v3.26.1
Goodwill and Intangible Assets
 6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Goodwill and Intangible Assets

Note 8 – Goodwill and Intangible Assets

 

The changes in the carrying amount of goodwill are as follows:

 

 

 

Total
Company

 

 

KFC

 

 

Pizza Hut

 

 

All Other
Segments

 

Balance as of December 31, 2025

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, gross

 

$

2,354

 

 

$

1,870

 

 

$

19

 

 

$

465

 

Accumulated impairment losses(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

Goodwill, net

 

 

1,963

 

 

 

1,870

 

 

 

19

 

 

 

74

 

Effect of currency translation adjustments

 

 

58

 

 

 

55

 

 

 

1

 

 

 

2

 

Balance as of June 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, gross

 

 

2,412

 

 

 

1,925

 

 

 

20

 

 

 

467

 

Accumulated impairment losses(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

Goodwill, net

 

$

2,021

 

 

$

1,925

 

 

$

20

 

 

$

76

 

 

(a)
Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

 

Intangible assets, net as of June 30, 2026 and December 31, 2025 are as follows:

 

 

 

6/30/2026

 

 

12/31/2025

 

 

 

Gross
Carrying
Amount(a)

 

 

Accumulated
Amortization(a)

 

 

Accumulated Impairment Losses(b)

 

 

Net Carrying Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Accumulated Impairment Losses(b)

 

 

Net Carrying Amount

 

Finite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reacquired franchise
    rights

 

$

281

 

 

$

(279

)

 

$

—

 

 

$

2

 

 

$

274

 

 

$

(271

)

 

$

—

 

 

$

3

 

Huang Ji Huang
    franchise related assets

 

 

21

 

 

 

(7

)

 

 

—

 

 

 

14

 

 

 

21

 

 

 

(7

)

 

 

—

 

 

 

14

 

Daojia platform

 

 

9

 

 

 

(2

)

 

 

(7

)

 

 

—

 

 

 

9

 

 

 

(2

)

 

 

(7

)

 

 

—

 

Customer-related assets

 

 

11

 

 

 

(10

)

 

 

(1

)

 

 

—

 

 

 

11

 

 

 

(10

)

 

 

(1

)

 

 

—

 

Others

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

$

331

 

 

$

(304

)

 

$

(8

)

 

$

19

 

 

$

324

 

 

$

(296

)

 

$

(8

)

 

$

20

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Little Sheep trademark

 

$

53

 

 

$

—

 

 

$

—

 

 

$

53

 

 

$

51

 

 

$

—

 

 

$

—

 

 

$

51

 

Huang Ji Huang
    trademark

 

 

79

 

 

 

—

 

 

 

—

 

 

 

79

 

 

 

77

 

 

 

—

 

 

 

—

 

 

 

77

 

 

 

$

132

 

 

$

—

 

 

$

—

 

 

$

132

 

 

$

128

 

 

$

—

 

 

$

—

 

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total intangible assets

 

$

463

 

 

$

(304

)

 

$

(8

)

 

$

151

 

 

$

452

 

 

$

(296

)

 

$

(8

)

 

$

148

 

 

(a)
Changes in gross carrying amount and accumulated amortization include the effect of currency translation adjustments.

 

(b)
Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

 

Amortization expense for finite-lived intangible assets was less than $1 million for both quarters ended June 30, 2026 and 2025, and $1 million for both years to date ended June 30, 2026 and 2025. As of June 30, 2026, expected amortization expense for the unamortized finite-lived intangible assets was $1 million for the remainder of 2026 and $2 million in each of 2027, 2028, 2029 and 2030.