Pietracci Bruno sold $10.1M of KO

KFC will switch from Pepsi to Coca-Cola in US restaurants, starting in January 2027. Bank of America analysts estimate this move could impact $500M in annual sales for Pepsi's North American beverage business, about 3% of its concentrate sales. Coca-Cola aims to expand its reach and brand visibility through this partnership, which KFC says is part of a menu refresh effort.

KFC will replace PepsiCo with Coca-Cola as its beverage supplier in US restaurants by Q1 2027, ending a 40-year partnership. The change aims to refresh the menu and attract more customers, according to KFC US president Catherine Tan-Gillespie. PepsiCo will remain a partner for KFC's international operations and parent company Yum Brands.

KFC ends its 40-year US partnership with PepsiCo, switching to Coca-Cola for 3,600 restaurants. The transition starts in January 2027. KFC Africa, with 1,573 outlets, remains with PepsiCo. PepsiCo may lose $500M annually from this change, per Bank of America.

KFC will replace Pepsi with Coca-Cola in U.S. locations, potentially costing PepsiCo $500M annually. Analysts expect a 3% decline in Pepsi's North American sales, while Coca-Cola may see a 2.5% increase. PepsiCo faces additional challenges due to weak demand and rising costs. Experts warn of potential brand position erosion and contract reviews by other partners.

Coca-Cola (KO) will supply beverages to all U.S. KFC locations by spring 2024, according to the company. TD Cowen estimates this could add 10-20 basis points to KO's 2027 revenue. Analyst Robert Moskow views the deal as positive for KO, highlighting its market share gains over PepsiCo (PEP) in U.S. carbonated soft drinks.

Coca-Cola (KO) shares rose 1.72% to $93.59. Barclays raised its price target to $98, citing defensive appeal. Q2 showed 6% organic revenue growth, with operating margin at 34.9%. Shares trade 27.26% above GF Value estimate of $73.54.