YUM BRANDS INC, 10-K filed on 2/20/2024
Annual Report
v3.24.0.1
Document and Entity Information - USD ($)
 12 Months Ended
Dec. 31, 2023
Feb. 16, 2024
Jun. 30, 2023
Cover [Abstract]      
Title of 12(b) Security Common Stock, no par value    
Trading Symbol YUM    
Security Exchange Name NYSE    
Document Annual Report true    
Document Transition Report false    
Document Type 10-K    
Entity File Number 1-13163    
Entity Registrant Name YUM! BRANDS, INC.    
Entity Incorporation, State or Country Code NC    
Entity Tax Identification Number 13-3951308    
Entity Address, Address Line One 1441 Gardiner Lane,    
Entity Address, City or Town Louisville,    
Entity Address, State or Province KY    
Entity Address, Postal Zip Code 40213    
City Area Code (502)    
Local Phone Number 874-8300    
Entity Interactive Data Current Yes    
Entity Current Reporting Status Yes    
Amendment Flag false    
Document Period End Date Dec. 31, 2023    
Entity Central Index Key 0001041061    
Current Fiscal Year End Date --12-31    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Filer Category Large Accelerated Filer    
Entity Emerging Growth Company false    
Entity Small Business false    
Entity Shell Company false    
Entity Public Float     $ 39,000,000,000
Entity Common Stock, Shares Outstanding   281,336,280  
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
ICFR Auditor Attestation Flag true    
Auditor Name KPMG, LLP    
Auditor Location Louisville, Kentucky    
Auditor Firm ID 185    
Document Financial Statement Error Correction [Flag] false    
v3.24.0.1
Consolidated Statements of Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues      
Total revenues $ 7,076 $ 6,842 $ 6,584
Costs and Expenses, Net      
Company restaurant expenses 1,774 1,745 1,725
General and administrative expenses 1,193 1,140 1,060
Franchise and property expenses 123 123 117
Franchise advertising and other services expense 1,683 1,667 1,576
Refranchising (gain) loss (29) (27) (35)
Other (income) expense 14 7 2
Costs and Expenses, Total 4,758 4,655 4,445
Operating Profit 2,318 2,187 2,139
Investment (income) expense, net [1] (7) (11) (86)
Other Pension (income) expense [1] (6) 9 7
Interest Income (Expense), Net [1] 513 527 544
Income (Loss) Attributable to Parent, before Tax, Total 1,818 1,662 1,674
Income tax provision 221 337 99
Net Income $ 1,597 $ 1,325 $ 1,575
Basic Earnings Per Common Share (in dollars per share) $ 5.68 $ 4.63 $ 5.30
Diluted Earnings Per Common Share (in dollars per share) 5.59 4.57 5.21
Dividends Declared Per Common Share (in dollars per share) $ 2.42 $ 2.28 $ 2.00
Company Sales      
Revenues      
Revenue from Contract with Customer, Excluding Assessed Tax $ 2,142 $ 2,072 $ 2,106
Franchise and property revenue [Member]      
Revenues      
Revenue from Contract with Customer, Excluding Assessed Tax 3,247 3,096 2,900
Franchise contributions for advertising and other services      
Revenues      
Revenue from Contract with Customer, Excluding Assessed Tax $ 1,687 $ 1,674 $ 1,578
[1] Amounts have not been allocated to any segment for performance reporting purposes.
v3.24.0.1
Consolidated Statement of Comprehensive Income - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Net Income $ 1,597 $ 1,325 $ 1,575
Translation adjustments and gains (losses) arising during the year 18 (84) (24)
Translation reclassifications of adjustments and (gains) losses into Net Income 71 0 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax 89 (84) (24)
Translation adjustments tax (expense) benefit 0 0 0
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax 89 (84) (24)
Pension Unrealized gains (losses) arising during the year (12) (115) 65
Pension reclassification of (gains) losses into Net Income 1 34 16
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Unrealized Gains (Losses), before Tax (11) (81) 81
Pension and post-retirement benefit plans (tax impact) 1 21 (19)
Pension and post-retirement benefit plans (net of tax impact) (10) (60) 62
Cash Flow Hedge unrealized gains (losses) arising during the year 14 115 34
Cash Flow Hedge Reclassification of (gains) losses into Net Income (30) 18 28
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax (16) 133 62
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 4 (33) (14)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax (12) 100 48
Other Comprehensive Income (Loss), Net of Tax 67 (44) 86
Comprehensive Income $ 1,664 $ 1,281 $ 1,661
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash Flows - Operating Activities      
Net Income $ 1,597 $ 1,325 $ 1,575
Depreciation and amortization 153 146 164
Impairment and closure expense 13 10 19
Refranchising (gain) loss (29) (27) (35)
Investment (income) expense, net [1] (7) (11) (86)
Deferred income taxes (290) (55) (200)
Share-based compensation expense 95 84 75
Changes in Accounts and Notes Receivable (89) (84) (46)
Changes in Prepaid Expense and Other Assets (15) 1 (33)
Changes in accounts payable and other current liabilities (30) (39) 122
Changes in income taxes payable 43 17 (41)
Other, net 162 60 192
Net Cash Provided by Operating Activities 1,603 1,427 1,706
Cash Flows - Investing Activities      
Capital spending (285) (279) (230)
Payments for (Proceeds from) Investments 121 0 0
Proceeds from refranchising of restaurants 60 73 85
Other, net (3) 4 (28)
Net Cash Provided by (Used in) Investing Activities (107) (202) (173)
Cash Flows - Financing Activities      
Proceeds from long-term debt 0 999 4,150
Repayments of long-term debt (397) (699) (3,657)
Revolving credit facilities, three months or less, net (279) 279 0
Repurchase shares of Common Stock (50) (1,200) (1,591)
Dividends paid on Common Stock (678) (649) (592)
Debt issuance costs 0 (11) (37)
Other, net (25) (42) (40)
Net Cash Used in Financing Activities (1,429) (1,323) (1,767)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations 10 (26) (19)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect 77 (124) (253)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning Balance 647 771 1,024
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance $ 724 $ 647 $ 771
[1] Amounts have not been allocated to any segment for performance reporting purposes.
v3.24.0.1
Consolidated Balance Sheets - USD ($)
shares in Millions, $ / shares in Millions, $ in Millions
Dec. 31, 2023
Dec. 31, 2022
Current Assets    
Cash and cash equivalents $ 512 $ 367
Accounts and notes receivable, net 737 648
Prepaid Expense and Other Assets, Current 360 594
Total Current Assets 1,609 1,609
Property, Plant and equipment, net 1,197 1,171
Goodwill [1] 642 638
Intangible assets, net 377 354
Other assets 1,361 1,324
Deferred Income Taxes 1,045 750
Total Assets [2] 6,231 5,846
Current Liabilities    
Accounts payable and other current liabilities 1,169 1,251
Income taxes payable 55 16
Debt, Current 53 398
Total Current Liabilities 1,277 1,665
Long-term debt 11,142 11,453
Other Liabilities, Noncurrent 1,670 1,604
Total Liabilities 14,089 14,722
Shareholders' Equity    
Common stock, no par value, 750 shares authorized; 280 shares and 289 shares issued in 2022 and 2021, respectively 60 0
Accumulated Deficit (7,616) (8,507)
Accumulated other comprehensive income (loss) (302) (369)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Total (7,858) (8,876)
Total Liabilities, Redeemable Noncontrolling Interest and Shareholders' Equity $ 6,231 $ 5,846
Common Stock, par value $ 0 $ 0
Common Stock, shares authorized 750 750
Common Stock, shares issued 281 280
[1] Goodwill, net includes $144 million of accumulated impairment losses related to our Habit Burger Grill segment and $17 million of accumulated impairment losses related to our Pizza Hut segment for each year presented.
[2] U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion at both 2023 and 2022.
v3.24.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
shares in Thousands, $ in Millions
Total
Common Stock
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2020 $ (7,891) $ 0 $ (7,480) $ (411)
Balance (in shares) at Dec. 31, 2020   300,000    
Net Income 1,575   1,575  
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact) (24)     (24)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 0      
Pension and post-retirement benefit plans (net of tax impact) 62     62
Pension and post-retirement benefit plans (tax impact) (19)      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 48     48
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (14)      
Comprehensive income - including noncontrolling interests 1,661      
Dividends declared (594)   (594)  
Repurchase of shares of Common Stock $ (1,580) [1] $ (31) (1,549)  
Repurchase of shares of Common Stock (in shares) (12,981) [1] (13,000)    
Employee stock option and SARs exercises (includes tax impact) $ 50 $ 50    
Employee stock option and SARs exercises (in shares)   2,000    
Compensation-related events (includes tax impact) 81 $ 81    
Balance at Dec. 31, 2021 (8,373) $ 0 (8,048) (325)
Balance (in shares) at Dec. 31, 2021   289,000    
Net Income 1,325   1,325  
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact) (84)     (84)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 0      
Pension and post-retirement benefit plans (net of tax impact) (60)     (60)
Pension and post-retirement benefit plans (tax impact) 21      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax 100     100
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (33)      
Comprehensive income - including noncontrolling interests 1,281      
Dividends declared (653)   (653)  
Repurchase of shares of Common Stock $ (1,200) [1] $ (69) (1,131)  
Repurchase of shares of Common Stock (in shares) (10,083) [1] (10,000)    
Employee stock option and SARs exercises (includes tax impact) $ 31 $ 31    
Employee stock option and SARs exercises (in shares)   1,000    
Compensation-related events (includes tax impact) 100 $ 100    
Balance at Dec. 31, 2022 (8,876) $ 0 (8,507) (369)
Balance (in shares) at Dec. 31, 2022   280,000    
Accumulated Deficit 8,507      
Net Income 1,597   1,597  
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature - including noncontrolling interest (net of tax impact) 18     18
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 71      
Pension and post-retirement benefit plans (net of tax impact) (10)     (10)
Pension and post-retirement benefit plans (tax impact) 1      
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax (12)     (12)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax 4      
Comprehensive income - including noncontrolling interests 1,664      
Dividends declared (680)   (680)  
Repurchase of shares of Common Stock $ (50) [1] $ (24) (26)  
Repurchase of shares of Common Stock (in shares) [1] (387)      
Employee stock option and SARs exercises (includes tax impact) $ 24 $ 24    
Employee stock option and SARs exercises (in shares)   1,000    
Compensation-related events (includes tax impact) 108 $ 108    
Balance at Dec. 31, 2023 (7,858) $ 60 $ (7,616) $ (302)
Balance (in shares) at Dec. 31, 2023   281,000    
Accumulated Deficit $ 7,616      
[1] 2021 amount excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.
v3.24.0.1
Description of Business
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Description of Business Description of Business
Yum! Brands, Inc. and its Subsidiaries (collectively referred to herein as the “Company,” “YUM,” “we,” “us” or “our”) franchise or operate a system of over 58,000 restaurants in more than 155 countries and territories primarily under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill (collectively, the “Concepts”). The Company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style and pizza categories. The Habit Burger Grill is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. At December 31, 2023, 98% of our restaurants were owned and operated by franchisees.

Through our widely-recognized Concepts, we develop, operate or franchise a system of both traditional and non-traditional restaurants. The terms “franchise” or “franchisee” within these Consolidated Financial Statements are meant to describe third parties that operate units under either franchise or license agreements. Our traditional restaurants feature dine-in, carryout and, in some instances, drive-thru service. Non-traditional units include express units which have a more limited menu and operate in non-traditional locations like malls, airports, gasoline service stations, train stations, subways, convenience stores, stadiums, amusement parks and colleges, where a full-scale traditional outlet would not be practical or efficient. We also operate or franchise multibrand units, where two or more of our Concepts are operated in a single unit.

As of December 31, 2023, YUM consisted of four operating segments:

•The KFC Division which includes our worldwide operations of the KFC concept
•The Taco Bell Division which includes our worldwide operations of the Taco Bell concept
•The Pizza Hut Division which includes our worldwide operations of the Pizza Hut concept
•The Habit Burger Grill Division which includes our worldwide operations of the Habit Burger Grill concept
v3.24.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies Summary of Significant Accounting Policies
Our preparation of the accompanying Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Consolidated Financial Statements, and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates. 

Principles of Consolidation and Basis of Preparation.  Intercompany accounts and transactions have been eliminated in consolidation.  We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest.  We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests.  Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary.  The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it.

Our most significant variable interests are in certain entities that operate restaurants under our Concepts’ franchise arrangements.  We do not typically provide significant financial support such as loans or guarantees to our franchisees.  Thus, our most significant variable interests in franchisees result from real estate lease arrangements to which we are a party.  At the end of 2023, YUM has future lease payments due from certain franchisees, on a nominal basis, of approximately $800 million, and we are secondarily liable on certain other lease agreements that have been assigned to certain franchisees. See the Lease Guarantees section in Note 20. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

We do not have a significant equity interest in any of our franchisee businesses except for a minority interest in an entity, Devyani International Limited (“Devyani”), that owns our KFC India and Pizza Hut India master franchisee rights. This minority interest does not give us the ability to significantly influence this entity. We account for our investment in Devyani as an equity security. As the fair value of this equity security is readily determinable we record changes in fair value in Investment (income) expense, net.
We participate in various advertising cooperatives with our franchisees, typically within a country where we have both Company-owned restaurants and franchise restaurants, established to collect and administer funds contributed for use in advertising and promotional programs designed to increase sales and enhance the reputation of the Company and our Concepts. Contributions to the advertising cooperatives are required of both Company-owned, if any, and franchise restaurants and are generally based on a percentage of restaurant sales.  We maintain certain variable interests in these cooperatives. As the cooperatives are required to spend all funds collected on advertising and promotional programs, total equity at risk is not sufficient to permit the cooperatives to finance their activities without additional subordinated financial support. Therefore, these cooperatives are VIEs. We consolidate certain of these cooperatives for which we are the primary beneficiary due to our voting rights.  

Fiscal Year.  YUM’s fiscal year begins on January 1 and ends December 31 of each year, with each quarter comprised of three months. The majority of our U.S. subsidiaries and certain international subsidiaries operate on a weekly periodic calendar where the first three quarters of each fiscal year consists of 12 weeks and the fourth quarter consists of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks. Our remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates.

Our next fiscal year scheduled to include a 53rd week for our period calendar reporters is 2024.

Foreign Currency.  The functional currency of our foreign entities is the currency of the primary economic environment in which the entity operates. Functional currency determinations are made based upon a number of economic factors, including but not limited to cash flows and financing transactions. The operations, assets and liabilities of our entities outside the U.S. are initially measured using the functional currency of that entity. Income and expense accounts for our operations of these foreign entities are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities of these foreign entities are then translated into U.S. dollars at exchange rates in effect at each period-end balance sheet date. As of December 31, 2023, net cumulative translation adjustment losses of $201 million are recorded in Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheet.

The majority of our foreign currency net asset exposure is in countries where we have Company-owned restaurants. As we manage and share resources at the individual brand level within a country, cumulative translation adjustments are recorded and tracked at the foreign-entity level that represents the operations of our individual brands within that country. Translation adjustments recorded in AOCI are subsequently recognized as income or expense generally only upon sale of the related investment in a foreign entity, or upon a sale of assets and liabilities within a foreign entity that represents a complete or substantially complete liquidation of that foreign entity. For purposes of determining whether a sale or complete or substantially complete liquidation of an investment in a foreign entity has occurred, we consider those same foreign entities for which we record and track cumulative translation adjustments.

Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in Other (income) expense in our Consolidated Statements of Income.

Reclassifications. We have reclassified certain items in the Consolidated Financial Statements for prior periods to be comparable with the classification for the fiscal year ended December 31, 2023. These reclassifications had no effect on previously reported Net Income.

Revenue Recognition. Below is a discussion of how our revenues are earned, our accounting policies pertaining to revenue recognition under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”) and other required disclosures.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue transaction and collected from a customer are excluded from revenue.

Company Sales

Revenues from the sale of food items by Company-owned restaurants are recognized as Company sales when a customer purchases the food, which is when our obligation to perform is satisfied.
Franchise and Property Revenues

Franchise Revenues

Our most significant source of revenues arises from the operation of our Concepts’ stores by our franchisees. Franchise rights may be granted through a store-level franchise agreement or through a master franchise agreement that set out the terms of our arrangement with the franchisee. Our franchise agreements require that the franchisee remit continuing fees to us as a percentage of the applicable restaurant’s sales in exchange for the license of the intellectual property associated with our Concepts’ brands (the “franchise right”). Our franchise agreements also typically require certain, less significant, upfront franchise fees such as initial fees paid upon opening of a store, fees paid to renew the term of the franchise right and fees paid in the event the franchise agreement is transferred to another franchisee.

Continuing fees represent the substantial majority of the consideration we receive under our franchise agreements. Continuing fees are typically billed and paid monthly and are usually 4% - 6% for store-level franchise agreements. Master franchise agreements allow master franchisees to operate restaurants as well as sub-franchise restaurants within certain geographic territories. The percentage of sales that we receive for restaurants owned or sub-franchised by our master franchisees as a continuing fee is typically less than the percentage we receive for restaurants operating under a store-level franchise agreement. Based on the application of the sales-based royalty exception within Topic 606 continuing fees are recognized as the related restaurant sales occur.

Upfront franchise fees are typically billed and paid when a new franchise or sub-franchise agreement becomes effective or when an existing agreement is transferred to another franchisee or sub-franchisee. We have determined that the services we provide in exchange for upfront franchise fees, which primarily relate to pre-opening support, are highly interrelated with the franchise right and are not individually distinct from the ongoing services we provide to our franchisees. As a result, upfront franchise fees are recognized as revenue over the term of each respective franchise or sub-franchise agreement. Revenues for these upfront franchise fees are recognized on a straight-line basis, which is consistent with the franchisee’s or sub-franchisee’s right to use and benefit from the intellectual property.

Additionally, from time-to-time we provide consideration to franchisees in the form of cash (e.g. cash payments to offset new build costs) or other incentives (e.g. free or subsidized equipment) with the intent to drive new unit development or same-store sales growth that will result in higher future revenues for the Company. Such payments are capitalized and presented within Prepaid expense and other current assets or Other assets. These assets are being amortized as a reduction in Franchise and property revenues over the period of expected cash flows from the franchise agreements to which the payment relates.

Property Revenues

From time to time, we enter into rental agreements with franchisees for the lease or sublease of restaurant locations. These rental agreements typically originate from refranchising transactions and revenues related to the agreements are recognized as they are earned. Amounts owed under the rental agreements are typically billed and paid on a monthly basis. Related expenses are presented as Franchise and property expenses within our Consolidated Statements of Income and primarily include depreciation or, in the case of a sublease, rent expense.

Franchise Contributions for Advertising and Other Services

Advertising Cooperatives

We have determined we act as a principal in the transactions entered into by the advertising cooperatives we are required to consolidate based on our responsibility to define the nature of the goods or services provided and/or our commitment to pay for advertising services in advance of the related franchisee contributions. Additionally, we have determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. Franchisees remit to these consolidated advertising cooperatives a percentage of restaurant sales as consideration for providing the advertising services. As a result, revenues for advertising services are recognized when the related franchise restaurant sales occur based on the application of the sales-based royalty exception within Topic 606. Revenues for these services are typically billed and received on a monthly basis.

Other Goods or Services

On a much more limited basis, we provide goods or services to certain franchisees that are individually distinct from the franchise right because they do not require integration with other goods or services we provide. Such arrangements typically
relate to technology, supply chain and quality assurance services. The extent to which we provide such goods or services varies by brand, geographic region and, in some instances, franchisee. In instances where we rely on third parties to provide goods or services to franchisees at our direction, we have determined we act as a principal in these transactions and recognize related revenues as the goods or services are transferred to the franchisee.

Franchise Support Costs. Certain direct costs of our franchise operations are charged to Franchise and property expenses. These costs include provisions for estimated uncollectible upfront and continuing fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, marketing funding on behalf of franchisees, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

The costs we incur to provide support services to our franchisees for which we do not receive a reimbursement are charged to General and administrative expenses (“G&A”) as incurred. Expenses related to the provisioning of goods or services for which we receive reimbursement for all or substantially all of the expense amount from a franchisee are recorded in Franchise advertising and other services expense (the associated revenue is recorded within Franchise contributions for advertising and other services as described above). The majority of these expenses relate to advertising and are incurred on behalf of franchisees by the advertising cooperatives we are required to consolidate. These expenses are accounted for as described in the Advertising Costs policy below. For such expenses that do not relate to advertising the expenses are recognized as incurred.

Advertising Costs. To the extent we participate in advertising cooperatives, we, like our participating franchisees, are required to make contributions. Our contributions are based on a percentage of sales of our participating Company restaurants. These contributions as well as direct marketing costs we may incur outside of a cooperative related to Company restaurants are recorded within Company restaurant expenses. Advertising expense included in Company restaurant expenses totaled $81 million, $78 million and $84 million in 2023, 2022 and 2021, respectively.

To the extent we consolidate advertising cooperatives, we incur advertising expense as a result of our obligation to spend franchisee contributions to those cooperatives (see above for our accounting for these contributions). Such advertising expense is recorded in Franchise advertising and other services expense and totaled $1,293 million, $1,298 million and $1,264 million in 2023, 2022 and 2021, respectively. At the end of each fiscal year additional advertising costs are accrued to the extent advertising revenues exceed the related advertising expense to date, as we are obligated to expend such amounts on advertising.

From time to time, we may make the decision to incur discretionary advertising expenditures on behalf of franchised restaurants. Such amounts are recorded within Franchise and property expenses and totaled $13 million, $8 million and $11 million in 2023, 2022 and 2021, respectively.

To the extent the advertising cooperatives we are required to consolidate are unable to collect amounts due from franchisees they incur bad debt expense. In 2023 and 2022, we recorded $3 million and $6 million in net provisions, respectively, and in 2021, we recorded $6 million in net recoveries. To the extent our consolidated advertising cooperatives have a provision or recovery for bad debt expense, the cooperative’s advertising spend obligation is adjusted such that there is no net impact within our Financial Statements.

Share-Based Employee Compensation.  We recognize ongoing share-based payments to employees, including grants of stock appreciation rights (“SARs”) and restricted stock units ("RSUs"), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant.  This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest.  Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in G&A, Franchise advertising and other services expense or Company restaurant expenses. See Note 16 for further discussion of our share-based compensation plans.

Legal Costs. Settlement costs are accrued when they are deemed probable and reasonably estimable. Anticipated legal fees related to self-insured workers’ compensation, employment practices liability, general liability, automobile liability, product liability and property losses (collectively, “property and casualty losses”) are accrued when deemed probable and reasonably estimable. Legal fees not related to self-insured property and casualty losses are recognized as incurred. See Note 20 for further discussion of our legal proceedings.

Impairment or Disposal of Long-Lived Assets.  Long-lived assets, including Property, plant and equipment (“PP&E”) as well as right-of-use operating lease assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.  The assets are not recoverable if their carrying value is less than the
undiscounted cash flows we expect to generate from such assets.  If the assets are not deemed to be recoverable, impairment is measured based on the excess of their carrying value over their fair value.

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless it is more likely than not that we will refranchise restaurants as a group.  We review our long-lived assets of such individual restaurants (primarily PP&E, right-of-use operating lease assets and allocated intangible assets subject to amortization) that we intend to continue operating as Company restaurants annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses as our primary indicator of potential impairment for our annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets.  For restaurant assets that are not deemed to be recoverable, we write-down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Individual restaurant-level impairment is recorded within Other (income) expense. Any right-of-use asset may alternatively be valued at the amount we could receive for such right-of-use asset from a third-party that is not a franchisee through a sublease if doing so would result in less overall impairment of the restaurant assets in total. 

In executing our refranchising initiatives, we most often offer groups of restaurants for sale.  When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment.  We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants.  For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds.  To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates or rental payments, not at prevailing market rates, we consider the off-market terms in our impairment evaluation.  We recognize any such impairment charges in Refranchising (gain) loss.  We recognize gains on restaurant refranchisings when the sale transaction closes and control of the restaurant operations have transferred to the franchisee.

When we decide to close a restaurant, it is reviewed for impairment, which includes an estimate of sublease income that could be reasonably obtained, if any, in relation to the right-of-use operating lease asset. Additionally, depreciable lives are adjusted based on the expected disposal date.  Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses from previously closed stores are generally expensed as incurred.  Any costs related to a store closure as well as any changes in estimates of sublease income or subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination are recorded in Other (income) expense.   To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Other (income) expense.

Management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, sublease income and refranchising proceeds.  Accordingly, actual results could vary significantly from our estimates.

Guarantees.  We recognize, at inception of a guarantee, a liability for the fair value of certain obligations undertaken, in addition to a liability for the expected credit losses under the life of such guarantees.

The majority of our guarantees are issued as a result of assigning our interest in obligations under operating leases as a condition to the refranchising of certain Company restaurants.  We recognize a liability for such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain secondarily liable.  The related expense and any subsequent changes are included in Refranchising (gain) loss.  Any expense and subsequent changes in the guarantees for other franchise support guarantees not associated with a refranchising transaction are included in Franchise and property expenses.

Income Taxes.  We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our Income tax provision in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.
We recognize the benefit of positions taken or expected to be taken in our tax returns in our Income tax provision when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement with the taxing authorities. We evaluate these amounts on a quarterly basis to ensure that they have been appropriately adjusted for audit settlements and other events we believe may impact the outcome. Changes in judgment that result in subsequent recognition, derecognition or a change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our Income tax provision.

We do not record a deferred tax liability for unremitted earnings of our foreign subsidiaries to the extent that the earnings meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the earnings indefinitely. The decision as to the amount of unremitted earnings that we intend to maintain in non-U.S. subsidiaries considers items including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the U.S.

See Note 18 for a further discussion of our income taxes.

Fair Value Measurements.  Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants.  For those assets and liabilities we record or disclose at fair value, we determine fair value based upon the quoted market price, if available.  If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration.  The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.

Level 1Inputs based upon quoted prices in active markets for identical assets.
  
Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.
  
Level 3Inputs that are unobservable for the asset.

Cash and Cash Equivalents.  Cash equivalents represent funds we have temporarily invested (with original maturities not exceeding three months), including short-term, highly liquid debt securities. Cash and overdraft balances that meet the criteria for right of setoff are presented net on our Consolidated Balance Sheet.

Receivables. The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise agreements, including contributions due to advertising cooperatives we consolidate.  These receivables from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable, net on our Consolidated Balance Sheet and are presented net of expected credit losses. Expected credit losses for uncollectible franchisee receivable balances consider both current conditions and reasonable and supportable forecasts of future conditions. Current conditions we consider include pre-defined aging criteria as well as specified events that indicate we may not collect the balance due, including foreign currency control restrictions that may exist. Reasonable and supportable forecasts used in determining the probability of future collection consider publicly available data regarding default probability.  While we use the best information available in making our determination, the ultimate recovery of recorded receivables is dependent upon future economic events and other conditions that may be beyond our control.  Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.

We recorded $4 million and $5 million of net bad debt expense in 2023 and 2022, respectively, and $8 million of net bad debt recoveries in 2021, within Franchise and property expenses related to continuing fees, initial fees and rent receivables from our franchisees.
 
Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2023 and 2022, respectively, are as follows:
 20232022
Accounts and notes receivable$776 $685 
Allowance for doubtful accounts(39)(37)
Accounts and notes receivable, net$737 $648 
 
Our financing receivables primarily consist of notes receivables and direct financing leases with franchisees which we enter into from time-to-time.  As these receivables primarily relate to our ongoing business agreements with franchisees, we consider such receivables to have similar risk characteristics and evaluate them as one collective portfolio segment and class for determining the allowance for doubtful accounts.  Balances of notes receivable and direct financing leases due within one year are included in Accounts and notes receivable, net while amounts due beyond one year are included in Other assets.  Amounts included in Other assets totaled $61 million (net of an allowance of less than $1 million) and $64 million (net of an allowance of less than $1 million) at December 31, 2023, and December 31, 2022, respectively.  Financing receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.  Interest income recorded on financing receivables has historically been insignificant.

Property, Plant and Equipment.  PP&E is carried net of accumulated depreciation and amortization.  We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows:  5 to 25 years for buildings and leasehold improvements and 3 to 20 years for machinery and equipment.  We suspend depreciation and amortization on assets that are held for sale.

Leases and Leasehold Improvements.  We lease land, buildings or both for certain of our Company-operated restaurants and restaurant support centers worldwide. Rent expense for leased Company-operated restaurants is presented in our Consolidated Statements of Income within Company restaurant expenses and rent expense for restaurant support centers is presented within G&A. The length of our lease terms, which vary by country and often include renewal options, are an important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance or operating as well as the timing of recognition of rent expense over the duration of the lease. We include renewal option periods in determining the term of our leases when failure to renew the lease would impose a penalty on the Company in such an amount that a renewal appears to be reasonably certain at the commencement of the lease. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements that might be impaired if we choose not to continue the use of the leased property. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term.  We generally do not receive leasehold improvement incentives upon opening a store that is subject to a lease. We expense rent associated with leased land or buildings while a restaurant is being constructed whether rent is paid or we are subject to a rent holiday.  Our leasing activity for other assets, including equipment, is not significant.

Right-of-use assets and liabilities are recognized upon lease commencement for operating and finance leases based on the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Subsequent reductions in the right-of-use asset and accretion of the lease liability for an operating lease are recognized as a single lease cost, on a straight-line basis, over the lease term. For finance leases, the right-of-use asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. As the discount rate implicit in most of our leases is not readily determinable, we use our group incremental secured borrowing rate based on the information available at commencement date, including the lease term and currency, in determining the present value of lease payments for both operating and finance leases. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet; we recognize rent expense for these leases on a straight-line basis over the lease term.

