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Reportable Operating Segments (Tables) | 12 Months Ended
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Dec. 31, 2024
Segment Reporting [Abstract] |
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated |
|  | 2024
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
Company Sales(a) |  | $ | 801 |  |  | $ | 1,155 |  |  | $ | 8 |  |  | $ | 588 |  |  | $ | 2,552 |
Franchise and property revenues(a) |  | 1,685 |  |  | 997 |  |  | 622 |  |  | 9 |  |  | 3,313 |
Franchise contributions for advertising and other services(a) |  | 613 |  |  | 708 |  | 378 |  | 3 |  | 1,702 |
|  | 3,099 |  |  | 2,860 |  |  | 1,008 |  |  | 600 |  |  | 7,567 |
Less: |  |  |  |  |  |  |  |  |  |
Company restaurant expenses |  | 703 |  |  | 872 |  |  | 8 |  |  | 529 |  |  | 2,112 |
General and administrative expenses |  | 363 |  |  | 199 |  |  | 219 |  |  | 54 |  |  | 835 |
Franchise and property expenses |  | 63 |  |  | 33 |  |  | 34 |  |  | 4 |  |  | 134 |
Franchise advertising and other services expense |  | 610 |  |  | 708 |  |  | 390 |  |  | 3 |  |  | 1,711 |
Other (income) expense |  | (3) |  |  | (1) |  |  | (16) |  |  | 10 |  |  | (10) |
Division Operating Profit |  | $ | 1,363 |  |  | $ | 1,049 |  |  | $ | 373 |  |  | $ | — |  |  | $ | 2,785 |
Unallocated amounts:(b) |  |  |  |  |  |  |  |  |  |
Corporate and unallocated G&A expenses(c)(d) |  |  |  |  |  |  |  |  |  | $ | (346) |
Unallocated Company restaurant expenses(e) |  |  |  |  |  |  |  |  |  | (8) |
Unallocated Franchise and property revenues(c) |  |  |  |  |  |  |  |  |  | (18) |
Unallocated Refranchising gain (loss) |  |  |  |  |  |  |  |  |  | 34 |
Unallocated Other income (expense)(c) |  |  |  |  |  |  |  |  |  | (44) |
Consolidated Operating Profit |  |  |  |  |  |  |  |  |  | 2,403 |
Investment income (expense), net |  |  |  |  |  |  |  |  |  | (21) |
Other pension income (expense) |  |  |  |  |  |  |  |  |  | 7 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (489) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,900 |
Other Segment Disclosures
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Corporate and Unallocated |  | Total
Depreciation and Amortization(f) |  | $ | 37 |  |  | $ | 76 |  |  | $ | 24 |  |  | $ | 31 |  |  | $ | 7 |  |  | $ | 175 |
Capital Spending |  | 73 |  |  | 98 |  |  | 15 |  |  | 39 |  |  | 32 |  |  | 257 |
Identifiable Assets(g) |  | 2,611 |  |  | 1,626 |  |  | 732 |  |  | 613 |  |  | 1,145 |  |  | 6,727 |
Long-Lived Assets(h) |  | 1,269 |  |  | 991 |  |  | 365 |  |  | 548 |  |  | 164 |  |  | 3,337 |
|  | 2023
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
Company Sales(a) |  | $ | 484 |  |  | $ | 1,069 |  |  | $ | 14 |  |  | $ | 575 |  |  | $ | 2,142 |
Franchise and property revenues(a) |  | 1,698 |  |  | 918 |  |  | 622 |  |  | 9 |  |  | 3,247 |
Franchise contributions for advertising and other services(a) |  | 648 |  |  | 654 |  |  | 383 |  |  | 2 |  |  | 1,687 |
|  | 2,830 |  |  | 2,641 |  |  | 1,019 |  |  | 586 |  |  | 7,076 |
Less: |  |  |  |  |  |  |  |  |  |
Company restaurant expenses |  | 417 |  |  | 817 |  |  | 14 |  |  | 526 |  |  | 1,774 |
General and administrative expenses |  | 383 |  |  | 204 |  |  | 221 |  |  | 59 |  |  | 867 |
Franchise and property expenses |  | 72 |  |  | 32 |  |  | 15 |  |  | 3 |  |  | 122 |
Franchise advertising and other services expense |  | 648 |  |  | 644 |  |  | 389 |  |  | 2 |  |  | 1,683 |
Other (income) expense |  | 6 |  |  | — |  |  | (11) |  |  | 10 |  |  | 5 |
Division Operating Profit (Loss) |  | $ | 1,304 |  |  | $ | 944 |  |  | $ | 391 |  |  | $ | (14) |  |  | $ | 2,625 |
Unallocated amounts:(b) |  |  |  |  |  |  |  |  |  |
Corporate and unallocated G&A expenses(d)(i) |  |  |  |  |  |  |  |  |  | $ | (326) |
Unallocated Franchise and property expenses(i) |  |  |  |  |  |  |  |  |  | (1) |
Unallocated Refranchising gain (loss) |  |  |  |  |  |  |  |  |  | 29 |
Unallocated Other income (expense)(i) |  |  |  |  |  |  |  |  |  | (9) |
Consolidated Operating Profit |  |  |  |  |  |  |  |  |  | 2,318 |
Investment income (expense), net |  |  |  |  |  |  |  |  |  | 7 |
Other pension income (expense) |  |  |  |  |  |  |  |  |  | 6 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (513) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,818 |
Other Segment Disclosures
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Corporate and Unallocated |  | Total
Depreciation and Amortization(f) |  | $ | 22 |  |  | $ | 61 |  |  | $ | 20 |  |  | $ | 30 |  |  | $ | 20 |  |  | $ | 153 |
Capital Spending |  | 73 |  |  | 101 |  |  | 12 |  |  | 64 |  |  | 35 |  |  | 285 |
Identifiable Assets(g) |  | 2,281 |  |  | 1,544 |  |  | 814 |  |  | 630 |  |  | 962 |  |  | 6,231 |
Long-Lived Assets(h) |  | 891 |  |  | 975 |  |  | 378 |  |  | 580 |  |  | 156 |  |  | 2,980 |
|  | 2022
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
