KFC U.S. will move to a beverage partnership with The Coca-Cola Company, a chainwide change slated for 2027 as Yum! Brands pursues a broader menu update.
KFC said the companies intend to develop food-and-drink pairings and expand the selection. It cited iced coffees, boba and shakes available at Open House, its innovation restaurant in McKinney, Texas. Dagmar Boggs, president of Foodservice & On-Premise, North America, at The Coca-Cola Company, said the partnership would unite the brands in the United States “for the first time.” Catherine Tan-Gillespie, president of KFC U.S., called it “more than what’s in the cup.” KFC presented the partnership as a way to add choice to its drink menu.
Yum! Brands reported that KFC U.S. system sales, excluding foreign currency translation, fell 2% year over year in the second quarter of 2026 and 2% in the first half through June 30. The company said KFC started its menu and brand refresh June 15, 2026, with boneless chicken, beverages and sauces at the center. Yum! Brands aims to have the refresh’s core elements operating in KFC’s top 20 markets by the end of 2027.
KFC’s announcement did not identify its existing beverage provider or disclose financial terms, an agreement duration or a product list. Reuters reported the change will end a PepsiCo beverage relationship with KFC that lasted about four decades. Reuters also reported PepsiCo acquired KFC while expanding into food and snacks, then spun off the restaurant business in 1997 while remaining a beverage partner to Yum! Brands. Reuters reported KFC had 3,718 U.S. locations.
A PepsiCo spokesperson told Reuters that the companies had renewed agreements covering Taco Bell and KFC International stores. The Taco Bell agreement runs for 10 years, the spokesperson said.
KFC said the transition will start in January 2027, with Coca-Cola products expected at every U.S. restaurant by spring 2027.
