PepsiCo renews Taco Bell deal but loses KFC fountain business to Coca-Cola
What happened
PepsiCo renewed its beverage deal with Taco Bell for another 11 years. This occurred shortly after PepsiCo lost the fountain business at KFC to Coca-Cola. PepsiCo reported third-quarter revenue of $25.3 billion, which represented a 5.6% growth.
From fool.com
Why it matters
The renewal with Taco Bell stabilizes PepsiCo's revenue stream, while the loss at KFC highlights competitive pressures in the fast-food market. PepsiCo management stated it will take additional structural cost reduction actions to fund future growth.
From fool.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- KFCSpeculative
KFC might face reduced revenue or increased costs due to losing the fountain business to Coca-Cola.
- PepsiCoSpeculative
PepsiCo could see stabilized revenue streams from the long-term beverage deal with Taco Bell.
- Coca-ColaSpeculative
Coca-Cola may increase market share and sales volume within KFC's operations.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.Keep exploring
The entities involved
-
PepsiCo
American soft drink company
-
Taco Bell
American fast-food chain
-
KFC
American fast food restaurant chain specializing in fried chicken
Related events
- Taco Bell renewed its partnership with PepsiCo, extending the agreement through 2036.
- PepsiCo received a restated buy rating from Citigroup, while Taco Bell's recent win helped reassure investors, alongside partnership extensions.
- A major corporate divestiture is underway, concentrating Yum! Brands' focus on KFC and Taco Bell, with Taco Bell identified as the primary U.S. growth engine.
- A beverage company filed its Q3 2026 results with the SEC, highlighting competitive pressures from PepsiCo and key customer relationships with Coca-Cola Europacific Partners.