PepsiCo Renews US Partnership With Taco Bell Through 2036

03:39 PM EDT, 10/22/2026 (MT Newswires) -- PepsiCo (PEP) renewed its US partnership with Yum Brands' (YUM) Taco Bell unit through 2036, just days after Taco Bell's sister chain, KFC, opted to switch to rival Coca-Cola (KO) in the country. Under the agreement, PepsiCo will be the US beverage supplier for participating Taco Bell, Taco Bell Cantina, and Live Mas Cafe locations over a 11-year period, while also continuing to serve as the chain's drink partner across Canada, the UK, Ireland, and Thailand, the company said Thursday. "PepsiCo has been a trusted partner for over two decades, and we look forward to continuing to work hand-in-hand to drive long-term growth for the Taco Bell brand," Meg Farren, Taco Bell North America President, said in a statement. Last week, KFC US said its restaurants will switch to Coca-Cola products starting in January and complete the transition by spring. PepsiCo lost its longstanding contract with KFC to Coca-Cola, CNN and CNBC reported. PepsiCo shares were up 3% in Thursday late-afternoon trade, while Yum Brands rose 1.7%. Coca-Cola was 2.7% higher. Earlier this month, PepsiCo cut its full-year earnings growth outlook amid projected margin pressures in its North American business, while the beverage and snacks giant's fiscal third-quarter results topped market expectations. Coca-Cola is scheduled to report its third-quarter results Tuesday. In July, the company raised its full-year earnings growth outlook and reported stronger-than-expected fiscal second-quarter results. Yum Brands' third-quarter results are due Nov. 3. Price: 138.40, Change: +3.70, Percent Change: +2.75