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Reportable Operating Segments (Tables) | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
Schedule of Segment Reporting Information, by Segment | Reportable Operating Segments The Company's operating segments maintain separate financial information, and our Chief Operating Decision Maker (“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. Our CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to our CODM or used in his decisions to allocate resources or assess performance of the segments. Therefore, total segment assets and long-lived assets have not been disclosed. The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM.
|  | Quarter ended 3/31/2025
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
Company Sales(a) |  | $ | 216 |  |  | $ | 263 |  |  | $ | 3 |  |  | $ | 125 |  |  | $ | 607 |
Franchise and property revenues(a) |  | 407 |  |  | 234 |  |  | 143 |  |  | 2 |  |  | 786 |
Franchise contributions for advertising and other services(a) |  | 149 |  |  | 160 |  | 85 |  | 1 |  | 395 |
|  | 773 |  |  | 657 |  |  | 231 |  |  | 128 |  |  | 1,788 |
Less: |  |  |  |  |  |  |  |  |  |
Company restaurant expenses |  | 196 |  |  | 204 |  |  | 4 |  |  | 114 |  |  | 518 |
General and administrative expenses |  | 80 |  |  | 49 |  |  | 55 |  |  | 13 |  |  | 197 |
Franchise and property expenses |  | 16 |  |  | 6 |  |  | 11 |  |  | 1 |  |  | 34 |
Franchise advertising and other services expense |  | 149 |  |  | 157 |  |  | 89 |  |  | 1 |  |  | 396 |
Other (income) expense |  | — |  |  | — |  |  | (2) |  |  | — |  |  | (2) |
Division Operating Profit |  | $ | 331 |  |  | $ | 241 |  |  | $ | 74 |  |  | $ | (1) |  |  | $ | 646 |
Unallocated amounts:(b) |  |  |  |  |  |  |  |  |  |
Corporate and unallocated G&A expenses(c) |  |  |  |  |  |  |  |  |  | $ | (105) |
Unallocated Company restaurant expenses(d) |  |  |  |  |  |  |  |  |  | (3) |
Unallocated Franchise and property revenues |  |  |  |  |  |  |  |  |  | (1) |
Unallocated Refranchising gain (loss) |  |  |  |  |  |  |  |  |  | 5 |
Unallocated Other income (expense) |  |  |  |  |  |  |  |  |  | 6 |
Consolidated Operating Profit |  |  |  |  |  |  |  |  |  | 548 |
Investment income (expense), net |  |  |  |  |  |  |  |  |  | 1 |
Other pension income (expense) |  |  |  |  |  |  |  |  |  | — |
Interest expense, net |  |  |  |  |  |  |  |  |  | (120) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 429 |
Other Segment Disclosures
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Corporate and Unallocated |  | Total
Depreciation and Amortization(e) |  | $ | 11 |  |  | $ | 16 |  |  | $ | 4 |  |  | $ | 7 |  |  | $ | 7 |  |  | $ | 45 |
Capital Spending |  | 18 |  |  | 31 |  |  | 5 |  |  | 6 |  |  | 11 |  |  | 71 |
|  | Quarter ended 3/31/2024
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
Company Sales(a) |  | $ | 105 |  |  | $ | 240 |  |  | $ | 2 |  |  | $ | 127 |  |  | $ | 474 |
Franchise and property revenues(a) |  | 397 |  |  | 210 |  |  | 148 |  |  | 2 |  |  | 757 |
Franchise contributions for advertising and other services(a) |  | 130 |  |  | 148 |  | 88 |  | 1 |  | 367 |
|  | 632 |  |  | 598 |  |  | 238 |  |  | 130 |  |  | 1,598 |
Less: |  |  |  |  |  |  |  |  |  |
Company restaurant expenses |  | 92 |  |  | 186 |  |  | 2 |  |  | 120 |  |  | 400 |
General and administrative expenses |  | 83 |  |  | 49 |  |  | 52 |  |  | 13 |  |  | 197 |
Franchise and property expenses |  | 17 |  |  | 8 |  |  | 5 |  |  | 1 |  |  | 31 |
Franchise advertising and other services expense |  | 129 |  |  | 147 |  |  | 90 |  |  | 1 |  |  | 367 |
Other (income) expense |  | (2) |  |  | — |  |  | (4) |  |  | — |  |  | (6) |
Division Operating Profit |  | $ | 313 |  |  | $ | 208 |  |  | $ | 93 |  |  | $ | (5) |  |  | $ | 609 |
Unallocated amounts:(b) |  |  |  |  |  |  |  |  |  |
Corporate and unallocated G&A expenses(c) |  |  |  |  |  |  |  |  |  | $ | (89) |
Unallocated Refranchising gain (loss) |  |  |  |  |  |  |  |  |  | 5 |
Unallocated Other income (expense) |  |  |  |  |  |  |  |  |  | (5) |
Consolidated Operating Profit |  |  |  |  |  |  |  |  |  | 520 |
Investment income (expense), net(f) |  |  |  |  |  |  |  |  |  | (22) |
Other pension income (expense) |  |  |  |  |  |  |  |  |  | 2 |
Interest expense, net |  |  |  |  |  |  |  |  |  | (117) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 383 |
Other Segment Disclosures
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Corporate and Unallocated |  | Total
Depreciation and Amortization(e) |  | $ | 2 |  |  | $ | 15 |  |  | $ | 3 |  |  | $ | 7 |  |  | $ | 8 |  |  | $ | 35 |
Capital Spending |  | 8 |  |  | 21 |  |  | 3 |  |  | 9 |  |  | 8 |  |  | 49 |
(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger & Grill Divisions totaled $1.0 billion and $0.9 billion in the quarters ended March 31, 2025 and 2024, respectively. (b)Amounts have not been allocated to any segment for performance reporting purposes. (c)Corporate and unallocated G&A expenses include charges of $17 million and $21 million in the quarters ended March 31, 2025 and 2024, respectively, related to our resource optimization program and $7 million in the quarter ended March 31, 2025 related to our brand headquarters consolidation. (d)Unallocated Company restaurant expenses include amortization of reacquired franchise rights. (e)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. (f)Investment income (expense), net includes $20 million of pre-tax investment losses related to the sale of our approximate 5% minority interest in Devyani International Limited during the quarter ended March 31, 2024.

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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