# KFC drops Pepsi for Coca-Cola in the US after four decades; Pakistan stays with Pepsi

Source: Searchable (https://searchable.pk/news/business/kfc-drops-pepsi-for-coca-cola-in-the-us-after-four-decades-pakistan-stays-with)
Type: News article
Author: Searchable Editorial
Published: 16 Oct 2026
Updated: 16 Oct 2026
Retrieved: 16 Oct 2026

> KFC's 3,718 US restaurants will pour Coke by spring 2027. The switch is US only: KFC's international outlets, including Pakistan, stay under the PepsiCo deal.

**KFC is ending its roughly four-decade drinks partnership with PepsiCo in the United States and will serve Coca-Cola at its 3,718 US restaurants by spring 2027, Reuters reported this week, [published by Business Recorder](https://www.brecorder.com/news/40444535/kfc-picks-coca-cola-as-us-soda-supplier-ditches-longtime-partner-pepsico).** The Wall Street Journal first reported the deal, citing people familiar with the matter. Financial terms were not disclosed.

## Does it change KFC in Pakistan?

**No.** The switch covers **US stores only**. KFC's owner, Yum Brands, recently renewed its agreements with PepsiCo for **KFC International** restaurants and for Taco Bell, Reuters said, so KFC outlets outside the US, Pakistan included, stay under the PepsiCo deal. If you order a meal in Lahore or Karachi, the drink on the tray does not change because of this.

## Why it matters in the cola wars

- **History:** PepsiCo owned KFC until it spun off its restaurants in 1997, the business that became Yum Brands, and stayed the drinks supplier afterwards.
- **A run of losses for Pepsi in US fast food:** Dunkin moved to Coca-Cola in 2012. Coca-Cola already supplies McDonald's and Wendy's.
- **The other way:** Pizza Hut, which left the Yum group this year, moved from Coca-Cola to PepsiCo back in 2011.

Fountain drinks are a high-margin, high-volume contract: every combo meal sold carries one. Winning a chain of nearly 3,700 restaurants is a large gain for Coca-Cola's US fountain business and a visible loss for PepsiCo at home.

## What it means for the two companies

For Coca-Cola, the deal adds thousands of fountain machines in the US and takes away one of PepsiCo's best-known restaurant customers. For PepsiCo, the renewal of the KFC International and Taco Bell deals, Taco Bell's for 10 years according to Reuters, limits the damage to one market. For customers in the US, little changes until the machines are swapped next year.

## The Pakistan picture

Both companies run big bottling operations here, and fast-food chains are among their largest fountain customers. The US switch is a reminder that these contracts are signed market by market. For readers following the shares, both trade in New York; our [currency converter](/tools/finance/currency-converter) puts any dollar price in rupees at today's [interbank rate](/data/usd-pkr).

## Frequently asked questions

**Is KFC Pakistan switching to Coca-Cola?**

No. The switch applies only to KFC's US restaurants. Yum Brands renewed its PepsiCo agreement for KFC International outlets, which include Pakistan.

**When will KFC serve Coca-Cola in the US?**

By spring 2027, across its 3,718 US restaurants, Reuters reported.

## Sources

- KFC picks Coca-Cola as US soda supplier, ditches longtime partner PepsiCo (Reuters, 16 Oct 2026) (Business Recorder): https://www.brecorder.com/news/40444535/kfc-picks-coca-cola-as-us-soda-supplier-ditches-longtime-partner-pepsico

How to cite: "KFC drops Pepsi for Coca-Cola in the US after four decades; Pakistan stays with Pepsi", Searchable, 16 Oct 2026, https://searchable.pk/news/business/kfc-drops-pepsi-for-coca-cola-in-the-us-after-four-decades-pakistan-stays-with