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KFC is dropping PepsiCo drinks for Coca-Cola products at its 3,600 U.S. restaurants starting in January 2027, ending a partnership that began four decades ago when PepsiCo owned the fried chicken chain.
KFC and Coca-Cola announced the deal Thursday but didn’t disclose financial terms. PepsiCo bought KFC in 1986 as part of a push into the restaurant business that also included Pizza Hut and Taco Bell.
In 1997, PepsiCo spun off the three chains into the company now called Yum Brands, KFC’s parent. PepsiCo stayed on as KFC’s drink supplier in the U.S.
For KFC, the move is a return of sorts. Before 1986, most of its restaurants poured Coke, and the chain was Coca-Cola’s second-biggest fountain drink customer, behind only McDonald’s.
Why is KFC switching from Pepsi to Coca-Cola now?
KFC is framing the switch as part of a broader overhaul of the brand. KFC U.S. President Catherine Tan-Gillespie said the partnership “is about more than what’s in the cup.” She called it another step toward modernizing the chain and its restaurants for today’s customers.
In a memo to franchisees and employees reported by CNBC, Tan-Gillespie called the change a key part of the “Kentucky Fried Comeback.” That’s KFC’s effort to win back U.S. diners who have moved to rivals such as Chick-fil-A and Popeyes.
Drinks have also become a bigger draw across fast food. McDonald’s and Taco Bell have added options like refreshers and “dirty soda,” which is soda customized with flavored syrups and creamer.
KFC has started testing its own lineup. The chain recently added iced coffees and shakes at Open House, its test restaurant in McKinney, Texas.
When will Coca-Cola replace Pepsi at every KFC in the US?
The rollout will take a few months. Coca-Cola and KFC expect every U.S. location to be serving Coke products by spring 2027.
Neither company has said which Coca-Cola drinks will be on KFC menus. Dagmar Boggs leads Coca-Cola’s business with restaurants and venues in North America. She pointed to the company’s range of brands and its ability to develop new beverages as part of what it brings to the deal.
Coca-Cola has said it helps many of its restaurant clients create new drinks. That kind of support fits KFC’s push to expand what it pours.
Is Taco Bell dropping Pepsi too, like KFC?
No. A PepsiCo spokesperson told Reuters that Yum Brands and PepsiCo recently renewed their agreements for Taco Bell and for KFC restaurants outside the U.S. The Taco Bell deal runs for 10 years.
That means Mountain Dew Baja Blast, the PepsiCo drink that has become Taco Bell’s signature soda, isn’t going anywhere.
In her memo, Tan-Gillespie said PepsiCo remains an important partner for Yum Brands and for KFC’s international business. Some KFC markets abroad already serve Coca-Cola drinks.