# Coca-Cola Wins KFC U.S. Beverage Deal From PepsiCo

- URL: https://stocks.freetheai.org/news/coca-cola-wins-kfc-u-s-beverage-deal-from-pepsico-6717e4
- Published: 2026-10-16T10:52:39Z
- Category: company_news; sentiment: bullish; impact: medium
- Symbols: [NYSE:KO](https://stocks.freetheai.org/symbols/NYSE-KO), [NASDAQ:PEP](https://stocks.freetheai.org/symbols/NASDAQ-PEP), [NYSE:YUM](https://stocks.freetheai.org/symbols/NYSE-YUM), [NASDAQ:KDP](https://stocks.freetheai.org/symbols/NASDAQ-KDP)
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The Coca-Cola Company (NYSE:KO) has secured an agreement to supply beverages at all KFC restaurants in the U.S. by spring, replacing rival PepsiCo, Inc. (NASDAQ:PEP). This agreement marks the first time Coca-Cola products will be served across the domestic footprint of the chain, which is owned by Yum! Brands, Inc. (NYSE:YUM).

The supplier change reflects broader momentum in the domestic soft drink market. Coca-Cola gained 70 basis points of market share in U.S. carbonated soft drinks over the past two years, while PepsiCo lost 130 basis points over the same period. Meanwhile, Keurig Dr Pepper Inc. (NASDAQ:KDP) also picked up market share when including energy drinks, as both beverage makers focused heavily on investments to drive U.S. revenue growth while PepsiCo emphasized cost-cutting and margin expansion.

While the agreement is viewed as more symbolic than transformative financially, estimates project it will provide a 10 to 20 basis point boost to Coca-Cola's total revenue when the contract takes effect in 2027. Investors will monitor whether this contract win signals further restaurant partner gains for Coca-Cola across North America.

## Key points

- The Coca-Cola Company (NYSE:KO) will supply beverages to all U.S. KFC locations by spring, taking over from PepsiCo, Inc. (NASDAQ:PEP).
- The partnership is estimated to deliver a 10 to 20 basis point increase to Coca-Cola's total revenue starting in 2027.
- Coca-Cola has gained 70 basis points of U.S. carbonated soft drink market share over the last two years, compared to a 130 basis point loss for PepsiCo.

## Questions and answers

### Will U.S. KFC locations serve Coca-Cola or Pepsi?

U.S. KFC restaurants are transitioning to Coca-Cola beverages under a new partnership that will cover all domestic locations by spring.

### When will the KFC and Coca-Cola agreement take effect?

Coca-Cola drinks will roll out to all U.S. KFC restaurants by spring, with financial impacts from the contract expected in 2027.

### How much revenue will Coca-Cola gain from the KFC deal?

The contract is estimated to add 10 to 20 basis points to Coca-Cola's total revenue once it begins in 2027.