The Zhitong Finance App learned that Coca Cola (KO.US) will be supplying beverages for the first time at KFC stores in the US. According to a new partnership, this partnership will cover all KFC stores in the US by next spring. TD Cowen believes that the news that Coca Cola has taken the KFC business of Yum.US (YUM.US) from Pepsi (PEP.US) is beneficial to the Atlanta-based beverage giant, although its symbolic significance outweighs the quantitative impact.

Analyst Robert Moskow (Robert Moskow) and his team estimate that the move will boost Coca Cola's overall revenue by 10 to 20 basis points in 2027, when the contract comes into effect.

Moscow continues to view Pepsi's North American beverage business as the party that “transports” market share to Coca Cola and Keurig Dr Pepper (KDP.US) in the US market. Moscow emphasized: “Our retail tracking data shows that Coca Cola has gained 70 basis points of market share in carbonated soft drinks in the past two years, while Pepsi has lost 130 basis points.”

He added, “If you count energy drinks, KDP's share has also increased. We think these two companies are investing more heavily and more consistently in the US beverage market to drive revenue growth, and Pepsi often describes cutting costs and increasing profit margins as important priorities.”

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.