v3.26.1
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Dec. 31, 2025
Segment Reporting [Line Items]          
Revenues $ 2,169 $ 1,933 $ 4,228 $ 3,720  
Operating Profit [1] 655 622 1,299 1,170  
General and Administrative Expense (324) (302) (646) (604)  
Company restaurant expenses 700 560 1,378 1,081  
Franchise and property expenses 41 39 85 73  
Refranchising (gain) loss (1) (11) (2) (16)  
Other (income) expense 6 (7) (39) (15)  
Investment (income) expense, net [1] (6) 0 [2] (6) [2] (1) [2]  
Other pension income (expense) [1] 0 1 0 1  
Interest Income (Expense), Net [1] (128) (123) (257) (243)  
Income Before Income Taxes [1] 533 499 1,049 929  
Franchise advertising and other services expense 444 428 863 824  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 100 71 175 142  
Depreciation and amortization [3] 60 44 119 89  
Costs Associated with Resource Optimization Initiative   14   32  
Costs Associated with Brand Headquarters Consolidation   10 1 17  
Short-term borrowings 2,813   2,813   $ 38
Costs Associated with PH Strategic Options Review 44   81    
Gain (Loss) from Litigation Settlement 44   $ 44    
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 6/30/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$28 $393 $13 $135 $569 
Franchise revenues43 245 58 2 348 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 180 64 1 256 
China
Franchise revenues73 — 18 — 92 
Other
Company sales247 3 18 — 268 
Franchise revenues346 18 66 — 429 
Property revenues12 — — — 13 
Franchise contributions for advertising and other services160 5 16 — 181 
$924 $853 $254 $139 $2,169 

Quarter ended 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$24 $285 $7 $130 $446 
Franchise revenues43 225 63 2 332 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 173 67 1 252 
China
Franchise revenues65 — 17 — 82 
Other
Company sales222 2 — — 224 
Franchise revenues315 15 67 — 397 
Property revenues11 — — — 11 
Franchise contributions for advertising and other services156 3 17 — 177 
$849 $711 $239 $134 $1,933 
Year to date 6/30/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$53 $762 $26 $260 $1,101 
Franchise revenues85 472 114 4 675 
Property revenues6 16 2 2 25 
Franchise contributions for advertising and other services22 351 129 2 505 
China
Franchise revenues150 — 38 — 188 
Other
Company sales477 7 37 — 521 
Franchise revenues673 34 131 — 838 
Property revenues24 — 1 — 25 
Franchise contributions for advertising and other services312 9 30 — 351 
$1,802 $1,650 $507 $269 $4,228 

Year to date 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$47 $546 $10 $255 $858 
Franchise revenues85 436 126 4 650 
Property revenues6 17 2 2 27 
Franchise contributions for advertising and other services20 330 136 1 488 
China
Franchise revenues134 — 34 — 168 
Other
Company sales415 4 — — 419 
Franchise revenues598 29 128 — 755 
Property revenues21 — 1 — 22 
Franchise contributions for advertising and other services296 6 33 — 335 
$1,622 $1,368 $470 $262 $3,721 
(a)
(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the year to date ended June 30, 2025.

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 2026 is presented below.
Deferred Franchise Fees
Balance at December 31, 2025
$443 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(43)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period30 
Deferred franchise fees related to Pizza Hut reclassified to Liabilities held for sale (see Note 3)(61)
Other(a)
(1)
Balance at June 30, 2026
$367 

(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$62 
1 - 2 years55 
2 - 3 years49 
3 - 4 years43 
4 - 5 years37 
Thereafter121 
Total$367 
    
