ORIENTAL RIVERSTONE · Guided project resources

Your first project, already scoped

Equity Research starter · PepsiCo · historical FY2025 case. Use this pack if assigned in your Programme email. Other directions receive their own assigned pack.

1. Start with the prepared company

PepsiCo, Inc. · Nasdaq: PEP is the company for this starter. Your employer target and research company do not need to be the same. Your project covers consolidated revenue, operating profit and an agreed valuation exercise, not every segment.

You do not need to search for a company, design a project or write a research question.

2. Choose one prepared question

Use Q1 if you are unsure. The same company and source pack support the options below. Pick one, not all six. Your Programme reviewer confirms any switch before you build a different model.

Q1 · Recommended — Why did PepsiCo’s reported operating profit fall while revenue rose in 2025?

What you will build: Revenue and operating-profit bridge; distinguish impairments from recurring operating pressures.

Q2 — How sensitive would PepsiCo’s earnings be to a one-percentage-point change in operating margin?

What you will build: Base/downside/upside operating-profit model using a fixed revenue assumption.

Q3 — What needs to improve for PepsiCo’s operating margin to recover?

What you will build: Reported margin history and a clearly labelled forward scenario.

Q4 — How much of PepsiCo’s reported revenue growth reflects pricing rather than volume?

What you will build: A revenue-driver explanation using the segment review; do not equate organic growth with reported growth.

Q5 — Does PepsiCo’s operating cash flow cover capital spending and dividends?

What you will build: Cash-flow bridge and coverage calculation; distinguish cash flow from earnings.

Q6 — Which disclosed risks matter most to a PepsiCo valuation scenario?

What you will build: Three sourced risks translated into model sensitivities; not a predetermined buy/sell conclusion.

3. Download the one required report

Open PepsiCo FY2025 Form 10-K ↗

  1. Create a folder named PepsiCo_ER_Project on your computer.
  2. Open the official PDF above. Check that its cover says PepsiCo and fiscal year ended December 27, 2025.
  3. Use the PDF viewer’s download arrow. If it is hidden, move your pointer to the top of the viewer; alternatively press Ctrl+S on Windows or Command+S on Mac.
  4. Save inside that folder as PEP_FY2025_Form10K.pdf. Keep the PDF format.
  5. Open your saved file. Go to PDF page 60 (printed page 58). Find Consolidated Statement of Income.

Exact page map and worked example →

If the PDF link does not open

Open PepsiCo’s official annual reports page. Find “2025 Annual Report”, open the full report and search for “Consolidated Statement of Income”. That PDF may have different viewer page numbers. Verify the fiscal year on the cover. If still blocked, reply “Report link blocked” in your Programme thread; we will supply an accessible source route. Do not spend time searching unrelated websites.

4. Make your first evidence note

Open a blank Word or Google document. Paste the ready-made note below. Replace the square brackets only. No separate project-brief form is required.

Project: PepsiCo simulated equity research
Question: [Q1, or your selected question code]
Source: PEP_FY2025_Form10K.pdf, printed page 58 / PDF page 60
Units: USD millions
2025 revenue: [copy from Net Revenue]
2024 revenue: [copy from Net Revenue]
2025 operating profit: [copy from Operating Profit]
2024 operating profit: [copy from Operating Profit]
Observation: Revenue [rose/fell], while operating profit [rose/fell].

Worked example: the 2025 Net Revenue figure is 93,925, in USD millions. Copy that value without dividing by 1,000. Locate the remaining figures in the same table.

5. Save, send, stop

Save your note as PEP_A1_Evidence_Note.docx or export it as PDF. Reply to your Programme task email with the note and a screenshot of the income-statement table showing the heading, years and units.

You are done when: you have one selected question, four correctly sourced figures and one sentence describing their direction. No investment recommendation, additional company search or full-report reading is needed this week.

Starter task estimate: 30–60 minutes, depending on file access. Follow the actual due date in your Programme email.