At Financial Comparisons Between Pepsico, Inc., And Coca Cola

801 Words Jan 27th, 2015 4 Pages
I have been asked to put myself in the place of an analyst and perform an analysis and provide a recommendation to management. The aim of this analysis is to arrive at financial comparisons between PepsiCo, Inc., and Coca Cola. I will be applying both vertical and horizontal analysis to help form my opinion. With that said, let’s move ahead with my analysis.
To begin, let’s discuss the two company histories. PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lay. Pepsi-Cola was created in the late 1890s by Caleb Bradham, a New Bern, North Carolina Pharmacist. Frito-Lay, Inc. was formed by the 1961 merger of the Frito Company, founded by Elmer Doolin in 1932, and the H. W. Lay Company, founded by Herman W. Lay, also in 1932. Herman Lay, former chairman and CEO of Frito-Lay, was chairman of the board of directors of the new company; Donald M. Kendall, former president and CEO of Pepsi-Cola, was president and chief executive officer (PepsiCo: Our History).
On May 8, 1886, Coca‑Cola is created by John S. Pemberton. He does this by adding carbonated water and selling his drink for five cents a glass. Company accountant, Frank Robinson, names the drink “Coca‑Cola,” and thinking the two Cs would look well in advertising, pens the famous Spencerian script logo. After Pemberton’s death two years later, businessman Asa Griggs Candler bought the rights and turned Coca-Cola into a profitable business. Robert Woodruff arrived at Coca Cola in 1923.…
Open Document