Right-of-use assets are assessed for impairment in accordance with our long-lived asset impairment policy, which is performed annually for restaurant-level assets or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We reassess lease classification and remeasure right-of-use assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate new lease or upon certain other events that require reassessment. The difference between operating lease single lease cost recognized in our Consolidated Statements of Income and cash payments for operating leases is recognized within Other, net within Net Cash Provided by Operating Activities in our Consolidated Statements of Cash Flows.

In certain instances, we lease or sublease certain restaurants to franchisees. Our lessor and sublease portfolio primarily consists of stores that have been leased to franchisees subsequent to refranchising transactions. Our most significant leases with lease and non-lease components are leases with our franchisees that include both the right to use a restaurant as well as a license of
the intellectual property associated with our Concepts’ brands. For these leases, which are primarily classified as operating leases, we account for the lease and non-lease components separately. Revenues from rental agreements with franchisees are presented within Franchise and property revenues in our Consolidated Statements of Income and related expenses (e.g. depreciation and rent expense) are presented within Franchise and property expenses.

Goodwill and Intangible Assets.  From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business.  Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets, and liabilities assumed.  Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing.  Our reporting units are our business units (which are aligned based on geography) in our KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist.  We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. An impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value.

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. When we refranchise restaurants, or if a previously acquired restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained. 

We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. Intangible assets that are deemed to have a finite life are amortized on a straight-line basis to their residual value.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset’s fair value is compared to its carrying value.

Our finite-lived intangible assets, including capitalized software, that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable.  An intangible asset that is deemed not recoverable on an undiscounted basis is written down to its estimated fair value. Once these assets are fully amortized and it is determined that we are no longer deriving economic benefit from ownership of the asset, the cost basis and accumulated amortization are written off.

Capitalized Software. We state capitalized software at cost less accumulated amortization within Intangible assets, net on our Consolidated Balance Sheets. We calculate amortization on a straight line basis over the estimated useful life of the software which ranges from 3 to 7 years upon initial capitalization.

Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks, and to reduce our exposure to market-driven charges in certain of the liabilities associated with employee compensation deferrals into our Executive Income Deferral (“EID”) Plan. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our Consolidated Balance Sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately.
As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At December 31, 2023 and December 31, 2022, all of the counterparties to our derivative instruments had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

Common Stock Share Repurchases.  From time-to-time, we repurchase shares of our Common Stock under share repurchase programs authorized by our Board of Directors.  Shares repurchased constitute authorized, but unissued shares under the North Carolina laws under which we are incorporated.  Additionally, our Common Stock has no par or stated value.  Accordingly, we record the full value of share repurchases, or other deductions to Common Stock such as shares cancelled upon employee share-based award exercises, upon the trade date, against Common Stock on our Consolidated Balance Sheet except when to do so would result in a negative balance in such Common Stock account.  In such instances, on a period basis, we record the cost of any further share repurchases or other deductions to Common Stock as an addition to Accumulated deficit.  Due to the large number of share repurchases of our stock in certain years, our Common Stock balance can be zero at the end of any period.  Accordingly, $26 million, $1,131 million and $1,549 million in share repurchases in 2023, 2022 and 2021, respectively, were recorded as an addition to Accumulated deficit. See Note 17 for additional information on our share repurchases.

Pension and Post-retirement Medical Benefits. We measure and recognize the overfunded or underfunded status of our pension and post-retirement plans as an asset or liability in our Consolidated Balance Sheet as of our fiscal year end. The funded status represents the difference between the projected benefit obligations and the fair value of plan assets, which is calculated on a plan-by-plan basis. The projected benefit obligation and related funded status are determined using assumptions as of the end of each year. The projected benefit obligation is the present value of benefits earned to date by plan participants, including the effect of future salary increases, as applicable. The difference between the projected benefit obligations and the fair value of plan assets that has not previously been recognized in our Consolidated Statement of Income is recorded as a component of AOCI.

The net periodic benefit costs associated with the Company’s defined benefit pension and post-retirement medical plans are determined using assumptions regarding the projected benefit obligation and, for funded plans, the market-related value of plan assets as of the beginning of each year, or remeasurement period if applicable. The service cost component of net periodic benefit costs is primarily recorded in G&A. Non-service cost components are recorded in Other pension (income) expense. We have elected to use a market-related value of plan assets to calculate the expected return on assets, net of administrative and investment fees paid from plan assets, in net periodic benefit costs. For each individual plan we amortize into pension expense the net amounts in AOCI, as adjusted for the difference between the fair value and market-related value of plan assets, to the extent that such amounts exceed 10% of the greater of a plan’s projected benefit obligation or market-related value of assets, over the remaining service period of active participants in the plan or, for plans with no active participants, over the expected average life expectancy of the inactive participants in the plan. The market-related value of plan assets is the fair value of plan assets as of the beginning of each year adjusted for variances between actual returns and expected returns. We attribute such variances to the market-related value of plan assets evenly over five years.

We record a curtailment when an event occurs that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the future services of a significant number of employees. We record a curtailment gain when the employees who are entitled to the benefits terminate their employment; we record a curtailment loss when it becomes probable a loss will occur. We recognize settlement gains or losses only when we have determined that the cost of all settlements in a year will exceed the sum of the service and interest costs within an individual plan.
v3.24.0.1
Acquisitions
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Business Combination Disclosure Divestitures and Acquisitions
Russia Invasion of Ukraine

In the first quarter of 2022, as a result of the Russian invasion of Ukraine, we suspended all investment and restaurant development in Russia. We also suspended all operations of our 70 company-owned KFC restaurants in Russia and began finalizing an agreement to suspend all Pizza Hut operations in Russia, in partnership with our master franchisee. Further, we pledged to redirect any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts.

During the second quarter of 2022, we completed the transfer of ownership of the Pizza Hut Russia business to a local operator. In April 2023, we completed our exit from the Russian market by selling the KFC business in Russia to Smart Service Ltd., including all Russian company owned KFC restaurants, operating system, and master franchise rights as well as the trademark
for the Rostik's brand. Under the sale and purchase agreement, the buyer agreed to lead the process to rebrand KFC restaurants in Russia to Rostik's and to retain the Company's employees in Russia. We recorded a charge of $3 million to Other income (expense) during the year ended December 31, 2023 as the write-off of our net investment in KFC Russia, including the related cumulative foreign currency translation losses of $60 million, exceeded the consideration received from the sale which primarily included cash proceeds of $121 million.
Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer, within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed the resulting net profits or losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). See Note 19.
v3.24.0.1
Earnings Per Common Share ("EPS")
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS) Earnings Per Common Share (“EPS”)
 202320222021
Net Income$1,597 $1,325 $1,575 
Weighted-average common shares outstanding (for basic calculation)281 286 297 
Effect of dilutive share-based employee compensation4 4 5 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)285 290 302 
Basic EPS$5.68 $4.63 $5.30 
Diluted EPS$5.59 $4.57 $5.21 
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)
1.7 1.9 1.1 
(a)    These unexercised employee SARs, RSUs, performance share units ("PSUs") and stock options were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.24.0.1
Items Affecting Comparability of Net Income and Cash Flows
 12 Months Ended
Dec. 31, 2022
Items Affecting Comparability Of Net Income And Cash Flows Disclosure [Abstract]  
Items Affecting Comparability of Net Income and Cash Flows Items Affecting Comparability of Net Income and Cash Flows
Refranchising (Gain) Loss

The Refranchising (gain) loss by our Divisional reportable segments is presented below. Given the size and volatility of refranchising initiatives, our chief operating decision maker (“CODM”) does not consider the impact of Refranchising (gain) loss when assessing Divisional segment performance. As such, we do not allocate such gains and losses to our Divisional segments for performance reporting purposes.

During the years ended December 31, 2023, 2022 and 2021, we refranchised 15, 22 and 83 restaurants, respectively.  Additionally, during the years ended December 31, 2023, 2022 and 2021, we sold certain restaurant assets associated with existing franchise restaurants to the franchisee. We received $60 million, $73 million and $85 million in pre-tax cash refranchising proceeds in 2023, 2022 and 2021, respectively, as a result of the sales of these restaurants and restaurant assets.

A summary of Refranchising (gain) loss is as follows:

 Refranchising (gain) loss
 
2023
2022
2021
KFC Division$2 $(3)$(1)
Taco Bell Division(33)(13)(29)
Pizza Hut Division2 (1)1 
Habit Burger Grill Division— (10)(6)
Worldwide$(29)$(27)$(35)
Resource Optimization

During the third quarter of 2020, we initiated a resource optimization program that has allowed us to reallocate significant resources to accelerate our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. We are currently exploring expanding the program to identify further opportunities to optimize the company’s spending and identify additional, critical areas in which to potentially reallocate resources, both with a goal to enable the acceleration of the Company’s growth rate. Costs incurred to date related to the program primarily include severance associated with positions that have been eliminated or relocated and consultant fees.

As a result of this program, we recorded charges of $21 million, $11 million and $8 million in the years ended 2023, 2022 and 2021, respectively. These charges were primarily recorded as General and administrative expenses. Due to their scope and size, these costs were not allocated to any of our segment operating results for performance reporting purposes.

Investment in Devyani

In 2020, we received an approximate 5% minority interest in Devyani, an entity that owns our KFC India and Pizza Hut India master franchisee rights. The minority interest was received in lieu of cash proceeds upon the refranchising of approximately 60 KFC restaurants in India. On August 16, 2021, Devyani executed an initial public offering and subsequently the fair value of this investment became readily determinable. As a result, concurrent with the initial public offering we began recording changes in fair value in Investment (income) expense, net in our Consolidated Statements of Income and recognized pre-tax investment income of $8 million, $11 million and $87 million in the years ended December 31, 2023, 2022 and 2021, respectively (see Note 14).

Long-term Debt Redemptions

On February 23, 2022, the Company issued a notice of redemption for April 1, 2022, for $600 million aggregate principal amount of 7.75% YUM Senior Unsecured Notes due in 2025. The redemption amount was equal to 103.875% of the $600 million aggregate principal amount redeemed, reflecting a $23 million call premium, plus accrued and unpaid interest to the date of redemption. We recognized the call premium and the write-off of $5 million of unamortized debt issuance costs associated with the notes within Interest expense, net.

On April 23, 2021, certain subsidiaries of the Company issued a notice of redemption for June 1, 2021, for $1,050 million aggregate principal amount of 5.25% Subsidiary Senior Unsecured Notes due in 2026. The redemption amount was equal to 102.625% of the $1,050 million aggregate principal amount redeemed, reflecting a $28 million call premium. We recognized the call premium and the write-off of $6 million of unamortized debt issuance costs associated with the notes within Interest expense, net.

See Note 11 for further discussion of the YUM and Subsidiary Senior Unsecured Notes.

Income Tax Matters

Our effective tax rates in the years ended 2023, 2022 and 2021 have been significantly impacted by upfront recognition of and subsequent adjustments to amounts associated with recently completed intra-entity transfers of intellectual property ("IP") rights, as well as adjustments related to prior years.
As a result, our effective tax rates have fluctuated significantly and were 12.1%, 20.3% and 5.9% for the years ended December 31, 2023, 2022 and 2021, respectively. See Note 18.
v3.24.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue from Contract with Customer 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.
2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$67 $1,069 $14 $575 $1,725 
Franchise revenues205 822 284 7 1,318 
Property revenues14 42 4 2 62 
Franchise contributions for advertising and other services36 645 318 2 1,001 
China
Franchise revenues250 — 66 — 316 
Other
Company sales417 — — — 417 
Franchise revenues1,178 54 266 — 1,498 
Property revenues51 — 2 — 53 
Franchise contributions for advertising and other services612 9 65 — 686 
$2,830 $2,641 $1,019 $586 $7,076 

2022
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$67 $1,002 $21 $558 $1,648 
Franchise revenues202 745 280 6 1,233 
Property revenues14 44 5 1 64 
Franchise contributions for advertising and other services29 591 312 2 934 
China
Franchise revenues219 — 57 — 276 
Other
Company sales424 — — — 424 
Franchise revenues1,152 48 263 — 1,463 
Property revenues58 — 2 — 60 
Franchise contributions for advertising and other services669 7 64 — 740 
$2,834 $2,437 $1,004 $567 $6,842 
2021
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$65 $944 $21 $520 $1,550 
Franchise revenues198 661 279 4 1,142 
Property revenues14 44 5 — 63 
Franchise contributions for advertising and other services28 545 317 1 891 
China
Franchise revenues235 — 62 — 297 
Other
Company sales531 — 25 — 556 
Franchise revenues1,049 37 249 — 1,335 
Property revenues61 — 2 — 63 
Franchise contributions for advertising and other services612 7 68 — 687 
$2,793 $2,238 $1,028 $525 $6,584 

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 on our Consolidated Balance Sheet. A summary of significant changes to the contract liability balance during 2023 and 2022 is presented below.

Deferred Franchise Fees
Balance at December 31, 2021
$421 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(79)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period112 
Deferred franchise fees related to KFC Russia reclassified to liabilities held for sale (see Note 9)
(15)
Other(a)
(5)
Balance at December 31, 2022
$434 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(81)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period101 
Other(a)
(10)
Balance at December 31, 2023
$444 

(a)    Includes impact of foreign currency translation, as well as, in 2023, the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements.
We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$72 
1 - 2 years65 
2 - 3 years60 
3 - 4 years53 
4 - 5 years45 
Thereafter149 
Total$444 

We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.
v3.24.0.1
Supplemental Cash Flow Data (Notes)
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
Supplemental Cash Flow Data Supplemental Cash Flow Data
 
 202320222021
Cash Paid For:   
Interest(a)
$526 $486 $471 
Income taxes432 371 308 
Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
Cash and cash equivalents as presented in Consolidated Balance Sheets$512 $367 $486 
Restricted cash included in Prepaid expenses and other current assets(b)
177 220 250 
Restricted cash and restricted cash equivalents included in Other assets(c)
35 35 35 
Cash and restricted cash related to KFC Russia included in assets held for sale (see Note 3)
$— 25 — 
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows$724 $647 $771 

(a)Amounts exclude payments of $23 million in 2022 and $28 million in 2021 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).

(b)Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments (see Note 11).
(c)Primarily trust accounts related to our self-insurance program.
v3.24.0.1
Other (Income) Expense
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other (Income) Expense Other (Income) Expense
 202320222021
Foreign exchange net (gain) loss$5 $(9)$8 
Impairment and closure expense
12 8 16 
Other(3)8 (22)
Other (income) expense$14 $7 $2 
v3.24.0.1
Supplemental Balance Sheet Information
 12 Months Ended
Dec. 31, 2023
Supplemental Balance Sheet Information Disclosure [Abstract]  
Supplemental Balance Sheet Disclosures Supplemental Balance Sheet Information
Prepaid Expenses and Other Current Assets20232022
Income tax receivable$20 $32 
Restricted cash177 220 
Assets held for sale(a)
4 190 
Other prepaid expenses and current assets159 152 
Prepaid expenses and other current assets$360 $594 


Property, Plant and Equipment20232022
Land$373 $376 
Buildings and improvements1,421 1,364 
Finance leases, primarily buildings59 63 
Machinery, equipment and other676 651 
Property, plant and equipment, gross2,529 2,454 
Accumulated depreciation and amortization(1,332)(1,283)
Property, plant and equipment, net$1,197 $1,171 

Depreciation and amortization expense related to PP&E was $126 million, $128 million and $134 million in 2023, 2022 and 2021, respectively.

Other Assets20232022
Operating lease right-of-use assets$764 $742 
Franchise incentives175 172 
Investment in Devyani International Limited124 116 
Other298 294 
Other assets$1,361 $1,324 

Accounts Payable and Other Current Liabilities20232022
Accounts payable$231 $243 
Accrued compensation and benefits258 246 
Accrued advertising146 175 
Operating lease liabilities79 79 
Accrued interest82 83 
Gift card liability
72 69 
Liabilities held for sale(a)
2 65 
Other current liabilities299 291 
Accounts payable and other current liabilities$1,169 $1,251 

(a)    Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
v3.24.0.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in the carrying amount of goodwill are as follows:

 KFCTaco BellPizza HutHabit Burger GrillWorldwide
Goodwill, net as of December 31, 2021(a)
$232 $98 $257 $70 $657 
Disposals and other, net(b)
(7)— (8)(4)(19)
Goodwill, net as of December 31, 2022(a)
$225 $98 $249 $66 $638 
Disposals and other, net(b)
1 — 3 — 4 
Goodwill, net as of December 31, 2023(a)
$226 $98 $252 $66 642 

(a)Goodwill, net includes $144 million of accumulated impairment losses related to our Habit Burger Grill segment and $17 million of accumulated impairment losses related to our Pizza Hut segment for each year presented.

(b)Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.

Intangible assets, net for the years ended 2023 and 2022 are as follows:

 
 20232022
 Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Finite-lived intangible assets    
Capitalized software costs$524 $(309)$469 $(263)
Reacquired franchise rights7 (3)35 (29)
Franchise contract rights78 (73)91 (84)
Other24 (19)24 (16)
 $633 $(404)$619 $(392)
Indefinite-lived intangible assets
KFC trademark
$31 $31 
Habit Burger Grill brand asset96 96 
Other
21 — 
$148 $127 

Amortization expense for all finite-lived intangible assets was $74 million in 2023, $68 million in 2022 and $76 million in 2021.  Amortization expense for finite-lived intangible assets, based on existing intangible assets as of December 31, 2023, is expected to approximate $79 million in 2024, $63 million in 2025, $48 million in 2026, $26 million in 2027 and $10 million in 2028.

At December 31, 2022, KFC Russia finite-lived intangible assets of $23 million were classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note 9) and thus are not included in the table above.
v3.24.0.1
Short-term Borrowings and Long-term Debt
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
 20232022
Short-term Borrowings  
Current maturities of long-term debt$56 $405 
Less current portion of debt issuance costs and discounts(3)(7)
Short-term borrowings$53 $398 
Long-term Debt  
Securitization Notes$3,743 $3,772 
Subsidiary Senior Unsecured Notes750 750 
Revolving Facility— 279 
Term Loan A Facility717 736 
Term Loan B Facility1,459 1,474 
YUM Senior Unsecured Notes4,550 4,875 
Finance lease obligations (See Note 12)
50 57 
 $11,269 $11,943 
Less long-term portion of debt issuance costs and discounts(71)(85)
Less current maturities of long-term debt(56)(405)
Long-term debt$11,142 $11,453 

Securitization Notes

Taco Bell Funding, LLC (the “Issuer”), a special purpose limited liability company and a direct, wholly-owned subsidiary of Taco Bell Corp. (“TBC”) through a series of securitization transactions has issued fixed rate senior secured notes collectively referred to as the “Securitization Notes”. The following table summarizes Securitization Notes outstanding at December 31, 2023:
   Interest Rate
Issuance Date
Anticipated Repayment Date(a)
Outstanding Principal
(in millions)		Stated
Effective(b)
May 2016May 2026$938 4.970 %5.14 %
November 2018November 2028$595 4.940 %5.06 %
August 2021February 2027$884 1.946 %2.11 %
August 2021February 2029$589 2.294 %2.42 %
August 2021August 2031$737 2.542 %2.64 %

(a)The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.

(b)Includes the effects of the amortization of any discount and debt issuance costs.

The Securitization Notes were issued in transactions pursuant to which certain of TBC’s domestic assets, consisting principally of franchise-related agreements and domestic intellectual property, were contributed to the Issuer and the Issuer’s special purpose, wholly-owned subsidiaries (the “Guarantors”, and collectively with the Issuer, the “Securitization Entities”) to secure the Securitization Notes. The Securitization Notes are secured by substantially all of the assets of the Securitization Entities, and include a lien on all existing and future U.S. Taco Bell franchise and license agreements and the royalties payable thereunder, existing and future U.S. Taco Bell intellectual property, certain transaction accounts and a pledge of the equity interests in asset-owning Securitization Entities. The remaining U.S. Taco Bell assets that were excluded from the transfers to the Securitization Entities continue to be held by Taco Bell of America, LLC (“TBA”) and TBC. The Securitization Notes are not guaranteed by these remaining U.S. Taco Bell assets, the Company, or any other subsidiary of the Company.
Payments of interest and principal on the Securitization Notes are made from the continuing fees paid pursuant to the franchise and license agreements with all U.S. Taco Bell restaurants, including both company and franchise operated restaurants. Interest on and principal payments of the Securitization Notes are due on a quarterly basis. In general, no amortization of principal of the Securitization Notes is required prior to their anticipated repayment dates unless as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the related indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes are required. As of the most recent quarterly measurement date the consolidated leverage ratio for the Issuer and its subsidiaries did not exceed 5.0:1 and, as a result, amortization payments are not required.

The Securitization Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be available to make required interest payments in respect of the Securitization Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Securitization Notes under certain circumstances, (iii) certain indemnification payments relating to taxes, enforcement costs and other customary items and (iv) covenants relating to recordkeeping, access to information and similar matters. The Securitization Notes are also subject to rapid amortization events provided for in the indenture, including events tied to failure to maintain a stated debt service coverage ratio (as defined in the related indenture) of at least 1.1:1, gross domestic sales for U.S. Taco Bell restaurants being below certain levels on certain measurement dates, a manager termination event, an event of default and the failure to repay or refinance the Securitization Notes on the Anticipated Repayment Date (subject to limited cure rights). The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio. As of December 31, 2023, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events.

In accordance with the indenture, certain cash accounts have been established with the indenture trustee for the benefit of the note holders, and are restricted in their use. The indenture requires a certain amount of securitization cash flow collections to be allocated on a weekly basis and maintained in a cash reserve account. As of December 31, 2023, the Company had restricted cash of $76 million primarily related to required interest reserves included in Prepaid expenses and other current assets on the Consolidated Balance Sheets. Once the required reserve obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the Securitization Entities.

Additional cash reserves are required if any of the rapid amortization events occur, as noted above, or in the event that as of any quarterly measurement date the Securitization Entities fail to maintain a debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1. The amount of weekly securitization cash flow collections that exceed the required weekly allocations is generally remitted to the Company. During the most recent quarter ended December 31, 2023, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement.

Term Loan Facilities, Revolving Facility and Subsidiary Senior Unsecured Notes

KFC Holding Co., Pizza Hut Holdings, LLC, and TBA, each of which is a wholly-owned subsidiary of the Company, as co-borrowers (the “Borrowers”) have entered into a credit agreement providing for senior secured credit facilities and a $1.25 billion revolving facility maturing March 15, 2026 (the “Revolving Facility”). The senior secured credit facilities, which include a Term Loan A Facility and a Term Loan B Facility, and the Revolving Facility are collectively referred to as the “Credit Agreement”. Additionally, the Borrowers through a series of transactions have issued Subsidiary Senior Unsecured Notes (collectively referred to as the “Subsidiary Senior Unsecured Notes”).

The following table summarizes borrowings outstanding under the Credit Agreement, as well as our Subsidiary Senior Unsecured Notes as of December 31, 2023. There were no outstanding borrowings under the Revolving Facility and $2 million of letters of credit outstanding as of December 31, 2023.
   Interest Rate
Issuance DateMaturity DateOutstanding Principal
(in millions)		Stated
Effective(b)
Term Loan A FacilityMarch 2021March 2026$717 (a)6.34 %
Term Loan B FacilityMarch 2021March 2028$1,459 (a)5.06 %
Subsidiary Senior Unsecured NotesJune 2017June 2027$750 4.75 %4.90 %

(a)The interest rates applicable to the Term Loan A Facility as well as the Revolving Facility range from 0.75% to 1.50% plus Secured Overnight Financing Rate ("SOFR") or from 0.00% to 0.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total leverage ratio (as defined in the Credit Agreement). As of December 31, 2023, the interest rate spreads on the SOFR and Base Rate applicable to our Term Loan A Facility were 0.75% and 0.00%, respectively.

The interest rates applicable to the Term Loan B Facility are 1.75% plus SOFR or 0.75% plus the Base Rate, at the Borrowers’ election.

We transitioned to SOFR as the benchmark reference rate under the Credit Agreement during 2023 following the cease of publication of remaining LIBOR tenors on June 30, 2023.

(b)    Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on SOFR-based interest rates at December 31, 2023.

The Term Loan A Facility is subject to quarterly amortization payments in an amount equal to 0.625% of the principal amount of the facility as of the issuance date of $750 million. These quarterly amortization payments increase to 1.25% of this principal amount beginning with the second quarter of 2024 with the balance payable at maturity on March 15, 2026.

The Term Loan B Facility is subject to quarterly amortization payments in an amount equal to 0.25% of the principal amount of the facility as of the issuance date of $1.5 billion, with the balance payable at maturity on March 15, 2028.

The Credit Agreement is unconditionally guaranteed by the Company and certain of the Borrowers’ principal domestic subsidiaries and excludes Taco Bell Funding LLC and its special purpose, wholly-owned subsidiaries (see above). The Credit Agreement is also secured by first priority liens on substantially all assets of the Borrowers and each subsidiary guarantor, excluding the stock of certain subsidiaries and certain real property, and subject to other customary exceptions.

The Credit Agreement is subject to certain mandatory prepayments in the event certain covenants are not met, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights.

The Credit Agreement's covenants include two financial maintenance covenants which require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less and a fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1, each as of the last day of each fiscal quarter. The Credit Agreement includes other affirmative and negative covenants and events of default that are customary for facilities of this type. The Credit Agreement contains, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. We were in compliance with all debt covenants as of December 31, 2023.

The Subsidiary Senior Unsecured Notes are guaranteed on a senior unsecured basis by (i) the Company, (ii) the Specified Guarantors (as defined in the Credit Agreement) and (iii) by each of the Borrower’s and the Specified Guarantors’ domestic subsidiaries that guarantees the Borrower’s obligations under the Credit Agreement, except for any of the Company’s foreign subsidiaries. The indenture governing the Subsidiary Senior Unsecured Notes contains covenants and events of default that are customary for debt securities of this type. We were in compliance with all debt covenants as of December 31, 2023.
YUM Senior Unsecured Notes

The majority of our remaining long-term debt primarily comprises YUM Senior Unsecured Notes. The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2023:

   Interest Rate
Issuance DateMaturity DatePrincipal Amount (in millions)Stated
Effective(a)
October 2007November 2037$325 6.88 %7.45 %
October 2013November 2043$275 5.35 %5.42 %
September 2019January 2030$800 4.75 %4.90 %
September 2020March 2031$1,050 3.63 %3.77 %
April 2021January 2032$1,100 4.63 %4.77 %
April 2022April 2032$1,000 5.38 %5.53 %

(a)Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward starting interest rate swaps utilized to hedge the interest rate risk prior to debt issuance.

The YUM Senior Unsecured Notes represent senior, unsecured obligations and rank equally in right of payment with all of our existing and future unsecured unsubordinated indebtedness. Our YUM Senior Unsecured Notes contain covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million ($100 million or more in the case of the YUM Senior Unsecured Notes issued in 2019 and subsequent years) will constitute a default under the YUM Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice.

The annual maturities of all Short-term borrowings and Long-term debt as of December 31, 2023, excluding finance lease obligations of $50 million and debt issuance costs and discounts of $74 million are as follows:

 
Year ended: 
2024$48 
202553 
20261,599 
20271,649 
20281,994 
Thereafter5,876 
Total$11,219 
Interest expense on Short-term borrowings, Long-term debt and gross interest on cash pooling arrangements was $602 million, $558 million and $551 million in 2023, 2022 and 2021, respectively.
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases Lease Accounting
Components of Lease Cost
202320222021
Operating lease cost$130 $133 $145 
Finance lease cost
Amortization of right-of-use assets
6 7 5 
Interest on lease liabilities
2 3 4 
Total finance lease cost$8 $10 $9 
Sublease income$(51)$(55)$(59)

Supplemental Cash Flow Information
20232022
2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$127 $137 $140 
Operating cash flows from finance leases2 3 4 
Financing cash flows from finance leases7 5 4 
Right-of-use assets obtained in exchange for lease obligations
Operating leases
127 93 119 
Finance leases6 10 5 
Operating lease liabilities transferred through refranchising(14)(14)(25)
Finance lease and other debt obligations transferred through refranchising (5)— (2)
Supplemental Balance Sheet Information

20232022Consolidated Balance Sheet
Assets
Operating lease right-of-use assets$764 $742 Other assets
Finance lease right-of-use assets29 33 Property, plant and equipment, net
Total right-of-use assets(a)
$793 $775 
Liabilities
Current
Operating
$79 $79 Accounts payable and other current liabilities
Finance
8 8 Short-term borrowings
Non-current
Operating
757 731 Other liabilities and deferred credits
Finance
42 49 Long-term debt
Total lease liabilities(a)
$886 $867 
Weighted-average Remaining Lease Term (in years)
Operating leases
10.610.8
Finance leases
11.411.6
Weighted-average Discount Rate
Operating leases
5.3 %5.1 %
Finance leases
5.7 %5.8 %

(a)    U.S. operating lease right-of-use assets and liabilities totaled $541 million and $605 million, respectively, as of December 31, 2023, and $515 million and $575 million, respectively, as of December 31, 2022. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell and Habit Burger Grill restaurant support center.

