PEP · 10-Q · 2026Q2 · Full report

International Operations Risk

PEPSICO INC · 2026-07-09 · Importance 49 · Surprise 32

PepsiCo describes exposure to volatile economic, political and geopolitical conditions across international markets (e.g., Argentina, Brazil, China, Mexico, the Middle East, Russia, Turkey, Ukraine) and notes these conditions have produced challenging operating environments and changes in how the company operates in those markets. The filing discloses that operations outside North America generated 43% of consolidated net revenue for the 24 weeks ended June 13, 2026, and that a subset of countries (Mexico, Russia, Canada, China, the UK, Brazil, South Africa) comprised 25% of consolidated net revenue. It warns of risks including currency controls, sanctions, export controls and restrictions on fund transfers, and flags potential for impairments or write‑offs and the need to monitor transfer restrictions. Management refers readers to Note 8 for fair values and Note 9 of the 2025 Form 10‑K for further discussion.

Key facts

• In the 24 weeks ended June 13, 2026 our operations outside of the United States generated 43% of our consolidated net revenue. source
• Mexico, Russia, Canada, China, the United Kingdom, Brazil and South Africa collectively comprised 25% of our consolidated net revenue in the 24 weeks ended June 13, 2026. source
• In the 12 weeks ended June 13, 2026 our financial results outside of North America reflect the months of March, April and May. source
• In the 24 weeks ended June 13, 2026 our financial results outside of North America reflect the months of January through May. source