v3.26.1
Reportable Operating Segments (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting 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 6/30/2026
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$275 $396 $31 $135 $837 
Franchise and property revenues
477 271 143 3 895 
Franchise contributions for advertising and other services
172 185 80 1 438 
924 853 254 139 2,169 
Less:
Company restaurant expenses242 294 30 121 687 
General and administrative expenses88 53 56 12 210 
Franchise and property expenses18 9 13 1 41 
Franchise advertising and other services expense169 187 87 1 444 
Other (income) expense(2)(1)(3)6 — 
Division Operating Profit (Loss)
$410 $311 $70 $(4)$787 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(114)
Unallocated Company restaurant expenses(c)
(13)
Unallocated Refranchising gain (loss)1 
Unallocated Other income (expense)(6)
Consolidated Operating Profit655 
Investment income (expense), net6 
Other pension income (expense)— 
Interest expense, net(128)
Income before income taxes$533 

Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$13 $29 $5 $7 $6 $60 
Capital Spending25 39 2 20 13 100 
Quarter ended 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$245 $287 $7 $130 $669 
Franchise and property revenues
437 248 147 3 835 
Franchise contributions for advertising and other services
167 176851 428 
849 711 239 134 1,933 
Less:
Company restaurant expenses216 217 7 116 557 
General and administrative expenses89 49 54 13 205 
Franchise and property expenses20 7 10 1 39 
Franchise advertising and other services expense162 176 90 1 428 
Other (income) expense— — (3)— (3)
Division Operating Profit (Loss)
$363 $262 $80 $3 $707 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(97)
Unallocated Company restaurant expenses(c)
(4)
Unallocated Refranchising gain (loss)11 
Unallocated Other income (expense)
4 
Consolidated Operating Profit622 
Investment income (expense), net
— 
Other pension income (expense)1 
Interest expense, net(123)
Income before income taxes$499 

Other Segment Disclosures

KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$11 $16 $4 $6 $6 $44 
Capital Spending
19 18 10 12 12 71 
Year to Date 6/30/2026
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$530 $768 $63 $260 $1,622 
Franchise and property revenues
938 522 285 6 1,751 
Franchise contributions for advertising and other services
334 360 159 2 856 
1,802 1,650 507 269 4,228 
Less:
Company restaurant expenses471 578 62 242 1,353 
General and administrative expenses174 106 116 25 421 
Franchise and property expenses37 15 31 2 85 
Franchise advertising and other services expense329 361 171 2 863 
Other (income) expense(2)— (6)8 — 
Division Operating Profit (Loss)$793 $591 $135 $(11)$1,507 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(225)
Unallocated Company restaurant expenses(c)
(25)
Unallocated Refranchising gain (loss)2 
Unallocated Other income (expense)(d)
39 
Consolidated Operating Profit1,299 
Investment income (expense), net6 
Other pension income (expense)— 
Interest expense, net(257)
Income before income taxes$1,049 
Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$26 $57 $11 $14 $12 $119 
Capital Spending50 61 4 35 25 175 
Year to Date 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$461 $550 $10 $255 $1,277 
Franchise and property revenues
844 482 290 5 1,621 
Franchise contributions for advertising and other services
316 336 169 1 823 
1,622 1,368 470 262 3,721 
Less:
Company restaurant expenses411 421 11 230 1,074 
General and administrative expenses169 98 109 26 401 
Franchise and property expenses36 13 21 2 73 
Franchise advertising and other services expense311 333 179 1 824 
Other (income) expense— — (5)— (4)
Division Operating Profit (Loss)
$694 $502 $155 $2 $1,353 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(202)
Unallocated Company restaurant expenses(c)
(7)
Unallocated Franchise and property revenues
(1)
Unallocated Refranchising gain (loss)16 
Unallocated Other income (expense)
10 
Consolidated Operating Profit1,170 
Investment income (expense), net1 
Other pension income (expense)1 
Interest expense, net(243)
Income before income taxes$929 


Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$22 $32 $9 $13 $14 $89 
Capital Spending
37 49 15 18 23 142 
Revenues by Country(f)
Quarter endedYear to date
2026202520262025
United States$1,186 $1,043 $2,306 $2,023 
United Kingdom269 232 523 438 
Other714 658 1,399 1,259 
$2,169 $1,933 $4,228 $3,720 

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

(b)Corporate and unallocated G&A expenses include charges of $44 million and $81 million in the quarter and year to date ended June 30, 2026, respectively, related to our Pizza Hut strategic options review. Corporate and unallocated G&A expenses include charges of $14 million and $32 million in the quarter and year to date ended June 30, 2025, respectively, related to our resource optimization program and charges of $10 million during the quarter ended June 30, 2025 and $1 million and $17 million for the years to date ended June 30, 2026 and 2025, respectively, related to our brand headquarters consolidation.

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

(d)Unallocated Other income (expense) includes income of $44 million, net of legal expenses, in the year to date ended June 30, 2026, related to a credit card interchange fee litigation settlement in which we were a plaintiff.

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