Maturity of Lease Payments and Receivables

Future minimum lease payments, including rental payments for lease renewal options we are reasonably certain to exercise, and amounts to be received as lessor or sublessor as of December 31, 2023, were as follows:

CommitmentsLease Receivables
FinanceOperatingDirect FinancingOperating
2024$10 $118 $3 $77 
20258 124 3 72 
20266 118 3 69 
20276 109 3 62 
20285 99 2 55 
Thereafter29 531 17 416 
Total lease payments/receipts64 1,099 31 $751 
Less imputed interest/unearned income(14)(263)(11)
Total lease liabilities/receivables$50 $836 $20 
As of December 31, 2023, we have executed real estate leases that have not yet commenced with estimated future nominal lease payments of approximately $75 million, which are not included in the tables above. These leases are expected to commence in 2024, 2025 and 2026 with lease terms of up to 20 years.
v3.24.0.1
Derivative Instruments (Notes)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block] Derivative Instruments
We use derivative instruments to manage certain of our market risks related to fluctuations in interest rates, deferred compensation liabilities and foreign currency exchange rates. Our use of foreign currency contracts to manage foreign currency exchange rates associated with certain foreign currency denominated intercompany receivables and payables is currently not significant.

Interest Rate Swaps

We have entered into interest rate swaps with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments. On May 14, 2018, we entered into forward-starting interest rate swaps to fix the interest rate on $1.5 billion of borrowings, primarily under our Term Loan B Facility from July 2021 through March 2025.  These interest rate swaps result in a fixed rate of 4.87% on the swapped portion of the Term Loan B Facility.  These interest rate swaps are designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in expected future interest payments on the related variable-rate debt.  There were no other interest rate swaps outstanding as of December 31, 2023.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through December 31, 2023, the swaps were highly effective cash flow hedges.

Gains and losses on these interest rate swaps recognized in OCI and reclassifiied from AOCI into Net Income were as follows:
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 
2023
 
2022
2021
 
2023
 
2022
2021
Interest rate swaps$14 $115 $34 $(30)$21 $29 
Income tax benefit/(expense)(4)(30)(8)8 (4)(6)

As of December 31, 2023, the estimated net gain included in AOCI related to our interest rate swaps that will be reclassified into earnings in the next 12 months is $24 million, based on current SOFR interest rates.

Total Return Swaps

We have entered into total return swap derivative contracts, with the objective of reducing our exposure to market-driven changes in certain of the liabilities associated with compensation deferrals into our EID plan. While these total return swaps represent economic hedges, we have not designated them as hedges for accounting purposes. As a result, the changes in the fair value of these derivatives are recognized immediately in earnings within General and administrative expenses in our Consolidated Statements of Income largely offsetting the changes in the associated EID liabilities. The fair value associated with the total return swaps as of both December 31, 2023 and 2022, was not significant.

As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with major financial institutions carefully selected based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At December 31, 2023, all of the counterparties to our derivative instruments had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

See Note 14 for the fair value of our derivative assets and liabilities.
v3.24.0.1
Fair Value Disclosures
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Disclosures
As of December 31, 2023, the carrying values of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, short-term borrowings and accounts payable approximated their fair values because of the short-term nature of these
instruments. The fair value of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

 
2023
2022
 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2)
Securitization Notes(a)
$3,743 $3,391 $3,772 $3,273 
Subsidiary Senior Unsecured Notes(b)
750 742 750 731 
Term Loan A Facility(b)
717 716 736 729 
Term Loan B Facility(b)
1,459 1,466 1,474 1,459 
YUM Senior Unsecured Notes(b)
4,550 4,439 4,875 4,473 
(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.

(b)    We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility, and Term Loan B Facility using market quotes and calculations based on market rates.

Recurring Fair Value Measurements

The Company has interest rate swaps and investments, all of which are required to be measured at fair value on a recurring basis (see Note 13 for discussion regarding derivative instruments). The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.  
Fair Value
Consolidated Balance SheetLevel
2023
2022
Assets
InvestmentsOther assets1 $125 $118 
InvestmentsOther assets3 7 5 
Interest Rate SwapsPrepaid expenses and other current assets2 24 26 
Interest Rate SwapsOther assets2 2 16 

The fair value of the Company’s interest rate swaps were determined based on the present value of expected future cash flows considering the risks involved, including nonperformance risk, and using discount rates appropriate for the duration based on observable inputs.

Investments as of December 31, 2023 and 2022, primarily include our approximate 5% minority interest in Devyani, a publically-traded entity, with a fair value of $124 million and $116 million, respectively.

Non-Recurring Fair Value Measurements

During the years ended December 31, 2023, 2022 and 2021, we recognized non-recurring fair value measurements of $11 million, $9 million and $4 million, respectively, related to restaurant-level impairment. Restaurant-level impairment charges are recorded in Other (income) expense and resulted primarily from our impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. The fair value measurements used in these impairment evaluations were based on discounted cash flow estimates using unobservable inputs (Level 3). These amounts exclude fair value measurements made for assets that were subsequently disposed of prior to those respective year end dates. The remaining net book value of restaurant assets measured at fair value during the years ended December 31, 2023 and 2022, was $21 million and $20 million, respectively.

During the year ended December 31, 2021, we recognized non-recurring fair value measurements of $6 million related to refranchising related impairment.  Refranchising related impairment results from writing down the assets of restaurants or restaurant groups offered for refranchising, including certain instances where a decision has been made to refranchise
restaurants that are deemed to be impaired.  The fair value measurements used in our impairment evaluation were based on actual bids received from potential buyers (Level 2).
v3.24.0.1
Pension, Retiree Medical and Retiree Savings Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retiree Medical Benefits Pension, Retiree Medical and Retiree Savings Plans
U.S. Pension Plans

We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit plans covering certain full-time salaried and hourly U.S. employees. The qualified plan meets the requirements of certain sections of the Internal Revenue Code and provides benefits to a broad group of employees with restrictions on discriminating in favor of highly compensated employees with regard to coverage, benefits and contributions. The supplemental plans provide additional benefits to certain employees. We fund our supplemental plans as benefits are paid.

The most significant of our U.S. plans is the YUM Retirement Plan (the “Plan”), which is a qualified plan. Our funding policy with respect to the Plan is to contribute amounts necessary to satisfy minimum pension funding requirements, including requirements of the Pension Protection Act of 2006, plus additional amounts from time-to-time as are determined to be necessary to improve the Plan’s funded status. We do not expect to make any significant contributions to the Plan in 2024. Our two significant U.S. plans, including the Plan and a supplemental plan, were previously amended such that any salaried employee hired or rehired by YUM after September 30, 2001, is not eligible to participate in those plans. Additionally, these two significant U.S. plans are currently closed to new hourly participants.

We do not anticipate any plan assets being returned to the Company during 2024 for any U.S. plans.

Obligation and Funded Status at Measurement Date:

The following chart summarizes the balance sheet impact, as well as benefit obligations, assets, and funded status associated with our two significant U.S. pension plans.  The actuarial valuations for all plans reflect measurement dates coinciding with our fiscal year end.

 20232022
Change in benefit obligation:  
Benefit obligation at beginning of year$755 $1,069 
Service cost5 7 
Interest cost41 31 
Benefits paid(34)(29)
Settlement payments— (59)
Actuarial (gain) loss11 (264)
Benefit obligation at end of year$778 $755 
A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2023, was due to interest cost on the benefit obligation partially offset by benefits paid during the year.

A significant component of the overall decrease in the Company’s benefit obligation for the year ended December 31, 2022, was due to an actuarial gain, which was primarily due to an increase in the discount rate used to measure our benefit obligation from 3.00% at December 31, 2021 to 5.60% at December 31, 2022.
20232022
Change in plan assets:
Fair value of plan assets at beginning of year$664 $1,010 
Actual return on plan assets46 (272)
Employer contributions4 14 
Benefits paid(34)(29)
Settlement payments— (59)
Fair value of plan assets at end of year$680 $664 
 Funded status at end of year$(98)$(91)
Amounts recognized in the Consolidated Balance Sheet:
 20232022
Accrued benefit asset - non-current$— $— 
Accrued benefit liability - current(8)(6)
Accrued benefit liability - non-current(90)(85)
 $(98)$(91)

The accumulated benefit obligation was $763 million and $740 million at December 31, 2023 and 2022, respectively.

The table below provides information for those pension plan(s) with an accumulated benefit obligation in excess of plan assets. The pension plan(s) included also have a projected benefit obligation in excess of plan assets.
 20232022
Projected benefit obligation$778 $755 
Accumulated benefit obligation763 740 
Fair value of plan assets680 644 

Components of net periodic benefit cost:
202320222021
Service cost$5 $7 $8 
Interest cost41 31 32 
Amortization of prior service cost(a)
1 6 6 
Expected return on plan assets(50)(46)(43)
Amortization of net loss (gain)
(1)11 14 
Net periodic benefit cost (income)
$(4)$9 $17 

Additional (gain) loss recognized due to:

Settlement charges(b)
$— $6 $— 

(a)Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
Pension gains (losses) in AOCI:
 20232022
Beginning of year$(74)$(43)
Net actuarial gain (loss)(13)(54)
Amortization of net (gain) loss
(1)11 
Amortization of prior service cost1 6 
Settlement charges— 6 
End of year$(87)$(74)

Accumulated pre-tax losses recognized within AOCI:
 20232022
Actuarial net loss$(84)$(70)
Prior service cost(3)(4)
 $(87)$(74)
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 20232022
Discount rate5.60 %5.60 %
Rate of compensation increase3.00 %3.00 %

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
2023
2022
2021
Discount rate5.60 %3.00 %2.80 %
Long-term rate of return on plan assets6.25 %5.40 %5.25 %
Rate of compensation increase3.00 %3.00 %3.00 %

Our estimated long-term rate of return on plan assets represents the weighted-average of expected future returns on the asset categories included in our target investment allocation based primarily on the historical returns for each asset category and future growth expectations.
Plan Assets

The fair values of our pension plan assets at December 31, 2023 and 2022 by asset category and level within the fair value hierarchy are as follows:

 20232022
Level 1:
Cash$— $1 
Cash Equivalents(a)
61 22 
Fixed Income Securities - U.S. Corporate(b)
7 14 
Level 2:
Equity Securities(b)
213 179 
Fixed Income Securities - U.S. Corporate(c)
25 22 
Fixed Income Securities - U.S. Government and Government Agencies(d)
124 118 
Fixed Income Securities - Other(d)
11 19 
Total assets in the fair value hierarchy441 375 
Investments measured at net asset value(e)
Fixed Income132 146 
Real Assets149 192 
Total fair value of plan assets(f)
$722 $713 

(a)Short-term investments in money market funds.

(b)Securities held in common or collective trusts.
(c)Investments held directly by the Plan.
(d)Includes securities held in common or collective trusts and investments held directly by the Plan.

(e)Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

(f)2023 and 2022 exclude net unsettled trade payables of $42 million and $49 million, respectively.

Our primary objectives regarding the investment strategy for the Plan’s assets are to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future payment requirements. To achieve these objectives, we are using a combination of active and passive investment strategies. As of December 31, 2023, the Plan’s assets consist of the weighted-average target allocation summarized as follows:

Asset CategoryTarget Allocation
Fixed income49 %
Equity securities32 %
Real assets19 %

Actual allocations to each asset class may vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions.

Fixed income securities at December 31, 2023, primarily consist of a diversified portfolio of long duration instruments that are intended to mitigate interest rate risk or reduce the interest rate duration mismatch between the assets and liabilities of the Plan. A smaller allocation (constituting 40% of the fixed income target allocation) is to diversified credit investments in a range of
public and credit securities, including below investment grade rated bonds and loans, securitized credit and emerging market debt.

Equity securities at December 31, 2023, consist primarily of investments in publicly traded common stocks and other equity-type securities issued by companies throughout the world, including convertible securities, preferred stock, rights and warrants.

Real assets represent investments in real estate and infrastructure. These may take the form of debt or equity securities in public or private funds.

A mutual fund held as an investment by the Plan includes shares of Common Stock valued at $0.1 million at both December 31, 2023 and 2022, (less than 1% of total plan assets in each instance).

Benefit Payments

The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
2024$50 
202554 
202659 
202757 
202860 
2029 - 2033280 

Expected benefit payments are estimated based on the same assumptions used to measure our benefit obligation on the measurement date and include benefits attributable to estimated future employee service.

International Pension Plans

We also sponsor various defined benefit plans covering certain of our non-U.S. employees, the most significant of which are in the UK. Both of our UK plans have previously been frozen such that they are closed to new participants and existing participants can no longer earn future service credits.

At the end of 2023 and 2022, the projected benefit obligations of these UK plans totaled $190 million and $179 million, respectively and plan assets totaled $226 million and $209 million, respectively. These plans were both in a net overfunded position at the end of 2023 and 2022. Total actuarial pre-tax losses related to the UK plans of $63 million and $64 million were recognized in AOCI at the end of both 2023 and 2022, respectively. The total net periodic cost or benefit recorded was $2 million of cost in 2023, and net periodic benefit income of $2 million in 2022 and less than $1 million in 2021.

The funding rules for our pension plans outside of the U.S. vary from country to country and depend on many factors including discount rates, performance of plan assets, local laws and regulations. We do not plan to make significant contributions to either of our UK plans in 2024.

Retiree Medical Benefits

Our post-retirement plan provides health care benefits, principally to U.S. salaried retirees and their dependents, and includes retiree cost-sharing provisions and a cap on our liability.  This plan was previously amended such that any salaried employee hired or rehired by YUM after September 30, 2001, is not eligible to participate in this plan.  Employees hired prior to September 30, 2001, are eligible for benefits if they meet age and service requirements and qualify for retirement benefits.  We fund our post-retirement plan as benefits are paid.

At the end of 2023 and 2022, the accumulated post-retirement benefit obligation was $27 million and $30 million, respectively.  Actuarial pre-tax gains of $15 million and $16 million were recognized in AOCI at the end of 2023 and 2022, respectively. The net periodic benefit cost or benefit recorded was less than $1 million of benefit in 2023, and $1 million of cost in 2022 and 2021.  The weighted-average assumptions used to determine benefit obligations and net periodic benefit cost for the post-retirement medical plan are identical to those as shown for the U.S. pension plans.  
The benefits expected to be paid in each of the next five years are approximately $3 million and in aggregate for the five years thereafter are $11 million.

U.S. Retiree Savings Plan

We sponsor a contributory plan to provide retirement benefits under the provisions of Section 401(k) of the Internal Revenue Code (the “401(k) Plan”) for eligible U.S. salaried and hourly employees.  Participants are able to elect to contribute up to 75% of eligible compensation on a pre-tax basis.  Participants may allocate their contributions to one or any combination of multiple investment options or a self-managed account within the 401(k) Plan.  We match 100% of the participant’s contribution to the 401(k) Plan up to 6% of eligible compensation.  We recognized as compensation expense our total matching contribution of $15 million in 2023, $13 million in 2022 and $11 million in 2021.
v3.24.0.1
Share-based and Deferred Compensation Plans
 12 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Shareholders' Equity and Share-based Payments Share-based and Deferred Compensation Plans
Overview

At year end 2023, we had one stock award plan in effect: the Yum! Brands, Inc. Long-Term Incentive Plan (the “LTIP”). Potential awards to employees and non-employee directors under the LTIP include stock options, incentive stock options, SARs, restricted stock, RSUs, performance restricted stock units, PSUs and performance units.  We have issued only stock options, SARs, RSUs and PSUs under the LTIP. Under the LTIP, the exercise price of stock options and SARs granted must be equal to or greater than the average market price or the ending market price of the Company’s stock on the date of grant. While awards under the LTIP can have varying vesting provisions and exercise periods, outstanding awards under the LTIP vest in periods ranging from immediate to five years. Stock options and SARs generally expire ten years after grant. At year end 2023, approximately 23 million shares were available for future share-based compensation grants under the LTIP.

Our EID Plan allows participants to defer receipt of a portion of their annual salary and all or a portion of their incentive compensation.  As defined by the EID Plan, we credit the amounts deferred with earnings based on the investment options selected by the participants.  These investment options are limited to cash, phantom shares of our Common Stock, phantom shares of a Stock Index Fund and phantom shares of a Bond Index Fund.  Investments in cash and phantom shares of both index funds will be distributed in cash at a date as elected by the employee and therefore are classified as a liability on our Consolidated Balance Sheets. We recognize compensation expense for the appreciation or the depreciation, if any, of investments in cash and both of the index funds.  Deferrals into the phantom shares of our Common Stock will be distributed in shares of our Common Stock, under the LTIP,  at a date as elected by the employee and therefore are classified in Common Stock on our Consolidated Balance Sheets.  We do not recognize compensation expense for the appreciation or the depreciation, if any, of investments in phantom shares of our Common Stock.  Our EID plan also allows certain participants to defer incentive compensation to purchase phantom shares of our Common Stock and receive a 33% Company match on the amount deferred.  Deferrals receiving a match are similar to an RSU award in that participants will generally forfeit both the match and incentive compensation amounts deferred if they voluntarily separate from employment during a vesting period that is two years from the date of deferral.  We expense the intrinsic value of the match and the incentive compensation amount over the requisite service period which includes the vesting period.

Historically, the Company has repurchased shares on the open market in excess of the amount necessary to satisfy award exercises and expects to continue to do so in 2024.

In connection with the 2016 spin-off of our China business into an independent, publicly-traded company under the name of Yum China Holdings, Inc. (“Yum China”), under the provisions of our LTIP, employee stock options, SARs, RSUs and PSUs outstanding at that time were adjusted to maintain the pre-spin intrinsic value of the awards. Depending on the tax laws of the country of employment, awards were modified using either the shareholder method or the employer method. Share-based compensation as recorded in Net Income was based on the amortization of the fair value for both YUM and Yum China awards held by YUM employees. The fair value of Yum China awards held by YUM employees became fully amortized to expense in the year ended December 31, 2020. Share issuances for Yum China awards held by YUM employees will be satisfied by Yum China. Share issuances for YUM awards held by Yum China employees are being satisfied by YUM.
Award Valuation

We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 202320222021
Risk-free interest rate3.6 %1.7 %0.5 %
Expected term5.9 years6.6 years6.3 years
Expected volatility22.0 %25.0 %27.0 %
Expected dividend yield1.8 %1.9 %1.9 %

Grants made to executives typically have a graded vesting schedule of 25% per year over four years and expire ten years after grant.  We use a single weighted-average term for our awards that have a graded vesting schedule.  Based on analysis of our historical exercise and post-vesting termination behavior, we have determined that our executives exercised the awards on average after 5.9 years.

When determining expected volatility, we consider both historical volatility of our stock as well as implied volatility associated with our publicly-traded options.  The expected dividend yield is based on the annual dividend yield at the time of grant.

The fair values of PSU awards without market-based conditions and RSU awards are based on the closing price of our Common Stock on the date of grant. The fair values of PSU awards with market-based conditions have been valued based on the outcome of a Monte Carlo simulation.

Award Activity

Stock Options and SARs

 Shares
(in thousands)		Weighted-Average Exercise
Price		Weighted- Average Remaining Contractual Term (years)Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year11,281  $86.18   
Granted1,057  131.28   
Exercised(2,016)74.33   
Forfeited or expired(218)117.63   
Outstanding at the end of the year10,104 
(a)
92.58 6.44$385 
Exercisable at the end of the year7,499  $83.37 5.54$355 

(a)Outstanding awards include 309 options and 9,795 SARs with weighted average exercise prices of $103.33 and $92.25, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.

The weighted-average grant-date fair value of stock options and SARs granted during 2023, 2022 and 2021 was $29.93, $26.65 and $21.32, respectively.  The total intrinsic value of stock options and SARs exercised during the years ended December 31, 2023, 2022 and 2021, was $114 million, $105 million and $234 million, respectively.

As of December 31, 2023, $35 million of unrecognized compensation cost related to unvested stock options and SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average period of approximately 1.7 years. The total fair value at grant date of awards held by YUM employees that vested during 2023, 2022 and 2021 was $31 million, $31 million and $35 million, respectively.
RSUs and PSUs

As of December 31, 2023, there was $59 million of unrecognized compensation cost related to 1.2 million unvested RSUs and PSUs. The total fair value at grant date of awards that vested during 2023, 2022 and 2021 was $84 million, $20 million and $20 million, respectively.

Impact on Net Income

The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 202320222021
Options and SARs$27 $26 $29 
Restricted Stock Units35 27 16 
Performance Share Units33 29 30 
Total Share-based Compensation Expense$95 $82 $75 

Deferred Tax Benefit recognized$12 $16 $15 

Cash received from stock option exercises for 2023, 2022 and 2021 was $8 million, $3 million and $11 million, respectively.  Tax benefits realized on our tax returns from tax deductions associated with share-based compensation for 2023, 2022 and 2021 totaled $31 million, $38 million and $72 million, respectively.
v3.24.0.1
Shareholders' Equity
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders’ Deficit
Under the authority of our Board of Directors, we repurchased shares of our Common Stock during 2023, 2022 and 2021.  All amounts exclude applicable transaction fees.  
 
 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased
Authorization Date202320222021202320222021
September 2022387 1,967 — $50 $250 $— 
May 2021— 8,116 8,235 — 950 1,050 
November 2019— — 4,746 — — 530 
Total387 10,083 12,981 
(a)
$50 $1,200 $1,580 
(a)

(a)    2021 amount excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.
In September 2022, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through June 30, 2024. The new authorization took effect during the fourth quarter of 2022 upon the exhaustion of a prior authorization approved in May 2021. As of December 31, 2023, we have remaining capacity to repurchase up to $1.7 billion of Common Stock under the September 2022 authorization.

Changes in AOCI are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature
Pension and Post-Retirement Benefits(a)
Derivative Instruments(b)
Total
Balance at December 31, 2021, net of tax$(206)$(34)$(85)$(325)
OCI, net of tax
Gains (losses) arising during the year classified into AOCI, net of tax(84)(88)86 (86)
(Gains) losses reclassified from AOCI, net of tax— 28 14 42 
(84)(60)100 (44)
Balance at December 31, 2022, net of tax$(290)$(94)$15 $(369)
OCI, net of tax
Gains (losses) arising during the year classified into AOCI, net of tax18 (11)10 17 
(Gains) losses reclassified from AOCI, net of tax71 1 (22)50 
89 (10)(12)67 
Balance at December 31, 2023, net of tax
$(201)$(104)$3 $(302)

(a)    Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2023 include amortization of prior service cost of $1 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2022 include amortization of net losses of $22 million, amortization of prior service cost of $5 million, settlement charges of $7 million and related income tax benefit of $6 million. See Note 15.

(b)    See Note 13 for details on amounts reclassified from AOCI.
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
U.S. and foreign income before taxes are set forth below:

 202320222021
U.S.$1,246 $1,124 $1,062 
Foreign572 538 612 
 $1,818 $1,662 $1,674 

The details of our income tax provision (benefit) are set forth below:

  202320222021
Current:Federal$221 $139 $45 
 Foreign222 200 214 
 State68 53 40 
  $511 $392 $299 
Deferred:Federal$(121)$(31)$21 
 Foreign(153)(10)(227)
 State(16)(14)6 
  $(290)$(55)$(200)
  $221 $337 $99 

The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

 202320222021
U.S. federal statutory rate21.0 %21.0 %21.0 %
State income tax, net of federal tax2.3 1.9 1.8 
Statutory rate differential attributable to foreign operations(1.7)(2.0)(1.0)
Adjustments to reserves and prior years1.3 1.6 1.1 
Excess tax benefits from stock-based awards(1.1)(1.4)(2.7)
Change in valuation allowances— (0.5)(0.8)
Impact of Russia Exit(0.5)4.3 — 
Intercompany restructuring and Valuations of Intellectual Property(9.1)(4.9)(11.3)
Nondeductible interest— — 1.4 
Impact of tax law changes— — (3.8)
Other, net(0.1)0.3 0.2 
Effective income tax rate12.1 %20.3 %5.9 %

Statutory rate differential attributable to foreign operations. This item includes local country taxes, withholding taxes, and shareholder-level taxes, net of U.S. foreign tax credits. In 2023, this item was unfavorably impacted by a statutory tax rate increase in Switzerland.

Adjustments to reserves and prior years. This item includes: (1) changes in tax reserves, including interest thereon, established for potential exposure we may incur if a taxing authority takes a position on a matter contrary to our position; and (2) the effects of reconciling income tax amounts recorded in our Consolidated Statements of Income to amounts reflected on our tax returns, including any adjustments to the Consolidated Balance Sheets. In 2023, this item was unfavorably impacted by $41 million of newly established reserves associated with a correction in the timing of capital loss utilization related to historical refranchising gains to tax years with a lower statutory tax rate, partially offset by $18 million of reserve releases associated with prior year
filing positions in various jurisdictions. In 2022, this item was unfavorably impacted by $17 million of adjustments made to current and deferred tax accounts in various jurisdictions to align with balances supported by 2021 and prior tax filings. Additionally, in 2022 this item was unfavorably impacted by $9 million of reserves established associated with prior year filing positions in various jurisdictions. In 2021, this item was unfavorably impacted by a $22 million reserve established due to a challenge of a prior year filing position in a foreign jurisdiction.

Change in valuation allowances. This item relates to changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of using deferred tax assets that existed at the beginning of the year. In 2022, this item was favorably impacted by $13 million of tax benefit associated with a valuation allowance release in a foreign jurisdiction resulting from a change in management’s judgement as to the realizability of deferred tax assets in that jurisdiction. In 2021, this item was favorably impacted by $15 million of tax benefit associated with a valuation allowance release resulting from a change in management’s judgment as to the realizability of foreign tax credit carryforwards in the U.S.

Impact of Russia Exit. Our decision to exit the Russia market resulted in a $7 million tax benefit recorded in 2023 to account for the global tax ramification of current and future payments required to be made to the Russia IP rights holder in Switzerland. In 2022, this item was unfavorably impacted by $72 million of tax expense primarily associated with a reduction in the tax basis of KFC IP rights held in Switzerland due to the expected loss of the Russia royalty income associated with such rights going forward. As a result, we remeasured and reassessed the need for a valuation allowance on the associated deferred tax assets. In addition, we reassessed certain deferred tax liabilities associated with the Russia business given the expectation that the basis difference would reverse by way of sale.

Intercompany Restructuring and Valuations of Intellectual Property.

In July 2021, we concentrated management responsibility for European (excluding the UK) KFC franchise development, support operations and management oversight in Switzerland (the “KFC Europe Reorganization”). Concurrent with this change in management responsibility, we completed intra-entity transfers of certain KFC IP rights from subsidiaries in the UK to subsidiaries in Switzerland. In December 2021, we continued our KFC Europe Reorganization and completed intra-entity transfers of additional European KFC IP rights from subsidiaries in the U.S. to subsidiaries in Switzerland. With the transfers of these rights, we received a step-up in amortizable tax basis of those IP rights to current fair value under applicable Swiss tax law. As a result of these transfers, we recorded a net one-time tax benefit of $187 million in 2021.

In the year ended December 31, 2022, we performed an annual valuation under Swiss laws of these Swiss IP rights, incorporating current assumptions around the expected future cash flows attributable to the IP. This valuation supported an increase to tax basis of Swiss IP rights associated with parts of our business that will continue to use these IP rights due to expected royalty growth assumptions in those parts of the business that largely offset the loss of Russia royalty income described above. Based on the valuation as well as future forecasting of taxable income, we remeasured and reassessed the need for a valuation allowance on the deferred tax assets in Switzerland. As a result, we recorded a net tax benefit of $75 million in 2022.

Consistent with the objectives of the IP restructuring transactions discussed above, in December 2023, we completed intra-entity transfers of certain Asia region IP rights to Singapore. In addition, certain remaining Asian IP rights were transferred to the U.S. As a result of these transfers, we recorded a net tax benefit of $30 million comprised of $14 million of current tax expense and a one-time deferred tax benefit of $44 million primarily associated with establishing deferred tax assets on amortizable tax basis in the U.S.

Also in 2023, we agreed to receive a tax credit in exchange for an increase in our prospective statutory tax rate in Switzerland. Based on the agreement, we were granted a $38 million tax credit expiring in 2031 and our statutory tax rate was increased to approximately 15% from the previous rate of approximately 10%. As a result of the tax rate increase, we were also required to remeasure our deferred tax assets associated with previously transferred IP rights in Switzerland, which resulted in a one-time deferred tax benefit of $99 million. We also recorded a $29 million deferred tax benefit associated with tax credit which represents the portion of the $38 million tax credit that we anticipate utilizing against income tax before expiration.

Nondeductible Interest. As a result of the enactment of the Tax Cuts and Jobs Act of 2017 (“Tax Act”) on December 22, 2017, deductibility of U.S. interest expense was limited to 30% of U.S. Earnings Before Interest, Taxes, Depreciation and Amortization. Beginning in 2022, deductibility of U.S. interest expense is limited to 30% of U.S. Earnings Before Interest and Taxes. Although the disallowed interest can be carried forward indefinitely, in management’s judgment interest carried forward will not be realizable in the future. In 2021, the Company recorded $23 million of related tax expense while in 2023 and 2022, the Company did not record any tax expense associated with disallowed U.S. interest expense.
Impact of Tax Law Changes.

UK Tax Rate Change – On June 10, 2021, the UK Finance Act 2021 was enacted resulting in an increase in the UK corporate tax rate from 19% to 25%. As such, the Company recognized a $64 million tax benefit in the quarter ended June 30, 2021, associated with remeasuring its deferred tax assets in the UK, which primarily related to amortizable tax basis that arose as a result of previous IP transfers to the UK.

