YUM BRANDS INC, 10-Q filed on 5/6/2026
Quarterly Report
v3.26.1
Document and Entity Information - shares
 3 Months Ended
Mar. 31, 2026
May 01, 2026
Cover [Abstract]    
Document Quarterly Report true  
Entity Incorporation, State or Country Code NC  
Entity Tax Identification Number 13-3951308  
Trading Symbol YUM  
Security Exchange Name NYSE  
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  
Document Transition Report false  
Entity Emerging Growth Company false  
Entity Small Business false  
Entity Registrant Name YUM! BRANDS, INC.  
Entity Central Index Key 0001041061  
Current Fiscal Year End Date --12-31  
Entity Current Reporting Status Yes  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding Common Stock, no par value  
Document Fiscal Year Focus 2026  
Document Fiscal Period Focus Q1  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2026  
Entity File Number 1-13163  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   275,621,202
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues    
Total Revenues $ 2,059 $ 1,787
Costs and Expenses, Net    
Company restaurant expenses 677 520
General and Administrative Expense 322 302
Franchise and property expenses 43 34
Franchise advertising and other services expense 419 396
Refranchising (gain) loss (1) (5)
Other (income) expense (45) (8)
Total costs and expenses, net 1,415 1,239
Operating Profit [1] 644 548
Investment (income) expense, net [1] 0 (1) [2]
Other pension (income) expense [1] 0 0
Interest expense, net [1] 128 120
Income Before Income Taxes 516 429
Income tax provision 84 176
Net Income $ 432 $ 253
Basic Earnings Per Common Share $ 1.56 $ 0.91
Diluted Earnings Per Common Share 1.55 0.90
Dividends Declared Per Common Share $ 0.75 $ 0.71
Company Sales    
Revenues    
Revenues $ 785 $ 607
Franchise and property revenues    
Revenues    
Revenues 856 785
Franchise contributions for advertising and other services    
Revenues    
Revenues $ 418 $ 395
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] The United States and United Kingdom represented 10% or more of our total revenues for all periods presented.
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Net Income $ 432 $ 253
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature    
Adjustments and gains (losses) arising during the period (4) 25
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 0 0
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, before tax (4) 25
Tax (expense) benefit 0 0
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, net of tax (4) 25
Changes in pension and post-retirement benefits    
Unrealized gains (losses) arising during period, before Tax 0 0
Reclassification of (gains) losses into Net Income 1 2
Changes in pension and post-retirement benefits, before Tax 1 2
Pension and post-retirement benefit plans, tax (1) 0
Pension and post-retirement benefit plans, net of tax 0 2
Changes in derivative instruments    
Unrealized gains (losses) arising during the period 11 1
Reclassification of (gains) losses into Net Income (6) (8)
Changes in derivative instruments 5 (7)
Changes in derivatives, Tax (1) 2
Changes in derivatives, net of tax 4 (5)
Other comprehensive income (loss), net of tax 0 22
Comprehensive Income (Loss) $ 432 $ 275
v3.26.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Cash Flows - Operating Activities    
Net Income $ 432 $ 253
Depreciation and amortization 60 45 [1]
Refranchising (gain) loss (1) (5)
Investment (income) expense, net [2] 0 (1) [3]
Deferred income taxes 13 8
Share-based compensation expense 24 21
Changes in accounts and notes receivable 28 71
Changes in prepaid expenses and other current assets (24) (57)
Changes in accounts payable and other current liabilities (75) (32)
Changes in income taxes payable (19) 3
Other, net (22) 97
Net Cash Provided by Operating Activities 416 404
Cash Flows - Investing Activities    
Capital spending (75) (71)
Proceeds from Sale of Productive Assets 0 15
Payments to Acquire Short-Term Investments 0 90
Other, net 0 (16)
Net Cash Used in Investing Activities (80) 2
Cash Flows - Financing Activities    
Repayments of long-term debt (8) (5)
Revolving credit facilities, three months or less, net 50 24
Repurchase shares of Common Stock (185) (229)
Dividends paid on Common Stock (207) (198)
Other, net (25) (35)
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation (375) (443)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents 5 10
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents (34) (25)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period 923 807
