KFC taps Coca-Cola for U.S. beverage deal

KFC has entered into a new beverage partnership with The Coca-Cola Company (KO) to supply sodas at its U.S. restaurants, replacing PepsiCo (PEP) as its domestic soft drink provider. The move marks a major shift in fountain beverage supply for the chicken chain’s U.S. operations and affects a large system of outlets across the country.

The change applies to KFC’s network of 3,718 U.S. locations, based on figures cited from the company’s website in recent coverage. These restaurants will transition to serving Coca-Cola-branded soft drinks as the new agreement takes effect.

Coca-Cola products are expected to be available in KFC U.S. restaurants by spring 2027. This targeted timing sets a clear window for when customers can anticipate the new beverage lineup to be in place nationwide.

While the companies have outlined this broad timing goal, they have not shared a detailed schedule for the step-by-step transition at the restaurant level. The focus of public announcements has been on the spring 2027 availability objective rather than interim milestones.

Neither KFC nor The Coca-Cola Company has disclosed financial terms of the new beverage partnership. Public statements and coverage of the deal have not included information on pricing, duration, or exclusivity provisions.

The absence of financial details leaves the economic structure of the agreement opaque, with only the operational outcomes made public: a change in supplier and a defined target date for nationwide availability in U.S. restaurants.

Even as PepsiCo loses its role as KFC’s U.S. soda supplier, it remains an important beverage partner within the broader Yum Brands (YUM) portfolio. A PepsiCo spokesperson has said that PepsiCo and Yum Brands (YUM) recently renewed agreements that cover Taco Bell and KFC international restaurants.

As part of these renewals, the agreement for Taco Bell is described as a 10-year deal. This indicates a long-term continuation of PepsiCo’s presence in Yum Brands’ system outside KFC’s U.S. units, particularly at Taco Bell and in KFC markets outside the United States.

The new arrangement will change the beverage options available to customers at KFC locations across the United States once Coca-Cola products are fully introduced. For KFC, it represents a realignment of its U.S. beverage partner while maintaining existing structures for its international operations through separate agreements.

Within Yum Brands, the developments result in a mixed configuration of beverage partnerships: Coca-Cola at KFC in the U.S., alongside renewed PepsiCo agreements for Taco Bell and KFC’s international restaurants. This structure underscores that the shift is specific to KFC’s domestic system rather than a group-wide change.