Reportable Operating Segments (Tables)

3 Months Ended

Mar. 31, 2025

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.