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PepsiCo
New PepsiCo CEO Indra Nooyi is keeping the $35 billion snack-and-beverage giant on course as the company increases its global presence and focuses on healthy offerings. Along with extending the reach of such established brands as Quaker, Tropicana, and Gatorade, PespiCo continually rolls out innovative sodas and Frito-Lay snacks, boosting the products’ nutritional value while tailoring them to local tastes. The India-born Nooyi is also a proponent of corporate social responsibility, pushing the company to improve its performance on everything from recycling to water conservation. Nooyi firmly believes that such initiatives build employee loyalty and, she says, boost the bottom line. With a 28.3% total return over the last three years, PepsiCo isn’t losing sight of what’s important to investors, either.
| Overall Grade | A |
|
| Market Data | PEP | |
| Market Value (2/28/2007) |
$103.4 Billion |
|
| Profitability* | 36.4% | B+ |
| Sales Growth Rate** | 9.4% | B |
| 12-Month Sales | $35.1 Billion |
|
| 12-Month Net Income | $5.6 Billion |
|
| Total Return | Past 12 Months8.9% | Past 36 Months28.3% |
| Economic Sector | Consumer Staples | |
| Industry | Soft Drinks | |
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
$FOOTNOTE
