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Reportable Operating Segments
 9 Months Ended
Sep. 30, 2025
Segment Reporting [Abstract]  
Reportable Operating Segments 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 9/30/2025
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$259 $298 $9 $130 $697 
Franchise and property revenues
459 254 146 3 861 
Franchise contributions for advertising and other services
161 178 85 1 426 
879 730 240 134 1,983 
Less:
Company restaurant expenses224 227 10 121 583 
General and administrative expenses88 50 50 13 201 
Franchise and property expenses15 8 11 1 35 
Franchise advertising and other services expense160 177 89 1 427 
Other (income) expense— — (4)— (3)
Division Operating Profit (Loss)
$392 $267 $84 $(2)$741 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(80)
Unallocated Company restaurant expenses(c)
(4)
Unallocated Franchise and property revenues
(4)
Unallocated Refranchising gain (loss)17 
Unallocated Other income (expense)
(3)
Consolidated Operating Profit666 
Investment income (expense), net— 
Other pension income (expense)(1)
Interest expense, net(124)
Income before income taxes$541 

Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(d)
$14 $17 $6 $7 $8 $50 
Capital Spending34 26 8 14 12 94 
Revenue Recognition Revenue Recognition
Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
Quarter ended 9/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$26 $296 $9 $130 $461 
Franchise revenues46 229 59 2 335 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 174 67 1 254 
China
Franchise revenues74 — 19 — 93 
Other
Company sales234 2 — — 235 
Franchise revenues325 17 67 — 408 
Property revenues11 — — — 11 
Franchise contributions for advertising and other services150 4 18 — 172 
$879 $730 $240 $134 $1,983 
(a)
(a)    Does not include a charge of $4 million to Unallocated Franchise revenues during the quarter ended September 30, 2025.

Quarter ended 9/30/2024
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$17 $267 $1 $133 $418 
Franchise revenues44 211 66 2 323 
Property revenues4 8 1 1 14 
Franchise contributions for advertising and other services10 161 71 1 243 
China
Franchise revenues70 — 17 — 87 
Other
Company sales203 — — — 203 
Franchise revenues288 15 66 — 369 
Property revenues11 — — — 11 
Franchise contributions for advertising and other services138 4 16 — 158 
$785 $666 $238 $137 $1,826 
Year to date 9/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$72 $843 $20 $385 $1,320 
Franchise revenues130 664 185 5 985 
Property revenues9 25 3 2 40 
Franchise contributions for advertising and other services31 504 203 2 741 
China
Franchise revenues209 — 52 — 261 
Other
Company sales648 6 — — 654 
Franchise revenues923 45 195 — 1,163 
Property revenues32 — 1 — 33 
Franchise contributions for advertising and other services447 10 51 — 508 
$2,501 $2,098 $710 $395 $5,704 
(a)

(a)    Does not include a charge of $5 million to Unallocated Franchise revenues during the year to date ended September 30, 2025.

Year to date 9/30/2024
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$45 $775 $5 $399 $1,224 
Franchise revenues134 608 200 5 947 
Property revenues10 27 3 2 42 
Franchise contributions for advertising and other services30 468 217 2 717 
China
Franchise revenues200 — 51 — 251 
Other
Company sales443 — — — 443 
Franchise revenues842 43 191 — 1,076 
Property revenues33 — 1 — 34 
Franchise contributions for advertising and other services397 9 47 — 453 
$2,134 $1,930 $715 $408 $5,187 
Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2025 is presented below.
Deferred Franchise Fees
Balance at December 31, 2024
$438 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(62)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period49 
Other(a)
6 
Balance at September 30, 2025
$431 

(a)    Primarily includes the impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$75 
1 - 2 years67 
2 - 3 years58 
3 - 4 years50 
4 - 5 years43 
Thereafter138 
Total$431