Profits dipped at Coca-Cola in the first quarter as sales at the drinks giant lost their fizz. Income before taxes fell more than 4% to $1.98bn, compared with $1.89bn a year ago, and sales for the quarter were down from $10.71bn for the first three months of 2015 to £10.28bn despite global volumes rising 2%. Hit hard by a stronger US dollar and caught up in major concerns about its packaging and branding, Coca-Cola had one thing to be happy about in the first quarter: water, writes The Times. Falling Coke sales hurt fizzy drinks volumes but this was partially offset by double-digit volume growth in packaged water. The Financial Times says Coke found more fizz in still drinks in the period as stills beverages outshone stagnant sparkling drink sales, reflecting diverging global trends in weaker emerging markets and a stronger US. The Independent picks up on the news, reported by The Grocer earlier this week, that Coca-Cola is to change its Coke Zero recipe and rename it Coca-Cola Zero Sugar in the UK to make it “taste more and look more” like the original red one.

McDonald’s France has been sent a bill for alleged unpaid taxes as part of a crackdown by French authorities on multinational companies that shift their profits abroad, The FT reports. McDonald’s France declined to comment on reports of the bill, which some media put at as high as €300m — including €100m in fines. The Times says McDonald’s, which denies tax dodging, refused to confirm the figure yesterday, but did acknowledge that it was involved in a “contradictory exchange” with the French finance ministry. The Independent reports that the fast-food giant is trialling new versions of the Big Mac in the US. The Grand Mac and Mac Jr will be available in approximately 130 McDonald’s restaurants in the Ohio and Dallas areas until 6 June.

Yum Brands, which is behind KFC, Pizza Hut and Taco Bell, reported a 6% rise in first-quarter same-store sales at its China division and revised its forecasts. It followed a boost at KFC China, which reported a 12% jump in same-store sales growth, attributed to a Chinese new year bucket promotion. The FT writes the results pushed shares in the business nearly 4% in extended trading. The paper’s Lex column says the price cuts at KFC look unhealthy: “One bucket of fried chicken does not a party make. Cut prices, however, and several buckets make Chinese New Year. The reprieve looks unsustainable; price cuts are not a long-term strategy. A trend to eat more healthily will only increase as China becomes wealthier.”