PepsiCo just lost KFC to Coca-Cola. Here's how much it could sting financially.

This has shaped up to be a year of big losses for beverage and snack giant PepsiCo ( PEP ).

A double-digit percentage drop in the stock so far this year. Lost sales in the core soda business to rival Coca-Cola ( KO ). Lost profits because of execution missteps and inflation (see the recent full-year earnings guidance cut).

And the losses look to keep piling up, with the latest one being a really tough one to swallow for longtime PepsiCo and Yum! Brands ( YUM ) followers — and probably a legion of former execs, such as former legendary PepsiCo CEO Indra Nooyi and her equally legendary former counterpart at Yum! Brands, David Novak.

The Wall Street Journal reported late Thursday that Yum! Brands-owned KFC struck a deal with Coca-Cola to be its beverage provider for thousands of US restaurants. The deal will reportedly begin in January. PepsiCo will reportedly still supply KFC internationally.

Note that in April, Coca-Cola won the Marriott ( MAR ) business from PepsiCo.

Yum! Brands spun off from PepsiCo in 1997 under the original name of Tricon Global Restaurants. It changed its name to Yum! Brands in 2002.

The spin-off included PepsiCo's fast food restaurant division: KFC, Pizza Hut, and Taco Bell. The business relationship between the two companies has long been seen as a sacred bond, apparently until now.

"Overall, the move underscores Coca-Cola's strong brand equity as well as a relative brand equity gap vs. PepsiCo," Evercore ISI analyst Robert Ottenstein said. "We believe that this announcement, in some ways, is more notable as QSRs, more so than hotel chains, use beverages as a key driver of traffic."

Ottenstein's analysis shows the lost revenue to PepsiCo could be about $50 million, "which suggests that the retail revenue is closer to ~$350-400 million."

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.