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period 889 782
Other    
Cash Flows - Financing Activities    
Payments to Acquire Long-Term Investments $ (5) $ (16)
[1] The amounts of depreciation and amortization disclosed by reportable segment are primarily included within the segment expense captions of Company restaurant expenses and G&A expenses
[2] Amounts have not been allocated to any segment for performance reporting purposes.
[3] The United States and United Kingdom represented 10% or more of our total revenues for all periods presented.
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Current Assets    
Cash and cash equivalents $ 689 $ 709
Accounts and notes receivable, net 828 841
Prepaid Expense and Other Assets, Current 513 490
Total Current Assets 2,030 2,040
Property, plant and equipment, net 1,622 1,605
Goodwill 971 969
Intangible assets, net 899 909
Other assets 1,738 1,708
Deferred Income Taxes 952 965
Total Assets 8,211 8,197
Current Liabilities    
Accounts payable and other current liabilities 1,342 1,433
Income taxes payable 35 46
Short-term borrowings 1,741 38
Total Current Liabilities 3,118 1,516
Long-term debt 10,213 11,872
Other liabilities and deferred credits 2,164 2,133
Total Liabilities 15,494 15,521
Shareholders' Equity    
Common Stock, no par value, 750 shares authorized; 280 shares issued in 2024 and 281 issued in 2023 0 0
Accumulated Deficit (6,971) (7,014)
Accumulated other comprehensive loss (312) (311)
Total Shareholders' Deficit (7,283) (7,325)
Total Liabilities and Shareholders' Deficit $ 8,211 $ 8,197
v3.26.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Mar. 31, 2026
Dec. 31, 2025
Statement of Financial Position [Abstract]    
Common Stock, No Par Value $ 0 $ 0
Common Stock, Shares Authorized 750,000,000 750,000,000
Common Stock, Shares, Issued 276,000,000 277,000,000
v3.26.1
CONDENSED STATEMENT OF SHAREHOLDERS EQUITY STATEMENT - USD ($)
shares in Thousands, $ in Millions
Total
Issued Common Stock
Accumulated Deficit
Accumulated Other Comprehensive Loss
Total Shareholders' Deficit $ (7,648) $ 0 $ (7,256) $ (392)
Issued Common Stock, Shares   279,000    
Net Income 253   253  
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature 25     25
Pension and post-retirement benefit plans, net of tax 2     2
Changes in derivatives, net of tax (5)     (5)
Comprehensive Income (Loss) 275      
Dividends declared (199)   (199)  
Stock Repurchased and Retired During Period, Value $ 228   229  
Shares Repurchased (1,556)      
Repurchase of shares of Common Stock, value $ (229) $ 0    
Employee Stock Option and SARs Exercises, Value (29) (26)    
Share-based compensation events 26 $ 26    
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 0      
Employee Stock Option and SARs Exercises, Shares   1,000    
Pension and post-retirement benefit plans, tax 0      
Changes in derivatives, Tax 2      
Total Shareholders' Deficit (7,804) $ 0 (7,434) (371)
Issued Common Stock, Shares   278,000    
Total Shareholders' Deficit (7,325) $ 0 (7,014) (311)
Issued Common Stock, Shares   277,000    
Net Income 432   432  
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature (4)     (4)
Pension and post-retirement benefit plans, net of tax 0     0
Changes in derivatives, net of tax 4     4
Comprehensive Income (Loss) 432      
Dividends declared (208)   (208)  
Stock Repurchased and Retired During Period, Value $ 185   181  
Shares Repurchased (1,174)      
Repurchase of shares of Common Stock, value $ (186) $ (5)    
Employee Stock Option and SARs Exercises, Accumulated Deficit   (3)    
Employee Stock Option and SARs Exercises, Value (23) (23)    
Share-based compensation events 28 $ 28    
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax 0      
Employee Stock Option and SARs Exercises, Shares   1,000    
Pension and post-retirement benefit plans, tax 1      
Changes in derivatives, Tax (1)      
Total Shareholders' Deficit $ (7,283) $ 0 $ (6,971) $ (312)
Issued Common Stock, Shares   276,000    
v3.26.1
CONDENSED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Statement of Stockholders' Equity [Abstract]    
Pension and post-retirement benefit plans, tax $ 1 $ 0
Changes in derivatives, Tax $ (1) $ 2
v3.26.1
Financial Statement Presentation
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Financial Statement Presentation Financial Statement Presentation
We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information.  Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements.  Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 (“2025 Form 10-K”).  

