7/103 sources · 2 publishersUpdated Oct 18, 07:18 UTC
Coca‑Cola secures exclusive U.S. beverage supply deal with KFC
Coca‑Cola announced it will become the sole beverage supplier for all KFC restaurants in the United States, with rollout beginning in spring 2027. TD Cowen expects the contract to add 10‑20 basis points to Coca‑Cola’s total revenue in 2027 and reiterated a Buy rating with a $100 price target. The news lifted the stock, extending a seven‑day winning streak.
Why it matters
TD Cowen says the deal will provide a modest but measurable revenue boost in 2027, supporting its $100 price‑target outlook. The contract also reinforces Coca‑Cola’s dividend appeal, with a 2.26% yield and a 60% payout ratio, which may attract income‑focused investors.
Key facts
- 1The contract covers more than 3,700 KFC locations and will start in 2027. investing.com
- 2TD Cowen estimates a 10‑20 basis‑point incremental benefit to Coca‑Cola’s total revenue in 2027. investing.com
- 3TD Cowen reiterated a Buy rating and a $100.00 price target for Coca‑Cola. investing.com
- 4Coca‑Cola’s dividend yield is 2.26% with a 60% payout ratio and 5% annual dividend growth over the past three years. gurufocus.com
- 5Coca‑Cola’s stock closed at $93.90, up 2.07% on the day of the announcement. gurufocus.com
- 6Insider selling of $87.9 million occurred in the last three months. gurufocus.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.