KFC Had Pepsi for Nearly 40 Years. Coca-Cola Stock Is Trending After Winning It Over
The Coca-Cola Company (NYSE:KO) is trending Friday after KFC said Thursday that its U.S. restaurants will switch from PepsiCo to Coca-Cola beverages next year.
- Coca-Cola stock is approaching key resistance levels. Why are KO shares at highs?
KFC Drops Pepsi for Coca-Cola at About 3,700 U.S. Restaurants, Ending a Nearly 40-Year Run
According to CNBC, the switch is the first time in decades that the Yum Brands chain has changed its drink supplier. KFC’s U.S. restaurants have served Pepsi since PepsiCo bought the chain in 1986. At the time, KFC was Coca-Cola’s second-largest fountain account, behind only McDonald’s. After PepsiCo spun off KFC, Pizza Hut and Taco Bell, Yum Brands stayed loyal to Pepsi. The transition begins in January and is expected to reach all of KFC’s roughly 3,700 U.S. restaurants by the end of the first quarter of 2027. PepsiCo remains an important partner for Yum Brands and for KFC’s international markets, KFC U.S. President Catherine Tan-Gillespie said.
KFC is trying to win back U.S. diners who have left for rivals such as Chick-fil-A and Popeyes, and it has framed the change as part of its “Kentucky Fried Comeback.” “This exciting new partnership brings Coca-Cola and KFC together across the U.S. for the first time,” said Dagmar Boggs, Coca-Cola’s president of Foodservice & On-Premise, North America.
Why the Win Matters for Coca-Cola
Fountain accounts give beverage companies both a sales opportunity and visibility for their brands, and large chains rarely switch. KFC adds about 3,700 U.S. locations to Coca-Cola’s foodservice footprint. Coca-Cola has also won Culver’s, Arby’s and Panda Express from Pepsi in recent years, while Pepsi took Subway from Coke in 2024. Coca-Cola has helped restaurant partners develop new drinks such as refreshers and “dirty sodas,” and KFC recently introduced iced coffees and shakes at its Open House innovation restaurant in Texas. Coca-Cola shares are up about 32% this year, according to Stocktwits, while PepsiCo is down about 11%.
Coca-Cola Shares Trade Flat
KO Price Action: At the time of publication, Coca-Cola shares are trading 0.83% higher at $92.76, according to data from Benzinga Pro.
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