The article compares PepsiCo (PEP) and Starbucks (SBUX), framing the choice as one between stability and growth. PepsiCo's snacks and drinks reach consumers in over 200 countries, and Walmart and its affiliates accounted for about 14% of its 2025 consolidated net revenue, a concentration the article flags as a risk. In its FY 2025 annual report, PepsiCo reported revenue of nearly $93.9 billion, up about 2.3%, while net income fell to about $8.2 billion from $9.6 billion in FY 2024, and free cash flow reached nearly $7.7 billion. Starbucks, with over 40,000 stores, reported FY 2025 revenue of about $37.2 billion (up nearly 2.8%), but net income of close to $1.9 billion versus $3.8 billion in FY 2024, with net margin compressing to roughly 5%. The article concludes PepsiCo offers a more conservative valuation profile than Starbucks on both earnings and sales multiples, and gives PepsiCo's operating margin as 15.8%.
Summary written by Upside AI from the original article. Read the source for full details.
Original headline: PepsiCo vs . Starbucks : Which Consumer Goods Stock Is a Better Buy in 2026 ?
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