KFC Drops Pepsi for Coca-Cola Across US Restaurants

KFC will swap Pepsi for Coca-Cola at all United States locations by spring 2027, ending a partnership of nearly four decades.

NationPulse Desk

Oct 18, 2026 · 1:43 PM 2 min read

Key takeaways

KFC is ending a 40-year partnership with PepsiCo to switch to Coca-Cola in the United States.

The Coca-Cola Company and KFC announced the agreement on October 15.

The transition begins in January 2027, and all roughly 3,600 US restaurants should serve Coca-Cola by spring 2027.

Bank of America analysts estimate PepsiCo could lose about $500 million in annual sales.

The switch only applies to US locations, while PepsiCo renewed agreements for Taco Bell and international KFC stores.

Fast food chain KFC is dropping Pepsi to serve Coca-Cola beverages across its United States locations, concluding a roughly 40-year beverage alliance with PepsiCo, according to RT.

On October 15, The Coca-Cola Company and KFC revealed their upcoming agreement. Transitioning the US beverage lineup to Coca-Cola items begins in January 2027, with the approximately 3,600 domestic restaurants projected to complete the change by spring 2027.

PepsiCo acquired the fast food chain in 1986, which is when KFC outlets in the country began offering Pepsi beverages. Although PepsiCo spun off KFC in 1997, the restaurant chain and parent company Yum Brands maintained their association with Pepsi.

Catherine Tan-Gillespie, president of KFC US, explained that the collaboration forms part of brand evolution efforts to offer patrons a more fitting experience. Competitors like Chick-fil-A and Popeyes have been drawing American customers away from the chain.

Impact on PepsiCo

Reuters reported that Bank of America experts calculate losing KFC might cost PepsiCo roughly $500 million in yearly revenue. The financial specifics of the agreement with Coca-Cola remained unreleased.

This transition impacts the United States only. A PepsiCo representative informed Reuters that the company recently extended contracts for Taco Bell and international KFC locations.

Rival beverage corporations have competed for restaurant clients over many years, while emerging labels like Salaam Cola attempt to challenge them. Coca-Cola has existed in Pakistan for over seventy years.

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