A major change is coming to the beverage lineup at one of America’s biggest fast-food chains. After nearly four decades with the same soda partner, KFC is switching sides in the long-running cola rivalry, bringing a familiar competitor into thousands of restaurants nationwide.
KFC makes a major beverage change
KFC announced October 15 that it has selected Coca-Cola as its new beverage partner for U.S. restaurants, ending its longstanding relationship with PepsiCo.
The switch will affect KFC’s 3,718 U.S. locations, with Coca-Cola products expected to arrive at restaurants by spring 2027. Financial terms of the agreement have not been disclosed.
PepsiCo once owned KFC, but the restaurant chain became part of Yum Brands in 1997. The companies continued working together afterward, with PepsiCo supplying beverages to KFC’s U.S. restaurants.
The move gives Coca-Cola another major fast-food partner. The beverage giant already has longstanding relationships with chains including McDonald’s and Wendy’s.
A setback for PepsiCo
The agreement represents a loss for PepsiCo as the company works to improve its performance in the North American beverage market.
PepsiCo has faced pressure from rising costs, changing consumer preferences, and weaker demand for some of its products. Activist investor Elliott Investment Management has also pushed the company to improve performance and consider selling underperforming assets.
However, PepsiCo is not losing all of its restaurant partnerships. Its agreements with Taco Bell and KFC’s international operations remain in place, according to a company spokesperson cited by Reuters.
When to expect changes
The switch also highlights the competitive nature of the restaurant beverage business, where major chains can influence soda sales through their fountain drink agreements.
For KFC customers, the change means Coca-Cola beverages will replace Pepsi products at U.S. locations as the transition rolls out (Costco did something similar in 2025). The companies have not disclosed additional details about the complete beverage lineup or the precise timing for individual restaurants.
The change is expected to be completed by spring 2027.
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