I am extracting macOS sierra update package - macOSUpd10.12.1.pkg using following command to /tmp/macosupd directory.
macOSUpd10.12.1.pkg
pkgutil --expand /Volumes/
There is an undocumented option to pkgutil, --expand-full, which uses the same syntax as pkgutil --expand.
pkgutil
--expand-full
pkgutil --expand
pkgutil --expand-full [pkg] [dir]
This will completely "unarchive" a pkg or mpkg file.