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Reportable Operating Segments (Tables)

6 Months Ended

Jun. 30, 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, while 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 6/30/2025
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales(a)						$	245					$	287					$	7					$	130					$	669
Franchise and property revenues(a)						437						248						147						3						835
Franchise contributions for advertising and other services(a)						167						176						85						1						428
						849						711						239						134						1,933
Less:
Company restaurant expenses						216						217						7						116						557
General and administrative expenses						86						49						54						13						202
Franchise and property expenses						20						7						10						1						39
Franchise advertising and other services expense						162						176						90						1						428
Other (income) expense						—						—						(3)						—						(3)
Division Operating Profit						$	365					$	262					$	80					$	3					$	709
Unallocated amounts:(b)
Corporate and unallocated G&A expenses(c)																														$	(99)
Unallocated Company restaurant expenses(d)																														(4)
Unallocated Franchise and property revenues																														—
Unallocated Refranchising gain (loss)																														11
Unallocated Other income (expense)																														4
Consolidated Operating Profit																														622
Investment income (expense), net																														—
Other pension income (expense)																														1
Interest expense, net																														(123)
Income before income taxes																														$	499

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					$	6					$	6					$	44
Capital Spending						19						18						10						12						12						71

						Quarter ended 6/30/2024
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales(a)						$	163					$	268					$	2					$	139					$	572
Franchise and property revenues(a)						405						234						148						2						789
Franchise contributions for advertising and other services(a)						149						164						89						—						402
						717						666						239						141						1,763
Less:
Company restaurant expenses						144						199						2						124						469
General and administrative expenses						84						47						50						14						195
Franchise and property expenses						9						8						5						1						23
Franchise advertising and other services expense						147						163						91						—						401
Other (income) expense						(1)						(1)						(3)						—						(5)
Division Operating Profit						$	334					$	250					$	94					$	2					$	680
Unallocated amounts:(b)
Corporate and unallocated G&A expenses(c)																														$	(86)
Unallocated Company restaurant expenses(d)																														(1)
Unallocated Refranchising gain (loss)																														14
Unallocated Other income (expense)																														—
Consolidated Operating Profit																														607
Investment income (expense), net																														—
Other pension income (expense)																														1
Interest expense, net																														(121)
Income before income taxes																														$	487

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(e)						$	8					$	15					$	4					$	7					$	8					$	41
Capital Spending						10						20						3						9						8						50

						Year to date 6/30/2025
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales(a)						$	461					$	550					$	10					$	255					$	1,277
Franchise and property revenues(a)						844						482						290						5						1,621
Franchise contributions for advertising and other services(a)						316						336						169						1						823
						1,622						1,368						470						262						3,721
Less:
Company restaurant expenses						411						421						11						230						1,074
General and administrative expenses						166						98						109						26						399
Franchise and property expenses						36						13						21						2						73
Franchise advertising and other services expense						311						333						179						1						824
Other (income) expense						—						—						(5)						—						(4)
Division Operating Profit						$	697					$	502					$	155					$	2					$	1,355
Unallocated amounts:(b)
Corporate and unallocated G&A expenses(c)																														$	(205)
Unallocated Company restaurant expenses(d)																														(7)
Unallocated Franchise and property revenues																														(1)
Unallocated Refranchising gain (loss)																														16
Unallocated Other income (expense)																														10
Consolidated Operating Profit																														1,170
Investment income (expense), net																														1
Other pension income (expense)																														1
Interest expense, net																														(243)
Income before income taxes																														$	929

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(e)						$	22					$	32					$	9					$	13					$	14					$	89
Capital Spending						37						49						15						18						23						142

						Year to date 6/30/2024
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales(a)						$	268					$	508					$	4					$	266					$	1,046
Franchise and property revenues(a)						802						444						296						4						1,546
Franchise contributions for advertising and other services(a)						279						312						177						1						769
						1,349						1,264						477						271						3,361
Less:
Company restaurant expenses						236						385						4						244						869
General and administrative expenses						167						96						102						27						392
Franchise and property expenses						26						16						10						2						54
Franchise advertising and other services expense						276						310						181						1						768
Other (income) expense						(3)						(1)						(7)						—						(11)
Division Operating Profit (Loss)						$	647					$	458					$	187					$	(3)					$	1,289
Unallocated amounts:(b)
Corporate and unallocated G&A expenses(c)																														$	(175)
Unallocated Company restaurant expenses(d)																														(1)
Unallocated Franchise and property revenues																														—
Unallocated Refranchising gain (loss)																														19
Unallocated Other income (expense)																														(5)
Consolidated Operating Profit																														1,127
Investment income (expense), net(f)																														(22)
Other pension income (expense)																														3
Interest expense, net																														(238)
Income before income taxes																														$	870

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(e)						$	10					$	29					$	7					$	14					$	16					$	76
Capital Spending						18						41						6						18						16						99

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger & Grill Divisions totaled $1.0 billion in both the quarters ended June 30, 2025 and 2024, and $2.0 billion and $1.9 billion in the years to date ended June 30, 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 $14 million and $25 million in the quarters ended June 30, 2025 and 2024, respectively, related to our resource optimization program and $10 million in the quarter ended June 30, 2025 related to our brand headquarters consolidation. Corporate and unallocated G&A expenses include charges of $32 million and $46 million in the years to date ended June 30, 2025 and 2024, respectively, related to our resource optimization program and $17 million in the year to date ended June 30, 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 changes in fair value of our approximate 5% minority interest in Devyani International Limited prior to the date of sale during the year to date ended June 30, 2024.

X

- 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

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- References

No definition available.

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