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Reportable Operating Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
See Note 1 for a description of our operating segments.

The Company's operating segments maintain separate financial information, and the CODM, the Company's Chief Executive Officer, evaluates the operating segments' operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company's segments based on Divisional Operating Profit and is involved in determining and reviewing forecasted Divisional Operating Profit as part of the annual plan process. Throughout the year, the CODM considers forecast to actual results and variances on a monthly and quarterly basis to allocate resources for the segments' operations. The CODM also considers this information in determining how to prioritize capital allocation, including investments in restaurant development, technology and human capital, maintaining a strong and flexible balance sheet, offering a competitive dividend and returning excess cash to shareholders. The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM.

2024
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
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 70837831,702 
3,099 2,860 1,008 600 7,567 
Less:
Company restaurant expenses703 872 8 529 2,112 
General and administrative expenses363 199 219 54 835 
Franchise and property expenses63 33 34 4 134 
Franchise advertising and other services expense610 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 Profit2,403 
Investment income (expense), net(21)
Other pension income (expense)7 
Interest expense, net(489)
Income before income taxes$1,900 

Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(f)
$37 $76 $24 $31 $7 $175 
Capital Spending73 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 expenses417 817 14 526 1,774 
General and administrative expenses383 204 221 59 867 
Franchise and property expenses72 32 15 3 122 
Franchise advertising and other services expense648 644 389 2 1,683 
Other (income) expense6 — (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 Profit2,318 
Investment income (expense), net7 
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 Spending73 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 expenses426 766 21 532 1,745 
General and administrative expenses390 191 211 51 843 
Franchise and property expenses69 33 13 2 117 
Franchise advertising and other services expense684 599 382 2 1,667 
Other (income) expense67 (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 Profit2,187 
Investment income (expense), net11 
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 Spending71 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.