PEP changes
Pick any two versions below to diff them.
- Balance sheet
- PepsiCo funds itself mostly with unsecured notes of the parent company in US dollars and euros, plus a large commercial paper program. It owns most of its North American bottling plants and trucks, so it needs more capital than a franchise model. At June 13, 2026, debt was $53.2 billion: $42.6 billion of long-term debt and $10.6 billion of short-term debt. The short-term debt included $6.1 billion of commercial paper. Cash and short-term investments were $10.7 billion, and 21% of the cash was in Russia. Net debt was about $42.5 billion, or about 2.3 times trailing EBITDA of about $18.6 billion. Trailing EBIT covered interest expense about 13 times. Moody's rates PepsiCo A1 and S&P rates it A+, both with a stable outlook. Two undrawn $5.0 billion revolving credit facilities back the commercial paper: one runs to May 2031 and one to May 2027. If a rating falls to A2 or A on credit watch, some derivative counterparties can ask for full collateral. PepsiCo plans to return about $8.9 billion in 2026: about $7.9 billion as dividends and $1.0 billion as buybacks. This is close to its trailing free cash flow of about $9.3 billion, so the dividend takes most of the cash. More weakness in North America would make PepsiCo borrow more or slow buybacks. As of 2026-06-13.
- Checkpoints
- Oct 8, 2026: Q3 2026 earnings: North America volume and margin. Pending. Watch: Flat or positive North America volume and core operating margin up year over year pass; another volume drop in snacks and drinks with margin down fails. Feb 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: 2026 core EPS growth inside the 4% to 6% guidance and a 2027 plan with margin growth pass; a 2027 outlook that cuts margin targets fails. Apr 2027 (estimate): Q1 2027 earnings: price increases versus volume. Pending. Watch: Price increases that hold North America volume steady pass; volume losses that cancel the price gains fail.