One of the most enduring brand alliances in fast-food history is officially coming to a close across American dining rooms and drive-thrus. Yum! Brands announced that KFC United States will terminate its nearly 40-year exclusive beverage contract with PepsiCo and switch to The Coca-Cola Company. The seismic beverage shift marks the first time that KFC domestic restaurants will pour Coca-Cola products on a system-wide scale, breaking a corporate tie that dates back to the mid-1980s.
The Phased Rollout Timeline Across Domestic Restaurants
The transition across KFC’s domestic footprint will happen in waves rather than overnight, allowing thousands of franchise and corporate locations to install new dispensing hardware. The phased domestic switch begins in January 2027, when restaurant crews will begin swapping out Pepsi fountain equipment, syrups, and branded drive-thru signage for Coca-Cola dispensers.
Corporate leadership projects that all of KFC’s more than 3,600 locations across the United States will exclusively serve Coca-Cola products by spring 2027. The supplier change applies strictly to KFC restaurants within the United States. PepsiCo recently secured a renewal covering KFC’s international units, and sister chain Taco Bell separately finalized a long-term contract extension with PepsiCo.
Fueling The Kentucky Fried Comeback Strategy
The soda swap serves as a major pillar of KFC’s broader revitalization campaign, internally dubbed the Kentucky Fried Comeback, aimed at recapturing domestic market share amid fierce competition in the quick-service fried chicken segment.
"I'm incredibly excited to bring KFC and Coca-Cola together. These are two originals, with deep consumer love," stated Catherine Tan-Gillespie, President of KFC U.S. "This partnership is about more than what's in the cup. It is another step in our work to evolve KFC, strengthen our restaurants, menu offerings, and create a more relevant experience for today's customers."
Customers can expect classic Coca-Cola, Diet Coke, Sprite, and other signature soda options to begin replacing longtime fountain favorites like Pepsi and Mountain Dew when the calendar turns to 2027.