KFC switch to Coke puts PepsiCo's food service ties in focus, analysts say

KFC's decision to switch ​from Pepsi sodas to Coca-Cola ​at its US ‌restaurants could ​raise questions about PepsiCo's other longstanding food service partnerships, analysts said, even as they ‌expect the financial hit to be manageable.

The loss of KFC comes as PepsiCo grapples with sluggish demand and higher costs in North ‌America, where a recovery in growth and margins is ‌taking longer than expected and has prompted the company to deepen cost cuts.