On October 18, 2026, TD Cowen reiterated its Buy rating on The Coca-Cola Company. The firm maintained a $100 price target.
The announcement followed news that Coca-Cola will become the official beverage supplier for KFC’s U.S. restaurants. The change will cover 3,700 locations starting in 2027. It ends PepsiCo’s partnership with KFC, which lasted nearly four decades.
Analysts estimate the contract could generate around $500 million in annual sales. They estimate it could lift Coca-Cola’s North American sales by approximately 2.5%. The switch could reduce PepsiCo’s North American concentrate sales by roughly 3%. The news comes after PepsiCo recently lowered its 2026 earnings outlook.
Coca-Cola’s stock has risen significantly over the past year. The KFC contract alone is not transformative, but the win adds to the company’s momentum in securing major accounts from its primary competitor and could influence sector sentiment.