KFC Plans US Switch From Pepsi to Coca-Cola

KFC announced on October 15, 2026 that its U.S. restaurants will switch from PepsiCo to Coca-Cola beverages. The transition begins in January 2027, with Coca-Cola products expected in all U.S. locations by spring 2027. PepsiCo has supplied KFC since Yum Brands spun off from PepsiCo in 1997 and will continue supplying KFC International and Taco Bell; a PepsiCo spokesperson told Reuters the Taco Bell agreement is a 10-year renewal. KFC has 3,718 U.S. locations. KFC U.S. President Catherine Tan-Gillespie said the deal is "about more than what's in the cup" and another step to evolve the brand, calling KFC and Coca-Cola "two originals, with deep consumer love." Coca-Cola's Dagmar Boggs said the partnership brings the brands together across the U.S. for the first time and aims to make visits more refreshing and unlock growth. Deal value and earnings impact were not disclosed. Reports differed on PepsiCo's same-day drop: about 1% in Yahoo/Stocktwits coverage, or 0.69% to $128.38 per AskTraders. Coca-Cola closed up 0.24% at $92.00, a three-month high close; Yum closed at $150.83, up 2.82%. Stocktwits/Yahoo noted PEP down 11% year-to-date and KO up 32%. AskTraders said Yum's rise came as staples rallied with falling Treasury yields, so the deal may not explain the full move.