KFC nears deal to swap Pepsi for Coca-Cola in US stores, WSJ reports
PepsiCo shares are down 1.3% at $127.63 as the report raises doubts over a major fountain account
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Chart: PEP, one-minute prices, three sessions
PepsiCo is down 1.3% at $127.63 after the Wall Street Journal reported that KFC is in advanced talks to drop Pepsi for Coca-Cola across thousands of US restaurants. The Journal reported the switch would take effect in January if the deal closes.
The report lands as PepsiCo is already working through tighter guidance. In an exhibit filed with the SEC, PepsiCo narrowed its fiscal 2026 organic revenue growth forecast to approximately 3%, down from a prior range of 2% to 4%.
That guidance cut followed a JPMorgan downgrade on October 8 that pointed to the same cost pressures now facing the company. Losing KFC would strip away a visible fountain account at a time when PepsiCo is leaning on pricing and cost cuts to protect earnings, adding volume pressure on top of the input costs it has already flagged.
The move also follows Coca-Cola's unwinding of its Costa Coffee business, a step that has freed resources for its core beverage distribution just as it pursues new foodservice accounts like KFC.