Companies subject to the Global Intangible Low-Taxed Income provision (GILTI) have the option to account for the GILTI tax as a period cost if and when incurred, or to recognize deferred taxes for outside basis temporary differences expected to reverse as GILTI. The Company has elected to account for GILTI as a period cost.

The details of 2023 and 2022 deferred tax assets (liabilities) are set forth below:
 20232022
Operating losses and interest deduction carryforwards$230 $183 
Capital losses71 70 
Tax credit carryforwards188 206 
Employee benefits75 74 
Share-based compensation58 55 
Lease-related liabilities242 240 
Accrued liabilities and other59 40 
Intangible assets610 520 
Property, plant and equipment30 32 
Deferred income103 103 
Capitalized Research & Development Costs92 35 
Gross deferred tax assets1,758 1,558 
Deferred tax asset valuation allowances(386)(458)
Net deferred tax assets$1,372 $1,100 
Property, plant and equipment$(51)$(79)
Operating lease right-of-use assets(210)(203)
Employee benefits(8)(7)
Derivative Instruments(17)(27)
Other(42)(35)
Gross deferred tax liabilities$(328)$(351)
Net deferred tax assets (liabilities)$1,044 $749 

The details of the 2023 and 2022 valuation allowance activity are set forth below:

 20232022
Beginning of Year$(458)$(462)
Increases(19)(22)
Decreases91 21 
Other Adjustments— 5 
End of Year$(386)$(458)

Reported in Consolidated Balance Sheets as:
 
2023
2022
Deferred income taxes$1,045 $750 
Other liabilities and deferred credits(1)(1)
$1,044 $749 
As of December 31, 2023, we had approximately $4.3 billion of unremitted foreign retained earnings. The Tax Act imposed U.S. federal tax on all post-1986 foreign Earnings and Profits accumulated through December 31, 2017. Repatriation of earnings generated after December 31, 2017, will generally be eligible for the 100% dividends received deduction or considered a distribution of previously taxed income and, therefore, exempt from U.S. federal tax. Undistributed foreign earnings may still be subject to certain state and foreign income and withholding taxes upon repatriation. Subject to limited exceptions, we do not intend to indefinitely reinvest our unremitted earnings outside the U.S. Thus, we have provided taxes, including any U.S. federal and state income, foreign income, or foreign withholding taxes on the majority of our unremitted earnings. In jurisdictions where we do intend to indefinitely reinvest our unremitted earnings, we would be required to accrue and pay applicable income taxes (if any) and foreign withholding taxes if the funds were repatriated in taxable transactions. We believe any such taxes would be immaterial.

Details of tax loss, credit carryforwards, and expiration dates along with valuation allowances as of December 31, 2023, are as follows:
 Gross AmountDeferred Tax AssetValuation AllowanceExpiration
Federal net operating losses - Indefinite$60 $13 $— None
Foreign net operating losses211 34 (14)2024-2043
Foreign net operating losses - Indefinite414 98 (20)None
State net operating losses1,208 52 (36)2024-2043
Foreign capital loss carryforward - Indefinite281 71 (71)None
Foreign tax credits (US Tax Return)
150 150 (117)2026-2032
Foreign country tax credits
38 38 (9)2031
State interest deduction carryforward - Indefinite681 33 (32)None
$3,043 $489 $(299)

We recognize the benefit of positions taken or expected to be taken in tax returns in the Consolidated Financial Statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement.

At December 31, 2023, the Company had $151 million of gross unrecognized tax benefits, $102 million of which would impact the effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits follows:
 20232022
Beginning of Year$128 $116 
     Additions on tax positions - current year9 4 
     Additions for tax positions - prior years42 8 
     Reductions for tax positions - prior years(28)— 
     Reductions for settlements— — 
End of Year$151 $128 

The Company believes it is reasonably possible that its unrecognized tax benefits as of December 31, 2023, may decrease by approximately $23 million in the next 12 months due to settlements or statute of limitations expirations.

During 2023, 2022, and 2021 the Company recognized $20 million, less than $1 million, and $4 million of net expense, respectively, for interest and penalties in our Consolidated Statements of Income as components of its Income tax provision.

The Company has recorded $16 million of net tax payables and $3 million of net tax receivables, as of December 31, 2023 and 2022, respectively, associated with interest and penalties.

The Company’s income tax returns are subject to examination in the U.S. federal jurisdiction and numerous U.S. state and foreign jurisdictions.

The Company has settled audits with the IRS through fiscal year 2012 and is currently under IRS examination for 2013-2019. Our operations in certain foreign jurisdictions are currently under audit and remain subject to examination for tax years as far back as 1999. See Note 20 for discussion of an Internal Revenue Service Proposed Adjustment.
v3.24.0.1
Reportable Operating Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
See Note 1 for a description of our operating segments.
 Revenues
 202320222021
KFC Division(a)
$2,830 $2,834 $2,793 
Taco Bell Division(a)
2,641 2,437 2,238 
Pizza Hut Division(a)
1,019 1,004 1,028 
Habit Burger Grill Division(a)
586 567 525 
 $7,076 $6,842 $6,584 
 Operating Profit
 202320222021
KFC Division$1,304 $1,198 $1,230 
Taco Bell Division944 850 758 
Pizza Hut Division391 387 387 
Habit Burger Grill Division(14)(24)2 
Corporate and unallocated G&A expenses(b)(c)
(326)(297)(260)
Unallocated Franchise and property expenses(b)(c)
(1)(6)1 
Unallocated Refranchising gain (loss)(b)
29 27 35 
Unallocated Other income (expense)(b)(c)
(9)52 (14)
Operating Profit2,318 2,187 2,139 
Investment income (expense), net(b)
7 11 86 
Other pension income (expense)(b)
6 (9)(7)
Interest expense, net(b)
(513)(527)(544)
Income before income taxes$1,818 $1,662 $1,674 
 Depreciation and Amortization
 202320222021
KFC Division$22 $23 $28 
Taco Bell Division61 48 53 
Pizza Hut Division20 19 32 
Habit Burger Grill Division30 29 28 
Corporate20 27 23 
 $153 $146 $164 
 Capital Spending
 202320222021
KFC Division$73 $71 $60 
Taco Bell Division101 101 62 
Pizza Hut Division12 22 18 
Habit Burger Grill Division64 56 56 
Corporate35 29 34 
 $285 $279 $230 
 
Identifiable Assets(e)
20232022
KFC Division$2,281 $2,227 
Taco Bell Division1,544 1,483 
Pizza Hut Division814 788 
Habit Burger Grill Division630 591 
Corporate(d)
962 757 
 $6,231 $5,846 

 
Long-Lived Assets(f)
 20232022
KFC Division$891 $893 
Taco Bell Division975 950 
Pizza Hut Division378 400 
Habit Burger Grill Division580 534 
Corporate156 128 
 $2,980 $2,905 

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $4.1 billion in 2023, $3.9 billion in 2022 and $3.6 billion in 2021.

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

(c)Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (see Note 3), within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2023, and net operating profit of $44 million from Divisional Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022, respectively. Additionally, we recorded a charge of $3 million to Unallocated Other income (expense) during the year ended December 31, 2023 from the sale of our KFC Russia business.

Also included in Unallocated Other income (expense) were $1 million in foreign exchange losses and $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian Ruble during the years ended December 31, 2023 and 2022, respectively. Additionally, we recorded charges of $5 million to Corporate and unallocated G&A expenses and $1 million to Unallocated Franchise and property expenses during the year ended December 31, 2023, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar charges of $7 million to Corporate and Unallocated G&A expenses and $6 million to Unallocated Franchise and property expenses during the year ended December 31, 2022.

(d)Primarily includes cash and deferred tax assets.

(e)U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion at both 2023 and 2022.

(f)Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets. Excludes KFC Russia long-lived assets of $108 million as of December 31, 2022 which were classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note 9).
v3.24.0.1
Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters and Contingencies Contingencies
Internal Revenue Service Proposed Adjustment

As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $1.1 billion through December 31, 2023. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.

We disagree with the IRS’s position as asserted in the RAR and intend to contest that position vigorously. In September 2022, we filed a Protest with the IRS Examination Division disputing on multiple grounds the proposed underpayment of tax and penalties. We have received the IRS Examination Division’s Rebuttal to our Protest and the case has been accepted by the IRS Office of Appeals.

The Company does not expect resolution of this matter within twelve months and cannot predict with certainty the timing of such resolution. The Company believes that it is more likely than not the Company’s tax position will be sustained; therefore, no reserve is recorded with respect to this matter.

An unfavorable resolution of this matter could have a material, adverse impact on our Consolidated Financial Statements in future periods.

Lease Guarantees

As a result of having assigned our interest in obligations under real estate leases as a condition to the refranchising of certain Company-owned restaurants, and guaranteeing certain other leases, we are frequently secondarily liable on lease agreements. These leases have varying terms, the latest of which expires in 2065. As of December 31, 2023, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $375 million. The present value of these potential payments discounted at our pre-tax cost of debt at December 31, 2023, was approximately $325 million. Our franchisees are the primary lessees under the vast majority of these leases.  We generally have cross-default provisions with these franchisees that would put them in default of their franchise agreement in the event of non-payment under the lease. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases, although such risk may not be reduced in the context of a bankruptcy or other similar restructuring of a large franchisee or group of franchisees. Accordingly, the liability recorded for our expected exposure under such leases at both December 31, 2023 and 2022 was not material.

Insurance Programs

We are self-insured for a substantial portion of our current and prior years’ coverage including property and casualty losses.  To mitigate the cost of our exposures for certain property and casualty losses, we self-insure the risks of loss up to defined maximum per occurrence retentions on a line-by-line basis.  The Company then purchases insurance coverage, up to a certain limit, for losses that exceed the self-insurance per occurrence retention.  The insurers’ maximum aggregate loss limits are significantly above our actuarially determined probable losses; therefore, we believe the likelihood of losses exceeding the insurers’ maximum aggregate loss limits is remote.

The following table summarizes the 2023 and 2022 activity related to our net self-insured property and casualty reserves as of December 31, 2023.

 Beginning BalanceExpensePaymentsEnding Balance
2023 Activity
$50 35 (37)$48 
2022 Activity$48 28 (26)$50 

Due to the inherent volatility of actuarially determined property and casualty loss estimates, it is reasonably possible that we could experience changes in estimated losses which could be material.  We believe that we have recorded reserves for property
and casualty losses at a level which has substantially mitigated the potential negative impact of adverse developments and/or volatility.

In the U.S. and in certain other countries, we are also self-insured for healthcare claims and long-term disability for eligible participating employees subject to certain deductibles and limitations.  We have accounted for our retained liabilities for property and casualty losses, healthcare and long-term disability claims, including reported and incurred but not reported claims, based on information provided by independent actuaries.

Legal Proceedings

We are subject to various claims and contingencies related to lawsuits, real estate, environmental and other matters arising in the normal course of business. An accrual is recorded with respect to claims or contingencies for which a loss is determined to be probable and reasonably estimable.

India Regulatory Matter

Yum! Restaurants India Private Limited (“YRIPL”), a Yum subsidiary that operates KFC and Pizza Hut restaurants in India, is the subject of a regulatory enforcement action in India (the “Action”). The Action alleges, among other things, that KFC International Holdings, Inc. and Pizza Hut International failed to satisfy certain conditions imposed by the Secretariat for Industrial Approval in 1993 and 1994 when those companies were granted permission for foreign investment and operation in India. The conditions at issue include an alleged minimum investment commitment and store build requirements as well as limitations on the remittance of fees outside of India.

The Action originated with a complaint and show cause notice filed in 2009 against YRIPL by the Deputy Director of the Directorate of Enforcement (“DOE”) of the Indian Ministry of Finance following an income tax audit for the years 2002 and 2003. The matter was argued at various hearings in 2015, but no order was issued. Following a change in the incumbent official holding the position of Special Director of DOE (the “Special Director”), the matter resumed in 2018 and several additional hearings were conducted.

On January 29, 2020, the Special Director issued an order imposing a penalty on YRIPL and certain former directors of approximately Indian Rupee 11 billion, or approximately $135 million. Of this amount, $130 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. In November 2022, YRIPL was notified that an administrative tribunal bench had been constituted to hear an appeal by DOE of certain findings of the January 2020 order, including claims that certain charges had been wrongly dropped and that an insufficient amount of penalty had been imposed. A hearing with the administrative tribunal that had been scheduled for December 4, 2023 has been rescheduled to March 4, 2024. The stay order remains in effect and the next hearing in the Delhi High Court that had been scheduled for December 14, 2023 has been rescheduled to March 21, 2024. We deny liability and intend to continue vigorously defending this matter. We do not consider the risk of any significant loss arising from this order to be probable.

Other Matters

We are currently engaged in various other legal proceedings and have certain unresolved claims pending, the ultimate liability for which, if any, cannot be determined at this time. However, based upon consultation with legal counsel, we are of the opinion that such proceedings and claims are not expected to have a material adverse effect, individually or in the aggregate, on our Consolidated Financial Statements.
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net Income $ 1,597 $ 1,325 $ 1,575
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
Securities Trading Plans

During the three months ended December 31, 2023, none of the Company's directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any "non-Rule 10b5-1 trading arrangement" as defined in Item 408(c) of Regulation S-K, except as follows:

Name/TitleType of PlanAdoption DateEnd DateAggregate Number of
Securities to be Sold		Plan Description
Tracy Skeans / Chief Operating Officer and Chief People OfficerRule 10b5-1 trading planNovember 26, 2023December 31, 2024
62,417(1)
Sale of Shares
David Gibbs / Chief Executive OfficerRule 10b5-1 trading planDecember 1, 2023December 31, 2024
115,582(2)
Sale of Shares/ Exercise of Stock Appreciation Rights
and Sale of Resulting Shares

(1) Represents the number of shares of common stock to be received upon vesting of Ms. Skeans’ performance share unit awards (assuming maximum performance) and restricted stock unit awards specified in the plan. The actual number of shares of
common stock that will be received upon vesting and sold pursuant to the trading plan will depend upon the Company’s performance, dividend equivalent accruals, and the number of shares withheld for any taxes.

(2) Represents the number of shares of common stock to be received upon vesting of Mr. Gibbs’ restricted stock unit awards and exercise of stock appreciation rights awards specified in the plan. The actual number of shares of common stock under a restricted stock unit award that will be received upon vesting and sold pursuant to the trading plan will depend on dividend equivalent accruals and the number of shares withheld for any taxes. The resulting number of shares of common stock received and sold following the stock appreciation rights exercise will depend upon the appreciation of the award and the number of shares withheld for any taxes.
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Principles of Consolidation and Basis of Preparation
Principles of Consolidation and Basis of Preparation.  Intercompany accounts and transactions have been eliminated in consolidation.  We consolidate entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest.  We also consider for consolidation an entity, in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests.  Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary.  The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it.

Our most significant variable interests are in certain entities that operate restaurants under our Concepts’ franchise arrangements.  We do not typically provide significant financial support such as loans or guarantees to our franchisees.  Thus, our most significant variable interests in franchisees result from real estate lease arrangements to which we are a party.  At the end of 2023, YUM has future lease payments due from certain franchisees, on a nominal basis, of approximately $800 million, and we are secondarily liable on certain other lease agreements that have been assigned to certain franchisees. See the Lease Guarantees section in Note 20. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

We do not have a significant equity interest in any of our franchisee businesses except for a minority interest in an entity, Devyani International Limited (“Devyani”), that owns our KFC India and Pizza Hut India master franchisee rights. This minority interest does not give us the ability to significantly influence this entity. We account for our investment in Devyani as an equity security. As the fair value of this equity security is readily determinable we record changes in fair value in Investment (income) expense, net.
We participate in various advertising cooperatives with our franchisees, typically within a country where we have both Company-owned restaurants and franchise restaurants, established to collect and administer funds contributed for use in advertising and promotional programs designed to increase sales and enhance the reputation of the Company and our Concepts. Contributions to the advertising cooperatives are required of both Company-owned, if any, and franchise restaurants and are generally based on a percentage of restaurant sales.  We maintain certain variable interests in these cooperatives. As the cooperatives are required to spend all funds collected on advertising and promotional programs, total equity at risk is not sufficient to permit the cooperatives to finance their activities without additional subordinated financial support. Therefore, these cooperatives are VIEs. We consolidate certain of these cooperatives for which we are the primary beneficiary due to our voting rights.
Fiscal Year
Fiscal Year.  YUM’s fiscal year begins on January 1 and ends December 31 of each year, with each quarter comprised of three months. The majority of our U.S. subsidiaries and certain international subsidiaries operate on a weekly periodic calendar where the first three quarters of each fiscal year consists of 12 weeks and the fourth quarter consists of 16 weeks in fiscal years with 52 weeks and 17 weeks in fiscal years with 53 weeks. Our remaining international subsidiaries operate on a monthly calendar similar to that on which YUM operates.

Our next fiscal year scheduled to include a 53rd week for our period calendar reporters is 2024.
Foreign Currency
Foreign Currency.  The functional currency of our foreign entities is the currency of the primary economic environment in which the entity operates. Functional currency determinations are made based upon a number of economic factors, including but not limited to cash flows and financing transactions. The operations, assets and liabilities of our entities outside the U.S. are initially measured using the functional currency of that entity. Income and expense accounts for our operations of these foreign entities are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities of these foreign entities are then translated into U.S. dollars at exchange rates in effect at each period-end balance sheet date. As of December 31, 2023, net cumulative translation adjustment losses of $201 million are recorded in Accumulated other comprehensive income (“AOCI”) in the Consolidated Balance Sheet.

The majority of our foreign currency net asset exposure is in countries where we have Company-owned restaurants. As we manage and share resources at the individual brand level within a country, cumulative translation adjustments are recorded and tracked at the foreign-entity level that represents the operations of our individual brands within that country. Translation adjustments recorded in AOCI are subsequently recognized as income or expense generally only upon sale of the related investment in a foreign entity, or upon a sale of assets and liabilities within a foreign entity that represents a complete or substantially complete liquidation of that foreign entity. For purposes of determining whether a sale or complete or substantially complete liquidation of an investment in a foreign entity has occurred, we consider those same foreign entities for which we record and track cumulative translation adjustments.

Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency are included in Other (income) expense in our Consolidated Statements of Income.
Reclassifications
Reclassifications. We have reclassified certain items in the Consolidated Financial Statements for prior periods to be comparable with the classification for the fiscal year ended December 31, 2023. These reclassifications had no effect on previously reported Net Income.
Revenue Recognition
Revenue Recognition. Below is a discussion of how our revenues are earned, our accounting policies pertaining to revenue recognition under Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“Topic 606”) and other required disclosures.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue transaction and collected from a customer are excluded from revenue.

Company Sales

Revenues from the sale of food items by Company-owned restaurants are recognized as Company sales when a customer purchases the food, which is when our obligation to perform is satisfied.
Franchise and Property Revenues

Franchise Revenues

Our most significant source of revenues arises from the operation of our Concepts’ stores by our franchisees. Franchise rights may be granted through a store-level franchise agreement or through a master franchise agreement that set out the terms of our arrangement with the franchisee. Our franchise agreements require that the franchisee remit continuing fees to us as a percentage of the applicable restaurant’s sales in exchange for the license of the intellectual property associated with our Concepts’ brands (the “franchise right”). Our franchise agreements also typically require certain, less significant, upfront franchise fees such as initial fees paid upon opening of a store, fees paid to renew the term of the franchise right and fees paid in the event the franchise agreement is transferred to another franchisee.

Continuing fees represent the substantial majority of the consideration we receive under our franchise agreements. Continuing fees are typically billed and paid monthly and are usually 4% - 6% for store-level franchise agreements. Master franchise agreements allow master franchisees to operate restaurants as well as sub-franchise restaurants within certain geographic territories. The percentage of sales that we receive for restaurants owned or sub-franchised by our master franchisees as a continuing fee is typically less than the percentage we receive for restaurants operating under a store-level franchise agreement. Based on the application of the sales-based royalty exception within Topic 606 continuing fees are recognized as the related restaurant sales occur.

Upfront franchise fees are typically billed and paid when a new franchise or sub-franchise agreement becomes effective or when an existing agreement is transferred to another franchisee or sub-franchisee. We have determined that the services we provide in exchange for upfront franchise fees, which primarily relate to pre-opening support, are highly interrelated with the franchise right and are not individually distinct from the ongoing services we provide to our franchisees. As a result, upfront franchise fees are recognized as revenue over the term of each respective franchise or sub-franchise agreement. Revenues for these upfront franchise fees are recognized on a straight-line basis, which is consistent with the franchisee’s or sub-franchisee’s right to use and benefit from the intellectual property.

Additionally, from time-to-time we provide consideration to franchisees in the form of cash (e.g. cash payments to offset new build costs) or other incentives (e.g. free or subsidized equipment) with the intent to drive new unit development or same-store sales growth that will result in higher future revenues for the Company. Such payments are capitalized and presented within Prepaid expense and other current assets or Other assets. These assets are being amortized as a reduction in Franchise and property revenues over the period of expected cash flows from the franchise agreements to which the payment relates.

Property Revenues

From time to time, we enter into rental agreements with franchisees for the lease or sublease of restaurant locations. These rental agreements typically originate from refranchising transactions and revenues related to the agreements are recognized as they are earned. Amounts owed under the rental agreements are typically billed and paid on a monthly basis. Related expenses are presented as Franchise and property expenses within our Consolidated Statements of Income and primarily include depreciation or, in the case of a sublease, rent expense.

Franchise Contributions for Advertising and Other Services

Advertising Cooperatives

We have determined we act as a principal in the transactions entered into by the advertising cooperatives we are required to consolidate based on our responsibility to define the nature of the goods or services provided and/or our commitment to pay for advertising services in advance of the related franchisee contributions. Additionally, we have determined the advertising services provided to franchisees are highly interrelated with the franchise right and therefore not distinct. Franchisees remit to these consolidated advertising cooperatives a percentage of restaurant sales as consideration for providing the advertising services. As a result, revenues for advertising services are recognized when the related franchise restaurant sales occur based on the application of the sales-based royalty exception within Topic 606. Revenues for these services are typically billed and received on a monthly basis.

Other Goods or Services

On a much more limited basis, we provide goods or services to certain franchisees that are individually distinct from the franchise right because they do not require integration with other goods or services we provide. Such arrangements typically
relate to technology, supply chain and quality assurance services. The extent to which we provide such goods or services varies by brand, geographic region and, in some instances, franchisee. In instances where we rely on third parties to provide goods or services to franchisees at our direction, we have determined we act as a principal in these transactions and recognize related revenues as the goods or services are transferred to the franchisee.
Franchise Support Costs
Franchise Support Costs. Certain direct costs of our franchise operations are charged to Franchise and property expenses. These costs include provisions for estimated uncollectible upfront and continuing fees, rent or depreciation expense associated with restaurants we lease or sublease to franchisees, marketing funding on behalf of franchisees, amortization expense for franchise-related intangible assets, value added taxes on royalties and certain other direct incremental franchise support costs.

The costs we incur to provide support services to our franchisees for which we do not receive a reimbursement are charged to General and administrative expenses (“G&A”) as incurred. Expenses related to the provisioning of goods or services for which we receive reimbursement for all or substantially all of the expense amount from a franchisee are recorded in Franchise advertising and other services expense (the associated revenue is recorded within Franchise contributions for advertising and other services as described above). The majority of these expenses relate to advertising and are incurred on behalf of franchisees by the advertising cooperatives we are required to consolidate. These expenses are accounted for as described in the Advertising Costs policy below. For such expenses that do not relate to advertising the expenses are recognized as incurred.
Direct Marketing Costs
Advertising Costs. To the extent we participate in advertising cooperatives, we, like our participating franchisees, are required to make contributions. Our contributions are based on a percentage of sales of our participating Company restaurants. These contributions as well as direct marketing costs we may incur outside of a cooperative related to Company restaurants are recorded within Company restaurant expenses. Advertising expense included in Company restaurant expenses totaled $81 million, $78 million and $84 million in 2023, 2022 and 2021, respectively.

To the extent we consolidate advertising cooperatives, we incur advertising expense as a result of our obligation to spend franchisee contributions to those cooperatives (see above for our accounting for these contributions). Such advertising expense is recorded in Franchise advertising and other services expense and totaled $1,293 million, $1,298 million and $1,264 million in 2023, 2022 and 2021, respectively. At the end of each fiscal year additional advertising costs are accrued to the extent advertising revenues exceed the related advertising expense to date, as we are obligated to expend such amounts on advertising.

From time to time, we may make the decision to incur discretionary advertising expenditures on behalf of franchised restaurants. Such amounts are recorded within Franchise and property expenses and totaled $13 million, $8 million and $11 million in 2023, 2022 and 2021, respectively.
To the extent the advertising cooperatives we are required to consolidate are unable to collect amounts due from franchisees they incur bad debt expense. In 2023 and 2022, we recorded $3 million and $6 million in net provisions, respectively, and in 2021, we recorded $6 million in net recoveries. To the extent our consolidated advertising cooperatives have a provision or recovery for bad debt expense, the cooperative’s advertising spend obligation is adjusted such that there is no net impact within our Financial Statements.
Share-Based Employee Compensation
Share-Based Employee Compensation.  We recognize ongoing share-based payments to employees, including grants of stock appreciation rights (“SARs”) and restricted stock units ("RSUs"), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant.  This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest.  Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in G&A, Franchise advertising and other services expense or Company restaurant expenses. See Note 16 for further discussion of our share-based compensation plans.
Legal Costs
Legal Costs. Settlement costs are accrued when they are deemed probable and reasonably estimable. Anticipated legal fees related to self-insured workers’ compensation, employment practices liability, general liability, automobile liability, product liability and property losses (collectively, “property and casualty losses”) are accrued when deemed probable and reasonably estimable. Legal fees not related to self-insured property and casualty losses are recognized as incurred. See Note 20 for further discussion of our legal proceedings.
Impairment or Disposal of Property, Plant and Equipment
Impairment or Disposal of Long-Lived Assets.  Long-lived assets, including Property, plant and equipment (“PP&E”) as well as right-of-use operating lease assets are tested for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable.  The assets are not recoverable if their carrying value is less than the
undiscounted cash flows we expect to generate from such assets.  If the assets are not deemed to be recoverable, impairment is measured based on the excess of their carrying value over their fair value.

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless it is more likely than not that we will refranchise restaurants as a group.  We review our long-lived assets of such individual restaurants (primarily PP&E, right-of-use operating lease assets and allocated intangible assets subject to amortization) that we intend to continue operating as Company restaurants annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We use two consecutive years of operating losses as our primary indicator of potential impairment for our annual impairment testing of these restaurant assets. We evaluate the recoverability of these restaurant assets by comparing the estimated undiscounted future cash flows, which are based on our entity-specific assumptions, to the carrying value of such assets.  For restaurant assets that are not deemed to be recoverable, we write-down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Individual restaurant-level impairment is recorded within Other (income) expense. Any right-of-use asset may alternatively be valued at the amount we could receive for such right-of-use asset from a third-party that is not a franchisee through a sublease if doing so would result in less overall impairment of the restaurant assets in total. 

In executing our refranchising initiatives, we most often offer groups of restaurants for sale.  When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment.  We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants.  For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds.  To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates or rental payments, not at prevailing market rates, we consider the off-market terms in our impairment evaluation.  We recognize any such impairment charges in Refranchising (gain) loss.  We recognize gains on restaurant refranchisings when the sale transaction closes and control of the restaurant operations have transferred to the franchisee.

When we decide to close a restaurant, it is reviewed for impairment, which includes an estimate of sublease income that could be reasonably obtained, if any, in relation to the right-of-use operating lease asset. Additionally, depreciable lives are adjusted based on the expected disposal date.  Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses from previously closed stores are generally expensed as incurred.  Any costs related to a store closure as well as any changes in estimates of sublease income or subsequent adjustments to liabilities for remaining lease obligations as a result of lease termination are recorded in Other (income) expense.   To the extent we sell assets, primarily land, associated with a closed store, any gain or loss upon that sale is also recorded in Other (income) expense.

Management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, sublease income and refranchising proceeds.  Accordingly, actual results could vary significantly from our estimates.
Guarantees
Guarantees.  We recognize, at inception of a guarantee, a liability for the fair value of certain obligations undertaken, in addition to a liability for the expected credit losses under the life of such guarantees.
The majority of our guarantees are issued as a result of assigning our interest in obligations under operating leases as a condition to the refranchising of certain Company restaurants.  We recognize a liability for such lease guarantees upon refranchising and upon subsequent renewals of such leases when we remain secondarily liable.  The related expense and any subsequent changes are included in Refranchising (gain) loss.  Any expense and subsequent changes in the guarantees for other franchise support guarantees not associated with a refranchising transaction are included in Franchise and property expenses.
Income Taxes
Income Taxes.  We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in our Income tax provision in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.
We recognize the benefit of positions taken or expected to be taken in our tax returns in our Income tax provision when it is more likely than not (i.e., a likelihood of more than fifty percent) that the position would be sustained upon examination by tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon settlement with the taxing authorities. We evaluate these amounts on a quarterly basis to ensure that they have been appropriately adjusted for audit settlements and other events we believe may impact the outcome. Changes in judgment that result in subsequent recognition, derecognition or a change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) are recognized as a discrete item in the interim period in which the change occurs. We recognize accrued interest and penalties related to unrecognized tax benefits as components of our Income tax provision.