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 63,000 restaurants in 155 countries and territories.  As of March 31, 2026, 97% of these restaurants were owned and operated by franchisees.  The Company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-inspired and pizza categories, respectively. The Habit Burger & Grill is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more.

As of March 31, 2026, 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

In 2025, we began a review of strategic options for the Pizza Hut brand. The objective of the review is to create value for YUM, Pizza Hut and its franchise partners by determining the optimal approach to best capitalize on Pizza Hut's structural advantages — strong brand equity, experienced franchise partners and meaningful scale — in the highly fragmented pizza market. We currently intend to complete this strategic options review in 2026, and there can be no assurance this review will result in any specific outcome or transaction.

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 consist 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 preparation of the accompanying Financial Statements in conformity with 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 Financial Statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from these estimates.

The accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2025 Form 10-K, the results of the interim periods presented. Our results of operations, comprehensive income, cash flows and changes in shareholders' deficit for these interim periods are not necessarily indicative of the results to be expected for the full year.

Our significant interim accounting policies include the recognition of advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate.

We have reclassified certain items in the Financial Statements for the prior periods to be comparable with the classification for the quarter ended March 31, 2026. These reclassifications had no effect on previously reported Net Income.
v3.26.1
Earnings Per Common Share ("EPS")
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Earnings Per Common Share (EPS) Earnings Per Common Share (“EPS”)
 Quarter ended
 20262025
Net Income$432 $253 
Weighted-average common shares outstanding (for basic calculation)277 280 
Effect of dilutive share-based employee compensation2 2 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)279 282 
Basic EPS$1.56 $0.91 
Diluted EPS$1.55 $0.90 
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)
1.1 1.5 

(a)These unexercised employee stock appreciation rights (“SARs”), restricted stock units (“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.
v3.26.1
Shareholders' Deficit
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Shareholders' Equity Shareholders' Deficit
Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date ended March 31, 2026 and 2025 as indicated below.  All amounts exclude applicable transaction fees and excise taxes on share repurchases. 

 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased		Remaining Dollar Value of Shares that may be Repurchased
Authorization Date2026202520262025
2026
May 2024
1,174 1,556 $185 $228 $874 
Total1,174 

1,556 

$185 

$228 

$874 

In May 2024, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees and excise taxes) of our outstanding Common Stock through December 31, 2026. As of March 31, 2026 we have remaining capacity to repurchase up to $0.9 billion of Common Stock under the May 2024 authorization.

Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term NaturePension and Post-Retirement BenefitsDerivative InstrumentsTotal
Balance at December 31, 2025, net of tax
$(161)$(132)$(18)$(311)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax
(4)(1)8 3 
(Gains) losses reclassified from AOCI, net of tax
— 1 (4)(3)
(4)— 4 — 
Balance at March 31, 2026, net of tax
$(166)$(132)$(14)$(312)
v3.26.1
Other (Income) Expense
 3 Months Ended
Mar. 31, 2026
Other Income and Expenses [Abstract]  
Other (Income) Expense Other (Income) Expense
Quarter ended
 3/31/20263/31/2025
Foreign exchange net (gain) loss$— $(3)
Impairment and closure expense2 1 
Other(a)
(47)(5)
Other (income) expense$(45)$(8)

(a)    The quarter ended March 31, 2026, includes income of approximately $44 million related to a credit card interchange fee litigation settlement, net of legal expenses, in which we were a plaintiff. This settlement was recorded to Unallocated Other income.
v3.26.1
Supplemental Balance Sheet Information
 3 Months Ended
Mar. 31, 2026
Supplemental Balance Sheet Information Disclosure [Abstract]  
Supplemental Balance Sheet Information Supplemental Balance Sheet Information
Accounts and Notes Receivable, net

The Company’s receivables are primarily generated from ongoing business relationships with our franchisees as a result of franchise and lease agreements. Trade receivables consisting of royalties 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 in our Condensed Consolidated Balance Sheets. Accounts and notes receivable, net also includes receivables generated from advertising cooperatives that we consolidate.
3/31/202612/31/2025
Accounts and notes receivable, gross$915 $901 
Allowance for doubtful accounts(88)(60)
Accounts and notes receivable, net$828 $841 

Prepaid Expenses and Other Current Assets
3/31/202612/31/2025
Income tax receivable
$118 $114 
Restricted cash
176 192 
Prepaid expenses
143 119 
Other current assets
75 65 
Prepaid expenses and other current assets
$513 $490 

Property, Plant and Equipment, net
3/31/202612/31/2025
Property, plant and equipment, gross$3,139 $3,091 
Accumulated depreciation and amortization(1,517)(1,485)
Property, plant and equipment, net$1,622 $1,605 


Other Assets3/31/202612/31/2025
Operating lease right-of-use assets(a)
$1,231 $1,213 
Franchise incentives216 209 
Other292 286 
Other assets$1,738 $1,708 

(a)    Non-current operating lease liabilities of $1,190 million and $1,174 million as of March 31, 2026 and December 31, 2025, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.

Reconciliation of Cash and Cash Equivalents for Condensed Consolidated Statements of Cash Flows
3/31/202612/31/2025
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets$689 $709 
Restricted cash included in Prepaid expenses and other current assets(a)
176 192 
Restricted cash and restricted cash equivalents included in Other assets(b)
22 23 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows$889 $923 

(a)    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.
(b)    Primarily trust accounts related to our self-insurance program.
v3.26.1
Income Taxes
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
 Quarter ended
 20262025
Income tax provision
$84 $176 
Effective tax rate16.2 %41.0 %

Our first quarter 2026 effective tax rate was impacted by:

•Favorable impacts from newly effective provisions of the One Big Beautiful Bill Act;
•The continuation of our internal reorganization to consolidate our Pizza Hut legal entities and assets into two isolated ownership structures by aligning the legal ownership, simplifying the organizational footprint and consolidating the Pizza Hut domestic and international businesses. As a result, we recorded a net tax benefit of $22 million primarily resulting from recording a deferred tax asset associated with a step-up in amortizable tax basis in intellectual property rights that were transferred to international subsidiaries;
•A $16 million deferred tax benefit associated with releasing valuation allowances against deferred tax assets in certain foreign jurisdictions; and
•A $13 million unfavorable adjustment to tax expense associated with our decision to exit Russia in 2022.

