Pepsi is a favoured soft drink, but do people know the growth that had to be done in order for the company to be like this today? PepsiCo has been around for 49 years. When PepsiCo was created (by merging Pepsi-Cola and Frito-Lay) no one thought that the company would grow this big. PepsiCo started growing right away. It added Taco Bell and it acquired Walkers crisp from the United Kingdom. The PepsiCo stock started around 1978, which is 13 years after combining Pepsi-Cola and Frito-Lay. The stock slowly grew with the market and today shareholders make about $4.10 per share.

PepsiCo keeps growing. Right now it has 1.53 billion shares and in a few years even more. Also the dividend you would have made in 2009 was 42.5 cents and now it is 56.25 cents. Throughout history, they have expanded their company which gave them more and more exposure. When they add new brands and partner with other companies they become known by more and more people.

Since PepsiCo went global it has gotten more exposure to different global companies. PepsiCo also keeps adding businesses and companies to make the corporation bigger. It can easily partner with other companies like Walkers Crisps or Gamesa (Mexico's largest cookie company) and make more profit from around the world. It also had the largest commercial trade agreement in history in the 1990’s with the Soviet Union. Also when the corporation first introduced Lay’s chips, the chips were introduced around the world.

PepsiCo Stock has soared above its competitors, The Coca-Cola Company opens at $40.48. The Dr. Pepper Snapple opens at $47.83. The PepsiCo stock opens at almost double what their competitors open at. With all the exposure PepsiCo gets, there is no
wonder why people started investing in this rapidly growing company. The Money Morning (the leading source for investment news globally) says that Pepsi stands in a category all by itself because it’s a worldwide provider of both drinks and snacks. The Money Morning also said that even though the demand for carbonated drinks has decreased, PepsiCo will still do well because they have non carbonated drinks like Gatorade and Lipton Tea.

From the info above it looks like Pepsico as a company is doing great and is continuing to grow. The question now, is the PepsiCo stock on the right path? Well looking at the history of the company, PepsiCo will keep partnering with other companies and that will help the company grow. PepsiCo said in 2008 they invested 1 billion dollars in China as part of strategy to expand in emerging markets and broaden the portfolio of locally relevant products.

PepsiCo has closely followed the path of the stock market. Yes PepsiCo has fallen before but at the time they fell others fell as well. Also when PepsiCo rises other companies rise. Comparing PepsiCo with the S&P 500, PepsiCo keeps growing further and further away from the S&P 500. The S&P 500 is a stock market index based on 500 large companies. 40% of the PepsiCo business comes straight from shares.

Indra K. Nooyi, PepsiCo Chairman and Chief Executive Officer, said “The actions we took in 2012 were all designed to take us one step further on the transformation journey of our company.” Looking at the information from the 2012 annual report that statement is right. The 2012 Annual Report said “The shareholders core earnings per share was $4.10 in 2012. Also $6.5 billion was returned to shareholders through share repurchases and dividend.”

PepsiCo makes money all over the world. 49% of revenues come from out of the U.S. 51% of product revenues are from snacks, not from drinks. PepsiCo drinks take the least amount of money to make compared to PepsiCo snacks and they make profit from the fact that PepsiCo sells the product for more money than it took to make. Also PepsiCo Europe is 20% of the net revenues from across the world which is great for PepsiCo.

PepsiCo isn’t perfect. They are in debt. They are exactly 23,544,000 which is an increase of 14% from last years long term debt. They are also down in core net revenue, the total profit all around, by 1% which doesn’t seem like a lot but we are talking about hundreds of thousands of dollars. Also the purchase of shares is down 10% from the normal.

Now after reading all about PepsiCo it is up to you to decide whether they are on the right track or not. Yes PepsiCo is in debt but look at all the growth that they have done and think of where PepsiCo is headed.