The Idiot Index

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Capital ExtractionApplied to packaged-food, beverage, and quick-service restaurant companies. COGS captures ingredients, packaging, and (for QSR) franchise-operated cost of revenue. The Markup Ratio is meaningful but the Operational Markup is the cleaner signal because brand investment flows…
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Capital Extraction in Food & Beverage · FY 2023

28 of 34 companies · highest first
  1. 1
    SAMBoston Beer
    638% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 2%
    6.3820
    × buybacks+dividends / net income
  2. 2
    MOAltria
    328% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 5%
    3.2812
    × buybacks+dividends / net income
  3. 3
    POSTPost Holdings
    238% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 9%
    2.3821
    × buybacks+dividends / net income
  4. 4
    KHCKraft Heinz
    220% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 13%
    2.2036
    × buybacks+dividends / net income
  5. 5
    YUMYum Brands
    139% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 16%
    1.3860
    × buybacks+dividends / net income
  6. 6
    CLColgate-Palmolive
    138% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 20%
    1.3846
    × buybacks+dividends / net income
  7. 7
    KMBKimberly-Clark
    106% of net profit returned to shareholders — funded beyond current-year earnings
    sector median 0.7340Top 23%
    1.0562
    × buybacks+dividends / net income
  8. 8
    MDLZMondelez
    92% of net profit returned to shareholders, 8% reinvested
    sector median 0.7340Median range
    0.9153
    × buybacks+dividends / net income
  9. 9
    CHDChurch & Dwight
    90% of net profit returned to shareholders, 10% reinvested
    sector median 0.7340Median range
    0.9033
    × buybacks+dividends / net income
  10. 10
    FLOFlowers Foods
    90% of net profit returned to shareholders, 10% reinvested
    sector median 0.7340Median range
    0.8992
    × buybacks+dividends / net income

Not yet covered (6)

These companies are in the Food & Beverage cohort but don't have a Capital Extraction computed for FY 2023. Either the underlying inputs aren't tagged in their XBRL filings, the DEF 14A pay-ratio narrative didn't parse cleanly, or this fiscal year hasn't been ingested for them yet.

What this measures

Full methodology →

How much of net profit goes to shareholders rather than back into the business.

Ratio
Capital Extraction
Sector
Food & Beverage
Methodology version
v1.0.0
Formula
(Buybacks + Dividends) / NetIncome
Sector context

Applied to packaged-food, beverage, and quick-service restaurant companies. COGS captures ingredients, packaging, and (for QSR) franchise-operated cost of revenue. The Markup Ratio is meaningful but the Operational Markup is the cleaner signal because brand investment flows through SG&A — and Shareholder Extraction often runs high because mature consumer-staples brands return capital aggressively rather than reinvest.

What share of after-tax profit is returned to shareholders rather than reinvested. Universal across sectors — works for banks, insurers, REITs, and utilities where the Shareholder Extraction ratio (which divides by R&D) is undefined. A value of 1.0 means 100% of net income flows back out to shareholders; above 1.0 means the company is funding shareholder returns from sources beyond current-year earnings (debt, retained cash, asset sales).

Source data: PaymentsForRepurchaseOfCommonStock, PaymentsOfDividends, NetIncomeLoss (us-gaap) or ProfitLoss (ifrs-full).