We do not record a deferred tax liability for unremitted earnings of our foreign subsidiaries to the extent that the earnings meet the indefinite reversal criteria. This criteria is met if the foreign subsidiary has invested, or will invest, the earnings indefinitely. The decision as to the amount of unremitted earnings that we intend to maintain in non-U.S. subsidiaries considers items including, but not limited to, forecasts and budgets of financial needs of cash for working capital, liquidity plans and expected cash requirements in the U.S.

See Note 18 for a further discussion of our income taxes.
Fair Value Measurements
Fair Value Measurements.  Fair value is the price we would receive to sell an asset or pay to transfer a liability (exit price) in an orderly transaction between market participants.  For those assets and liabilities we record or disclose at fair value, we determine fair value based upon the quoted market price, if available.  If a quoted market price is not available for identical assets, we determine fair value based upon the quoted market price of similar assets or the present value of expected future cash flows considering the risks involved, including counterparty performance risk if appropriate, and using discount rates appropriate for the duration.  The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the calculation.

Level 1Inputs based upon quoted prices in active markets for identical assets.
  
Level 2Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.
  
Level 3Inputs that are unobservable for the asset.
Cash and Cash Equivalents Cash and Cash Equivalents.  Cash equivalents represent funds we have temporarily invested (with original maturities not exceeding three months), including short-term, highly liquid debt securities. Cash and overdraft balances that meet the criteria for right of setoff are presented net on our Consolidated Balance Sheet.
Receivables
Receivables. The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise agreements, including contributions due to advertising cooperatives we consolidate.  These receivables from franchisees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable, net on our Consolidated Balance Sheet and are presented net of expected credit losses. Expected credit losses for uncollectible franchisee receivable balances consider both current conditions and reasonable and supportable forecasts of future conditions. Current conditions we consider include pre-defined aging criteria as well as specified events that indicate we may not collect the balance due, including foreign currency control restrictions that may exist. Reasonable and supportable forecasts used in determining the probability of future collection consider publicly available data regarding default probability.  While we use the best information available in making our determination, the ultimate recovery of recorded receivables is dependent upon future economic events and other conditions that may be beyond our control.  Receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.

We recorded $4 million and $5 million of net bad debt expense in 2023 and 2022, respectively, and $8 million of net bad debt recoveries in 2021, within Franchise and property expenses related to continuing fees, initial fees and rent receivables from our franchisees.
 
Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2023 and 2022, respectively, are as follows:
 20232022
Accounts and notes receivable$776 $685 
Allowance for doubtful accounts(39)(37)
Accounts and notes receivable, net$737 $648 
 
Our financing receivables primarily consist of notes receivables and direct financing leases with franchisees which we enter into from time-to-time.  As these receivables primarily relate to our ongoing business agreements with franchisees, we consider such receivables to have similar risk characteristics and evaluate them as one collective portfolio segment and class for determining the allowance for doubtful accounts.  Balances of notes receivable and direct financing leases due within one year are included in Accounts and notes receivable, net while amounts due beyond one year are included in Other assets.  Amounts included in Other assets totaled $61 million (net of an allowance of less than $1 million) and $64 million (net of an allowance of less than $1 million) at December 31, 2023, and December 31, 2022, respectively.  Financing receivables that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts.  Interest income recorded on financing receivables has historically been insignificant.
Accounts and notes receivable, net
Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2023 and 2022, respectively, are as follows:
 20232022
Accounts and notes receivable$776 $685 
Allowance for doubtful accounts(39)(37)
Accounts and notes receivable, net$737 $648 
Property, Plant and Equipment
Property, Plant and Equipment.  PP&E is carried net of accumulated depreciation and amortization.  We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows:  5 to 25 years for buildings and leasehold improvements and 3 to 20 years for machinery and equipment.  We suspend depreciation and amortization on assets that are held for sale.
Leases and Leasehold Improvements
Leases and Leasehold Improvements.  We lease land, buildings or both for certain of our Company-operated restaurants and restaurant support centers worldwide. Rent expense for leased Company-operated restaurants is presented in our Consolidated Statements of Income within Company restaurant expenses and rent expense for restaurant support centers is presented within G&A. The length of our lease terms, which vary by country and often include renewal options, are an important factor in determining the appropriate accounting for leases including the initial classification of the lease as finance or operating as well as the timing of recognition of rent expense over the duration of the lease. We include renewal option periods in determining the term of our leases when failure to renew the lease would impose a penalty on the Company in such an amount that a renewal appears to be reasonably certain at the commencement of the lease. The primary penalty to which we are subject is the economic detriment associated with the existence of leasehold improvements that might be impaired if we choose not to continue the use of the leased property. Leasehold improvements are amortized over the shorter of their estimated useful lives or the lease term.  We generally do not receive leasehold improvement incentives upon opening a store that is subject to a lease. We expense rent associated with leased land or buildings while a restaurant is being constructed whether rent is paid or we are subject to a rent holiday.  Our leasing activity for other assets, including equipment, is not significant.

Right-of-use assets and liabilities are recognized upon lease commencement for operating and finance leases based on the present value of lease payments over the lease term. Right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Subsequent reductions in the right-of-use asset and accretion of the lease liability for an operating lease are recognized as a single lease cost, on a straight-line basis, over the lease term. For finance leases, the right-of-use asset is depreciated on a straight-line basis over the lesser of the useful life of the leased asset or lease term. Interest on each finance lease liability is determined as the amount that results in a constant periodic discount rate on the remaining balance of the liability. As the discount rate implicit in most of our leases is not readily determinable, we use our group incremental secured borrowing rate based on the information available at commencement date, including the lease term and currency, in determining the present value of lease payments for both operating and finance leases. Leases with an initial term of 12 months or less are not recorded in the Consolidated Balance Sheet; we recognize rent expense for these leases on a straight-line basis over the lease term.

Right-of-use assets are assessed for impairment in accordance with our long-lived asset impairment policy, which is performed annually for restaurant-level assets or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. We reassess lease classification and remeasure right-of-use assets and lease liabilities when a lease is modified and that modification is not accounted for as a separate new lease or upon certain other events that require reassessment. The difference between operating lease single lease cost recognized in our Consolidated Statements of Income and cash payments for operating leases is recognized within Other, net within Net Cash Provided by Operating Activities in our Consolidated Statements of Cash Flows.

In certain instances, we lease or sublease certain restaurants to franchisees. Our lessor and sublease portfolio primarily consists of stores that have been leased to franchisees subsequent to refranchising transactions. Our most significant leases with lease and non-lease components are leases with our franchisees that include both the right to use a restaurant as well as a license of
the intellectual property associated with our Concepts’ brands. For these leases, which are primarily classified as operating leases, we account for the lease and non-lease components separately. Revenues from rental agreements with franchisees are presented within Franchise and property revenues in our Consolidated Statements of Income and related expenses (e.g. depreciation and rent expense) are presented within Franchise and property expenses.
Goodwill and Intangible Assets
Goodwill and Intangible Assets.  From time-to-time, the Company acquires restaurants from one of our Concept’s franchisees or acquires another business.  Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets, and liabilities assumed.  Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing.  Our reporting units are our business units (which are aligned based on geography) in our KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist.  We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. An impairment charge is recognized based on the excess of a reporting unit’s carrying amount over its fair value.

If we record goodwill upon acquisition of a restaurant(s) from a franchisee and such restaurant(s) is then sold within two years of acquisition, the goodwill associated with the acquired restaurant(s) is written off in its entirety. When we refranchise restaurants, or if a previously acquired restaurant is refranchised two years or more subsequent to its acquisition, we include goodwill in the carrying amount of the restaurants disposed of based on the relative fair values of the portion of the reporting unit disposed of in the refranchising and the portion of the reporting unit that will be retained. 

We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. Intangible assets that are deemed to have a finite life are amortized on a straight-line basis to their residual value.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset’s fair value is compared to its carrying value.

Our finite-lived intangible assets, including capitalized software, that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable.  An intangible asset that is deemed not recoverable on an undiscounted basis is written down to its estimated fair value. Once these assets are fully amortized and it is determined that we are no longer deriving economic benefit from ownership of the asset, the cost basis and accumulated amortization are written off.

Capitalized Software. We state capitalized software at cost less accumulated amortization within Intangible assets, net on our Consolidated Balance Sheets. We calculate amortization on a straight line basis over the estimated useful life of the software which ranges from 3 to 7 years upon initial capitalization.
Derivative Financial Instruments
Derivative Financial Instruments. We use derivative instruments primarily to hedge interest rate and foreign currency risks, and to reduce our exposure to market-driven charges in certain of the liabilities associated with employee compensation deferrals into our Executive Income Deferral (“EID”) Plan. These derivative contracts are entered into with financial institutions. We do not use derivative instruments for trading purposes and we have procedures in place to monitor and control their use.

We record all derivative instruments on our Consolidated Balance Sheet at fair value. For derivative instruments that are designated and qualify as a cash flow hedge, gain or loss on the derivative instrument is reported as a component of AOCI and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in the results of operations immediately.
As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with carefully selected major financial institutions based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At December 31, 2023 and December 31, 2022, all of the counterparties to our derivative instruments had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.
Common Stock Share Repurchases
Common Stock Share Repurchases.  From time-to-time, we repurchase shares of our Common Stock under share repurchase programs authorized by our Board of Directors.  Shares repurchased constitute authorized, but unissued shares under the North Carolina laws under which we are incorporated.  Additionally, our Common Stock has no par or stated value.  Accordingly, we record the full value of share repurchases, or other deductions to Common Stock such as shares cancelled upon employee share-based award exercises, upon the trade date, against Common Stock on our Consolidated Balance Sheet except when to do so would result in a negative balance in such Common Stock account.  In such instances, on a period basis, we record the cost of any further share repurchases or other deductions to Common Stock as an addition to Accumulated deficit.  Due to the large number of share repurchases of our stock in certain years, our Common Stock balance can be zero at the end of any period.  Accordingly, $26 million, $1,131 million and $1,549 million in share repurchases in 2023, 2022 and 2021, respectively, were recorded as an addition to Accumulated deficit. See Note 17 for additional information on our share repurchases.
Pension and Post-retirement Medical Benefits
Pension and Post-retirement Medical Benefits. We measure and recognize the overfunded or underfunded status of our pension and post-retirement plans as an asset or liability in our Consolidated Balance Sheet as of our fiscal year end. The funded status represents the difference between the projected benefit obligations and the fair value of plan assets, which is calculated on a plan-by-plan basis. The projected benefit obligation and related funded status are determined using assumptions as of the end of each year. The projected benefit obligation is the present value of benefits earned to date by plan participants, including the effect of future salary increases, as applicable. The difference between the projected benefit obligations and the fair value of plan assets that has not previously been recognized in our Consolidated Statement of Income is recorded as a component of AOCI.

The net periodic benefit costs associated with the Company’s defined benefit pension and post-retirement medical plans are determined using assumptions regarding the projected benefit obligation and, for funded plans, the market-related value of plan assets as of the beginning of each year, or remeasurement period if applicable. The service cost component of net periodic benefit costs is primarily recorded in G&A. Non-service cost components are recorded in Other pension (income) expense. We have elected to use a market-related value of plan assets to calculate the expected return on assets, net of administrative and investment fees paid from plan assets, in net periodic benefit costs. For each individual plan we amortize into pension expense the net amounts in AOCI, as adjusted for the difference between the fair value and market-related value of plan assets, to the extent that such amounts exceed 10% of the greater of a plan’s projected benefit obligation or market-related value of assets, over the remaining service period of active participants in the plan or, for plans with no active participants, over the expected average life expectancy of the inactive participants in the plan. The market-related value of plan assets is the fair value of plan assets as of the beginning of each year adjusted for variances between actual returns and expected returns. We attribute such variances to the market-related value of plan assets evenly over five years.

We record a curtailment when an event occurs that significantly reduces the expected years of future service or eliminates the accrual of defined benefits for the future services of a significant number of employees. We record a curtailment gain when the employees who are entitled to the benefits terminate their employment; we record a curtailment loss when it becomes probable a loss will occur. We recognize settlement gains or losses only when we have determined that the cost of all settlements in a year will exceed the sum of the service and interest costs within an individual plan.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]
Accounts and notes receivable as well as the Allowance for doubtful accounts, including balances attributable to our consolidated advertising cooperatives, as of December 31, 2023 and 2022, respectively, are as follows:
 20232022
Accounts and notes receivable$776 $685 
Allowance for doubtful accounts(39)(37)
Accounts and notes receivable, net$737 $648 
v3.24.0.1
Earnings Per Common Share ("EPS") (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Earnings Per Common Share
 202320222021
Net Income$1,597 $1,325 $1,575 
Weighted-average common shares outstanding (for basic calculation)281 286 297 
Effect of dilutive share-based employee compensation4 4 5 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)285 290 302 
Basic EPS$5.68 $4.63 $5.30 
Diluted EPS$5.59 $4.57 $5.21 
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)
1.7 1.9 1.1 
(a)    These unexercised employee SARs, RSUs, performance share units ("PSUs") and stock options were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.24.0.1
Items Affecting Comparability of Net Income and Cash Flows (Tables)
 12 Months Ended
Dec. 31, 2023
Refranchising (gain) loss [Member]  
Facility Actions [Line Items]  
Facility Actions
A summary of Refranchising (gain) loss is as follows:

 Refranchising (gain) loss
 
2023
2022
2021
KFC Division$2 $(3)$(1)
Taco Bell Division(33)(13)(29)
Pizza Hut Division2 (1)1 
Habit Burger Grill Division— (10)(6)
Worldwide$(29)$(27)$(35)
v3.24.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2023
Disaggregation of Revenue [Table Text Block]
2023
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$67 $1,069 $14 $575 $1,725 
Franchise revenues205 822 284 7 1,318 
Property revenues14 42 4 2 62 
Franchise contributions for advertising and other services36 645 318 2 1,001 
China
Franchise revenues250 — 66 — 316 
Other
Company sales417 — — — 417 
Franchise revenues1,178 54 266 — 1,498 
Property revenues51 — 2 — 53 
Franchise contributions for advertising and other services612 9 65 — 686 
$2,830 $2,641 $1,019 $586 $7,076 

2022
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger Grill DivisionTotal
U.S.
Company sales$67 $1,002 $21 $558 $1,648 
Franchise revenues202 745 280 6 1,233 
Property revenues14 44 5 1 64 
Franchise contributions for advertising and other services29 591 312 2 934 
China
Franchise revenues219 — 57 — 276 
Other
Company sales424 — — — 424 
Franchise revenues1,152 48 263 — 1,463 
Property revenues58 — 2 — 60 
Franchise contributions for advertising and other services669 7 64 — 740 
$2,834 $2,437 $1,004 $567 $6,842 
Deferred Revenue, by Arrangement, Disclosure [Table Text Block]
Deferred Franchise Fees
Balance at December 31, 2021
$421 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(79)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period112 
Deferred franchise fees related to KFC Russia reclassified to liabilities held for sale (see Note 9)
(15)
Other(a)
(5)
Balance at December 31, 2022
$434 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(81)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period101 
Other(a)
(10)
Balance at December 31, 2023
$444 

(a)    Includes impact of foreign currency translation, as well as, in 2023, the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements.
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]
We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$72 
1 - 2 years65 
2 - 3 years60 
3 - 4 years53 
4 - 5 years45 
Thereafter149 
Total$444 
v3.24.0.1
Supplemental Cash Flow Data (Tables)
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
Cash paid for interest and income taxes, and significant non-cash investing and financing activities
 202320222021
Cash Paid For:   
Interest(a)
$526 $486 $471 
Income taxes432 371 308 
Reconciliation of Cash and cash equivalents to Consolidated Statements of Cash Flows:
Cash and cash equivalents as presented in Consolidated Balance Sheets$512 $367 $486 
Restricted cash included in Prepaid expenses and other current assets(b)
177 220 250 
Restricted cash and restricted cash equivalents included in Other assets(c)
35 35 35 
Cash and restricted cash related to KFC Russia included in assets held for sale (see Note 3)
$— 25 — 
Cash, Cash Equivalents and Restricted Cash as presented in Consolidated Statements of Cash Flows$724 $647 $771 

(a)Amounts exclude payments of $23 million in 2022 and $28 million in 2021 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).

(b)Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments (see Note 11).
(c)Primarily trust accounts related to our self-insurance program.
v3.24.0.1
Other (Income) Expense (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Other (Income) Expense Table
 202320222021
Foreign exchange net (gain) loss$5 $(9)$8 
Impairment and closure expense
12 8 16 
Other(3)8 (22)
Other (income) expense$14 $7 $2 
v3.24.0.1
Supplemental Balance Sheet Information (Tables)
 12 Months Ended
Dec. 31, 2023
Supplemental Balance Sheet Information Disclosure [Abstract]  
Prepaid Expenses and Other Current Assets
Prepaid Expenses and Other Current Assets20232022
Income tax receivable$20 $32 
Restricted cash177 220 
Assets held for sale(a)
4 190 
Other prepaid expenses and current assets159 152 
Prepaid expenses and other current assets$360 $594 
Property, Plant and Equipment
Property, Plant and Equipment20232022
Land$373 $376 
Buildings and improvements1,421 1,364 
Finance leases, primarily buildings59 63 
Machinery, equipment and other676 651 
Property, plant and equipment, gross2,529 2,454 
Accumulated depreciation and amortization(1,332)(1,283)
Property, plant and equipment, net$1,197 $1,171 
Schedule of Other Assets
Other Assets20232022
Operating lease right-of-use assets$764 $742 
Franchise incentives175 172 
Investment in Devyani International Limited124 116 
Other298 294 
Other assets$1,361 $1,324 
Accounts Payable and Other Current Liabilities
Accounts Payable and Other Current Liabilities20232022
Accounts payable$231 $243 
Accrued compensation and benefits258 246 
Accrued advertising146 175 
Operating lease liabilities79 79 
Accrued interest82 83 
Gift card liability
72 69 
Liabilities held for sale(a)
2 65 
Other current liabilities299 291 
Accounts payable and other current liabilities$1,169 $1,251 

(a)    Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
v3.24.0.1
Goodwill and Intangible Assets (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in the carrying amount of goodwill
The changes in the carrying amount of goodwill are as follows:

 KFCTaco BellPizza HutHabit Burger GrillWorldwide
Goodwill, net as of December 31, 2021(a)
$232 $98 $257 $70 $657 
Disposals and other, net(b)
(7)— (8)(4)(19)
Goodwill, net as of December 31, 2022(a)
$225 $98 $249 $66 $638 
Disposals and other, net(b)
1 — 3 — 4 
Goodwill, net as of December 31, 2023(a)
$226 $98 $252 $66 642 

(a)Goodwill, net includes $144 million of accumulated impairment losses related to our Habit Burger Grill segment and $17 million of accumulated impairment losses related to our Pizza Hut segment for each year presented.

(b)Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
 [1],[2]
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class
Intangible assets, net for the years ended 2023 and 2022 are as follows:

 
 20232022
 Gross Carrying AmountAccumulated AmortizationGross Carrying AmountAccumulated Amortization
Finite-lived intangible assets    
Capitalized software costs$524 $(309)$469 $(263)
Reacquired franchise rights7 (3)35 (29)
Franchise contract rights78 (73)91 (84)
Other24 (19)24 (16)
 $633 $(404)$619 $(392)
Indefinite-lived intangible assets
KFC trademark
$31 $31 
Habit Burger Grill brand asset96 96 
Other
21 — 
$148 $127 
[1] Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
[2] Goodwill, net includes $144 million of accumulated impairment losses related to our Habit Burger Grill segment and $17 million of accumulated impairment losses related to our Pizza Hut segment for each year presented.
v3.24.0.1
Short-term Borrowings and Long-term Debt (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of Debt [Table Text Block]
 20232022
Short-term Borrowings  
Current maturities of long-term debt$56 $405 
Less current portion of debt issuance costs and discounts(3)(7)
Short-term borrowings$53 $398 
Long-term Debt  
Securitization Notes$3,743 $3,772 
Subsidiary Senior Unsecured Notes750 750 
Revolving Facility— 279 
Term Loan A Facility717 736 
Term Loan B Facility1,459 1,474 
YUM Senior Unsecured Notes4,550 4,875 
Finance lease obligations (See Note 12)
50 57 
 $11,269 $11,943 
Less long-term portion of debt issuance costs and discounts(71)(85)
Less current maturities of long-term debt(56)(405)
Long-term debt$11,142 $11,453 
Securitization Notes issued that remain outstanding The following table summarizes Securitization Notes outstanding at December 31, 2023:
   Interest Rate
Issuance Date
Anticipated Repayment Date(a)
Outstanding Principal
(in millions)		Stated
Effective(b)
May 2016May 2026$938 4.970 %5.14 %
November 2018November 2028$595 4.940 %5.06 %
August 2021February 2027$884 1.946 %2.11 %
August 2021February 2029$589 2.294 %2.42 %
August 2021August 2031$737 2.542 %2.64 %

(a)The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.

(b)Includes the effects of the amortization of any discount and debt issuance costs.
Credit Agreement and Subsidiary Senior Unsecured Notes issued that remain outstanding
   Interest Rate
Issuance DateMaturity DateOutstanding Principal
(in millions)		Stated
Effective(b)
Term Loan A FacilityMarch 2021March 2026$717 (a)6.34 %
Term Loan B FacilityMarch 2021March 2028$1,459 (a)5.06 %
Subsidiary Senior Unsecured NotesJune 2017June 2027$750 4.75 %4.90 %

(a)The interest rates applicable to the Term Loan A Facility as well as the Revolving Facility range from 0.75% to 1.50% plus Secured Overnight Financing Rate ("SOFR") or from 0.00% to 0.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total leverage ratio (as defined in the Credit Agreement). As of December 31, 2023, the interest rate spreads on the SOFR and Base Rate applicable to our Term Loan A Facility were 0.75% and 0.00%, respectively.

The interest rates applicable to the Term Loan B Facility are 1.75% plus SOFR or 0.75% plus the Base Rate, at the Borrowers’ election.

We transitioned to SOFR as the benchmark reference rate under the Credit Agreement during 2023 following the cease of publication of remaining LIBOR tenors on June 30, 2023.

(b)    Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on SOFR-based interest rates at December 31, 2023.
Senior Unsecured Notes issued that remain outstanding The following table summarizes all YUM Senior Unsecured Notes issued that remain outstanding at December 31, 2023:
   Interest Rate
Issuance DateMaturity DatePrincipal Amount (in millions)Stated
Effective(a)
October 2007November 2037$325 6.88 %7.45 %
October 2013November 2043$275 5.35 %5.42 %
September 2019January 2030$800 4.75 %4.90 %
September 2020March 2031$1,050 3.63 %3.77 %
April 2021January 2032$1,100 4.63 %4.77 %
April 2022April 2032$1,000 5.38 %5.53 %

(a)Includes the effects of the amortization of any (1) premium or discount; (2) debt issuance costs; and (3) gain or loss upon settlement of related treasury locks and forward starting interest rate swaps utilized to hedge the interest rate risk prior to debt issuance.
Annual maturities of short-term borrowings and long-term debt excluding capital lease obligations and derivative instrument adjustments
The annual maturities of all Short-term borrowings and Long-term debt as of December 31, 2023, excluding finance lease obligations of $50 million and debt issuance costs and discounts of $74 million are as follows:

 
Year ended: 
2024$48 
202553 
20261,599 
20271,649 
20281,994 
Thereafter5,876 
Total$11,219 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Lease, Cost
202320222021
Operating lease cost$130 $133 $145 
Finance lease cost
Amortization of right-of-use assets
6 7 5 
Interest on lease liabilities
2 3 4 
Total finance lease cost$8 $10 $9 
Sublease income$(51)$(55)$(59)
Condensed Cash Flow Statement
20232022
2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases$127 $137 $140 
Operating cash flows from finance leases2 3 4 
Financing cash flows from finance leases7 5 4 
Right-of-use assets obtained in exchange for lease obligations
Operating leases
127 93 119 
Finance leases6 10 5 
Operating lease liabilities transferred through refranchising(14)(14)(25)
Finance lease and other debt obligations transferred through refranchising (5)— (2)
Condensed Balance Sheet
20232022Consolidated Balance Sheet
Assets
Operating lease right-of-use assets$764 $742 Other assets
Finance lease right-of-use assets29 33 Property, plant and equipment, net
Total right-of-use assets(a)
$793 $775 
Liabilities
Current
Operating
$79 $79 Accounts payable and other current liabilities
Finance
8 8 Short-term borrowings
Non-current
Operating
757 731 Other liabilities and deferred credits
Finance
42 49 Long-term debt
Total lease liabilities(a)
$886 $867 
Weighted-average Remaining Lease Term (in years)
Operating leases
10.610.8
Finance leases
11.411.6
Weighted-average Discount Rate
Operating leases
5.3 %5.1 %
Finance leases
5.7 %5.8 %

(a)    U.S. operating lease right-of-use assets and liabilities totaled $541 million and $605 million, respectively, as of December 31, 2023, and $515 million and $575 million, respectively, as of December 31, 2022. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell and Habit Burger Grill restaurant support center.
Future minimum commitments and amounts to be received as lessor or sublessor under non-cancelable leases
Future minimum lease payments, including rental payments for lease renewal options we are reasonably certain to exercise, and amounts to be received as lessor or sublessor as of December 31, 2023, were as follows:

CommitmentsLease Receivables
FinanceOperatingDirect FinancingOperating
2024$10 $118 $3 $77 
20258 124 3 72 
20266 118 3 69 
20276 109 3 62 
20285 99 2 55 
Thereafter29 531 17 416 
Total lease payments/receipts64 1,099 31 $751 
Less imputed interest/unearned income(14)(263)(11)
Total lease liabilities/receivables$50 $836 $20 
v3.24.0.1
Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss) [Table Text Block]
Gains and losses on these interest rate swaps recognized in OCI and reclassifiied from AOCI into Net Income were as follows:
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 
2023
 
2022
2021
 
2023
 
2022
2021
Interest rate swaps$14 $115 $34 $(30)$21 $29 
Income tax benefit/(expense)(4)(30)(8)8 (4)(6)
v3.24.0.1
Fair Value Disclosures (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis The following table presents the carrying value and estimated fair value of the Company’s debt obligations:
 
2023
2022
 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2)
Securitization Notes(a)
$3,743 $3,391 $3,772 $3,273 
Subsidiary Senior Unsecured Notes(b)
750 742 750 731 
Term Loan A Facility(b)
717 716 736 729 
Term Loan B Facility(b)
1,459 1,466 1,474 1,459 
YUM Senior Unsecured Notes(b)
4,550 4,439 4,875 4,473 
(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.

(b)    We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility, and Term Loan B Facility using market quotes and calculations based on market rates.
Fair Value Measurements, Recurring Basis The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.  
Fair Value
Consolidated Balance SheetLevel
2023
2022
Assets
InvestmentsOther assets1 $125 $118 
InvestmentsOther assets3 7 5 
Interest Rate SwapsPrepaid expenses and other current assets2 24 26 
Interest Rate SwapsOther assets2 2 16 
v3.24.0.1
Pension, Retiree Medical and Retiree Savings Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Funded status of pension plans
 20232022
Change in benefit obligation:  
Benefit obligation at beginning of year$755 $1,069 
Service cost5 7 
Interest cost41 31 
Benefits paid(34)(29)
Settlement payments— (59)
Actuarial (gain) loss11 (264)
Benefit obligation at end of year$778 $755 
A significant component of the overall increase in the Company's benefit obligation for the year ended December 31, 2023, was due to interest cost on the benefit obligation partially offset by benefits paid during the year.

A significant component of the overall decrease in the Company’s benefit obligation for the year ended December 31, 2022, was due to an actuarial gain, which was primarily due to an increase in the discount rate used to measure our benefit obligation from 3.00% at December 31, 2021 to 5.60% at December 31, 2022.
20232022
Change in plan assets:
Fair value of plan assets at beginning of year$664 $1,010 
Actual return on plan assets46 (272)
Employer contributions4 14 
Benefits paid(34)(29)
Settlement payments— (59)
Fair value of plan assets at end of year$680 $664 
 Funded status at end of year$(98)$(91)
Amounts recognized in the Consolidated Balance Sheet
Amounts recognized in the Consolidated Balance Sheet:
 20232022
Accrued benefit asset - non-current$— $— 
Accrued benefit liability - current(8)(6)
Accrued benefit liability - non-current(90)(85)
 $(98)$(91)
Pension plans with an accumulated benefit obligation in excess of pan assets
The table below provides information for those pension plan(s) with an accumulated benefit obligation in excess of plan assets. The pension plan(s) included also have a projected benefit obligation in excess of plan assets.
 20232022
Projected benefit obligation$778 $755 
Accumulated benefit obligation763 740 
Fair value of plan assets680 644 
Components of net periodic benefit cost
Components of net periodic benefit cost:
202320222021
Service cost$5 $7 $8 
Interest cost41 31 32 
Amortization of prior service cost(a)
1 6 6 
Expected return on plan assets(50)(46)(43)
Amortization of net loss (gain)
(1)11 14 
Net periodic benefit cost (income)
$(4)$9 $17 

Additional (gain) loss recognized due to:

Settlement charges(b)
$— $6 $— 

(a)Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

(b)Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
 [1],[2]
Pension losses in accumulated other comprehensive income (loss)
Pension gains (losses) in AOCI:
 20232022
Beginning of year$(74)$(43)
Net actuarial gain (loss)(13)(54)
Amortization of net (gain) loss
(1)11 
Amortization of prior service cost1 6 
Settlement charges— 6 
End of year$(87)$(74)
Schedule of Accumulated pre-tax losses recognized in Accumulated Other Comprehensive Income
Accumulated pre-tax losses recognized within AOCI:
 20232022
Actuarial net loss$(84)$(70)
Prior service cost(3)(4)
 $(87)$(74)
Weighted-average assumptions used to determine benefit obligations and net periodic benefit cost
Weighted-average assumptions used to determine benefit obligations at the measurement dates:
 20232022
Discount rate5.60 %5.60 %
Rate of compensation increase3.00 %3.00 %

Weighted-average assumptions used to determine the net periodic benefit cost for fiscal years:
 
2023
2022
2021
Discount rate5.60 %3.00 %2.80 %
Long-term rate of return on plan assets6.25 %5.40 %5.25 %
Rate of compensation increase3.00 %3.00 %3.00 %
Schedule of Changes in Fair Value of Plan Assets
The fair values of our pension plan assets at December 31, 2023 and 2022 by asset category and level within the fair value hierarchy are as follows:

 20232022
Level 1:
Cash$— $1 
Cash Equivalents(a)
61 22 
Fixed Income Securities - U.S. Corporate(b)
7 14 
Level 2:
Equity Securities(b)
213 179 
Fixed Income Securities - U.S. Corporate(c)
25 22 
Fixed Income Securities - U.S. Government and Government Agencies(d)
124 118 
Fixed Income Securities - Other(d)
11 19 
Total assets in the fair value hierarchy441 375 
Investments measured at net asset value(e)
Fixed Income132 146 
Real Assets149 192 
Total fair value of plan assets(f)
$722 $713 

(a)Short-term investments in money market funds.

