v3.25.4
Basis of Presentation and Our Segments (Tables)
 12 Months Ended
Dec. 27, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Fiscal Period
Our fiscal year ends on the last Saturday of each December, resulting in a 53rd reporting week every five or six years. While our North America financial results are reported on a weekly calendar basis, our international operations are reported on a monthly calendar basis. The following chart details our quarterly reporting schedule:
QuarterUnited States and CanadaInternational
First Quarter12 weeksJanuary and February
Second Quarter12 weeksMarch, April and May
Third Quarter12 weeksJune, July and August
Fourth Quarter16 weeksSeptember, October, November and December
Schedule of Segment Reporting Information, by Segment [Table Text Block]
Net revenue, significant expenses and operating profit of each segment are as follows:
 2025
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$27,528 $28,197 $4,997 $18,025 $10,549 $4,629 $93,925 
Segment cost of sales (a)
10,564 12,910 1,529 10,437 4,480 2,850 
Segment selling, general and administrative expenses (a)
10,419 12,002 1,612 5,017 3,925 1,315 
Restructuring and impairment charges (b)
344 281 14 195 52 12 
Acquisition and divestiture-related charges (c)
28 422 — — — 3 
Impairment and other charges (d)
— 1,523 73 270 — 80 
Indirect tax impact (e)
— — — — 82 — 
Pension and retiree medical-related impact (f)
— (30)— — — — 
Segment operating profit$6,173 $1,089 $1,769 $2,106 $2,010 $369 $13,516 
Corporate unallocated expenses(2,018)
Operating profit11,498 
Other pension and retiree medical benefits expense(133)
Net interest expense and other(1,121)
Income before income taxes$10,244 
 2024
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$27,431 $27,769 $4,879 $16,658 $10,568 $4,549 $91,854 
Segment cost of sales (a)
10,245 12,701 1,482 9,639 4,420 2,756 
Segment selling, general and administrative expenses (a)(g)
10,204 11,964 1,689 4,787 4,047 1,402 
Restructuring and impairment charges (b)
161 238 24 116 49 9 
Acquisition and divestiture-related charges (c)
9 8 — — — 5 
Impairment and other charges (d)
9 556 4 145 — — 
Indirect tax impact (e)
— — 218 — — — 
Product recall-related impact (h)
184 — — — — — 
Segment operating profit$6,619 $2,302 $1,462 $1,971 $2,052 $377 $14,783 
Corporate unallocated expenses(1,896)
Operating profit12,887 
Other pension and retiree medical benefits expense(22)
Net interest expense and other(919)
Income before income taxes$11,946 
 2023
 PFNAPBNAIB FranchiseEMEALatAm FoodsAsia Pacific FoodsTotal
Net revenue$28,015 $27,626 $4,559 $16,210 $10,576 $4,485 $91,471 
Segment cost of sales (a)
10,432 12,856 1,478 9,666 4,591 2,711 
Segment selling, general and administrative expenses (a)
10,158 11,808 1,641 4,569 4,056 1,404 
Restructuring and impairment charges (b)
42 41 11 227 29 8 
Acquisition and divestiture-related charges (c)
— 16 — (2)— 2 
Impairment and other charges/credits (d)
— 321 862 (14)2 59 
Product recall-related impact (h)
136 — — — — — 
Segment operating profit$7,247 $2,584 $567 $1,764 $1,898 $301 $14,361 
Corporate unallocated expenses(2,375)
Operating profit11,986 
Other pension and retiree medical benefits income250 
Net interest expense and other(819)
Income before income taxes$11,417 
(a)Does not include items recorded in the cost of sales or selling, general and administrative expenses lines on our income statement that are presented in the restructuring and impairment charges, acquisition and divestiture-related charges, impairment and other charges/credits, indirect tax impact, product recall-related impact and pension and retiree medical-related impact lines of these tables.
(b)See Note 3 for further information related to restructuring and impairment charges.
(c)See Note 13 for further information related to acquisitions and divestiture-related charges.
(d)See below and Note 4 for impairment and other charges taken. In 2023, EMEA included adjustments for changes in estimates of previously recorded amounts.
(e)In 2025, we recorded a pre-tax charge of $82 million in selling, general and administrative expenses and income tax expense of $29 million in provision for income taxes (collectively, $0.08 per share) related to an indirect and income tax audit settlement in our LatAm Foods segment. In 2024, we recorded a pre-tax charge of $218 million ($218 million after-tax or $0.16 per share) in cost of sales related to an indirect tax reserve in our IB Franchise segment.
(f)We recognized pre-tax income of $30 million ($22 million after-tax or $0.02 per share) in our PBNA segment, recorded in selling, general and administrative expenses, associated with pension-related liabilities from previous acquisitions.
(g)We recognized a pre-tax gain of $122 million ($92 million after-tax or $0.07 per share) in our PFNA segment, recorded in selling, general and administrative expenses, related to the remeasurement of our previously held 50% equity ownership in Sabra at fair value. See Note 13 for further information.
