PepsiCo Loses Major KFC Deal to Coca-Cola

PepsiCo is experiencing substantial setbacks in 2026, with a double-digit stock drop attributed to challenges in its core soda business and execution missteps. A significant blow comes as Yum! Brands-owned KFC has agreed to a beverage supply deal with Coca-Cola for thousands of its US restaurants, effective January 2026. This partnership, though not affecting PepsiCo's international supply to KFC, marks a notable end to a long-standing relationship. Previously, in April 2026, Coca-Cola had also secured Marriott's beverage business from PepsiCo. The loss of the fast-food giant's business is particularly impactful, as beverages are a key driver for restaurant traffic. Analysts suggest this move underscores Coca-Cola's strong brand equity relative to PepsiCo, with potential revenue loss for PepsiCo estimated at $50 million.