(b)Securities held in common or collective trusts.
(c)Investments held directly by the Plan.
(d)Includes securities held in common or collective trusts and investments held directly by the Plan.

(e)Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.

(f)2023 and 2022 exclude net unsettled trade payables of $42 million and $49 million, respectively.
 [3],[4],[5],[6],[7],[8]
Fair values of pension plan assets As of December 31, 2023, the Plan’s assets consist of the weighted-average target allocation summarized as follows:
Asset CategoryTarget Allocation
Fixed income49 %
Equity securities32 %
Real assets19 %
Expected benefit payments
The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below:

Year ended:
2024$50 
202554 
202659 
202757 
202860 
2029 - 2033280 
[1] Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
[2] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense
[3] Includes securities held in common or collective trusts and investments held directly by the Plan.
[4] Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.
[5] Short-term investments in money market funds.
[6] 2023 and 2022 exclude net unsettled trade payables of $42 million and $49 million, respectively.
[7] Securities held in common or collective trusts.
[8] Investments held directly by the Plan.
v3.24.0.1
Share-based and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Compensation Related Costs [Abstract]  
Summary of award activity
Stock Options and SARs

 Shares
(in thousands)		Weighted-Average Exercise
Price		Weighted- Average Remaining Contractual Term (years)Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of the year11,281  $86.18   
Granted1,057  131.28   
Exercised(2,016)74.33   
Forfeited or expired(218)117.63   
Outstanding at the end of the year10,104 
(a)
92.58 6.44$385 
Exercisable at the end of the year7,499  $83.37 5.54$355 

(a)Outstanding awards include 309 options and 9,795 SARs with weighted average exercise prices of $103.33 and $92.25, respectively. Outstanding awards represent YUM awards held by employees of both YUM and Yum China.
Impact on net income
The components of share-based compensation expense and the related income tax benefits are shown in the following table:

 202320222021
Options and SARs$27 $26 $29 
Restricted Stock Units35 27 16 
Performance Share Units33 29 30 
Total Share-based Compensation Expense$95 $82 $75 

Deferred Tax Benefit recognized$12 $16 $15 
Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions
We estimated the fair value of each stock option and SAR award as of the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

 202320222021
Risk-free interest rate3.6 %1.7 %0.5 %
Expected term5.9 years6.6 years6.3 years
Expected volatility22.0 %25.0 %27.0 %
Expected dividend yield1.8 %1.9 %1.9 %
v3.24.0.1
Shareholders' Equity (Tables)
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Repurchase Of Shares Of Common Stock
 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased
Authorization Date202320222021202320222021
September 2022387 1,967 — $50 $250 $— 
May 2021— 8,116 8,235 — 950 1,050 
November 2019— — 4,746 — — 530 
Total387 10,083 12,981 
(a)
$50 $1,200 $1,580 
(a)

(a)    2021 amount excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.
Schedule of changes in accumulated other comprehensive income
Changes in AOCI are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature
Pension and Post-Retirement Benefits(a)
Derivative Instruments(b)
Total
Balance at December 31, 2021, net of tax$(206)$(34)$(85)$(325)
OCI, net of tax
Gains (losses) arising during the year classified into AOCI, net of tax(84)(88)86 (86)
(Gains) losses reclassified from AOCI, net of tax— 28 14 42 
(84)(60)100 (44)
Balance at December 31, 2022, net of tax$(290)$(94)$15 $(369)
OCI, net of tax
Gains (losses) arising during the year classified into AOCI, net of tax18 (11)10 17 
(Gains) losses reclassified from AOCI, net of tax71 1 (22)50 
89 (10)(12)67 
Balance at December 31, 2023, net of tax
$(201)$(104)$3 $(302)

(a)    Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2023 include amortization of prior service cost of $1 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2022 include amortization of net losses of $22 million, amortization of prior service cost of $5 million, settlement charges of $7 million and related income tax benefit of $6 million. See Note 15.

(b)    See Note 13 for details on amounts reclassified from AOCI.
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income before income taxes
U.S. and foreign income before taxes are set forth below:

 202320222021
U.S.$1,246 $1,124 $1,062 
Foreign572 538 612 
 $1,818 $1,662 $1,674 
Details of income tax provision (benefit)
The details of our income tax provision (benefit) are set forth below:

  202320222021
Current:Federal$221 $139 $45 
 Foreign222 200 214 
 State68 53 40 
  $511 $392 $299 
Deferred:Federal$(121)$(31)$21 
 Foreign(153)(10)(227)
 State(16)(14)6 
  $(290)$(55)$(200)
  $221 $337 $99 
Effective income tax and tax rate reconciliation
The reconciliation of income taxes calculated at the U.S. federal statutory rate to our effective tax rate is set forth below:

 202320222021
U.S. federal statutory rate21.0 %21.0 %21.0 %
State income tax, net of federal tax2.3 1.9 1.8 
Statutory rate differential attributable to foreign operations(1.7)(2.0)(1.0)
Adjustments to reserves and prior years1.3 1.6 1.1 
Excess tax benefits from stock-based awards(1.1)(1.4)(2.7)
Change in valuation allowances— (0.5)(0.8)
Impact of Russia Exit(0.5)4.3 — 
Intercompany restructuring and Valuations of Intellectual Property(9.1)(4.9)(11.3)
Nondeductible interest— — 1.4 
Impact of tax law changes— — (3.8)
Other, net(0.1)0.3 0.2 
Effective income tax rate12.1 %20.3 %5.9 %
Details of deferred tax assets (liabilities)
 20232022
Operating losses and interest deduction carryforwards$230 $183 
Capital losses71 70 
Tax credit carryforwards188 206 
Employee benefits75 74 
Share-based compensation58 55 
Lease-related liabilities242 240 
Accrued liabilities and other59 40 
Intangible assets610 520 
Property, plant and equipment30 32 
Deferred income103 103 
Capitalized Research & Development Costs92 35 
Gross deferred tax assets1,758 1,558 
Deferred tax asset valuation allowances(386)(458)
Net deferred tax assets$1,372 $1,100 
Property, plant and equipment$(51)$(79)
Operating lease right-of-use assets(210)(203)
Employee benefits(8)(7)
Derivative Instruments(17)(27)
Other(42)(35)
Gross deferred tax liabilities$(328)$(351)
Net deferred tax assets (liabilities)$1,044 $749 

The details of the 2023 and 2022 valuation allowance activity are set forth below:

 20232022
Beginning of Year$(458)$(462)
Increases(19)(22)
Decreases91 21 
Other Adjustments— 5 
End of Year$(386)$(458)

Reported in Consolidated Balance Sheets as:
 
2023
2022
Deferred income taxes$1,045 $750 
Other liabilities and deferred credits(1)(1)
$1,044 $749 
Loss carryforwards, by year of expiration
 Gross AmountDeferred Tax AssetValuation AllowanceExpiration
Federal net operating losses - Indefinite$60 $13 $— None
Foreign net operating losses211 34 (14)2024-2043
Foreign net operating losses - Indefinite414 98 (20)None
State net operating losses1,208 52 (36)2024-2043
Foreign capital loss carryforward - Indefinite281 71 (71)None
Foreign tax credits (US Tax Return)
150 150 (117)2026-2032
Foreign country tax credits
38 38 (9)2031
State interest deduction carryforward - Indefinite681 33 (32)None
$3,043 $489 $(299)
Unrecognized tax benefits reconciliation
 20232022
Beginning of Year$128 $116 
     Additions on tax positions - current year9 4 
     Additions for tax positions - prior years42 8 
     Reductions for tax positions - prior years(28)— 
     Reductions for settlements— — 
End of Year$151 $128 
v3.24.0.1
Reportable Operating Segments (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
 Revenues
 202320222021
KFC Division(a)
$2,830 $2,834 $2,793 
Taco Bell Division(a)
2,641 2,437 2,238 
Pizza Hut Division(a)
1,019 1,004 1,028 
Habit Burger Grill Division(a)
586 567 525 
 $7,076 $6,842 $6,584 
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
 Operating Profit
 202320222021
KFC Division$1,304 $1,198 $1,230 
Taco Bell Division944 850 758 
Pizza Hut Division391 387 387 
Habit Burger Grill Division(14)(24)2 
Corporate and unallocated G&A expenses(b)(c)
(326)(297)(260)
Unallocated Franchise and property expenses(b)(c)
(1)(6)1 
Unallocated Refranchising gain (loss)(b)
29 27 35 
Unallocated Other income (expense)(b)(c)
(9)52 (14)
Operating Profit2,318 2,187 2,139 
Investment income (expense), net(b)
7 11 86 
Other pension income (expense)(b)
6 (9)(7)
Interest expense, net(b)
(513)(527)(544)
Income before income taxes$1,818 $1,662 $1,674 
Reconciliation of Other Significant Reconciling Items from Segments to Consolidated
 Depreciation and Amortization
 202320222021
KFC Division$22 $23 $28 
Taco Bell Division61 48 53 
Pizza Hut Division20 19 32 
Habit Burger Grill Division30 29 28 
Corporate20 27 23 
 $153 $146 $164 
 Capital Spending
 202320222021
KFC Division$73 $71 $60 
Taco Bell Division101 101 62 
Pizza Hut Division12 22 18 
Habit Burger Grill Division64 56 56 
Corporate35 29 34 
 $285 $279 $230 
 
Identifiable Assets(e)
20232022
KFC Division$2,281 $2,227 
Taco Bell Division1,544 1,483 
Pizza Hut Division814 788 
Habit Burger Grill Division630 591 
Corporate(d)
962 757 
 $6,231 $5,846 

 
Long-Lived Assets(f)
 20232022
KFC Division$891 $893 
Taco Bell Division975 950 
Pizza Hut Division378 400 
Habit Burger Grill Division580 534 
Corporate156 128 
 $2,980 $2,905 

(a)U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $4.1 billion in 2023, $3.9 billion in 2022 and $3.6 billion in 2021.

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

(c)Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (see Note 3), within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2023, and net operating profit of $44 million from Divisional Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022, respectively. Additionally, we recorded a charge of $3 million to Unallocated Other income (expense) during the year ended December 31, 2023 from the sale of our KFC Russia business.

Also included in Unallocated Other income (expense) were $1 million in foreign exchange losses and $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian Ruble during the years ended December 31, 2023 and 2022, respectively. Additionally, we recorded charges of $5 million to Corporate and unallocated G&A expenses and $1 million to Unallocated Franchise and property expenses during the year ended December 31, 2023, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar charges of $7 million to Corporate and Unallocated G&A expenses and $6 million to Unallocated Franchise and property expenses during the year ended December 31, 2022.

(d)Primarily includes cash and deferred tax assets.

(e)U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion at both 2023 and 2022.

(f)Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets. Excludes KFC Russia long-lived assets of $108 million as of December 31, 2022 which were classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note 9).
v3.24.0.1
Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Activity related to self-insured property and casualty reserves
The following table summarizes the 2023 and 2022 activity related to our net self-insured property and casualty reserves as of December 31, 2023.

