KFC U.S. Ends PepsiCo Beverage Tie Dating to 1986, Switching to Coca-Cola in 2027

KFC U.S. announced on Oct. 15, 2026 that it will switch its U.S. beverage partnership from PepsiCo to The Coca-Cola Company, ending a relationship that dated back to Pepsi's 1986 purchase of the fried-chicken chain, according to CNBC and a company announcement distributed via PR Newswire. CNBC described it as the first change of drink supplier for the Yum Brands chain in decades.

What Was Announced

Per the companies' joint statement, the transition begins in January 2027, with Coca-Cola products expected to be served in all KFC U.S. restaurants by spring 2027. CNBC separately reported that KFC U.S. President Catherine Tan-Gillespie told franchisees and employees the chain expects to be pouring Coke beverages in all of its U.S. restaurants by the end of the first quarter of 2027, a slightly more specific timeline than the companies' public release.

KFC's U.S. restaurants had served PepsiCo drinks continuously since Pepsi bought the chain in 1986, CNBC reported, while some KFC international markets already serve Coca-Cola products. Pepsi later spun off KFC along with Pizza Hut and Taco Bell to form what became Yum Brands, but according to CNBC, the combined company remained loyal to its former owner as a beverage supplier, with the outlet noting that without Pepsi, Taco Bell would not serve its Mountain Dew Baja Blast drink.

Scope: KFC Only, Not All of Yum Brands

The switch appears limited to KFC's U.S. system. CNBC reported that Tan-Gillespie said Pepsi remains an important partner for KFC's parent company and for the chain's international markets. Read as interpretation, that comment suggests Taco Bell and Pizza Hut, Yum Brands' other major U.S. chains, are not covered by this change; neither the PR Newswire announcement nor CNBC's reporting described any shift in beverage arrangements at those sister brands.

Terms Not Disclosed

The companies' announcement said Coca-Cola's "extensive system capabilities will also support KFC restaurants across the U.S.," but it disclosed no contract length, exclusivity provisions or financial terms. "This exciting new partnership brings Coca-Cola and KFC together across the U.S. for the first time," Dagmar Boggs, president of foodservice and on-premise, North America, at The Coca-Cola Company, said in the release.

Context and Bottom Line

CNBC reported that Tan-Gillespie framed the move as part of the chain's turnaround effort, writing in a memo obtained by the outlet that "This decision is a critical step in the Kentucky Fried Comeback," and that the change comes as KFC aims to win back U.S. diners who have shifted to rivals such as Chick-fil-A and Popeyes. KFC has also been widening its drink lineup, including iced coffees, boba and shakes at Open House, its innovation restaurant in McKinney, Texas, according to the company release and CNBC. CNBC added that large chains rarely switch beverage suppliers, though it is not unprecedented: PepsiCo took Subway, the largest U.S. restaurant chain by number of locations, from Coca-Cola in 2024, while Coca-Cola has won Culver's, Arby's and Panda Express from PepsiCo in recent years. KFC Corporation, a Plano, Texas-based subsidiary of Yum Brands, said in its release that there are more than 30,000 KFC restaurants in 150 countries and territories. Bottom line, on the cited reporting and the companies' release: the change is confined to KFC's U.S. system, begins in January 2027 and carries no publicly disclosed financial terms, so any assessment of its effect on either beverage maker should be treated as interpretation rather than disclosed fact.