(h)In 2024, we recorded a pre-tax charge of $187 million ($143 million after-tax or $0.10 per share) associated with the Quaker Recall with $176 million recorded in cost of sales related to property, plant and equipment write-offs, employee severance costs and other costs,
$8 million recorded in selling, general and administrative expenses and $3 million recorded in other pension and retiree medical benefits (expense)/income, which is not included in operating profit. In 2023, we recorded a pre-tax charge of $136 million ($104 million after-tax or $0.07 per share) in cost of sales for product returns, inventory write-offs and customer and consumer-related costs associated with the Quaker Recall.
Disaggregation of Revenue
Disaggregation of Net Revenue
Our primary performance obligation is the distribution and sales of beverage and convenient food products to our customers. The following table reflects the percentage of net revenue generated between our beverage business and our convenient food business:
202520242023
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
Beverages(a)
Convenient Foods
North America51 %49 %50 %50 %50 %50 %
International (b)
31 %69 %29 %71 %29 %71 %
PepsiCo42 %58 %42 %58 %41 %59 %
(a)Beverage revenue from company-owned bottlers, which primarily includes our consolidated bottling operations in our PBNA and EMEA segments, is 36% of our consolidated net revenue in 2025 and 35% of our consolidated net revenue in both 2024 and 2023. Generally, our finished goods beverage operations produce higher net revenue, but lower operating margins as compared to concentrate sold to authorized bottling partners for the manufacture of finished goods beverages.
(b)Beverage and convenient food revenue generated from our EMEA segment is 37% and 63% of EMEA net revenue, respectively, in 2025, and 35% and 65% of EMEA net revenue, respectively, in both 2024 and 2023.
Impairment and Other Charges [Table Text Block]
Impairment and Other Charges
A summary of impairment and other charges taken, which are primarily as a result of our quantitative assessments, is as follows:
202520242023Affected Line Item in the Income Statement
PFNA
Other$— $9 $— Impairment of intangible assets
PBNA
Rockstar (a)
1,539 — — Impairment of intangible assets
TBG (b)
(16)556321Selling, general and administrative expenses
IB Franchise
Rockstar (a)
73 — — Impairment of intangible assets
SodaStream (a)
— — 862 Impairment of intangible assets
Other— 4 — Selling, general and administrative expenses
EMEA
Rockstar (a)
251 — — Impairment of intangible assets
TBG (b)
19 135 — Selling, general and administrative expenses
Other (c)
— 10 (14)Impairment of intangible assets, selling, general and administrative expenses and cost of sales
LatAm Foods
Other— — 2 Selling, general and administrative expenses
Asia Pacific Foods
Be & Cheery80 — 59 Impairment of intangible assets
Total$1,946 $714 $1,230 
After-tax amount (d)
$1,491 $584 $1,014 
Impact on net income attributable to PepsiCo per common share (d)
$(1.09)$(0.42)$(0.73)
(a)See Note 4 for further information regarding impairment of intangible assets. For information on our policies for indefinite-lived intangible assets, see Note 2.
(b)See Note 9 for further information regarding our proportionate share of TBG’s indefinite-lived intangible assets impairment and other-than-temporary impairment of our investment in TBG. In 2024, we recorded an allowance for expected credit losses of $193 million, primarily related to outstanding receivables associated with the Juice Transaction. In 2025, we recorded adjustments for changes in estimates of previously recorded amounts.
(c)2023 amount includes adjustments for changes in estimates of previously recorded amounts.
(d)2025 includes a tax benefit of $39 million ($0.03 per share) related to the prior-year impairment of our investment in TBG.
Schedule Of Segment Reporting Information By Capital Spending, Depreciation And Amortization [Table Text Block]
Capital spending and depreciation and amortization of each segment are as follows:
 Capital SpendingDepreciation and Amortization
 202520242023202520242023
PFNA$1,051 $1,306 $1,444 $969 $862 $798 
PBNA1,344 1,541 1,723 1,093 1,069 1,025 
IB Franchise124 148 110 109 109 99 
EMEA744 880 831 549 477 448 
LatAm Foods672 809 814 417 382 362 
Asia Pacific Foods257 312 312 153 133 118 
Total segment4,192 4,996 5,234 3,290 3,032 2,850 
Corporate223 322 284 161 128 98 
Total$4,415 $5,318 $5,518 $3,451 $3,160 $2,948 
Net Revenue And Property, Plant and Equipment, Net by Geographical Areas
Net revenue by country is as follows:    
 202520242023
United States$52,228 $51,668 $52,165 
Mexico6,947 7,123 7,011 
Russia4,768 3,880 3,566 
Canada3,729 3,764 3,722 
China2,621 2,709 2,703 
United Kingdom2,142 2,063 1,946 
Brazil1,782 1,765 1,779 
South Africa1,767 1,859 1,707 
All other countries17,941 17,023 16,872 
Total$93,925 $91,854 $91,471 
Property, plant and equipment, net by geography is as follows:    
20252024
United States$16,671 $16,550 
International (a)
13,234 11,458 
Total$29,905 $28,008 
(a)Mexico accounted for 9% and 8% of our consolidated property, plant and equipment, net as of December 27, 2025 and December 28, 2024, respectively. No other individual country exceeded 5% of our consolidated property, plant and equipment, net.