PEP
PepsiCo Inc.
Is PEP Halal?
Core foods and non-alcoholic beverages are generally permissible, but current total-assets screens fail and alcohol licensing and product-level ingredient revenue are not separately disclosed.
What You Should Know
PepsiCo's June 2026 balance sheet produces a 47.43% interest-bearing-debt-to-assets ratio, above the examined total-assets limits. The company also licenses beverage trademarks and sells flavoring for alcoholic products, while official Frito-Lay materials identify porcine enzymes in parts of the product portfolio. Because alcohol- and ingredient-specific revenue and gross interest income are not disclosed, the business and purification screens remain incomplete and ZakatInvest classifies PEP as doubtful.
⚠️ Concerns
- •Alcohol trademark licensing and flavoring sales; exact screened revenue is undisclosed
- •Interest-bearing debt is 47.43% of total assets
- •Porcine enzymes exist in parts of the portfolio; exact affected-product revenue is undisclosed
- •Gross interest income and a complete purification numerator are unavailable
- •Nutrition, marketing, water, plastics, agriculture, labor and human rights
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-06-13; calculated 2026-07-12.
53,214 / 112,189
10,716 / 112,189
23,747 / 112,189
- Financial
- Fails
- Overall
- Fails
Debt is 47.43% of total assets and exceeds the 33.333% limit. Identifiable liquidity is 9.55% and receivables plus cash is 21.17%, but the debt failure determines the result; gross non-compliant income and screened business revenue are unavailable.
- Financial
- Fails
- Overall
- Fails
Debt is 47.43% and exceeds the examined 33.33% total-assets limit. Liquidity and receivables-plus-cash pass, but the debt failure determines the result; the business-activity calculation remains incomplete.
- Financial
- Fails
- Overall
- Fails
Debt is 47.43% and exceeds the examined 33% total-assets limit. This is a calculation against the SAC ratios, not an official SAC classification of a U.S.-listed security; screened business revenue is unavailable.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible 24- or 36-month issuer market-cap history is not yet stored, so these methods are not estimated from a current spot price.
Business-activity disclosure
PepsiCo's core portfolio combines convenient foods and mainly non-alcoholic beverages. Ordinary snacks, grains, water, sports drinks and soft drinks are generally permissible categories. PepsiCo also documents a trademark-licensing and flavoring-sales model for alcoholic products, and official Frito-Lay materials identify porcine enzymes in particular markets and product lines.
Limitation: Consolidated reporting does not provide revenue for alcohol trademarks, flavoring sales, porcine ingredients, individual formulations, or other screened end uses. The activities are documented, but neither their exact numerator nor a claim that total prohibited revenue is below or above 5% can be reproduced from the filing.
Purification
The filing reports net interest expense and other, not gross interest income, and does not isolate alcohol- or ingredient-specific operating revenue. ZakatInvest therefore does not invent an income percentage or fixed purification rate from a net expense line.
Inputs, assumptions and primary sources
- Interest-bearing debt is the sum of 10,602 of short-term debt obligations and 42,612 of long-term debt obligations.
- Cash and cash equivalents use the reported 10,251 balance.
- The entire 465 short-term-investments line is treated as identifiable interest-bearing securities. The filing says cash equivalents and short-term investments recorded at amortized cost have short maturities and approximate fair value.
- Receivables use the reported 13,496 accounts-and-notes-receivable balance after allowances.
- Net revenue of 24,181 uses the 12-week period ended June 13, 2026, matching the latest quarter in the filing.
- PepsiCo reports 230 of net interest expense and other for the quarter, but does not separately disclose gross interest income. A net expense cannot be repurposed as a gross non-compliant-income numerator, so the income ratio and purification calculation remain unavailable.
- The filing discloses revenue by segment and as 44% beverages and 56% convenient foods, but not by alcohol licensing, flavoring, porcine ingredient, individual product, or other Sharia-screened activity.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Similar Stocks
Want to screen more assets?
Use our interactive Halal Checker to screen any stock, ETF, or crypto instantly.
Go to Halal Checker →