PepsiCo completed several key acquisitions, including Siete for $1.2 billion (Mexican-American foods) and poppi for $1.95 billion (prebiotic soda), and acquired $585 million in convertible preferred shares of Celsius Holdings. These moves indicate a clear strategy to expand into growing health-and-wellness and ethnic food segments. (Page 17, 22, 28, 30, 31, 50)

The 2019 Multi-Year Productivity Plan was extended through 2030, with expected pre-tax charges of approximately $6.15 billion, including $5.1 billion in cash expenditures. This extension aims to further simplify operations, re-engineer systems, and optimize the supply chain, demonstrating a commitment to long-term operational improvements. (Page 16, 49)

Effective in the first quarter of 2025, PepsiCo realigned its reportable segments to conform with changes in its organizational structure and how the CEO reviews performance. This restructuring aims to improve internal resource allocation and strategic oversight. (Page 11, 39)

Management highlighted productivity savings as a partial offset to operating cost increases and higher commodity costs across various segments. For example, in PBNA (12 weeks), productivity savings helped mitigate a 20% operating profit decrease. (Page 38, 42-45)

The company's execution of major acquisitions like poppi and Siete, alongside an investment in Celsius, demonstrates management's proactive approach to shaping its brand portfolio and responding to market trends. These transactions represent substantial capital allocation decisions. (Page 28, 30, 31, 50)

PepsiCo continued migrating financial processing systems to an Enterprise Resource Planning (ERP) system as part of a global business transformation initiative. While these changes materially affected internal controls, management does not expect an adverse effect on internal control over financial reporting, indicating controlled execution. (Page 54)

PepsiCo recorded pre-tax impairment charges of $1.9 billion for the 36 weeks ended September 6, 2025, primarily related to the Rockstar and Be & Cheery brands. This reflects lower expectations of future business performance for these assets and an increased weighted-average cost of capital. (Page 4, 13, 18, 38, 43, 45, 49)

Higher commodity costs, particularly for dairy, potatoes, and cooking oil, had a significant negative impact on operating profit across segments, including an 18-percentage-point impact in EMEA for the 12 weeks and a 24-percentage-point impact for the 36 weeks. Tariffs also contributed to increased input costs. (Page 34, 38, 43, 44, 45)

Unfavorable foreign exchange translation reduced net revenue performance by 1 percentage point for the 36 weeks, primarily due to declines in the Mexican peso, Turkish lira, Egyptian pound, and Brazilian real. This highlights ongoing exposure to currency fluctuations in international markets. (Page 35, 38, 40, 43, 44)

Across most segments, effective net pricing was a positive driver for net revenue, helping to offset organic volume declines. For example, in PBNA (12 weeks), net revenue increased 2% despite a 3% unit volume decline, indicating pricing power. (Page 38, 40, 42-45)

Acquisitions of poppi (prebiotic soda) and Siete (Mexican-American foods) demonstrate PepsiCo's strategy to enhance its competitive position by entering or strengthening presence in growing, health-conscious, and culturally specific market segments. This diversifies its portfolio beyond traditional offerings. (Page 28, 30, 31)

While Asia Pacific Foods showed strong unit volume growth (3% for 12 weeks, 4% for 36 weeks) in India, Australia, and Thailand, North America experienced declines in savory snacks and non-carbonated beverages. This indicates varying competitive dynamics and consumer preferences across different markets and product types. (Page 42, 43, 45)

Operating profit was significantly impacted by higher commodity costs, with a 5.5-percentage-point impact for the 36 weeks consolidated. Specific segments like EMEA reported an 18-percentage-point impact for 12 weeks from higher dairy, potatoes, and cooking oil costs, indicating persistent cost pressures. (Page 38, 43, 44)

Productivity savings were consistently cited as a factor partially offsetting operating cost increases and commodity cost pressures across various segments, including PFNA, PBNA, EMEA, and LatAm Foods. This highlights ongoing efforts to improve efficiency despite external headwinds. (Page 38, 42-45)

The 2019 Multi-Year Productivity Plan led to restructuring and impairment charges of $567 million for the 36 weeks, with $2.4 billion in cash expenditures plan-to-date. These charges are part of a broader strategy to simplify the organization and optimize manufacturing and supply chain footprint. (Page 16, 17, 38, 48)

The acquisitions of poppi, a prebiotic soda business, and Siete, a Mexican-American foods business, demonstrate PepsiCo's investment in innovative product categories that cater to evolving consumer preferences for health, wellness, and diverse flavors. (Page 28, 30, 31)

PepsiCo is actively migrating its financial processing systems to an Enterprise Resource Planning (ERP) system as part of a global business transformation. This initiative aims to simplify, harmonize, and automate processes, enhancing technological capabilities and operational efficiency. (Page 54)

Significant impairment charges related to the Rockstar and Be & Cheery brands indicate that certain past investments in brand innovation or acquisition have not met performance expectations. This suggests a need for continuous evaluation and adaptation of brand strategies. (Page 18, 31, 38, 43, 45, 49)

PepsiCo expects to return approximately $8.6 billion to shareholders in 2025, including $7.6 billion in dividends and $1.0 billion in share repurchases. The annualized dividend was increased by 5% to $5.69 per share, signaling confidence in future cash flow generation. (Page 51)

Net cash used for investing activities totaled $5.2 billion for the 36 weeks, primarily driven by the $1.9 billion acquisition of poppi and $1.2 billion acquisition of Siete. This indicates a strategic prioritization of M&A to drive future growth. (Page 50, 51)

The company issued $8.2 billion in long-term debt and repaid $3.2 billion in long-term debt during the 36 weeks, alongside entering new revolving credit agreements. This active debt management ensures access to capital markets and maintains financial flexibility for ongoing operations and strategic investments. (Page 7, 21, 50)

PepsiCo acknowledges that new or increased legal and regulatory requirements to reduce greenhouse gas emissions and meet sustainability goals could result in significant increased costs and additional investments in facilities and equipment. This highlights a material financial risk associated with environmental commitments. (Page 35)

The company notes emerging taxes and regulations on packaging materials, particularly plastics, aimed at increasing sustainability, waste reduction, and recycling rates. PepsiCo is monitoring these developments and considering actions to mitigate unfavorable impacts, indicating an active approach to packaging ESG. (Page 36)

Management confirmed the effectiveness of its disclosure controls and procedures as of September 6, 2025, and reported no material changes to risk factors from the 2024 Form 10-K. The ongoing ERP implementation is not expected to adversely affect internal controls, suggesting stable governance oversight. (Page 54, 55)

PepsiCo operates in highly inflationary economies (e.g., Argentina, Egypt, Turkey) and faces volatile geopolitical conditions, civil unrest, and military conflicts (e.g., Russia, Ukraine, Middle East), which continue to create challenging operating environments and impact financial results. (Page 10, 35, 44)

The retail industry is experiencing disruption from the growth of e-commerce, online-to-offline purchasing, and the increasing power of large retailers. PepsiCo is actively monitoring these changes and seeking to expand its global e-commerce and digital capabilities to mitigate unfavorable impacts. (Page 37)

New or increased taxes and regulations on products and packaging, alongside the widespread implementation of the OECD global minimum tax (15%), are identified as potential future risks. These regulatory changes could increase costs and impact the company's tax provision. (Page 15, 19, 36)