UNITED STATES          
Segment Reporting [Line Items]          
Revenues 1,186 1,043 $ 2,306 2,023  
UNITED KINGDOM          
Segment Reporting [Line Items]          
Revenues 269 232 523 438  
Non-US & UK          
Segment Reporting [Line Items]          
Revenues 714 658 1,399 1,259  
All Countries [Domain]          
Segment Reporting [Line Items]          
Revenues 2,169 1,933 4,228 3,720  
Company Sales          
Segment Reporting [Line Items]          
Revenues 837 669 1,622 1,277  
Company Sales | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 569 446 1,101 858  
Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues 438 428 856 823  
Franchise contributions for advertising and other services | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 256 252 505 488  
KFC Global Division [Member]          
Segment Reporting [Line Items]          
Revenues 924 849 1,802 1,622  
Operating Profit 410 363 793 694  
General and Administrative Expense (88) (89) (174) (169)  
Company restaurant expenses 242 216 471 411  
Costs of Franchised Outlets (18) (20) (37) (36)  
Franchise advertising and other services expense 169 162 329 311  
Other Nonoperating Income (Expense) (2) 0 (2) 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 25 19 50 37  
Depreciation and amortization [3] 13 11 26 22  
Brand Total Revenue 924 849      
KFC Global Division [Member] | Company Sales          
Segment Reporting [Line Items]          
Revenues 275 245 530 461  
KFC Global Division [Member] | Company Sales | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 28 24 53 47  
KFC Global Division [Member] | Franchise and property revenue          
Segment Reporting [Line Items]          
Revenues 477 437 938 844  
KFC Global Division [Member] | Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues 172 167 334 316  
KFC Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 11 11 22 20  
Pizza Hut Global Division [Member]          
Segment Reporting [Line Items]          
Revenues 254 239 507 470  
Operating Profit 70 80 135 155  
General and Administrative Expense (56) (54) (116) (109)  
Company restaurant expenses 30 7 62 11  
Costs of Franchised Outlets (13) (10) (31) (21)  
Franchise advertising and other services expense 87 90 171 179  
Other Nonoperating Income (Expense) (3) (3) (6) (5)  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 2 10 4 15  
Depreciation and amortization [3] 5 4 11 9  
Brand Total Revenue 254 239      
Pizza Hut Global Division [Member] | Company Sales          
Segment Reporting [Line Items]          
Revenues 31 7 63 10  
Pizza Hut Global Division [Member] | Company Sales | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 13 7 26 10  
Pizza Hut Global Division [Member] | Franchise and property revenue          
Segment Reporting [Line Items]          
Revenues 143 147 285 290  
Pizza Hut Global Division [Member] | Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues 80 85 159 169  
Pizza Hut Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 64 67 129 136  
Taco Bell Global Division [Member]          
Segment Reporting [Line Items]          
Revenues 853 711 1,650 1,368  
Operating Profit 311 262 591 502  
General and Administrative Expense (53) (49) (106) (98)  
Company restaurant expenses 294 217 578 421  
Costs of Franchised Outlets (9) (7) (15) (13)  
Franchise advertising and other services expense 187 176 361 333  
Other Nonoperating Income (Expense) (1) 0 0 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 39 18 61 49  
Depreciation and amortization [3] 29 16 57 32  
Brand Total Revenue 853 711      
Taco Bell Global Division [Member] | Company Sales          
Segment Reporting [Line Items]          
Revenues 396 287 768 550  
Taco Bell Global Division [Member] | Company Sales | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 393 285 762 546  
Taco Bell Global Division [Member] | Franchise and property revenue          
Segment Reporting [Line Items]          
Revenues 271 248 522 482  
Taco Bell Global Division [Member] | Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues 185 176 360 336  
Taco Bell Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 180 173 351 330  
The Habit Burger Grill Global Division          
Segment Reporting [Line Items]          
Revenues 139 134 269 262  
Operating Profit (4) 3 (11) 2  
General and Administrative Expense (12) (13) (25) (26)  
Company restaurant expenses 121 116 242 230  
Costs of Franchised Outlets (1) (1) (2) (2)  
Franchise advertising and other services expense 1 1 2 1  
Other Nonoperating Income (Expense) 6 0 8 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 20 12 35 18  
Depreciation and amortization [3] 7 6 14 13  
Brand Total Revenue 139 134      
The Habit Burger Grill Global Division | Company Sales          
Segment Reporting [Line Items]          
Revenues 135 130 260 255  
The Habit Burger Grill Global Division | Company Sales | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 135 130 260 255  
The Habit Burger Grill Global Division | Franchise and property revenue          
Segment Reporting [Line Items]          
Revenues 3 3 6 5  
The Habit Burger Grill Global Division | Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues 1 1 2 1  
The Habit Burger Grill Global Division | Franchise contributions for advertising and other services | UNITED STATES          
Segment Reporting [Line Items]          
Revenues 1 1 2 1  
Unallocated [Member]          
Segment Reporting [Line Items]          
Revenues [1] 0 0 0 (1)  
General and Administrative Expense [1],[4] (114) (97) (225) (202)  
Costs of Franchised Outlets [1],[5] (13) (4) (25) (7)  
Other Nonoperating Income (Expense) [1] (6) 4 39 10  
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property [1] 1 11 2 16  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 13 12 25 23  
Depreciation and amortization [3] 6 6 12 14  
Total Division          
Segment Reporting [Line Items]          
Revenues     4,228 3,721  
Operating Profit 787 707 1,507 1,353  
Costs of Franchised Outlets (41) (39) (85) (73)  
Other Nonoperating Income (Expense) 0 (3) 0 (4)  
Brand Total Revenue 2,169 1,933 4,228 3,721  
Brand Total Cost of Product and Service Sold 687 557 1,353 1,074  
Brand Total Cooperative Advertising Expense 444 428 863 824  
Brand General and administrative expenses 210 205 421 401  
Total Division | Company Sales          
Segment Reporting [Line Items]          
Revenues 837 669 1,622 1,277  
Total Division | Franchise and property revenue          
Segment Reporting [Line Items]          
Revenues 895 835 1,751 1,621  
Total Division | Franchise contributions for advertising and other services          
Segment Reporting [Line Items]          
Revenues $ 438 $ 428 $ 856 $ 823  
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] The United States and United Kingdom represented 10% or more of our total revenues for all periods presented.
[3] 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
[4] 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.
[5] Unallocated Company restaurant expenses include amortization of reacquired franchise rights.