KFC Had Pepsi for Nearly 40 Years. Coca-Cola Stock Is Trending After Winning It Over
Key takeaways
- KFC’s move to Coca‑Cola beverages is a significant win for Coke, adding 3,700 U.S. restaurants and boosting its foodservice presence.
- 3,700 U.S. KFC locations
- January 2027 start
- end of Q1 2027 completion
What happened
KFC announced it will switch its U.S. restaurants from PepsiCo beverages to Coca‑Cola products starting in January 2027, ending a nearly 40‑year partnership with PepsiCo. The change will cover about 3,700 U.S. KFC locations by the end of Q1 2027.
Why it matters
The switch adds a large, high‑traffic chain to Coca‑Cola’s foodservice footprint, boosting sales volume and brand visibility. It also signals a rare shift in a major franchise, potentially influencing other chains to reconsider their supplier choices.
Short-term and longer-term
Short-term. Over the next few weeks, watch for price action around the $92.50–$93.50 range as the market digests the KFC deal.
Longer-term. In the coming months, the KFC partnership could lift Coca‑Cola’s quarterly beverage revenue and improve its margin profile.