KFC will switch its U.S. restaurants from PepsiCo to Coca-Cola drinks in 2027

Coca-Cola products are expected to be served in all U.S. KFC restaurants by spring 2027, KFC said. KFC has 3,718 U.S. locations, according to Reuters, which said financial terms of the deal were not disclosed.

The change is KFC's first beverage-supplier switch in several decades, according to CNBC. KFC's U.S. restaurants have served PepsiCo drinks since PepsiCo bought the chain in 1986, and the arrangement continued after PepsiCo spun off KFC, according to CNBC.

"This partnership is about more than what's in the cup," Catherine Tan-Gillespie, president of KFC U.S., said in a statement. "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."

Dagmar Boggs, president of Foodservice & On-Premise, North America, at The Coca-Cola Company, said in a statement that the partnership brings Coca-Cola and KFC together across the U.S. for the first time. The companies plan to develop food-and-drink pairings and expand beverage choices, according to the release.

KFC has been expanding its drink offerings. Its Open House innovation restaurant in McKinney, Texas, recently introduced a lineup that includes iced coffees, boba and shakes, the company said.

The company described the Coca-Cola deal as part of its "Kentucky Fried Comeback" plan. KFC is working to regain American customers it has lost to competitors like Chick-fil-A and Popeyes, according to CNBC.

Tan-Gillespie said PepsiCo is still a key partner to KFC's parent company and to the chain's operations abroad, according to CNBC. A PepsiCo spokesperson told Reuters that Yum Brands and PepsiCo have renewed agreements covering Taco Bell and KFC International stores. The Taco Bell agreement runs 10 years, the spokesperson said.