Replying to Avatar Dakota

The last slide shows (I think) that Pepsi and General Mills have profit margins of 10% and 12% , respectively. Is that large or not?
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John Christensen 1y ago đź’¬ 1

10-12% profit margins aren’t huge, but they’re decent, especially in big companies like Pepsi and General Mills. It’s all relative to the industry, but in food and beverage I think those numbers are pretty typical. Not too big, not too small.

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Dakota 1y ago đź’¬ 1

Then isn’t that evidence against the idea that grocery stores make razor thin profit margins?

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John Christensen 1y ago

Ya, I was thinking 2-4% would be considered “razor thin”. I think most successful businesses are near 15% give or take. If you are 30% you are a titan of industry. Ya, I don’t know.