Our first quarter 2025 effective tax rate was unfavorably impacted by $92 million in tax expense related to establishing a reserve associated with a Mexican subsidiary's ability to utilize certain losses to offset recapture gains.
v3.26.1
Revenue Recognition Accounting Policy
 3 Months Ended
Mar. 31, 2026
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$26 $368 $13 $126 $532 
Franchise revenues42 226 56 2 327 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 170 65 1 248 
China
Franchise revenues76 — 19 — 96 
Other
Company sales230 3 19 — 252 
Franchise revenues327 17 65 — 409 
Property revenues12 — — — 12 
Franchise contributions for advertising and other services151 4 14 — 170 
$879 $797 $253 $130 $2,059 
Quarter ended 3/31/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$23 $261 $3 $125 $412 
Franchise revenues42 211 63 2 318 
Property revenues3 9 1 1 14 
Franchise contributions for advertising and other services9 157 69 1 236 
China
Franchise revenues69 — 17 — 86 
Other
Company sales193 2 — — 195 
Franchise revenues283 14 61 — 358 
Property revenues10 — — — 10 
Franchise contributions for advertising and other services140 3 16 — 159 
$773 $657 $231 $128 $1,788 
(a)
(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the quarter ended March 31, 2025.
Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2026 is presented below.

Deferred Franchise Fees
Balance at December 31, 2025
$443 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(21)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period14 
Other(a)
(1)
Balance at March 31, 2026
$434 

(a)    Primarily includes the impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$74 
1 - 2 years65 
2 - 3 years57 
3 - 4 years50 
4 - 5 years44 
Thereafter144 
Total$434 
v3.26.1
Reportable Operating Segments
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Reportable Operating Segments Reportable Operating Segments
The Company's operating segments maintain separate financial information, and our Chief Operating Decision Maker (“CODM”), the Company's Chief Executive Officer, evaluates the operating segments' operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company's segments based on Divisional Operating Profit and is involved in determining and reviewing forecasted Divisional Operating Profit as part of the annual plan process. Throughout the year, the CODM considers forecast to actual results and variances on a monthly and quarterly basis to allocate resources for the segments' operations. The CODM also considers this information in determining how to prioritize capital allocation, including investments in restaurant development, technology and human capital, while maintaining a strong and flexible balance sheet, offering a competitive dividend and returning excess cash to shareholders. Our CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to our CODM or used in his decisions to allocate resources or assess performance of the segments. Therefore, total segment assets and long-lived assets have not been disclosed. The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM.

Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$255 $372 $32 $126 $785 
Franchise and property revenues
461 251 142 3 856 
Franchise contributions for advertising and other services
163 175 80 1 418 
879 797 253 130 2,059 
Less:
Company restaurant expenses229 284 31 121 665 
General and administrative expenses87 53 59 13 211 
Franchise and property expenses19 6 17 1 43 
Franchise advertising and other services expense161 173 84 1 419 
Other (income) expense— 1 (3)1 — 
Division Operating Profit (Loss)
$383 $281 $64 $(7)$721 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(111)
Unallocated Company restaurant expenses(c)
(12)
Unallocated Refranchising gain (loss)1 
Unallocated Other income (expense)(d)
45 
Consolidated Operating Profit644 
Investment income (expense), net— 
Other pension income (expense)— 
Interest expense, net(128)
Income before income taxes$516 
Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$13 $28 $6 $7 $6 $60 
Capital Spending25 22 2 15 12 (75)
Revenue Recognition Revenue Recognition
Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$26 $368 $13 $126 $532 
Franchise revenues42 226 56 2 327 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 170 65 1 248 
China
Franchise revenues76 — 19 — 96 
Other
Company sales230 3 19 — 252 
Franchise revenues327 17 65 — 409 
Property revenues12 — — — 12 
Franchise contributions for advertising and other services151 4 14 — 170 
$879 $797 $253 $130 $2,059 
Quarter ended 3/31/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$23 $261 $3 $125 $412 
Franchise revenues42 211 63 2 318 
Property revenues3 9 1 1 14 
Franchise contributions for advertising and other services9 157 69 1 236 
China
Franchise revenues69 — 17 — 86 
Other
Company sales193 2 — — 195 
Franchise revenues283 14 61 — 358 
Property revenues10 — — — 10 
Franchise contributions for advertising and other services140 3 16 — 159 
$773 $657 $231 $128 $1,788 
(a)
(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the quarter ended March 31, 2025.
Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2026 is presented below.

