PEPSICO INC (PEP) — payout ratio, three ways
Fiscal year ending 2025-12-27 · sector Consumer staples · payout ratios computed from SEC filings, not taken from a data vendor.
| Basis | Payout | Why it differs |
|---|---|---|
| GAAP earnings | 93.7% | The figure most screeners publish. |
| Operating cash flow | 63.2% | Before capital spending, so it understates the payout that free cash flow shows. |
| Free cash flow | 99.6% | What is left after maintaining the business. |
Spread between highest and lowest: 36 percentage points. Same filings, different denominators.
Coverage rating 29 / 100 — Strained. ? Peer standing 7/50Direction 4/30Stability 19/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-12-27 | 99.6% |
| 2024-12-28 | 100.6% |
| 2023-12-30 | 84.3% |
| 2022-12-31 | 110.1% |
| 2021-12-25 | 83.2% |
| 2020-12-26 | 86.4% |
Among the 38 consumer staples companies here, only 13% pay out a larger share on this basis — this is at the demanding end.
The arithmetic
- GAAP earnings — dividends declared per share $5.62 ÷ diluted EPS $6.00
- Operating cash flow — dividends paid $7,638.0m ÷ operating cash flow $12,087.0m
- Free cash flow — dividends paid $7,638.0m ÷ (operating cash flow $12,087.0m − capex $4,415.0m)
Where the figures came from
- 10-K filed 2026-02-03 · accession
0000077476-26-000007
Every one is public at sec.gov and free to check. That is the point — you should not have to take my word for any of it.
Computed by an open pipeline reading SEC XBRL directly. If any number here looks wrong to you, tell me — that is more useful to me than agreement.