 Beginning BalanceExpensePaymentsEnding Balance
2023 Activity
$50 35 (37)$48 
2022 Activity$48 28 (26)$50 
v3.24.0.1
Description of Business (Details)
 12 Months Ended
Dec. 31, 2023
restaurants
operating_segments
countries_and_territiories
Segment Reporting Information [Line Items]  
Approximate Number Of System Units | restaurants 58,000
Approximate Number Of Countries And Territories Where System Units Are Located | countries_and_territiories 155
Franchise Restaurant Ownership 98.00%
Number of Operating Segments | operating_segments 4
v3.24.0.1
Summary of Significant Accounting Policies (Details)
$ / shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Years
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
Schedule of Equity Method Investments [Line Items]      
Future lease payments due from franchisees on a nominal basis $ 800    
Revenues 7,076 $ 6,842 $ 6,584
Operating Profit 2,318 2,187 2,139
Net Income 1,597 1,325 1,575
Foreign currency translation adjustment 201    
Prior Period Reclassification Adjustment 0    
Advertising Expense 81 78 84
Franchise advertising and other services expense 1,683 1,667 1,576
Accumulated Deficit $ (7,616) (8,507)  
Period Within Date Of Corresponding Sales In Which Trade Receivables Are Classified As Accounts And Notes Receivable 30 days    
Accounts and notes receivable $ 776 685  
Allowance for doubtful accounts (39) (37)  
Accounts and notes receivable, net $ 737 648  
Number of years notes receivable and direct financing leases are due within and would be included in accounts and notes receivable | Years 1    
Number of years notes receivable and direct financing leases are beyond and would be included in other assets | Years 1    
Net amounts included in Other Assets $ 61 64  
Allowance for doubtful accounts related to notes and direct financing lease receivables $ 1 $ 1  
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition | Years 2    
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised | Years 2    
Common Stock, No Par Value | $ / shares $ 0 $ 0  
Reclassification of Retained Earnings to Common Stock for Share Repurchase $ 26 $ 1,131 1,549
Employee stock option and SARs exercises (includes tax impact) 24 31 50
Reduction to Retained earnings      
Schedule of Equity Method Investments [Line Items]      
Net Income $ 1,597 1,325 1,575
Minimum [Member]      
Schedule of Equity Method Investments [Line Items]      
Continuing Fees Rate 4.00%    
Minimum [Member] | Capitalized software costs      
Schedule of Equity Method Investments [Line Items]      
Finite-Lived Intangible Asset, Useful Life 3 years    
Minimum [Member] | Buildings and improvements      
Schedule of Equity Method Investments [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 5 years    
Minimum [Member] | Machinery, Equipment and Other      
Schedule of Equity Method Investments [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 3 years    
Maximum [Member]      
Schedule of Equity Method Investments [Line Items]      
Continuing Fees Rate 6.00%    
Maximum [Member] | Capitalized software costs      
Schedule of Equity Method Investments [Line Items]      
Finite-Lived Intangible Asset, Useful Life 7 years    
Maximum [Member] | Buildings and improvements      
Schedule of Equity Method Investments [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 25 years    
Maximum [Member] | Machinery, Equipment and Other      
Schedule of Equity Method Investments [Line Items]      
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years) 20 years    
Advertising Cooperatives [Domain]      
Schedule of Equity Method Investments [Line Items]      
Advertising Expense $ 13 8 11
Franchise advertising and other services expense 1,293 1,298 1,264
Franchise and property expenses [Member]      
Schedule of Equity Method Investments [Line Items]      
Sales Allowances, Services 4 5 8
Franchise advertising and other services expenses [Member] [Member]      
Schedule of Equity Method Investments [Line Items]      
Sales Allowances, Services 3 $ 6 $ (6)
Operating Expense | Advertising Cooperatives [Domain]      
Schedule of Equity Method Investments [Line Items]      
Sales Allowances, Services $ 0    
v3.24.0.1
Russia Invasion of Ukraine (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
restaurants
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Mar. 31, 2022
restaurants
Long-Lived Assets Held-for-sale [Line Items]        
Assets held for sale [1] $ 4 $ 190    
Approximate Number Of System Units | restaurants 58,000      
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax $ 71 0 $ 0  
Proceeds from Divestiture of Businesses, Net of Cash Divested 121      
RUSSIAN FEDERATION        
Long-Lived Assets Held-for-sale [Line Items]        
Gain (Loss) on Sale of Assets and Asset Impairment Charges 3      
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax $ 60      
KFC Russia        
Long-Lived Assets Held-for-sale [Line Items]        
Assets held for sale   $ 185    
KFC Russia        
Long-Lived Assets Held-for-sale [Line Items]        
Approximate Number Of System Units | restaurants       70
[1] Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
v3.24.0.1
Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Earnings Per Share [Abstract]      
Net Income $ 1,597 $ 1,325 $ 1,575
Weighted-average common shares outstanding (for basic calculation) (in shares) 281.0 286.0 297.0
Effect of dilutive share-based employee compensation (in shares) 4.0 4.0 5.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) (in shares) 285.0 290.0 302.0
Basic EPS (in dollars per share) $ 5.68 $ 4.63 $ 5.30
Diluted EPS (in dollars per share) $ 5.59 $ 4.57 $ 5.21
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (in shares) [1] 1.7 1.9 1.1
[1] These unexercised employee SARs, RSUs, performance share units ("PSUs") and stock options were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.
v3.24.0.1
Items Affecting Comparability of Net Income and Cash Flows (Details)
$ in Millions
 3 Months Ended 5 Months Ended 7 Months Ended 12 Months Ended
Apr. 01, 2022
USD ($)
Rate
Jun. 01, 2021
USD ($)
Rate
Jun. 30, 2021
USD ($)
Jun. 09, 2021
Rate
Dec. 31, 2021
Rate
Dec. 31, 2023
USD ($)
restaurants
Rate
Dec. 31, 2023
USD ($)
restaurants
Rate
Dec. 31, 2023
USD ($)
restaurants
Rate
Dec. 31, 2023
USD ($)
restaurants
Rate
Dec. 31, 2022
USD ($)
Dec. 31, 2022
USD ($)
restaurants
Dec. 31, 2022
USD ($)
Rate
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2021
restaurants
Dec. 31, 2021
Rate
Dec. 31, 2021
Dec. 31, 2017
Rate
Dec. 31, 2020
restaurants
Rate
Facility Actions [Line Items]                                      
Proceeds from Divestiture of Businesses, Including Noncash Consideration           $ 60       $ 73       $ 85          
Refranchising (gain) loss           (29)       (27)       (35)          
General and administrative expenses           $ 1,193       1,140       1,060          
Approximate Number Of System Units | restaurants           58,000 58,000 58,000 58,000                    
Investment Income, Nonoperating           $ 8       11       87          
Payments for (Proceeds from) Investments           121       0       0          
Investment (income) expense, net [1]           7       11       86          
Deferred income taxes           290       55       200          
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent                 0.00%       0.00%       (3.80%)    
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability     $ 64                                
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount                   (13)       (15)          
Assets held for sale [2]           $ 4 $ 4 $ 4 $ 4 190 $ 190 $ 190 $ 190            
Effective Income Tax Rate Reconciliation, Percent               12.10% 12.10%     20.30% 20.30%     5.90% 5.90% 100.00%  
Devyani                                      
Facility Actions [Line Items]                                      
Equity Method Investment, Ownership Percentage | Rate           5.00% 5.00% 5.00% 5.00%                   5.00%
Number of stores refranchised                                      
Facility Actions [Line Items]                                      
Approximate Number Of System Units | restaurants                                     60
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]                                      
Facility Actions [Line Items]                                      
Write off of Deferred Debt Issuance Cost                           6          
Repayments of Debt, Maturing in More than Three Months $ 600 $ 1,050                                  
Interest rate, stated (in hundredths) | Rate   5.25%                                  
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | Rate   102.625%                                  
Payment for Debt Extinguishment or Debt Prepayment Cost   $ 28               23       28          
Senior Unsecured Notes Due April 2025                                      
Facility Actions [Line Items]                                      
Interest rate, stated (in hundredths) | Rate 7.75%                                    
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | Rate 103.875%                                    
Payment for Debt Extinguishment or Debt Prepayment Cost $ 23                                    
Debt Instrument, Face Amount                   600 $ 600 $ 600 $ 600            
Senior Unsecured Notes Due April 2025 | Secured Debt [Member]                                      
Facility Actions [Line Items]                                      
Write off of Deferred Debt Issuance Cost                   5                  
Foreign [Member]                                      
Facility Actions [Line Items]                                      
Deferred income taxes           $ (99)                          
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | Rate       19.00% 25.00%     15.00%                      
Gain (loss) on disposition of assets [Member]                                      
Facility Actions [Line Items]                                      
Number of Restaurants Refranchised | restaurants             15       22       83        
General and Administrative Expense [Member]                                      
Facility Actions [Line Items]                                      
Costs Associated with Resource Optimization Initiative           21       11       8          
KFC Global Division [Member]                                      
Facility Actions [Line Items]                                      
Refranchising (gain) loss           2       (3)       (1)          
Pizza Hut Global Division [Member]                                      
Facility Actions [Line Items]                                      
Refranchising (gain) loss           2       (1)       1          
Taco Bell Global Division [Member]                                      
Facility Actions [Line Items]                                      
Refranchising (gain) loss           (33)       (13)       (29)          
The Habit Burger Grill Global Division                                      
Facility Actions [Line Items]                                      
Refranchising (gain) loss           0       $ (10)       (6)          
Intra-Entity IP Transfers [Member]                                      
Facility Actions [Line Items]                                      
Deferred income taxes           $ (44)                          
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability                           $ 187          
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
v3.24.0.1
Revenue Recognition (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenues $ 7,076 $ 6,842 $ 6,584
Contract with Customer, Liability 444 434 421
Contract with Customer, Liability, Held-for-Sale   (15)  
Deferred Revenue, Revenue Recognized (81) (79)  
Deferred Revenue, Additions 101 112  
1 year [Member]      
Deferred Revenue, Revenue Expected to be Recognized 72    
2 years [Member]      
Deferred Revenue, Revenue Expected to be Recognized 65    
3 years [Member]      
Deferred Revenue, Revenue Expected to be Recognized 60    
4 years [Member]      
Deferred Revenue, Revenue Expected to be Recognized 53    
5 years [Member]      
Deferred Revenue, Revenue Expected to be Recognized 45    
Thereafter 5 years [Member]      
Deferred Revenue, Revenue Expected to be Recognized 149    
Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 2,142 2,072 2,106
Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 1,687 1,674 1,578
United States      
Revenues 4,100 3,900 3,600
United States | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 1,725 1,648 1,550
United States | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 1,318 1,233 1,142
United States | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 1,001 934 891
United States | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 62 64 63
CHINA | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 316 276 297
Other, Outside the U.S. and China [Member] | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 417 424 556
Other, Outside the U.S. and China [Member] | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 1,498 1,463 1,335
Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 686 740 687
Other, Outside the U.S. and China [Member] | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 53 60 63
KFC Global Division [Member]      
Revenues [1] 2,830 2,834 2,793
KFC Global Division [Member] | United States | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 67 67 65
KFC Global Division [Member] | United States | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 205 202 198
KFC Global Division [Member] | United States | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 36 29 28
KFC Global Division [Member] | United States | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 14 14 14
KFC Global Division [Member] | CHINA | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 250 219 235
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 417 424 531
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 1,178 1,152 1,049
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 612 669 612
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 51 58 61
Pizza Hut Global Division [Member]      
Revenues [1] 1,019 1,004 1,028
Pizza Hut Global Division [Member] | United States | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 14 21 21
Pizza Hut Global Division [Member] | United States | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 284 280 279
Pizza Hut Global Division [Member] | United States | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 318 312 317
Pizza Hut Global Division [Member] | United States | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 4 5 5
Pizza Hut Global Division [Member] | CHINA | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 66 57 62
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 25
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 266 263 249
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 65 64 68
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 2 2 2
Taco Bell Global Division [Member]      
Revenues [1] 2,641 2,437 2,238
Taco Bell Global Division [Member] | United States | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 1,069 1,002 944
Taco Bell Global Division [Member] | United States | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 822 745 661
Taco Bell Global Division [Member] | United States | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 645 591 545
Taco Bell Global Division [Member] | United States | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 42 44 44
Taco Bell Global Division [Member] | CHINA | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 54 48 37
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 9 7 7
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
The Habit Burger Grill Global Division      
Revenues [1] 586 567 525
The Habit Burger Grill Global Division | United States | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 575 558 520
The Habit Burger Grill Global Division | United States | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 7 6 4
The Habit Burger Grill Global Division | United States | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 2 2 1
The Habit Burger Grill Global Division | United States | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 2 1 0
The Habit Burger Grill Global Division | CHINA | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Company Sales      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise [Member]      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax   0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Real Estate      
Revenue from Contract with Customer, Excluding Assessed Tax 0 0 $ 0
Other, Outside the U.S. and China [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services      
Revenue from Contract with Customer, Excluding Assessed Tax 0    
Foreign Currency Gain (Loss) and Refranchising Gain (Loss) [Member]      
Deferred Revenue, Period Increase (Decrease) [2] $ (10) $ (5)  
[1] U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $4.1 billion in 2023, $3.9 billion in 2022 and $3.6 billion in 2021.
[2] Includes impact of foreign currency translation, as well as, in 2023, the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements.
v3.24.0.1
Supplemental Cash Flow Data (Details) - USD ($)
$ in Millions
 12 Months Ended
Jun. 01, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Cash Paid For:          
Interest Paid, Excluding Capitalized Interest, Operating Activities [1]   $ 526 $ 486 $ 471  
Income taxes   432 371 308  
Cash and Cash Equivalents, at Carrying Value   512 367 486  
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents   $ 724 647 771 $ 1,024
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]          
Cash Paid For:          
Payment for Debt Extinguishment or Debt Prepayment Cost $ 28   $ 23 $ 28  
Prepaid Expenses and Other Current Assets [Member]          
Cash Paid For:          
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration] [2]   Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current  
Other Assets [Member]          
Cash Paid For:          
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration] [3]   Other assets Other assets Other assets  
Long-Lived Assets Held-for-sale, Name [Domain]          
Cash Paid For:          
Restricted Cash and Cash Equivalents, Noncurrent, Statement of Financial Position [Extensible Enumeration]   Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents  
[1] Amounts exclude payments of $23 million in 2022 and $28 million in 2021 classified as Interest expense in our Consolidated Statements of Income which are included in Repayments of long-term debt within financing activities in our Consolidated Statements of Cash Flows (see Note 11).
[2] Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments (see Note 11).
[3] Primarily trust accounts related to our self-insurance program.
v3.24.0.1
Other (Income) Expense (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Income and Expenses [Line Items]      
Gain (Loss), Foreign Currency Transaction, before Tax $ 5 $ (9) $ 8
Impairment and closure expense 13 10 19
Other income (expense) excluding foreign exchange gain (loss) (3) 8 (22)
Other (income) expense 14 7 2
Other Operating Income (Expense)      
Other Income and Expenses [Line Items]      
Impairment and closure expense $ 12 $ 8 $ 16
v3.24.0.1
Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Prepaid Expenses and Other Current Assets [Line Items]      
Income tax receivable $ 20 $ 32  
Restricted Cash and Cash Equivalents, Current 177 220  
Assets held for sale [1] 4 190  
Prepaid Expense and Other Assets, Current 360 594  
Property, Plant and Equipment [Line Items]      
Property, Plant and equipment, gross 2,529 2,454  
Accumulated depreciation and amortization (1,332) (1,283)  
Property, Plant and equipment, net 1,197 1,171  
Depreciation and amortization 126 128 $ 134
Other Assets, Noncurrent [Line Items]      
Other assets 1,361 1,324  
Other Assets, Miscellaneous, Noncurrent $ 298 $ 294  
Accounts Payable and Other Current Liabilities [Line Items]      
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and other current liabilities Accounts payable and other current liabilities  
Disposal Group, Including Discontinued Operation, Other Liabilities [1] $ 2 $ 65  
Accounts payable and other current liabilities 1,169 1,251  
Assets held for sale [1] 4 190  
Contract With Customer, Liability Gift Cards 72 69  
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]      
Other Assets, Noncurrent [Line Items]      
Equity Securities, FV-NI 124 116  
Franchise Incentive [Member]      
Other Assets, Noncurrent [Line Items]      
Other assets 175 172  
KFC Russia      
Prepaid Expenses and Other Current Assets [Line Items]      
Assets held for sale   185  
Accounts Payable and Other Current Liabilities [Line Items]      
Assets held for sale   185  
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current   59  
Disposal Group, Including Discontinued Operation, Liabilities   65  
Land      
Property, Plant and Equipment [Line Items]      
Property, Plant and equipment, gross 373 376  
Buildings and improvements      
Property, Plant and Equipment [Line Items]      
Property, Plant and equipment, gross 1,421 1,364  
Finance leases, primarily buildings      
Property, Plant and Equipment [Line Items]      
Property, Plant and equipment, gross 59 63  
Machinery, Equipment and Other      
Property, Plant and Equipment [Line Items]      
Property, Plant and equipment, gross $ 676 $ 651  
Other Assets [Member]      
Other Assets, Noncurrent [Line Items]      
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets  
Prepaid Expenses and Other Current Assets [Member]      
Prepaid Expenses and Other Current Assets [Line Items]      
Assets held for sale   $ 190  
Prepaid expenses and other current assets $ 159 152  
Accounts Payable and Other Current Liabilities [Line Items]      
Assets held for sale   190  
Accounts Payable and Accrued Liabilities [Member]      
Accounts Payable and Other Current Liabilities [Line Items]      
Accounts payable 231 243  
Accrued compensation and benefits 258 246  
Accrued Advertising, Current 146 175  
Accrued Liabilities, Current 82 83  
Other current liabilities $ 299 $ 291  
[1] Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
v3.24.0.1
Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill [1] $ 642 $ 638 $ 657
Disposals and other, net [2] 4 (19)  
KFC Global Division [Member]      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill [1] 226 225 232
Disposals and other, net [2] 1 (7)  
Taco Bell Global Division [Member]      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill [1] 98 98 98
Disposals and other, net [2] 0 0  
Pizza Hut Global Division [Member]      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill [1] 252 249 257
Disposals and other, net [2] 3 (8)  
Goodwill, Impaired, Accumulated Impairment Loss 17    
The Habit Burger Grill Global Division      
Changes in the carrying amount of goodwill [Roll Forward]      
Goodwill [1] 66 66 $ 70
Disposals and other, net [2] 0 $ (4)  
Goodwill, Impaired, Accumulated Impairment Loss $ 144    
[1] Goodwill, net includes $144 million of accumulated impairment losses related to our Habit Burger Grill segment and $17 million of accumulated impairment losses related to our Pizza Hut segment for each year presented.
[2] Disposals and other, net includes the impact of foreign currency translation on existing balances and goodwill write-offs associated with refranchising.
v3.24.0.1
Goodwill and Intangible Assets (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Definite-lived intangible assets      
Gross Carrying Amount $ 633 $ 619  
Accumulated Amortization (404) (392)  
Definite-lived intangible assets, amortization expense 74 68 $ 76
Approximate amortization expense for definite-lived intangible assets - 2022 79    
Approximate amortization expense for definite-lived intangible assets - 2023 63    
Approximate amortization expense for definite-lived intangible assets - 2024 48    
Approximate amortization expense for definite-lived intangible assets - 2025 26    
Approximate amortization expense for definite-lived intangible assets - 2026 10    
KFC Russia      
Definite-lived intangible assets      
Gross Carrying Amount   23  
Trademarks/brands [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 148 127  
Capitalized software costs      
Definite-lived intangible assets      
Gross Carrying Amount 524 469  
Accumulated Amortization (309) (263)  
Reacquired franchise rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 7 35  
Accumulated Amortization (3) (29)  
Franchise contract rights [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 78 91  
Accumulated Amortization (73) (84)  
Other [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 24 24  
Accumulated Amortization (19) (16)  
KFC Global Division [Member] | Trademarks/brands [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 31 31  
The Habit Burger Grill Global Division | Trademarks/brands [Member]      
Definite-lived intangible assets      
Gross Carrying Amount 96 96  
Other Segments | Trademarks/brands [Member]      
Definite-lived intangible assets      
Gross Carrying Amount $ 21 $ 0  
v3.24.0.1
Short-term Borrowings and Long-term Debt (Details) - USD ($)
$ in Millions
 4 Months Ended 9 Months Ended 12 Months Ended
Apr. 01, 2022
Aug. 19, 2021
Jun. 01, 2021
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Mar. 15, 2021
Debt Instrument [Line Items]                  
Long-term Debt and Lease Obligation, Current           $ (56.0) $ (405.0)    
Debt Issuance Costs, Current, Net           (3.0) (7.0)    
Total Short-term Borrowings           $ 53.0 $ 398.0    
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration]           Other Liabilities Other Liabilities    
Long-Term Debt and Lease Obligation, Including Current Maturities           $ 11,269.0 $ 11,943.0    
Debt Issuance Costs, Noncurrent, Net           (71.0) (85.0)    
Long-term debt including hedge accounting adjustment           11,142.0 11,453.0    
Restricted Cash and Cash Equivalents, Current           177.0 220.0    
Payments of Debt Issuance Costs           0.0 11.0 $ 37.0  
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net           74.0      
Revolving credit facilities, three months or less, net           0.0      
Annual maturities of all Short-term borrowings and Long-term debt - 2022           48.0      
Annual maturities of all Short-term borrowings and Long-term debt - 2023           53.0      
Annual maturities of all Short-term borrowings and Long-term debt - 2024           1,599.0      
Annual maturities of all Short-term borrowings and Long-term debt - 2025           1,649.0      
Annual maturities of all Short-term borrowings and Long-term debt - 2026           1,994.0      
Annual maturities of all Short-term borrowings and Long-term debt - After 2026           5,876.0      
Annual maturities of all Short-term borrowings and Long-term debt - Total           11,219.0      
Interest expense on short-term borrowings and long-term debt           602.0 558.0 551.0  
Outstanding borrowings           0.0 279.0    
September 2022                  
Debt Instrument [Line Items]                  
Stock Repurchase Program, Authorized Amount           2,000.0      
Term Loan A Facility [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 717.0     $ 750.0
Issuance date           Mar. 15, 2021      
Maturity date           Mar. 15, 2026      
Term Loan B Facility [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 1,459.0     $ 1,500.0
Issuance date           Mar. 15, 2021      
Maturity date           Mar. 15, 2026      
Subsidiary Senior Unsecured Notes due 2027 [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 750.0      
Issuance date           Jun. 15, 2017      
Maturity date           Jun. 01, 2027      
Interest rate, stated (in hundredths)           4.75%      
Senior Unsecured Notes Due November 2037 [Member]                  
Debt Instrument [Line Items]                  
Issuance date           Oct. 16, 2007      
Maturity date           Nov. 15, 2037      
Interest rate, stated (in hundredths)           6.88%      
Interest rate, effective (in hundredths)           7.45%      
Debt Instrument, Face Amount           $ 325.0      
Senior Unsecured Notes Due November 2043 [Member]                  
Debt Instrument [Line Items]                  
Issuance date           Oct. 31, 2013      
Maturity date           Nov. 01, 2043      
Interest rate, stated (in hundredths)           5.35%      
Interest rate, effective (in hundredths)           5.42%      
Debt Instrument, Face Amount           $ 275.0      
Senior Unsecured Notes Due January 2030 [Member]                  
Debt Instrument [Line Items]                  
Issuance date           Sep. 11, 2019      
Maturity date           Jan. 15, 2030      
Interest rate, stated (in hundredths)           4.75%      
Interest rate, effective (in hundredths)           4.90%      
Debt Instrument, Face Amount           $ 800.0      
Senior Unsecured Notes Due April 2025                  
Debt Instrument [Line Items]                  
Interest rate, stated (in hundredths) 7.75%                
Debt Instrument, Face Amount             600.0    
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed 103.875%                
Payment for Debt Extinguishment or Debt Prepayment Cost $ 23.0                
Senior Unsecured Notes Due March 2031                  
Debt Instrument [Line Items]                  
Issuance date           Sep. 25, 2020      
Maturity date           Mar. 15, 2031      
Interest rate, stated (in hundredths)           3.63%      
Interest rate, effective (in hundredths)           3.77%      
Debt Instrument, Face Amount           $ 1,050.0      
Unsecured Notes Due January 2032                  
Debt Instrument [Line Items]                  
Issuance date           Apr. 01, 2021      
Maturity date           Jan. 31, 2032      
Interest rate, stated (in hundredths)           4.63%      
Interest rate, effective (in hundredths)           4.77%      
Debt Instrument, Face Amount           $ 1,100.0      
Unsecured Notes Due April 2032                  
Debt Instrument [Line Items]                  
Interest rate, effective (in hundredths)           5.53%      
Senior Unsecured Notes Due April 2032                  
Debt Instrument [Line Items]                  
Issuance date           Apr. 01, 2022      
Maturity date           Apr. 01, 2032      
Interest rate, stated (in hundredths)           5.38%      
Debt Instrument, Face Amount           $ 1,000.0      
Secured Debt [Member] | Class A-2-II Notes [Member] | 2021                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 589.0      
Issuance date   Aug. 19, 2021              
Maturity date [1]       Feb. 25, 2029          
Interest rate, stated (in hundredths)           2.294%      
Interest rate, effective (in hundredths) [2]           2.42%      
Secured Debt [Member] | Class A-2-II Notes [Member] | 2018 [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 595.0      
Issuance date           Nov. 28, 2018      
Maturity date [1]           Nov. 28, 2028      
Interest rate, stated (in hundredths)           4.94%      
Interest rate, effective (in hundredths) [2]           5.06%      
Secured Debt [Member] | Term Loan A Facility [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt [3]           $ 717.0 736.0    
Interest rate, effective (in hundredths) [4]           6.34%      
Frequency of interest payments           quarterly      
Term Loan A Facility, Repayments of Principal in Year Four           1.25%      
Term Loan A Facility Repayments Of Principal In Year Two And Three         0.625%        
Secured Debt [Member] | Term Loan B Facility [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt [3]           $ 1,459.0 1,474.0    
Interest rate, effective (in hundredths) [4]           5.06%      
Frequency of interest payments           quarterly      
Term Loan B, Repayment of Principal           0.25%      
Secured Debt [Member] | Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Line of credit facility, maximum borrowing capacity           $ 1,250.0      
Secured Debt [Member] | the Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Payment Terms           The Credit Agreement is subject to certain mandatory prepayments in the event certain covenants are not met, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights      
Debt Instrument, Covenant Compliance           We were in compliance with all debt covenants as of December 31, 2023      
Secured Debt [Member] | Class A-2-I Notes [Member] | 2021                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 884.0      
Issuance date   Aug. 19, 2021              
Maturity date [1]       Feb. 25, 2027          
Interest rate, stated (in hundredths)           1.946%      
Interest rate, effective (in hundredths) [2]           2.11%      
Secured Debt [Member] | Class A-2-III Notes [Member] | 2021                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 737.0      
Issuance date   Aug. 19, 2021              
Maturity date [1]       Aug. 25, 2031          
Interest rate, stated (in hundredths)           2.542%      
Interest rate, effective (in hundredths) [2]           2.64%      
Secured Debt [Member] | Class A-2-III Notes [Member] | 2016 [Member]                  
Debt Instrument [Line Items]                  
Long-term Debt           $ 938.0      
Issuance date           May 11, 2016      
Maturity date [1]           May 25, 2026      
Interest rate, stated (in hundredths)           4.97%      
Interest rate, effective (in hundredths) [2]           5.14%      
Secured Debt [Member] | Securitization Notes [Member]                  
Debt Instrument [Line Items]                  
Senior Notes, Noncurrent [5]           $ 3,743.0 3,772.0    
Frequency of interest payments           quarterly      
Debt Instrument, Payment Terms           no amortization of principal of the Securitization Notes is required prior to their anticipated repayment dates      
Long-term Debt, Contingent Payment of Principal or Interest           as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the related indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes are required. As of the most recent quarterly measurement date the consolidated leverage ratio for the Issuer and its subsidiaries did not exceed 5.0:1 and, as a result, amortization payments are not required.      
Debt Instrument, Debt Default, Description of Violation or Event of Default           The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio      
Debt Instrument, Covenant Compliance           As of December 31, 2023, we were in compliance with all of our debt covenant requirements and were not subject to any rapid amortization events      
Secured Debt [Member] | Class A-2 Notes [Member] | 2021                  
Debt Instrument [Line Items]                  
Long-term Debt, Maturity Date           Aug. 01, 2051      
Secured Debt [Member] | Class A-2 Notes [Member] | 2016 [Member]                  
Debt Instrument [Line Items]                  
Maturity date           May 01, 2046      
Secured Debt [Member] | Class A-2 Notes [Member] | 2018 [Member]                  
Debt Instrument [Line Items]                  
Maturity date           Nov. 01, 2048      
Secured Debt [Member] | Senior Unsecured Notes Due April 2025                  
Debt Instrument [Line Items]                  
Write off of Deferred Debt Issuance Cost             5.0    
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes [Member]                  
Debt Instrument [Line Items]                  
Senior Notes, Noncurrent [3]           $ 750.0 750.0    
Interest rate, stated (in hundredths)     5.25%            
Repayments of Debt, Maturing in More than Three Months $ 600.0   $ 1,050.0            
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed     102.625%            
Write off of Deferred Debt Issuance Cost               6.0  
Payment for Debt Extinguishment or Debt Prepayment Cost     $ 28.0       23.0 $ 28.0  
Debt Instrument, Covenant Compliance           We were in compliance with all debt covenants as of December 31, 2023      
Senior Unsecured Notes [Member] | Subsidiary Senior Unsecured Notes due 2027 [Member]                  
Debt Instrument [Line Items]                  
Interest rate, effective (in hundredths) [4]           4.90%      
Senior Unsecured Notes [Member] | YUM Senior Unsecured Notes [Member]                  
Debt Instrument [Line Items]                  
Senior Notes, Noncurrent [3]           $ 4,550.0 $ 4,875.0    
Debt Instrument, Debt Default, Description of Violation or Event of Default           Our YUM Senior Unsecured Notes contain covenants and events of default that are customary for debt securities of this type, including cross-default provisions whereby the acceleration of the maturity of any of our indebtedness in a principal amount in excess of $50 million ($100 million or more in the case of the YUM Senior Unsecured Notes issued in 2019 and subsequent years) will constitute a default under the YUM Senior Unsecured Notes unless such indebtedness is discharged, or the acceleration of the maturity of that indebtedness is annulled, within 30 days after notice      
Base Rate [Member] | Secured Debt [Member] | Term Loan A and B Facilities and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.00%      
Base Rate [Member] | Secured Debt [Member] | Term Loan B Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.75%      
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt [Member] | Term Loan A and B Facilities and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.75%      
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt [Member] | Term Loan B Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           1.75%      
Minimum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.00%      
Minimum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.75%      
Maximum [Member] | Base Rate [Member] | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           0.50%      
Maximum [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Secured Debt [Member] | Term Loan A Facility and Revolving Facility [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Basis Spread on Variable Rate           1.50%      
Debt Service Coverage Ratio - Rapid Amortization Events [Member] | Secured Debt [Member] | Securitization Notes [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Covenant Description           debt service coverage ratio (as defined in the related indenture) of at least 1.1:1      
Debt Service Coverage Ratio - Cash Trap Reserve Account [Member] | Secured Debt [Member] | Securitization Notes [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Covenant Description           debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1      
Debt Instrument, Covenant Compliance           During the most recent quarter ended December 31, 2023, the Securitization Entities maintained a debt service coverage ratio significantly in excess of the 1.75:1 requirement      
Total Leverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Covenant Description           require the Borrowers to maintain a total leverage ratio (defined as the ratio of Consolidated Total Debt to Consolidated EBITDA (as these terms are defined in the Credit Agreement)) of 5.0:1 or less      
Fixed Charge Coverage Ratio [Member] | Secured Debt [Member] | the Credit Agreement [Member]                  
Debt Instrument [Line Items]                  
Debt Instrument, Covenant Description           fixed charge coverage ratio (defined as the ratio of EBITDA minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1      
Prepaid Expenses and Other Current Assets [Member]                  
Debt Instrument [Line Items]                  
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration] [6]       Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current Prepaid Expense and Other Assets, Current  
Prepaid Expenses and Other Current Assets [Member] | Securitization Notes [Member]                  
Debt Instrument [Line Items]                  
Restricted Cash and Cash Equivalents, Current, Statement of Financial Position [Extensible Enumeration]           Prepaid Expense and Other Assets, Current      
Letter of Credit [Member] | Revolving Credit Facility [Member]                  
Debt Instrument [Line Items]                  
Outstanding letters of credit           $ 2.0      
[1] The legal final maturity dates of the Securitization Notes issued in 2016, 2018 and 2021 are May 2046, November 2048 and August 2051, respectively. If the Issuer has not repaid or refinanced a series of Securitization Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Securitization Notes.
[2] Includes the effects of the amortization of any discount and debt issuance costs.
[3] We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility, and Term Loan B Facility using market quotes and calculations based on market rates.
[4] Includes the effects of the amortization of any discount and debt issuance costs as well as the impact of the interest rate swaps on the Term Loan A and Term Loan B Facilities (see Note 13). The effective rates related to our Term Loan A and B Facilities are based on SOFR-based interest rates at December 31, 2023.
[5] We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
[6] Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments (see Note 11).
v3.24.0.1
Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Operating Lease, Cost $ 130 $ 133 $ 145
Finance Lease, Right-of-Use Asset, Amortization 6 7 5
Finance Lease, Interest Expense 2 3 4
Finance Lease Cost 8 10 9
Sublease Income (51) (55) (59)
Operating Lease, Payments 127 137 140
Finance Lease, Interest Payment on Liability 2 3 4
Finance Lease, Principal Payments 7 5 4
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability 127 93 119
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability 6 10 5
Operating lease liabilities transferred through refranchising (14) (14) (25)
Capital lease and other debt obligations transferred through refranchising (5) 0 $ (2)
Lease Right of Use Asset [1] $ 793 $ 775  
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] Accounts payable and other current liabilities Accounts payable and other current liabilities  
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] Debt, Current Debt, Current  
Operating Lease, Liability, Noncurrent Other Liabilities, Noncurrent Other Liabilities, Noncurrent  
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] Long-term debt Long-term debt  
Total Lease Liability [1] $ 886 $ 867  
Operating Lease, Weighted Average Remaining Lease Term 10 years 7 months 6 days 10 years 9 months 18 days  
Finance Lease, Weighted Average Remaining Lease Term 11 years 4 months 24 days 11 years 7 months 6 days  
Operating Lease, Weighted Average Discount Rate, Percent 5.30% 5.10%  
Finance Lease, Weighted Average Discount Rate, Percent 5.70% 5.80%  
Finance Lease, Liability $ 50    
Operating Leases, Future Minimum Payments Receivable 751    
Finance Lease, Liability, Undiscounted Excess Amount (14)    
Lessee, Operating Lease, Liability, Undiscounted Excess Amount (263)    
Sales-type and Direct Financing Leases, Lease Receivable, Undiscounted Excess Amount (11)    
Capital Leases, Net Investment in Direct Financing Leases, Minimum Payments to be Received 20    
YUM_LesseeOperatingLeaseLeaseNotYetCommencedAssumptionAndJudgmentValueOfUnderlyingLiabilityAmount $ 75    
Lessee, Operating Lease, Term of Contract 20 years    
Capital leases, future minimum commitments [Abstract]      
2022 $ 10    
2023 8    
2024 6    
2025 6    
2026 5    
Thereafter 29    
Capital leases, total future minimum commitments 64    
Operating leases, future minimum commitments [Abstract]      
2022 118    
2023 124    
2024 118    
2025 109    
2026 99    
Thereafter 531    
Operating leases, total future minimum commitments 1,099    
Direct Financing Lease, Lease Receivable 3    
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, Rolling Year Two 3    
Sales-Type and Direct Financing Leases, Lease Receivable, to be Received, Year Three 3    
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Four Years 3    
Sales-type and Direct Financing Leases, Lease Receivable, Payments to be Received, Five Years 2    
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, after Rolling Year Five 17    
Sales-type and Direct Financing Leases, Lease Receivable, Lease Payments to be Received, after Rolling Year Five 31    
Lessor, Operating Lease, Payments to be Received, Next Twelve Months 77    
Operating Leases, Future Minimum Payments Receivable, in Two Years 72    
Lessor, Operating Lease, Payments to be Received, Three Years 69    
Lessor, Operating Lease, Payments to be Received, Four Years 62    
Lessor, Operating Lease, Payments to be Received, Five Years 55    
Lessor, Operating Lease, Payments to be Received, Thereafter $ 416    
Other Liabilities [Member]      
Operating Lease, Liability Other Liabilities    
Other Assets [Member]      
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets  
Property, Plant and Equipment [Member]      
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] Other assets Other assets  