Deferred Franchise Fees
Balance at December 31, 2025
$443 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(21)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period14 
Other(a)
(1)
Balance at March 31, 2026
$434 

(a)    Primarily includes the impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$74 
1 - 2 years65 
2 - 3 years57 
3 - 4 years50 
4 - 5 years44 
Thereafter144 
Total$434 
v3.26.1
Pension Benefits
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Pension Benefits Pension Benefits
We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees. The most significant of these plans, the YUM Retirement Plan (the “Plan”), is funded. We fund our other U.S. plans as benefits are paid. 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 plans in the U.S. are currently closed to new hourly participants.  

The components of net periodic benefit cost associated with our U.S. pension plans are as follows:
 Quarter ended
 20262025
Service cost$1 $1 
Interest cost10 11 
Expected return on plan assets(12)(13)
Amortization of net (gain) / loss1 — 
Net periodic benefit cost (income)
$— $(1)
Additional loss recognized due to settlements(a)
$— $1 

(a)Loss is a result of settlement transactions which exceeded the sum of annual service and interest costs for the applicable plan. This loss was recorded in Other pension (income) expense.
v3.26.1
Short-term Borrowings and Long-term Debt
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Short-term Borrowings and Long-term Debt Short-term Borrowings and Long-term Debt
Short-term Borrowings3/31/202612/31/2025
Current maturities of long-term debt$1,751 $39 
Other
— 2 
1,751 41 
Less current portion of debt issuance costs and discounts(10)(3)
Short-term borrowings$1,741 $38 
Long-term Debt  
Securitization Notes$4,306 $4,306 
Subsidiary Senior Unsecured Notes750 750 
Revolving Facility350 300 
Term Loan A Facility491 494 
Term Loan B Facility1,425 1,429 
YUM Senior Unsecured Notes4,550 4,550 
Finance lease obligations146 148 
$12,018 $11,976 
Less long-term portion of debt issuance costs and discounts(56)(66)
Less current maturities of long-term debt(1,751)(39)
Long-term debt$10,213 $11,872 

The Term Loan A Facility and the Revolving Facility will mature on the earliest of (i) April 26, 2029, (ii) the date that is 91 days prior to the March 15, 2028 maturity of the existing Term Loan B Facility if more than $250 million of such Term Loan B remains outstanding as of such date or (iii) the date that is 91 days prior to the June 1, 2027 maturity of the existing Subsidiary Senior Unsecured Notes if more than $250 million of such Subsidiary Senior Unsecured Notes remain outstanding as of such date. Given the $750 million in Subsidiary Senior Unsecured Notes outstanding at March 31, 2026, the maturity date of the Term Loan A Facility and Revolving Facility will occur less than 12 months from the balance sheet date of these Condensed Consolidated Financial Statements if the Company has not paid nor refinanced at least $500 million of the Subsidiary Senior Unsecured Notes 91 days prior to June 1, 2027. As such, the outstanding borrowings of the Term Loan A Facility and the Revolving Facility have been classified as Short-term borrowings in the Condensed Consolidated Balance Sheets as of March 31, 2026.

Details of our Short-term borrowings and Long-term debt as of December 31, 2025 can be found within our 2025 Form 10-K.

Cash paid for interest during the quarters ended March 31, 2026 and 2025, was $107 million and $102 million, respectively.
v3.26.1
Derivative Instruments
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivative Instruments
We use derivative instruments to manage certain of our market risks related to fluctuations in foreign currency exchange rates, interest rates and deferred compensation liabilities. 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 March 31, 2026, 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.

Foreign Currency Contracts

We utilized foreign currency forward contracts with a U.S. dollar notional amount of approximately $75 million to reduce the foreign currency exposure relating to our net investment in certain Indian rupee functional currency operations during the quarter ended March 31, 2026. These forward contracts are designated as a net investment hedge and the related mark-to-market adjustments are being recorded as a cumulative translation adjustment within AOCI. These foreign currency forward contracts did not have a material impact on our Condensed Consolidated Financial Statements for the quarter ended March 31, 2026.
Interest Rate Swaps

We have utilized interest rate swaps to fix the interest rate on $1.5 billion of borrowings, primarily under our Term Loan B Facility, through March 2028. The interest rate swaps have been designated as a cash flow hedge and to date have been highly effective. The current rate on the swapped portion of the Term Loan B Facility (excluding debt issuance costs) is 5.09%.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Condensed Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings.

Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:
 Quarter ended
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 2026 2025 2026 2025
Interest rate swaps$10 $— $(1)$(5)
Income tax benefit/(expense)(3)— — 1 

As of March 31, 2026, 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 $4 million, based on current Secured Overnight Financing (“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 Executive Income Deferral (“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 Condensed 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 March 31, 2026 and December 31, 2025, was not significant.

