Building an Empire with PepsiCo Inc.

Earlier this month, PepsiCo Inc. (NYSE:PEP) announced Q2 earnings which they knocked out of the park with a beat on both the top and bottom line. PepsiCo has 22 different brands that generate over a billion dollars in annual revenue. Even better is that those 22 brands are well diversified coming from carbonated soft drinks, orange juice, tea, coffee, and chips. PepsiCo's numbers are currently being hurt due to currency exchange due to the strength of the US dollar but eventually the US dollar will lose some of its strength, leading to increased profits above organic growth seen by the company. PepsiCo's shares closed trading on Friday, July 17th at $96.78, giving a current yield of 2.90%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from PepsiCo Inc.'s investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of PepsiCo have earned solid returns. According to longrundata.com, PEP has delivered investors a total return of 132.0% or 8.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that PepsiCo has delivered.

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