Stock Valuation and Csr Scorecard for Pepsi

Group Project

Final Term Paper

PepsiCo is one of the leading companies in the world for food and beverages. It operates in over 200 countries and in 2009 the company’s revenues were $43.23 billion with net income of $5.95 billion. Most of its revenues come from non-carbonated drinks and food products, unlike Coke whose revenues mainly come from carbonated drinks. In fact, 60% of the revenues for beverages come from its key non-carbonated brands like Gatorade and Tropicana. PepsiCo serves 86% of the world’s population, which accounts for 48% total revenue. PepsiCo was founded in 1965 with the merger of Pepsi-Cola and Frito-Lay.

Today, Pepsi includes many carbonated beverages, juices, sports drinks, and water. Pepsi is divided into four divisions: PepsiCo Americas Beverages, PepsiCo Americas Foods, PepsiCo Europe, PepsiCo Asia, Middle East, and Africa. PepsiCo has hundreds of brands including SoBe, Sierra Mist, Tropicana, Starbucks (partnership), Mountain Dew, Lipton (partnership), Frito-Lays, Gatorade, Tropicana, and Quakers.

http://www.wikinvest.com/stock/Pepsico_(PEP)

PepsiCo (symbol: PEP) is a publically traded company and its shares are traded at the New York Stock Exchange. It’s also prominent in the Amsterdam, Chicago, Swiss, and Toyko stock exchanges. As of November 26th, 2010 the price per share is $64.33 and pays $1.92 per share in dividends to its stockholders. Indra Krishnamurthy Nooyi is the current CEO of Pepsi. She is involved in undertaking associated companies such as The Pepsi Bottling Group and Pepsi America. PepsiCo is highly exposed to raw materials costs, which include sugar, corn, aluminum, and plastic. Therefore, Nooyi tried to acquire its two largest bottlers. Pepsi Bottling Group and Whitman. As of March 2010, the acquisition deal closed and PepsiCo added $4 billion dollar debt onto its balance sheet.

PepsiCo’s success is a result of superior products and unique competitive...