See Note 13 for the fair value of our derivative assets and liabilities.
v3.26.1
Fair Value Disclosures
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Disclosures
As of March 31, 2026, the carrying values of cash and cash equivalents, restricted cash, accounts receivable, short-term borrowings, accounts payable and borrowings under our Revolving Facility approximated their fair values because of the short-term nature of these instruments. The fair value of our notes receivable, net of allowances, and lease guarantees, less reserves for expected losses, approximates their carrying value. The following table presents the carrying value and estimated fair value of the Company’s debt obligations:

3/31/202612/31/2025
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
Securitization Notes(a)
$4,306 $4,151 $4,306 $4,160 
Subsidiary Senior Unsecured Notes(b)
750 762 750 753 
Term Loan A Facility(b)
491 489 494 492 
Term Loan B Facility(b)
1,425 1,434 1,429 1,440 
YUM Senior Unsecured Notes(b)
4,550 4,478 4,550 4,581 
(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 fair values of the assets and liabilities of the Company that are required to be measured at fair value on a recurring basis (see Note 12 for discussion regarding derivative instruments) were not significant at March 31, 2026 or December 31, 2025.
v3.26.1
Guarantees
 3 Months Ended
Mar. 31, 2026
Guarantees and Product Warranties [Abstract]  
Guarantees, Commitments and Contingencies Contingencies
Internal Revenue Service Proposed Adjustment

Following an Internal Revenue Service (“IRS”) audit for the 2013 to 2015 fiscal years, we were unable to resolve underpayments of tax that the IRS proposed resulting from that audit using the IRS Appeals process, a pre-litigation, alternative dispute resolution tool. The IRS asserts an underpayment of tax of approximately $2.1 billion plus $418 million in penalties for fiscal year 2014. Both amounts are subject to interest, with interest of approximately $2.2 billion accruing through March 31, 2026. Those amounts relate primarily to a series of reorganizations that we undertook in 2014 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 and are contesting that position vigorously. On June 4, 2025, we filed a petition in the United States Tax Court disputing the IRS's position as set forth in a Notice of Deficiency. The IRS filed its Answer on September 12, 2025. The litigation is ongoing.

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 Condensed 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 March 31, 2026, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $325 million. The present value of these potential payments discounted at our pre-tax cost of debt at March 31, 2026, was approximately $275 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.  The liability recorded for our expected losses under such leases as of March 31, 2026, was not material.

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 $120 million. Of this amount, $115 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. Hearings before an administrative tribunal as well as the Delhi High Court have been continued and rescheduled, and the stay order remains in effect. 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 Condensed Consolidated Financial Statements.
v3.26.1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2026
Trading Arrangements, by Individual  
Non-Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Earnings Per Common Share ("EPS") Earnings Per Common Share ("EPS") (Tables)
 3 Months Ended
Mar. 31, 2026
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
 Quarter ended
 20262025
Net Income$432 $253 
Weighted-average common shares outstanding (for basic calculation)277 280 
Effect of dilutive share-based employee compensation2 2 
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)279 282 
Basic EPS$1.56 $0.91 
Diluted EPS$1.55 $0.90 
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)
1.1 1.5 

(a)These unexercised employee stock appreciation rights (“SARs”), restricted stock units (“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.
v3.26.1
Shareholders' Deficit (Tables)
 3 Months Ended
Mar. 31, 2026
Stockholders' Equity Note [Abstract]  
Accelerated Share Repurchases
 Shares Repurchased
(thousands)		Dollar Value of Shares
Repurchased		Remaining Dollar Value of Shares that may be Repurchased
Authorization Date2026202520262025
2026
May 2024
1,174 1,556 $185 $228 $874 
Total1,174 

