v3.26.3
Goodwill and Intangible Assets (Tables)
 9 Months Ended
Sep. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
Changes in the Carrying Amount of Goodwill

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

 

 

83

 

 

 

79

 

 

 

1

 

 

 

3

 

Balance as of September 30, 2026

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill, gross

 

 

2,437

 

 

 

1,949

 

 

 

20

 

 

 

468

 

Accumulated impairment losses(a)

 

 

(391

)

 

 

—

 

 

 

—

 

 

 

(391

)

Goodwill, net

 

$

2,046

 

 

$

1,949

 

 

$

20

 

 

$

77

 

 

(a)
Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.
Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

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

 

 

 

9/30/2026

 

 

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

 

$

285

 

 

$

(283

)

 

$

—

 

 

$

2

 

 

$

274

 

 

$

(271

)

 

$

—

 

 

$

3

 

Huang Ji Huang
    franchise related assets

 

 

22

 

 

 

(8

)

 

 

—

 

 

 

14

 

 

 

21

 

 

 

(7

)

 

 

—

 

 

 

14

 

Daojia platform

 

 

9

 

 

 

(2

)

 

 

(7

)

 

 

—

 

 

 

9

 

 

 

(2

)

 

 

(7

)

 

 

—

 

Customer-related assets

 

 

12

 

 

 

(11

)

 

 

(1

)

 

 

—

 

 

 

11

 

 

 

(10

)

 

 

(1

)

 

 

—

 

Others

 

 

9

 

 

 

(7

)

 

 

—

 

 

 

2

 

 

 

9

 

 

 

(6

)

 

 

—

 

 

 

3

 

 

 

$

337

 

 

$

(311

)

 

$

(8

)

 

$

18

 

 

$

324

 

 

$

(296

)

 

$

(8

)

 

$

20

 

Indefinite-lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pizza Hut brand name(c)

 

$

1,264

 

 

$

—

 

 

 

—

 

 

$

1,264

 

 

$

—

 

 

$

—

 

 

$

—

 

 

$

—

 

Little Sheep trademark

 

 

54

 

 

 

—

 

 

 

—

 

 

 

54

 

 

 

51

 

 

 

—

 

 

 

—

 

 

 

51

 

Huang Ji Huang
    trademark

 

 

80

 

 

 

—

 

 

 

—

 

 

 

80

 

 

 

77

 

 

 

—

 

 

 

—

 

 

 

77

 

 

 

$

1,398

 

 

$

—

 

 

$

—

 

 

$

1,398

 

 

$

128

 

 

$

—

 

 

$

—

 

 

$

128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total intangible assets

 

$

1,735

 

 

$

(311

)

 

$

(8

)

 

$

1,416

 

 

$

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.

 

(c)
Pizza Hut brand name relates to the Pizza Hut Acquisition. Refer to Note 3 for detail.