A Financial Analysis and Valuation of PepsiCo

DOI

10.2991/978-94-6463-748-9_94How to use a DOI?

Keywords

PepsiCo; Porter’s Five Forces; Financial Analysis; Food Industry; Sustainable Development

Abstract

The integration of environmental awareness into the food industry has created challenges and opportunities, particularly for multinational corporations like PepsiCo. This study examines PepsiCo’s strategies in market expansion, technological innovation, and financial management to understand its competitive position. Using Porter’s Five Forces and financial ratio analysis, the external and internal factors influencing PepsiCo’s operations are evaluated. Externally, PepsiCo’s global supply chain demonstrates strong bargaining power with suppliers, while customer loyalty remains low due to the fast-moving consumer goods nature of its products. The company faces significant competition from Coca-Cola, though PepsiCo’s diversified portfolio, including its successful Lay’s brand, strengthens its market presence. Internally, PepsiCo’s financial ratios reveal a stable revenue trajectory and effective inventory management, though liquidity challenges persist. Strong cash flow and long-term solvency highlight its resilience and capacity for expansion. This paper provides valuable insights into PepsiCo’s strategic planning, emphasizing its ability to adapt to market dynamics and maintain profitability. The findings offer lessons for the food industry and beyond, demonstrating how strategic innovation and comprehensive management can foster sustainable growth in a competitive global market.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Jia Wei
PY  - 2025
DA  - 2025/07/03
TI  - A Financial Analysis and Valuation of PepsiCo
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 859
EP  - 867
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_94
DO  - 10.2991/978-94-6463-748-9_94
ID  - Wei2025
ER  -