27 0.34 -0.13 0.16 -0.01 0.83 0.63 0.58 0.66 0.81
Net interest expense and other -1.13 -1.10 -1.14 -1.47 -0.95 -0.94 -1.04 -1.11 -0.78 -0.86 -0.90 -1.12 -0.98 -0.86 -1.17 -1.48 -4.48 -1.15 -1.25 -1.74
Income before income taxes 10.22% 13.92% 6.91% 13.07% 6.51% 15.84% 17.20% 14.10% 5.50% 16.53% 15.76% 13.95% 1.81% 14.56% 9.09% 31.86% 6.29% 15.08% 15.68% 14.67%
Provision for income taxes -1.52 -2.98 -1.28 -2.78 -0.99 -3.21 -3.45 -2.85 -0.75 -3.24 -3.35 -3.06 0.10 -2.16 -1.94 -5.48 -0.98 -3.97 -3.34 -3.04
Net income 8.71% 10.94% 5.63% 10.29% 5.52% 12.63% 13.75% 11.25% 4.75% 13.29% 12.41% 10.89% 1.91% 12.40% 7.15% 26.38% 5.31% 11.11% 12.34% 11.63%
Net income attributable to noncontrolling interests -0.05 -0.06 -0.07 -0.05 -0.04 -0.06 -0.05 -0.06 -0.08 -0.10 -0.10 -0.07 -0.06 -0.10 -0.08 -0.07 -0.08 -0.09 -0.07 -0.06
Net income attributable to PepsiCo 8.66% 10.87% 5.56% 10.23% 5.48% 12.56% 13.70% 11.19% 4.68% 13.18% 12.31% 10.83% 1.85% 12.30% 7.07% 26.30% 5.24% 11.02% 12.27% 11.57%

Based on: 10-K (reporting date: 2025-12-27), 10-Q (reporting date: 2025-09-06), 10-Q (reporting date: 2025-06-14), 10-Q (reporting date: 2025-03-22), 10-K (reporting date: 2024-12-28), 10-Q (reporting date: 2024-09-07), 10-Q (reporting date: 2024-06-15), 10-Q (reporting date: 2024-03-23), 10-K (reporting date: 2023-12-30), 10-Q (reporting date: 2023-09-09), 10-Q (reporting date: 2023-06-17), 10-Q (reporting date: 2023-03-25), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-03), 10-Q (reporting date: 2022-06-11), 10-Q (reporting date: 2022-03-19), 10-K (reporting date: 2021-12-25), 10-Q (reporting date: 2021-09-04), 10-Q (reporting date: 2021-06-12), 10-Q (reporting date: 2021-03-20).

The common-size income statement reveals several noteworthy trends in the company’s financial performance over the analyzed period. Net revenue is consistently represented as 100% across all periods, as expected. Cost of sales as a percentage of net revenue generally fluctuates between 44% and 49%, with a noticeable increase in late 2021 and again in late 2024. Gross profit demonstrates an inverse relationship, ranging from approximately 51% to 56%. Operating profit exhibits significant variability, influenced by several factors detailed below, while net income attributable to PepsiCo generally falls between 5% and 14% of net revenue.

Cost of Sales and Gross Profit
Cost of sales experienced a consistent upward trend from March 2021 through December 2021, peaking at approximately 48% of net revenue. It then decreased through much of 2022, before rising again in late 2024. This movement directly impacts gross profit, which correspondingly decreased from nearly 55% in early 2021 to a low of around 52% in late 2021, then increased to a high of 56% in mid-2023 before declining again. These fluctuations suggest potential shifts in input costs or pricing strategies.
Operating Profit Volatility
Operating profit demonstrates the most significant fluctuations. A substantial increase is observed in the first half of 2022, reaching a peak of 32.51% in March 2022, largely attributable to a significant gain associated with the Juice Transaction (20.51% of net revenue). However, operating profit then declined sharply, reaching a low of 2.91% in December 2022. This decline is associated with impairment charges and increased selling, general, and administrative expenses. A similar pattern of volatility is seen in 2024, with a peak in March and a decline by year-end. The impact of non-recurring items, such as the Juice Transaction and impairment charges, is clearly visible in these fluctuations.
Selling, General and Administrative Expenses
Selling, general and administrative expenses generally range between 36% and 44% of net revenue. A notable increase is observed in late 2021 and again in late 2024, coinciding with periods of lower operating profit. This suggests a potential correlation between increased operating costs and reduced profitability. The expense ratio decreased significantly in the first half of 2022, contributing to the higher operating profit during that period.
Non-Operating Items and Net Income
Net interest expense and other remains relatively stable, consistently around 1% of net revenue. However, other pension and retiree medical benefits income (expense) fluctuates, occasionally impacting net income. Provision for income taxes generally remains between 3% and 4% of net revenue. Net income attributable to PepsiCo mirrors the trends in operating profit, with a significant increase in early 2022 and a subsequent decline. The impact of noncontrolling interests is minimal, consistently below 1% of net revenue.

Overall, the company’s profitability is subject to considerable variability, influenced by both core operational factors (cost of sales, operating expenses) and non-recurring items (transaction gains, impairment charges). The fluctuations in operating profit highlight the importance of understanding the underlying drivers of these changes to assess the company’s long-term financial health.