Company Sales(a) |  | $ | 491 |  |  | $ | 1,002 |  |  | $ | 21 |  |  | $ | 558 |  |  | $ | 2,072 |
Franchise and property revenues(a) |  | 1,645 |  |  | 837 |  |  | 607 |  |  | 7 |  |  | 3,096 |
Franchise contributions for advertising and other services(a) |  | 698 |  |  | 598 |  |  | 376 |  |  | 2 |  |  | 1,674 |
|  | 2,834 |  |  | 2,437 |  |  | 1,004 |  |  | 567 |  |  | 6,842 |
Less: |  |  |  |  |  |  |  |  |  |
Company restaurant expenses |  | 426 |  |  | 766 |  |  | 21 |  |  | 532 |  |  | 1,745 |
General and administrative expenses |  | 390 |  |  | 191 |  |  | 211 |  |  | 51 |  |  | 843 |
Franchise and property expenses |  | 69 |  |  | 33 |  |  | 13 |  |  | 2 |  |  | 117 |
Franchise advertising and other services expense |  | 684 |  |  | 599 |  |  | 382 |  |  | 2 |  |  | 1,667 |
Other (income) expense |  | 67 |  |  | (2) |  |  | (10) |  |  | 4 |  |  | 59 |
Division Operating Profit (Loss) |  | $ | 1,198 |  |  | $ | 850 |  |  | $ | 387 |  |  | $ | (24) |  |  | $ | 2,411 |
Unallocated amounts:(b) |  |  |  |  |  |  |  |  |  |
Corporate and unallocated G&A expenses(d)(i) |  |  |  |  |  |  |  |  |  | $ | (297) |
Unallocated Franchise and property expenses(i) |  |  |  |  |  |  |  |  |  | (6) |
Unallocated Refranchising gain (loss) |  |  |  |  |  |  |  |  |  | 27 |
Unallocated Other income (expense)(i) |  |  |  |  |  |  |  |  |  | 52 |
Consolidated Operating Profit |  |  |  |  |  |  |  |  |  | 2,187 |
Investment income (expense), net |  |  |  |  |  |  |  |  |  | 11 |
Other pension income (expense) |  |  |  |  |  |  |  |  |  | (9) |
Interest expense, net |  |  |  |  |  |  |  |  |  | (527) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 1,662 |
Other Segment Disclosures
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Corporate and Unallocated |  | Total
Depreciation and Amortization(f) |  | $ | 23 |  |  | $ | 48 |  |  | $ | 19 |  |  | $ | 29 |  |  | $ | 27 |  |  | $ | 146 |
Capital Spending |  | 71 |  |  | 101 |  |  | 22 |  |  | 56 |  |  | 29 |  |  | 279 |
(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger & Grill Divisions totaled $4.3 billion in 2024, $4.1 billion in 2023 and $3.9 billion in 2022. (b)Amounts have not been allocated to any segment for performance reporting purposes. (c)As a result of our acquisition of the master franchise rights in Germany for KFC and Pizza Hut and the termination of our franchise agreements with the owner and operator of KFC and Pizza Hut restaurants in Turkey (see Note 5), we recorded charges of $37 million to Unallocated Other income (expense), $18 million to Unallocated Franchise and property revenues and $6 million to Corporate and unallocated G&A expenses consisting primarily of transaction costs associated with the German acquisition and termination-related costs associated with the Turkey business in the year ended December 31, 2024 (see Note 5). (d)Corporate and unallocated G&A expenses include charges of $78 million, $21 million and $11 million in the years ended December 31, 2024, 2023 and 2022, respectively, related to our resource optimization program (see Note 5). (e)Unallocated Company restaurant expenses include amortization of reacquired franchise rights. (f)The amounts of depreciation and amortization disclosed by reportable segment are primarily included within the segment expense captions of Company restaurant expenses and G&A expenses. (g)U.S. identifiable assets included in the combined Corporate and unallocated and KFC, Taco Bell, Pizza Hut, and Habit Burger & Grill Divisions totaled $2.9 billion at 2024 and $2.8 billion at 2023. Corporate and unallocated identifiable assets primarily include cash and deferred tax assets. (h)Includes PP&E, net, goodwill, intangible assets, net and Operating lease-right-of-use assets. (i)Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (see Note 3), within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2023 and net Operating Profit of $44 million from Divisional Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022, respectively. Additionally, we recorded a charge of $3 million to Unallocated Other income (expense) during the year ended December 31, 2023 from the sale of our KFC Russia business. Also included in Unallocated Other income (expense) were $1 million in foreign exchange losses and $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian Ruble during the years ended December 31, 2023 and 2022, respectively. Additionally, we recorded charges of $5 million to Corporate and unallocated G&A expenses and $1 million to Unallocated Franchise and property expenses during the year ended December 31, 2023, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar charges of $7 million to Corporate and Unallocated G&A expenses and $6 million to Unallocated Franchise and property expenses during the year ended December 31, 2022.

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