United States      
Operating Lease, Liability $ 605 $ 575  
Operating Lease, Right-of-Use Asset $ 541 $ 515  
[1] U.S. operating lease right-of-use assets and liabilities totaled $541 million and $605 million, respectively, as of December 31, 2023, and $515 million and $575 million, respectively, as of December 31, 2022. These amounts primarily related to Taco Bell U.S. and the Habit Burger Grill including leases related to Company-operated restaurants, leases related to franchise-operated restaurants we sublease and the Taco Bell and Habit Burger Grill restaurant support center.
v3.24.0.1
Derivative Instruments (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Cash Flow Hedging [Member]  
Derivative, Notional Amount $ 0
Cash Flow Hedging [Member] | Interest Rate Swap [Member]  
Derivative, Maturity Date Jul. 27, 2021
Cash Flow Hedging [Member] | Forward-starting interest rate swap [Member]  
Derivative, Notional Amount $ 1,500
Derivative, Maturity Date Mar. 01, 2025
July 2021 through March 2025 [Member] | Fixed Income Interest Rate [Member] | Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Term Loan B Facility [Member]  
Derivative, Forward Interest Rate 4.87%
v3.24.0.1
Derivative Instruments (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax $ 14 $ 115 $ 34
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net 30 (18) (28)
Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax (4) (30) (8)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax (8) 4 6
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months (24)    
Interest Rate Swap [Member] | Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification and Tax 14 115 34
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net $ (30) $ 21 $ 29
v3.24.0.1
Fair Value Disclosures (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Mar. 15, 2021
Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Investment Owned, at Fair Value $ 124 $ 116      
Payments for (Proceeds from) Investments $ (121) 0 $ 0    
Devyani          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Equity Method Investment, Ownership Percentage 5.00%       5.00%
Non-recurring basis | Fair Value, Inputs, Level 3 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Remaining Net Book Value of Assets Measured at Fair Value $ 21 $ 20      
Non-recurring basis | Fair Value, Inputs, Level 3 [Member] | Closures and impairment (income) expenses          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] Other Operating Income (Expense), Net Other Operating Income (Expense), Net Other Operating Income (Expense), Net    
Non-recurring basis | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Refranchise Impairment     $ 6    
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Investments, Fair Value Disclosure $ 7 $ 5      
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Derivative Asset, Subject to Master Netting Arrangement, before Offset 2 16      
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Investments, Fair Value Disclosure 125 118      
Prepaid Expenses and Other Current Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Derivative Asset, Subject to Master Netting Arrangement, before Offset 24 26      
Term Loan A Facility [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt 717     $ 750  
Term Loan B Facility [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt 1,459     $ 1,500  
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Senior Notes, Noncurrent [1] 750 750      
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt, Fair Value [1] 742 731      
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Senior Notes, Noncurrent [1] 4,550 4,875      
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt, Fair Value [1] 4,439 4,473      
Secured Debt [Member] | Securitization Notes [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Senior Notes, Noncurrent [2] 3,743 3,772      
Secured Debt [Member] | Securitization Notes [Member] | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt, Fair Value [2] 3,391 3,273      
Secured Debt [Member] | Term Loan A Facility [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt [1] 717 736      
Secured Debt [Member] | Term Loan A Facility [Member] | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt, Fair Value [1] 716 729      
Secured Debt [Member] | Term Loan B Facility [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt [1] 1,459 1,474      
Secured Debt [Member] | Term Loan B Facility [Member] | Fair Value, Inputs, Level 2 [Member]          
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]          
Long-term Debt, Fair Value [1] $ 1,466 $ 1,459      
[1] We estimated the fair value of the YUM and Subsidiary Senior Unsecured Notes, Term Loan A Facility, and Term Loan B Facility using market quotes and calculations based on market rates.
[2] We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.
v3.24.0.1
Pension, Retiree Medical and Retiree Savings Plans (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2022
Dec. 31, 2022
Defined Benefit Plan Disclosure [Line Items]          
Amortization of prior service cost [1] $ 1.0 $ 5.0      
Pension Unrealized gains (losses) arising during the year $ 12.0 115.0 $ (65.0)    
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [1]   7.0      
Maximum 401(k) participant contribution of eligible compensation 75.00%        
Company match of participant contribution up to 6% of eligible compensation 100.00%        
Maximum company match of participant contribution of eligible compensation 6.00%        
Defined Contribution Plan, Cost $ 15.0 13.0 11.0    
Fixed Income Investments          
Defined Benefit Plan Disclosure [Line Items]          
Equity securities, target allocation (in hundredths) 49.00%        
Diversified credit investments in a range of public and credit securities          
Defined Benefit Plan Disclosure [Line Items]          
Equity securities, target allocation (in hundredths) 40.00%        
Equity Securities          
Defined Benefit Plan Disclosure [Line Items]          
Equity securities, target allocation (in hundredths) 32.00%        
Real Estate Funds          
Defined Benefit Plan Disclosure [Line Items]          
Equity securities, target allocation (in hundredths) 19.00%        
Fixed Income Securities [Member] | Fair Value Measured at Net Asset Value Per Share          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [2] $ 132.0 146.0      
Fair value of plan assets at beginning of year [2] 146.0        
Fair value of plan assets at end of year [2] 132.0 146.0      
Defined Benefit Plan, Plan Assets, Amount [2] 132.0 146.0      
Real Assets | Fair Value Measured at Net Asset Value Per Share          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [2] 149.0 192.0      
Fair value of plan assets at beginning of year [2] 192.0        
Fair value of plan assets at end of year [2] 149.0 192.0      
Defined Benefit Plan, Plan Assets, Amount [2] 149.0 192.0      
Foreign Pension Plan [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Benefit obligation at beginning of year 179.0        
Fair value of plan assets by asset category 226.0 209.0      
Fair value of plan assets at beginning of year 209.0        
Fair value of plan assets at end of year 226.0 209.0      
Defined Benefit Plan, Plan Assets, Amount 226.0 209.0      
Benefit obligation at end of year 190.0 179.0      
Net periodic benefit cost 2.0 2.0 1.0    
Actuarial net gain (63.0) (64.0)      
United States          
Defined Benefit Plan Disclosure [Line Items]          
Benefit obligation at beginning of year 755.0 1,069.0      
Service cost 5.0 7.0 8.0    
Interest cost 41.0 31.0 32.0    
Fair value of plan assets by asset category 680.0 664.0 1,010.0    
Fair value of plan assets at beginning of year 664.0 1,010.0      
Fair value of plan assets at end of year 680.0 664.0 1,010.0    
Defined Benefit Plan, Plan Assets, Amount 680.0 664.0 1,010.0    
Defined Benefit Plan, Benefit Obligation, Benefits Paid (34.0) (29.0)      
Settlement payments 0.0 59.0      
Actuarial (gain) loss 11.0 (264.0)      
Benefit obligation at end of year $ 778.0 755.0 $ 1,069.0    
Discount rate (in hundredths) 5.60%   3.00% 5.60% 5.60%
Actual return on plan assets $ 46.0 (272.0)      
Employer contributions 4.0 14.0      
Defined Benefit Plan, Plan Assets, Benefits Paid (34.0) (29.0)      
Defined Benefit Plan, Plan Assets, Payment for Settlement 0.0 (59.0)      
Funded status at end of year (98.0) (91.0)      
Assets for Plan Benefits, Defined Benefit Plan 0.0 0.0      
Accrued benefit liability - current (8.0) (6.0)      
Accrued benefit liability - non-current (90.0) (85.0)      
Accrued benefit amounts recognized (98.0) (91.0)      
Accumulated benefit obligation 763.0 740.0      
Projected benefit obligation 778.0 755.0      
Accumulated benefit obligation 763.0 740.0      
Fair value of plan assets 680.0 644.0      
Amortization of prior service cost [3] 1.0 6.0 $ 6.0    
Expected return on plan assets (50.0) (46.0) (43.0)    
Amortization of net loss (1.0) 11.0 14.0    
Net periodic benefit cost (4.0) 9.0 17.0    
Beginning of year (74.0) (43.0)      
Pension Unrealized gains (losses) arising during the year (13.0) (54.0)      
Amortization of net loss (1.0) 11.0      
Amortization of prior service cost 1.0 6.0      
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [4] 0.0 6.0 0.0    
End of year (87.0) (74.0) (43.0)    
Actuarial net gain 84.0 70.0      
Prior service cost (3.0) (4.0)      
Amounts recognized as a loss in Accumulated Other Comprehensive Income $ (87.0) $ (74.0) $ (43.0)    
Rate of compensation increase (in hundredths) 3.00%       3.00%
Discount rate (in hundredths) 5.60% 3.00% 2.80%    
Long-term rate return on plan assets (in hundredths) 6.25% 5.40% 5.25%    
Rate of compensation increase (in hundredths) 3.00% 3.00% 3.00%    
Net Payable For Unsettled Transactions $ 42.0 $ 49.0      
Approximate percentage of total plan assets in investment that includes YUM stock (in hundredths) 1.00%        
2022 $ 50.0        
2023 54.0        
2024 59.0        
2025 57.0        
2026 60.0        
2027 - 2031 280.0        
United States | Defined Benefit Plan, Equity Securities, Common Stock [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Value of mutual fund held as an investment that includes YUM stock 0.1 0.1      
United States | Fair Value, Inputs, Level 1 [Member] | Cash [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category 0.0 1.0      
Fair value of plan assets at beginning of year 1.0        
Fair value of plan assets at end of year 0.0 1.0      
Defined Benefit Plan, Plan Assets, Amount 0.0 1.0      
United States | Fair Value, Inputs, Level 1 [Member] | Cash Equivalents [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [5] 61.0 22.0      
Fair value of plan assets at beginning of year [5] 22.0        
Fair value of plan assets at end of year [5] 61.0 22.0      
Defined Benefit Plan, Plan Assets, Amount [5] 61.0 22.0      
United States | Fair Value, Inputs, Level 1 [Member] | Debt Security, Corporate, US [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category 7.0 14.0      
Fair value of plan assets at beginning of year 14.0        
Fair value of plan assets at end of year 7.0 14.0      
Defined Benefit Plan, Plan Assets, Amount 7.0 14.0      
United States | Fair Value, Inputs, Level 2 [Member] | Debt Security, Corporate, US [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [6] 25.0 22.0      
Fair value of plan assets at beginning of year [6] 22.0        
Fair value of plan assets at end of year [6] 25.0 22.0      
Defined Benefit Plan, Plan Assets, Amount [6] 25.0 22.0      
United States | Fair Value, Inputs, Level 2 [Member] | Fixed Income Securities [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [7] 11.0 19.0      
Fair value of plan assets at beginning of year [7] 19.0        
Fair value of plan assets at end of year [7] 11.0 19.0      
Defined Benefit Plan, Plan Assets, Amount [7] 11.0 19.0      
United States | Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [7] 124.0 118.0      
Fair value of plan assets at beginning of year [7] 118.0        
Fair value of plan assets at end of year [7] 124.0 118.0      
Defined Benefit Plan, Plan Assets, Amount [7] 124.0 118.0      
United States | Fair Value, Inputs, Level 2 [Member] | Equity Securities - US Large cap [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [8] 213.0 179.0      
Fair value of plan assets at beginning of year [8] 179.0        
Fair value of plan assets at end of year [8] 213.0 179.0      
Defined Benefit Plan, Plan Assets, Amount [8] 213.0 179.0      
United States | Fair Value, Inputs, Level 1, 2 and 3          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category [9] 722.0 713.0      
Fair value of plan assets at beginning of year [9] 713.0        
Fair value of plan assets at end of year [9] 722.0 713.0      
Defined Benefit Plan, Plan Assets, Amount [9] 722.0 713.0      
United States | FairValueInputsLevel1AndLevel2          
Defined Benefit Plan Disclosure [Line Items]          
Fair value of plan assets by asset category 441.0 375.0      
Fair value of plan assets at beginning of year 375.0        
Fair value of plan assets at end of year 441.0 375.0      
Defined Benefit Plan, Plan Assets, Amount 441.0 375.0      
Other Postretirement Benefits Plan [Member]          
Defined Benefit Plan Disclosure [Line Items]          
Accumulated benefit obligation 27.0 30.0      
Net periodic benefit cost 1.0 1.0 $ 1.0    
Actuarial net gain (15.0) $ (16.0)      
2022 3.0        
2027 - 2031 $ 11.0        
[1] Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2023 include amortization of prior service cost of $1 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2022 include amortization of net losses of $22 million, amortization of prior service cost of $5 million, settlement charges of $7 million and related income tax benefit of $6 million. See Note 15.
[2] Includes securities that have been measured at fair value using the net asset value per unit practical expedient due to the absence of readily available market prices. Accordingly, these securities have not been classified in the fair value hierarchy.
[3] Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
[4] Settlement losses result when benefit payments exceed the sum of the service cost and interest cost within a plan during the year. These losses were recorded in Other pension (income) expense.
[5] Short-term investments in money market funds.
[6] Investments held directly by the Plan.
[7] Includes securities held in common or collective trusts and investments held directly by the Plan.
[8] Securities held in common or collective trusts.
[9] 2023 and 2022 exclude net unsettled trade payables of $42 million and $49 million, respectively.
v3.24.0.1
Share-based and Deferred Compensation Plans (Details)
$ / shares in Units, shares in Thousands, $ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Years
$ / shares
Rate
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate (in hundredths) 3.60% 1.70% 0.50%
Expected term (years) 5 years 10 months 24 days 6 years 7 months 6 days 6 years 3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate 22.00% 25.00% 27.00%
Expected dividend yield (in hundredths) 1.80% 1.90% 1.90%
Options outstanding at the end of the year (in shares) | shares 309    
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 103.33    
SARs outstanding at the end of the year (in shares) | shares 9,795    
SARs outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 92.25    
Share-based Compensation Expense $ 95.0 $ 82.0 $ 75.0
Share-based Payment Arrangement, Expense, Tax Benefit 12.0 16.0 15.0
Cash received from stock options exercises 8.0 3.0 11.0
Share-based Payment Arrangement, Exercise of Option, Tax Benefit $ 31.0 $ 38.0 $ 72.0
Long Term Incentive Plans [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Minimum vesting period of outstanding awards (in years) immediate    
Maximum vesting period of outstanding awards (in years) 5 years    
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 10 years    
Approximate number of shares available for grant (in shares) | shares 23,000    
Executive Income Deferral Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Percentage of Company match on amount deferred (in hundredths) | Rate 33.00%    
Stock Options and Stock Appreciation Rights [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Minimum vesting period of outstanding awards (in years) 1.7    
Options outstanding at the end of the year (in shares) | shares 10,104 11,281  
Granted (in shares) | shares 1,057    
Exercised (in shares) | shares (2,016)    
Forfeited or expired (in shares) | shares (218)    
Exercisable at the end of the year (in shares) | shares 7,499    
Options outstanding at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 92.58 $ 86.18  
Granted, Weighted-average exercise price (in dollars per share) | $ / shares 131.28    
Exercised, Weighted-average exercise price (in dollars per share) | $ / shares 74.33    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $ / shares 117.63    
Exercisable at the end of the year, Weighted-average exercise price (in dollars per share) | $ / shares $ 83.37    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term 6 years 5 months 8 days    
Share Based Compensation Arrangement By Share Based Payment Award, Options, Exercisable Weighted Average Remaining Contractual Term 5 years 6 months 14 days    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value $ 385.0    
Exercisable at the end of the year, Aggregate intrinsic value (in dollars) $ 355.0    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares $ 29.93 $ 26.65 $ 21.32
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value $ 114.0 $ 105.0 $ 234.0
Unrecognized compensation cost 35.0    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value 31.0 31.0 35.0
Share-based Compensation Expense 27.0 26.0 29.0
Restricted Stock Units And Performance Share Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Unrecognized compensation cost $ 59.0    
Unvested RSUs and PSUs | shares 1,200    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value $ 84.0 20.0 20.0
Restricted Stock Units (RSUs) [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Expense $ 35.0 27.0 16.0
Restricted Stock Units (RSUs) [Member] | Executive Income Deferral Plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Vesting period (in years) 2 years    
Performance Share Units [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Expense $ 33.0 $ 29.0 $ 30.0
Executives [Member] | Long Term Incentive Plans [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period 10 years    
Vesting period (in years) 4 years    
Graded vesting schedule of grants made to executives under other stock award plans 25    
Share-based Compensation Arrangement by Share-based Payment Award, Average Exercise Period | Years 5.9    
v3.24.0.1
Shareholders' Equity (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares [1] 387,000 10,083,000 12,981,000
Stock Repurchased During Period, Value [1] $ 50 $ 1,200 $ 1,580
Value of share repurchases with trade dates during the current reporting date but with settlement dates subsequent to the current reporting date.   $ 11 $ 11
Number of shares repurchased with trade dates during the current reporting date but with settlement dates subsequent to the current reporting date.   100,000 100,000
Amortization of prior service cost [2] 1 $ 5  
Common Stock      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares   10,000,000 13,000,000
Stock Repurchased During Period, Value $ 24 $ 69 $ 31
May 2021      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 8,116,000 8,235,000
Stock Repurchased During Period, Value $ 0 $ 950 $ 1,050
November 2019 [Member]      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 0 0 4,746,000
Stock Repurchased During Period, Value $ 0 $ 0 $ 530
May 2021      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchase Program, Remaining Authorized Repurchase Amount 1,700    
September 2022      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Value 50 $ 250  
Stock Repurchase Program, Authorized Amount $ 2,000    
September 2022 | Common Stock      
Repurchase Of Shares Of Common Stock [Line Items]      
Stock Repurchased During Period, Shares 387,000 1,967,000 0
[1] 2021 amount excludes the effect of $11 million in share repurchases (0.1 million shares) with trade dates on, or prior to, December 31, 2020, but settlement dates subsequent to December 31, 2020.
[2] Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2023 include amortization of prior service cost of $1 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2022 include amortization of net losses of $22 million, amortization of prior service cost of $5 million, settlement charges of $7 million and related income tax benefit of $6 million. See Note 15.
v3.24.0.1
Shareholders' Equity (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance $ (369)    
Other Comprehensive Income (Loss), Net of Tax 67 $ (44) $ 86
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (302) (369)  
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) [1] 1 $ 5  
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] [1]   Other Operating Income (Expense), Net  
Other Comprehensive Income (Loss), Defined Benefit Plan, Adjustment for Settlement or Curtailment Gain (Loss), Tax [1]   $ 6  
Translation Adjustment and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (290) (206)  
Amounts classified into OCI, net of tax 18 (84)  
Amounts reclassified from accumulated OCI, net of tax 71 0  
Other Comprehensive Income (Loss), Net of Tax 89 (84)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (201) (290) (206)
Pension and Post-Retirement Benefit Plan Losses      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (94) (34)  
Amounts classified into OCI, net of tax (11) (88)  
Amounts reclassified from accumulated OCI, net of tax 1 28  
Other Comprehensive Income (Loss), Net of Tax (10) (60)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance (104) (94) (34)
Net Unrealized Loss on Derivative Instruments      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance 15 (85)  
Amounts classified into OCI, net of tax 10 86  
Amounts reclassified from accumulated OCI, net of tax (22) 14  
Other Comprehensive Income (Loss), Net of Tax (12) 100  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance 3 15 (85)
Total      
Accumulated Other Comprehensive Income (Loss) [Line Items]      
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance (369) (325)  
Amounts classified into OCI, net of tax 17 (86)  
Amounts reclassified from accumulated OCI, net of tax 50 42  
Other Comprehensive Income (Loss), Net of Tax 67 (44)  
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance $ (302) $ (369) $ (325)
[1] Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2023 include amortization of prior service cost of $1 million. Amounts reclassified from AOCI for pension and post-retirement benefit plans losses during 2022 include amortization of net losses of $22 million, amortization of prior service cost of $5 million, settlement charges of $7 million and related income tax benefit of $6 million. See Note 15.
v3.24.0.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended 5 Months Ended 7 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2021
Jun. 09, 2021
Dec. 31, 2021
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2017
U.S. and foreign income before income taxes [Abstract]                              
U.S.           $ 1,246     $ 1,124     $ 1,062      
Foreign           572     538     612      
Income from Continuing Operations Before Income Taxes           1,818     1,662     1,674      
Details of income tax provision (benefit) [Abstract]                              
Current: Federal           221     139     45      
Current: Foreign           222     200     214      
Current: State           68     53     40      
Total current income tax provision (benefit)           511     392     299      
Deferred: Federal           (121)     (31)     21      
Deferred: Foreign           (153)     (10)     (227)      
Deferred: State           (16)     (14)     6      
Deferred income taxes           290     55     200      
Income Tax Expense (Benefit), Total $ 30 $ 75       221     337     99      
Effective income tax rate reconciliation [Abstract]                              
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent               21.00%     21.00%     21.00%  
State income tax, net of federal tax benefit (in hundredths)               2.30%     1.90%     1.80%  
Statutory rate differential attributable to foreign operations (in hundredths)               (1.70%)     (2.00%)     (1.00%)  
Effective Income Tax Rate Reconciliation Adjustments To Reserves And Prior Years               1.30%     1.60%     1.10%  
Effective Income Tax Rate Reconciliation Share Based Compensation               (1.10%)     (1.40%)     (2.70%)  
Change in valuation allowance (in hundredths)               0.00%     (0.50%)     (0.80%)  
Effective Income Tax Rate Reconciliation, Impact of Russia Exit               (0.50%)     4.30%     0.00%  
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Restructuring Charges, Percent               (9.10%)     (4.90%)     (11.30%)  
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent               0.00%     0.00%     1.40%  
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent               0.00%     0.00%     (3.80%)  
Other, net (in hundredths)               (0.10%)     0.30%     0.20%  
Effective income tax rate (in hundredths)             12.10% 12.10%   20.30% 20.30%   5.90% 5.90% 100.00%
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount           41     17     22      
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount                 13     15      
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability     $ 64                        
Deferred Tax Assets, Gross 1,758 1,558       1,758 $ 1,758 $ 1,758 1,558 $ 1,558 $ 1,558        
Deferred Tax Assets, Net 1,044 749       1,044 $ 1,044 1,044 749 749 749        
Limit on deductibility of interest expense             3000.00%                
Unrecognized Tax Benefits 151 128     $ 116 151 $ 151 151 128 128 128 116 $ 116 $ 116  
Unrecognized Tax Benefits that Would Impact Effective Tax Rate 102         102 102 102              
Additions on tax positions related to the current year           9     4            
Additions for tax positions of prior years           42     8            
Reductions for tax positions of prior years           (28)     0            
Reductions for settlements           0     0            
Income Tax Examination, Penalties and Interest Expense           20     1     4      
Income Tax Examination, Penalties and Interest Accrued $ 16 $ 3       16 $ 16 $ 16 3 $ 3 $ 3        
Intra-Entity IP Transfers [Member]                              
Details of income tax provision (benefit) [Abstract]                              
Total current income tax provision (benefit)           14                  
Deferred income taxes           (44)                  
Effective income tax rate reconciliation [Abstract]                              
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability                       $ 187      
Deferred Tax Assets, Increases [Member]                              
Effective income tax rate reconciliation [Abstract]                              
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount           (19)     (22)            
Deferred Tax Assets, Decreases                              
Effective income tax rate reconciliation [Abstract]                              
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount           91     21            
Deferred Tax Assets, Other Adjustments                              
Effective income tax rate reconciliation [Abstract]                              
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount           0     $ 5            
Foreign [Member]                              
Details of income tax provision (benefit) [Abstract]                              
Deferred income taxes           $ (99)                  
Effective income tax rate reconciliation [Abstract]                              
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent       19.00% 25.00%   15.00%                
v3.24.0.1
Income Taxes (Details 2) - USD ($)
$ in Millions
 3 Months Ended 5 Months Ended 7 Months Ended 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Jun. 30, 2021
Jun. 09, 2021
Dec. 31, 2021
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2021
Dec. 31, 2017
Net deferred tax assets (liabilities) [Abstract]                              
Operating Loss Carryforwards $ 230 $ 183       $ 230 $ 230 $ 230 $ 183 $ 183 $ 183        
Deferred Tax Assets, Capital Loss Carryforwards 71 70       71 71 71 70 70 70        
Deferred Tax Assets, Tax Credit Carryforwards 188 206       188 188 188 206 206 206        
Employee benefits 75 74       75 75 75 74 74 74        
Share-based compensation 58 55       58 58 58 55 55 55        
Lease related liabilities 242 240       242 242 242 240 240 240        
Various liabilities 59 40       59 59 59 40 40 40        
Deferred Tax Assets, Goodwill and Intangible Assets 610 520       610 610 610 520 520 520        
Deferred Tax Assets, Property, Plant and Equipment 30 32       30 30 30 32 32 32        
Deferred income and other 103 103       103 103 103 103 103 103        
Deferred Tax Assets, in Process Research and Development 92 35       92 92 92 35 35 35        
Gross deferred tax assets 1,758 1,558       1,758 1,758 1,758 1,558 1,558 1,558        
Deferred tax asset valuation allowances (386) (458)     $ (462) (386) (386) (386) (458) (458) (458) $ (462) $ (462) $ (462)  
Net deferred tax assets 1,372 1,100       1,372 1,372 1,372 1,100 1,100 1,100        
Property, plant and equipment (51) (79)       (51) (51) (51) (79) (79) (79)        
Deferred Tax Liabilities Deemed Repatriation (210) (203)       (210) (210) (210) (203) (203) (203)        
Deferred Tax Liabilities, Other Finite-Lived Assets (8) (7)       (8) (8) (8) (7) (7) (7)        
Deferred Tax Assets, Derivative Instruments (17) (27)       (17) (17) (17) (27) (27) (27)        
Other (42) (35)       (42) (42) (42) (35) (35) (35)        
Gross deferred tax liabilities (328) (351)       (328) (328) (328) (351) (351) (351)        
Deferred Tax Assets, Net 1,044 749       1,044 $ 1,044 $ 1,044 749 $ 749 $ 749        
Foreign Earnings Repatriated           4,300                  
Effective Income Tax Rate Reconciliation, Percent             12.10% 12.10%   20.30% 20.30%   5.90% 5.90% 100.00%
Unrecognized Tax Benefits 151 128     $ 116 151 $ 151 $ 151 128 $ 128 $ 128 116 $ 116 $ 116  
Unrecognized Tax Benefits that Would Impact Effective Tax Rate 102         102 102 $ 102              
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability     $ 64                        
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent               0.00%     0.00%     (3.80%)  
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount           41     17     22      
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount                 13     15      
Income tax provision 30 75       221     337     99      
Income Tax Examination, Penalties and Interest Accrued 16 $ 3       16 $ 16 $ 16 3 $ 3 $ 3        
Effective Income Tax Rate Reconciliation, Impact of Tax Cuts and Jobs Act of 2017                       23      
Current Income Tax Expense (Benefit)           511     392     299      
Deferred income taxes           (290)     (55)     (200)      
Effective Income Tax Rate Reconciliation, Tax Credit, Amount           38                  
RUSSIAN FEDERATION                              
Net deferred tax assets (liabilities) [Abstract]                              
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability           7     72            
SWITZERLAND                              
Net deferred tax assets (liabilities) [Abstract]                              
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability           29                  
Tax Year 2022                              
Net deferred tax assets (liabilities) [Abstract]                              
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount           18     $ 9            
Intra-Entity IP Transfers [Member]                              
Net deferred tax assets (liabilities) [Abstract]                              
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability                       $ 187      
Current Income Tax Expense (Benefit)           14                  
Deferred income taxes           44                  
Foreign [Member]                              
Net deferred tax assets (liabilities) [Abstract]                              
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent       19.00% 25.00%   15.00%                
Deferred income taxes           99                  
Effective Income Tax Rate Reconciliation, Tax Holiday, Percent             10.00%                
Domestic Tax Authority | 2021                              
Net deferred tax assets (liabilities) [Abstract]                              
Deferred Tax Assets, Tax Credit Carryforwards 38         38 $ 38 38              
Tax Credit Carryforward, Valuation Allowance 9         9 9 9              
Tax Credit Carryforward, Amount $ 38         $ 38 $ 38 $ 38              
v3.24.0.1
Income Taxes (Details 3) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2024
Operating and capital loss carryforwards [Line Items]        
Foreign Earnings Repatriated $ 4,300      
Operating Loss Carryforwards 230 $ 183    
Operating Loss and Tax Credit Carryforward, Amount 3,043      
Deferred Tax Assets, Tax Credit Carryforwards 188 206    
Deferred Tax Assets, Tax Deferred Expense 489      
Operating Loss and Tax Credit Carryforward, Valuation Allowance (299)      
Deferred Tax Liabilities, Other (42) (35)    
Unrecognized Tax Benefits 151 128 $ 116  
Income Tax Examination, Penalties and Interest Expense 20 1 $ 4  
Income Tax Examination, Penalties and Interest Accrued 16 3    
Forecast [Member]        
Operating and capital loss carryforwards [Line Items]        
Unrecognized Tax Benefits       $ 23
Other Noncurrent Liabilities [Member]        
Operating and capital loss carryforwards [Line Items]        
Deferred Tax Liabilities, Other (1) $ (1)    
Foreign [Member] | Indefinite        
Operating and capital loss carryforwards [Line Items]        
Operating Loss Carryforwards 414      
Tax Credit Carryforward, Amount 281      
Deferred Tax Assets, Operating Loss Carryforwards 98      
Deferred Tax Assets, Tax Credit Carryforwards 71      
Operating Loss Carryforwards, Valuation Allowance (20)      
Tax Credit Carryforward, Valuation Allowance (71)      
Foreign [Member] | 2022 - 2037        
Operating and capital loss carryforwards [Line Items]        
Operating Loss Carryforwards 211      
Deferred Tax Assets, Operating Loss Carryforwards 34      
Operating Loss Carryforwards, Valuation Allowance (14)      
Foreign [Member] | 2026 - 2030        
Operating and capital loss carryforwards [Line Items]        
Tax Credit Carryforward, Amount 150      
Deferred Tax Assets, Tax Credit Carryforwards 150      
Tax Credit Carryforward, Valuation Allowance (117)      
State and Local Jurisdiction [Member] | Indefinite        
Operating and capital loss carryforwards [Line Items]        
Tax Credit Carryforward, Amount 681      
Deferred Tax Assets, Tax Credit Carryforwards 33      
Tax Credit Carryforward, Valuation Allowance (32)      
State and Local Jurisdiction [Member] | 2022 - 2037        
Operating and capital loss carryforwards [Line Items]        
Operating Loss Carryforwards 1,208      
Deferred Tax Assets, Operating Loss Carryforwards 52      
Operating Loss Carryforwards, Valuation Allowance (36)      
Domestic Tax Authority | Indefinite        
Operating and capital loss carryforwards [Line Items]        
Operating Loss Carryforwards 60      
Deferred Tax Assets, Operating Loss Carryforwards 13      
Operating Loss Carryforwards, Valuation Allowance 0      
Domestic Tax Authority | 2021        
Operating and capital loss carryforwards [Line Items]        
Tax Credit Carryforward, Amount 38      
Deferred Tax Assets, Tax Credit Carryforwards 38      
Tax Credit Carryforward, Valuation Allowance $ (9)      
v3.24.0.1
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Segment Reporting Information [Line Items]      
Total revenues $ 7,076 $ 6,842 $ 6,584
Operating Profit 2,318 2,187 2,139
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest 1,818 1,662 1,674
Investment (income) expense, net [1] 7 11 86
Other Pension (income) expense [1] (6) 9 7
Interest expense, net [1] (513) (527) (544)
Depreciation and amortization 153 146 164
Segment, Expenditure, Addition to Long-Lived Assets 285 279 230
Total Assets [2] 6,231 5,846  
Long-Lived Assets [3] 2,980 2,905  
Impairment and closure expense 13 10 19
Assets held for sale [4] 4 190  
Other (income) expense 14 7 2
General and administrative expenses 1,193 1,140 1,060
Franchise and property expenses 123 123 117
RUSSIAN FEDERATION      
Segment Reporting Information [Line Items]      
Gain (Loss) on Sale of Assets and Asset Impairment Charges 3    
United States      
Segment Reporting Information [Line Items]      
Total revenues 4,100 3,900 3,600
Total Assets 2,800 2,800  
Russia, Rubles      
Segment Reporting Information [Line Items]      
Other (income) expense 1 $ 13  
KFC Russia      
Segment Reporting Information [Line Items]      
Long-Lived Assets Held-for-sale, Description   108 million  
KFC Global Division [Member]      
Segment Reporting Information [Line Items]      
Total revenues [5] 2,830 $ 2,834 2,793
Operating Profit 1,304 1,198 1,230
Depreciation and amortization 22 23 28
Segment, Expenditure, Addition to Long-Lived Assets 73 71 60
Total Assets [2] 2,281 2,227  
Long-Lived Assets [3] 891 893  
Taco Bell Global Division [Member]      
Segment Reporting Information [Line Items]      
Total revenues [5] 2,641 2,437 2,238
Operating Profit 944 850 758
Depreciation and amortization 61 48 53
Segment, Expenditure, Addition to Long-Lived Assets 101 101 62
Total Assets [2] 1,544 1,483  
Long-Lived Assets [3] 975 950  
Pizza Hut Global Division [Member]      
Segment Reporting Information [Line Items]      
Total revenues [5] 1,019 1,004 1,028
Operating Profit 391 387 387
Depreciation and amortization 20 19 32
Segment, Expenditure, Addition to Long-Lived Assets 12 22 18
Total Assets [2] 814 788  
Long-Lived Assets [3] 378 400  
The Habit Burger Grill Global Division      
Segment Reporting Information [Line Items]      
Total revenues [5] 586 567 525
Operating Profit (14) (24) 2
Depreciation and amortization 30 29 28
Segment, Expenditure, Addition to Long-Lived Assets 64 56 56
Total Assets [2] 630 591  
Long-Lived Assets [3] 580 534  
Corporate and Other [Member]      
Segment Reporting Information [Line Items]      
Franchise and property expenses [1],[6] (1) (6) 1
Refranchising gain (loss) [1] 29 27 35
Depreciation and amortization 20 27 23
Segment, Expenditure, Addition to Long-Lived Assets 35 29 34
Total Assets [2],[7] 962 757  
Long-Lived Assets [3] 156 128  
Other (income) expense [1],[6] (9) 52 (14)
General and administrative expenses [1],[6] (326) (297) $ (260)
Corporate and Other [Member] | RUSSIAN FEDERATION      
Segment Reporting Information [Line Items]      
Other (income) expense 1 (44)  
General and administrative expenses 5 7  
Franchise and property expenses $ 1 $ 6  
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] U.S. identifiable assets included in the combined Corporate and KFC, Taco Bell, Pizza Hut, and Habit Burger Grill Divisions totaled $2.8 billion at both 2023 and 2022.
[3] Includes PP&E, net, goodwill, intangible assets, net and Operating lease right-of-use assets. Excludes KFC Russia long-lived assets of $108 million as of December 31, 2022 which were classified as held for sale and are included in Prepaid expenses and other current assets in our Consolidated Balance Sheet (see Note 9).
[4] Assets and liabilities held for sale reflect the carrying value of restaurants we have offered for sale to franchisees, excess properties that we do not intend to use for restaurant operations in the future and, at December 31, 2022, the assets and liabilities of KFC Russia. KFC Russia assets held for sale accounted for $185 million, including property, plant and equipment of $59 million, of the $190 million, while KFC Russia liabilities held for sale accounted for all of the $65 million as of December 31, 2022.
[5] U.S. revenues included in the combined KFC, Taco Bell, Pizza Hut and Habit Burger Grill Divisions totaled $4.1 billion in 2023, $3.9 billion in 2022 and $3.6 billion in 2021.
[6] Our operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC and Pizza Hut prior to the dates of sale or transfer (see Note 3), within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed such net profits and losses subsequent to that date from the Division segment results in which they were earned to Unallocated Other income (expense). As a result, we reclassed net operating losses of $1 million from KFC Division Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2023, and net operating profit of $44 million from Divisional Other income (expense) to Unallocated Other income (expense) during the year ended December 31, 2022, respectively. Additionally, we recorded a charge of $3 million to Unallocated Other income (expense) during the year ended December 31, 2023 from the sale of our KFC Russia business.
Also included in Unallocated Other income (expense) were $1 million in foreign exchange losses and $13 million in foreign exchange gains attributable to fluctuations in the value of the Russian Ruble during the years ended December 31, 2023 and 2022, respectively. Additionally, we recorded charges of $5 million to Corporate and unallocated G&A expenses and $1 million to Unallocated Franchise and property expenses during the year ended December 31, 2023, for certain expenses related to the disposition of the businesses and other costs related to our exit from Russia. We recorded similar charges of $7 million to Corporate and Unallocated G&A expenses and $6 million to Unallocated Franchise and property expenses during the year ended December 31, 2022.
[7] Primarily includes cash and deferred tax assets.
v3.24.0.1
Contingencies (Details)
$ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Guarantor Obligations [Line Items]  
Deferred Tax Liability Not Recognized, Events that Would Cause Temporary Difference to be Taxable, Undistributed Earnings of Foreign Subsidiaries As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $1.1 billion through December 31, 2023. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.We disagree with the IRS’s position as asserted in the RAR and intend to contest that position vigorously. In September 2022, we filed a Protest with the IRS Examination Division disputing on multiple grounds the proposed underpayment of tax and penalties. We have received the IRS Examination Division’s Rebuttal to our Protest and the case has been accepted by the IRS Office of Appeals.The Company does not expect resolution of this matter within twelve months and cannot predict with certainty the timing of such resolution. The Company believes that it is more likely than not the Company’s tax position will be sustained; therefore, no reserve is recorded with respect to this matter.An unfavorable resolution of this matter could have a material, adverse impact on our Consolidated Financial Statements in future periods.
Property Lease Guarantee [Member]  
Guarantor Obligations [Line Items]  
Year longest lease expires 2065
Potential amount of undiscounted payments we could be required to make in the event of non-payment $ 375
Present value of potential payments we could be required to make in the event of non-payment $ 325
v3.24.0.1
Contingencies (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]    
Unusual or Infrequent Item, or Both, Nature of Event or Transaction On January 29, 2020, the Special Director issued an order imposing a penalty on YRIPL and certain former directors of approximately Indian Rupee 11 billion, or approximately $135 million. Of this amount, $130 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. In November 2022, YRIPL was notified that an administrative tribunal bench had been constituted to hear an appeal by DOE of certain findings of the January 2020 order, including claims that certain charges had been wrongly dropped and that an insufficient amount of penalty had been imposed. A hearing with the administrative tribunal that had been scheduled for December 4, 2023 has been rescheduled to March 4, 2024. The stay order remains in effect and the next hearing in the Delhi High Court that had been scheduled for December 14, 2023 has been rescheduled to March 21, 2024. We deny liability and intend to continue vigorously defending this matter. We do not consider the risk of any significant loss arising from this order to be probable.  
Self Insured Property And Casualty Reserves [Member]    
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items]    
Beginning balance $ 50 $ 48
Liability for Unpaid Claims and Claims Adjustment Expense, Period Increase (Decrease) 35 28
Payments (37) (26)
Ending balance $ 48 $ 50