Core Insights - PepsiCo's international business is crucial for its global strategy and long-term growth, achieving 5% organic revenue growth in Q1 2025, marking 16 consecutive quarters of mid-single-digit growth despite geopolitical and macroeconomic challenges [1][4] - The international segment contributed nearly 40% of PepsiCo's total net revenues and core operating profit in 2024, with a portfolio valued at approximately $37 billion [1][4] International Business Performance - The international beverages business led growth with 11% organic growth in Q1 2025, driven by strong demand in markets such as China, India, Egypt, Turkey, Mexico, Brazil, the U.K., and Australia [2][8] - The international convenient foods business grew 2% organically, supported by strong performance in Brazil, Egypt, India, and Turkey, along with snack share gains in China, South Africa, Poland, and Thailand [2] Future Strategy - PepsiCo plans to enhance its global presence by deepening localization efforts, adapting product offerings to regional tastes, and expanding channel reach [3][4] - Investments in automation, digitalization, and standardization are aimed at increasing productivity and freeing up capital for reinvestment in commercial initiatives and innovation [3] Competitive Landscape - Key competitors in the international market include The Coca-Cola Company and Monster Beverage, both of which compete with PepsiCo in several key markets [5][6] - Coca-Cola's international strategy focuses on being a "Total Beverage Company," with significant market share in Latin America, Western Europe, and the Asia-Pacific region [6] - Monster Beverage is expanding its international footprint, contributing approximately 39.6% of its total revenues in Q1 2025, with a focus on key markets like China and India [7][9] Financial Performance and Valuation - PepsiCo's shares have declined approximately 13.5% year-to-date, contrasting with the industry's growth of 6.9% [12] - The forward price-to-earnings ratio for PepsiCo is 16.33X, below the industry average of 18.59X [13] - The Zacks Consensus Estimate for PepsiCo's 2025 earnings indicates a year-over-year decline of 3.6%, while the 2026 estimate suggests a 5.4% increase [14]