XML 46 R31.htm IDEA: XBRL DOCUMENT v3.25.3

Reportable Operating Segments (Tables)

9 Months Ended

Sep. 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 9/30/2025
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
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 expenses						224						227						10						121						583
General and administrative expenses						88						50						50						13						201
Franchise and property expenses						15						8						11						1						35
Franchise advertising and other services expense						160						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 Profit																														666
Investment income (expense), net																														—
Other pension income (expense)																														(1)
Interest expense, net																														(124)
Income before income taxes																														$	541

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(d)						$	14					$	17					$	6					$	7					$	8					$	50
Capital Spending						34						26						8						14						12						94

						Quarter ended 9/30/2024
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales						$	220					$	267					$	1					$	133					$	621
Franchise and property revenues						417						234						150						3						804
Franchise contributions for advertising and other services						148						165						87						1						401
						785						666						238						137						1,826
Less:
Company restaurant expenses						192						205						1						122						520
General and administrative expenses						86						41						51						11						189
Franchise and property expenses						20						6						9						1						36
Franchise advertising and other services expense						148						163						89						1						401
Other (income) expense						—						—						(3)						1						(2)
Division Operating Profit						$	339					$	251					$	91					$	1					$	682
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)																														$	(74)
Unallocated Company restaurant expenses(c)																														(3)
Unallocated Refranchising gain (loss)																														12
Unallocated Other income (expense)																														2
Consolidated Operating Profit																														619
Investment income (expense), net																														1
Other pension income (expense)																														2
Interest expense, net																														(120)
Income before income taxes																														$	502

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(d)						$	9					$	15					$	4					$	7					$	9					$	44
Capital Spending						13						16						4						11						8						52

						Year to Date 9/30/2025
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales						$	721					$	848					$	20					$	385					$	1,974
Franchise and property revenues						1,303						735						436						8						2,482
Franchise contributions for advertising and other services						478						514						255						2						1,249
						2,501						2,098						710						395						5,704
Less:
Company restaurant expenses						635						649						21						352						1,657
General and administrative expenses						255						148						159						39						600
Franchise and property expenses						51						22						32						3						107
Franchise advertising and other services expense						472						510						268						2						1,251
Other (income) expense						1						—						(9)						1						(8)
Division Operating Profit						$	1,088					$	770					$	239					$	—					$	2,096
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)																														$	(285)
Unallocated Company restaurant expenses(c)																														(11)
Unallocated Franchise and property revenues																														(5)
Unallocated Refranchising gain (loss)																														33
Unallocated Other income (expense)																														8
Consolidated Operating Profit																														1,836
Investment income (expense), net																														1
Other pension income (expense)																														—
Interest expense, net																														(368)
Income before income taxes																														$	1,470

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(d)						$	35					$	49					$	15					$	20					$	22					$	139
Capital Spending						71						75						23						32						35						236

						Year to Date 9/30/2024
						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Total
Company Sales						$	488					$	775					$	5					$	399					$	1,667
Franchise and property revenues						1,219						678						446						7						2,350
Franchise contributions for advertising and other services						427						477						264						2						1,170
						2,134						1,930						715						408						5,187
Less:
Company restaurant expenses						428						590						5						366						1,389
General and administrative expenses						253						137						153						38						581
Franchise and property expenses						46						22						19						3						90
Franchise advertising and other services expense						424						473						270						2						1,169
Other (income) expense						(3)						(1)						(10)						1						(13)
Division Operating Profit (Loss)						$	986					$	709					$	278					$	(2)					$	1,971
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)																														$	(249)
Unallocated Company restaurant expenses(c)																														(4)
Unallocated Refranchising gain (loss)																														31
Unallocated Other income (expense)																														(3)
Consolidated Operating Profit																														1,746
Investment income (expense), net(e)																														(21)
Other pension income (expense)																														5
Interest expense, net																														(358)
Income before income taxes																														$	1,372

Other Segment Disclosures

						KFC Division						Taco Bell Division						Pizza Hut Division						Habit Burger & Grill Division						Corporate and Unallocated						Total
Depreciation and Amortization(d)						$	19					$	44					$	11					$	22					$	24					$	120
Capital Spending						32						57						9						28						25						151

Revenues by Country(f)

						Quarter ended												Year to date
						2025						2024						2025						2024
United States						$	1,063					$	995					$	3,085					$	2,928
United Kingdom						245						216						683						492
Other						672						615						1,931						1,766
						$	1,979					$	1,826					$	5,699					$	5,187

(a)Amounts have not been allocated to any segment for performance reporting purposes.

(b)Corporate and unallocated G&A expenses include charges of $5 million and $11 million in the quarters ended September 30, 2025 and 2024, respectively, related to our resource optimization program and $3 million in the quarter

ended September 30, 2025 related to our brand headquarters consolidation. Corporate and unallocated G&A expenses include charges of $37 million and $57 million in the years to date ended September 30, 2025 and 2024, respectively, related to our resource optimization program and $20 million in the year to date ended September 30, 2025, related to our brand headquarters consolidation.

(c)Unallocated Company restaurant expenses include amortization of reacquired franchise rights.

(d)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.

(e)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 September 30, 2024.

(f)The United States and United Kingdom represented 10% or more of our total revenues for certain periods presented.

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

+ Details

Name:	us-gaap_ScheduleOfSegmentReportingInformationBySegmentTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_SegmentReportingAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration