PepsiCo vs Starbucks
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The short version
- PepsiCo is the larger business, with $93.9B of revenue in fiscal 2025 against $37.2B for Starbucks, about 2.5 times as much.
- Starbucks grew revenue faster (2.8%, against 2.3%).
- PepsiCo kept more of each dollar of sales as operating profit (12.2% operating margin, against 7.9%).
- PepsiCo turned more of its sales into free cash flow (8.2% FCF margin, against 6.6%).
- Starbucks earned a higher return on the capital invested in it (47.8%, against 16.4%).
- Investors pay more for each dollar of Starbucks’s earnings: a P/E of 57.9x against 17.1x for PepsiCo.
| Latest fiscal year | PEP · FY25 | SBUX · FY25 |
|---|---|---|
| Size | ||
| Market cap | $185.6B | $115.3B |
| Revenue | $93.9B | $37.2B |
| Free cash flow | $7.7B | $2.4B |
| Net income | $8.2B | $1.9B |
| Growth | ||
| Revenue growth | 2.3% | 2.8% |
| 5-year growth | 5.9% | 9.6% |
| Share count change | −0.4% | 0.2% |
| Profitability | ||
| Gross margin | 54.2% | — |
| Operating margin | 12.2% | 7.9% |
| Net margin | 8.8% | 5.0% |
| FCF margin | 8.2% | 6.6% |
| Return on capital | 16.4% | 47.8% |
| Return on equity | 42.9% | — |
| Balance sheet | ||
| Net debt | $39.7B | $12.6B |
| Net debt / EBITDA | 2.7x | 2.7x |
| Dividends and buybacks | $8.6B | $2.8B |
| Valuation & quality | ||
| P/E | 17.1x | 57.9x |
| Piotroski F-score | 6 | 4 |
Revenue
FY16
PEP $62.8B
SBUX $21.3B
FY17
PEP $63.5B
SBUX $22.4B
FY18
PEP $64.7B
SBUX $24.7B
FY19
PEP $67.2B
SBUX $26.5B
FY20
PEP $70.4B
SBUX $23.5B
FY21
PEP $79.5B
SBUX $29.1B
FY22
PEP $86.4B
SBUX $32.3B
FY23
PEP $91.5B
SBUX $36.0B
FY24
PEP $91.9B
SBUX $36.2B
FY25
PEP $93.9B
SBUX $37.2B
PEP
SBUX
Operating margin
FY16
PEP 15.6%
SBUX 19.6%
FY17
PEP 16.2%
SBUX 18.5%
FY18
PEP 15.6%
SBUX 15.7%
FY19
PEP 15.3%
SBUX 15.4%
FY20
PEP 14.3%
SBUX 6.6%
FY21
PEP 14.0%
SBUX 16.8%
FY22
PEP 13.3%
SBUX 14.3%
FY23
PEP 13.1%
SBUX 16.3%
FY24
PEP 14.0%
SBUX 15.0%
FY25
PEP 12.2%
SBUX 7.9%
PEP
SBUX
Free cash flow
FY16
PEP $7.6B
SBUX $3.3B
FY17
PEP $7.1B
SBUX $2.7B
FY18
PEP $6.1B
SBUX $10.0B
FY19
PEP $5.4B
SBUX $3.2B
FY20
PEP $6.4B
SBUX $114M
FY21
PEP $7.0B
SBUX $4.5B
FY22
PEP $5.6B
SBUX $2.6B
FY23
PEP $7.9B
SBUX $3.7B
FY24
PEP $7.2B
SBUX $3.3B
FY25
PEP $7.7B
SBUX $2.4B
PEP
SBUX
Return on capital
FY16
PEP 22.4%
SBUX 40.7%
FY17
PEP 16.7%
SBUX 39.7%
FY18
PEP 29.4%
SBUX 72.5%
FY19
PEP 20.5%
SBUX —
FY20
PEP 17.9%
SBUX 40.7%
FY21
PEP 17.7%
SBUX 115.8%
FY22
PEP 19.0%
SBUX —
FY23
PEP 18.5%
SBUX 135.4%
FY24
PEP 19.6%
SBUX 101.8%
FY25
PEP 16.4%
SBUX 47.8%
PEP
SBUX
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.