KFC will transition approximately 3,600 US restaurants to Coca-Cola beverages from January 2027, ending a nearly 40-year partnership with PepsiCo while retaining existing beverage agreements in international markets.
KFC is replacing PepsiCo with The Coca-Cola Company as its beverage partner across the United States, ending a relationship that dates back nearly four decades. The transition will begin in January 2027, with Coca-Cola products expected to reach all KFC restaurants across the US by spring, marking a significant change in the beverage strategy of the global quick-service restaurant brand.
Announced on October 15, 2026, the agreement covers approximately 3,600 US restaurants. The financial terms of the new partnership have not been disclosed.
For KFC, the move is part of a broader effort to strengthen its US business through menu innovation, improved restaurant experiences and new reasons for customers to visit. The partnership will combine KFC’s food offering with Coca-Cola’s beverage portfolio and innovation capabilities, potentially creating opportunities for new drink options and food-and-beverage combinations.
Catherine Tan-Gillespie, President of KFC US, said the agreement represents another step in the brand’s efforts to evolve its customer proposition and strengthen its restaurants and menu offerings. “This partnership is about more than what’s in the cup. It is another important step in our work to evolve KFC, strengthen our restaurants and create a more relevant experience for today’s customers,” Tan-Gillespie said.
Dagmar Boggs, President of Foodservice & On-Premise, North America, at The Coca-Cola Company, said the partnership would combine KFC’s established food offering with Coca-Cola’s beverage portfolio and innovation capabilities to create new customer experiences and growth opportunities.
The switch ends a longstanding relationship that began in 1986, when PepsiCo acquired KFC as part of its expansion into the restaurant business. PepsiCo later separated its restaurant operations in 1997, creating the foundation for today’s Yum! Brands, but continued supplying beverages to KFC for decades.
The change, however, is limited to the US market and does not signal a global break between KFC and PepsiCo. PepsiCo has renewed its beverage agreements covering KFC’s international restaurants and Taco Bell, according to a news source. KFC’s beverage arrangements will therefore continue to differ between the US and international markets.
For franchisees, the transition represents a significant operational change across one of the largest restaurant networks in the US. Replacing beverage suppliers can require adjustments to dispensing equipment, product sourcing, distribution and restaurant procedures. The rollout will need coordination between KFC, Coca-Cola and the operators of individual restaurants to ensure a smooth transition.
The agreement could also create opportunities to refresh beverage menus, develop new meal combinations and support promotional campaigns. However, the financial implications for franchisees will depend on the commercial terms, equipment requirements and customer response. The companies have not publicly disclosed the financial details of the deal.
The switch also represents a major foodservice account win for Coca-Cola, which already supplies beverages to prominent restaurant chains, including McDonald’s and Wendy’s. For PepsiCo, losing KFC’s US business comes as the company works to improve performance in its North American beverage operations, although its international KFC agreement and other restaurant partnerships remain intact.
KFC operates within Yum! Brands, alongside Taco Bell and Pizza Hut, and has built its international presence through a combination of company-operated restaurants, franchisees and local operating partners. This structure allows the brand to expand across markets while adapting certain commercial arrangements to regional requirements.
With the transition scheduled to begin in January 2027 and conclude across the US network by spring, the agreement marks a new chapter in KFC’s domestic beverage strategy without changing its broader international relationship with PepsiCo.