1,556 

$185 

$228 

$874 
Schedule of Accumulated Other Comprehensive Income (Loss)
Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term NaturePension and Post-Retirement BenefitsDerivative InstrumentsTotal
Balance at December 31, 2025, net of tax
$(161)$(132)$(18)$(311)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax
(4)(1)8 3 
(Gains) losses reclassified from AOCI, net of tax
— 1 (4)(3)
(4)— 4 — 
Balance at March 31, 2026, net of tax
$(166)$(132)$(14)$(312)
v3.26.1
Other Income and Expenses (Tables)
 3 Months Ended
Mar. 31, 2026
Other Income and Expenses [Abstract]  
Schedule of Other Operating Cost and Expense, by Component
Quarter ended
 3/31/20263/31/2025
Foreign exchange net (gain) loss$— $(3)
Impairment and closure expense2 1 
Other(a)
(47)(5)
Other (income) expense$(45)$(8)
v3.26.1
Supplemental Balance Sheet Information (Tables)
 3 Months Ended
Mar. 31, 2026
Supplemental Balance Sheet Information Disclosure [Abstract]  
Accounts and Notes Receivable
3/31/202612/31/2025
Accounts and notes receivable, gross$915 $901 
Allowance for doubtful accounts(88)(60)
Accounts and notes receivable, net$828 $841 
Schedule of Other Current Assets
3/31/202612/31/2025
Income tax receivable
$118 $114 
Restricted cash
176 192 
Prepaid expenses
143 119 
Other current assets
75 65 
Prepaid expenses and other current assets
$513 $490 
Property, Plant, and Equipment
3/31/202612/31/2025
Property, plant and equipment, gross$3,139 $3,091 
Accumulated depreciation and amortization(1,517)(1,485)
Property, plant and equipment, net$1,622 $1,605 
Schedule of Other Assets
Other Assets3/31/202612/31/2025
Operating lease right-of-use assets(a)
$1,231 $1,213 
Franchise incentives216 209 
Other292 286 
Other assets$1,738 $1,708 

(a)    Non-current operating lease liabilities of $1,190 million and $1,174 million as of March 31, 2026 and December 31, 2025, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.
Schedule of Cash and Cash Equivalents [Table Text Block]
3/31/202612/31/2025
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets$689 $709 
Restricted cash included in Prepaid expenses and other current assets(a)
176 192 
Restricted cash and restricted cash equivalents included in Other assets(b)
22 23 
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows$889 $923 

(a)    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.
(b)    Primarily trust accounts related to our self-insurance program.
v3.26.1
Income Taxes (Tables)
 3 Months Ended
Mar. 31, 2026
Income Tax Disclosure [Abstract]  
Income Tax And Effective Tax Rate
 Quarter ended
 20262025
Income tax provision
$84 $176 
Effective tax rate16.2 %41.0 %
v3.26.1
Revenue Recognition Accounting Policy (Tables)
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenue Recognition and Deferred Revenue [Abstract]    
Disaggregation of Revenue [Table Text Block]
Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$26 $368 $13 $126 $532 
Franchise revenues42 226 56 2 327 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 170 65 1 248 
China
Franchise revenues76 — 19 — 96 
Other
Company sales230 3 19 — 252 
Franchise revenues327 17 65 — 409 
Property revenues12 — — — 12 
Franchise contributions for advertising and other services151 4 14 — 170 
$879 $797 $253 $130 $2,059 
Quarter ended 3/31/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$23 $261 $3 $125 $412 
Franchise revenues42 211 63 2 318 
Property revenues3 9 1 1 14 
Franchise contributions for advertising and other services9 157 69 1 236 
China
Franchise revenues69 — 17 — 86 
Other
Company sales193 2 — — 195 
Franchise revenues283 14 61 — 358 
Property revenues10 — — — 10 
Franchise contributions for advertising and other services140 3 16 — 159 
$773 $657 $231 $128 $1,788 
(a)
(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the quarter ended March 31, 2025.
Deferred Franchise Fees [Table Text Block]
Deferred Franchise Fees
Balance at December 31, 2025
$443 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(21)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period14 
Other(a)
(1)
Balance at March 31, 2026
$434 

(a)    Primarily includes the impact of foreign currency translation.
  
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$74 
1 - 2 years65 
2 - 3 years57 
3 - 4 years50 
4 - 5 years44 
Thereafter144 
Total$434 
  
v3.26.1
Reportable Operating Segments (Tables)
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting Reportable Operating Segments
The Company's operating segments maintain separate financial information, and our Chief Operating Decision Maker (“CODM”), the Company's Chief Executive Officer, evaluates the operating segments' operating results on a regular basis in deciding how to allocate resources among the segments and in assessing segment performance. The CODM evaluates the performance of the Company's segments based on Divisional Operating Profit and is involved in determining and reviewing forecasted Divisional Operating Profit as part of the annual plan process. Throughout the year, the CODM considers forecast to actual results and variances on a monthly and quarterly basis to allocate resources for the segments' operations. The CODM also considers this information in determining how to prioritize capital allocation, including investments in restaurant development, technology and human capital, while maintaining a strong and flexible balance sheet, offering a competitive dividend and returning excess cash to shareholders. Our CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to our CODM or used in his decisions to allocate resources or assess performance of the segments. Therefore, total segment assets and long-lived assets have not been disclosed. The significant expense categories and amounts presented in the tables below align with the segment-level information that is regularly provided to the CODM.

Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$255 $372 $32 $126 $785 
Franchise and property revenues
461 251 142 3 856 
Franchise contributions for advertising and other services
163 175 80 1 418 
879 797 253 130 2,059 
Less:
Company restaurant expenses229 284 31 121 665 
General and administrative expenses87 53 59 13 211 
Franchise and property expenses19 6 17 1 43 
Franchise advertising and other services expense161 173 84 1 419 
Other (income) expense— 1 (3)1 — 
Division Operating Profit (Loss)
$383 $281 $64 $(7)$721 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(111)
Unallocated Company restaurant expenses(c)
(12)
Unallocated Refranchising gain (loss)1 
Unallocated Other income (expense)(d)
45 
Consolidated Operating Profit644 
Investment income (expense), net— 
Other pension income (expense)— 
Interest expense, net(128)
Income before income taxes$516 
Other Segment Disclosures
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$13 $28 $6 $7 $6 $60 
Capital Spending25 22 2 15 12 (75)
Quarter ended 3/31/2025
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
Company Sales
$216 $263 $3 $125 $607 
Franchise and property revenues
407 234 143 2 786 
Franchise contributions for advertising and other services
149 160851 395 
773 657 231 128 1,788 
Less:
Company restaurant expenses196 204 4 114 518 
General and administrative expenses80 49 55 13 197 
Franchise and property expenses16 6 11 1 34 
Franchise advertising and other services expense149 157 89 1 396 
Other (income) expense— — (2)— (2)
Division Operating Profit (Loss)
$331 $241 $74 $(1)$646 
Unallocated amounts:(a)
Corporate and unallocated G&A expenses(b)
$(105)
Unallocated Company restaurant expenses(c)
(3)
Unallocated Franchise and property revenues
(1)
Unallocated Refranchising gain (loss)5 
Unallocated Other income (expense)
6 
Consolidated Operating Profit548 
Investment income (expense), net
1 
Other pension income (expense)— 
Interest expense, net(120)
Income before income taxes$429 
Other Segment Disclosures

KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionCorporate and UnallocatedTotal
Depreciation and Amortization(e)
$11 $16 $4 $7 $7 $45 
Capital Spending
18 31 5 6 11 71 





Revenues by Country(f)
Quarter ended
20262025
United States$1,120 $980 
United Kingdom255 206 
Other684 601 
$2,059 $1,787 

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

(b)Corporate and unallocated G&A expenses include charges of $37 million in the quarter ended March 31, 2026, related to our Pizza Hut strategic options review, a charge of $17 million in the quarter ended March 31, 2025, related to our resource optimization program and charges of $1 million and $7 million in the quarters ended March 31, 2026 and 2025, respectively, related to our brand headquarters consolidation.

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

(d)Unallocated Other income (expense) includes income of $44 million, net of legal expenses, in the quarter ended March 31, 2026, related to a credit card interchange fee litigation settlement in which we were a plaintiff.

(e)The amounts of depreciation and amortization disclosed by reportable segment are primarily included within the segment expense captions of Company restaurant expenses and G&A expenses.

(f)The United States and United Kingdom represented 10% or more of our total revenues for all periods presented.
v3.26.1
Pension Benefits (Tables)
 3 Months Ended
Mar. 31, 2026
Retirement Benefits [Abstract]  
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost associated with our U.S. pension plans are as follows:
 Quarter ended
 20262025
Service cost$1 $1 
Interest cost10 11 
Expected return on plan assets(12)(13)
Amortization of net (gain) / loss1 — 
Net periodic benefit cost (income)
$— $(1)
Additional loss recognized due to settlements(a)
$— $1 

(a)Loss is a result of settlement transactions which exceeded the sum of annual service and interest costs for the applicable plan. This loss was recorded in Other pension (income) expense.
v3.26.1
Short-term Borrowings and Long-term Debt (Tables)
 3 Months Ended
Mar. 31, 2026
Debt Disclosure [Abstract]  
Schedule of Short-term Borrowings and Long-term Debt
Short-term Borrowings3/31/202612/31/2025
Current maturities of long-term debt$1,751 $39 
Other
— 2 
1,751 41 
Less current portion of debt issuance costs and discounts(10)(3)
Short-term borrowings$1,741 $38 
Long-term Debt  
Securitization Notes$4,306 $4,306 
Subsidiary Senior Unsecured Notes750 750 
Revolving Facility350 300 
Term Loan A Facility491 494 
Term Loan B Facility1,425 1,429 
YUM Senior Unsecured Notes4,550 4,550 
Finance lease obligations146 148 
$12,018 $11,976 
Less long-term portion of debt issuance costs and discounts(56)(66)
Less current maturities of long-term debt(1,751)(39)
Long-term debt$10,213 $11,872 
v3.26.1
Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Gains and losses on derivative instruments designated as cash flow hedges recognized in other comprehensive income and reclassifications from AOCI to earnings
Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:
 Quarter ended
 Gains/(Losses) Recognized in OCI (Gains)/Losses Reclassified from AOCI into Net Income
 2026 2025 2026 2025
Interest rate swaps$10 $— $(1)$(5)
Income tax benefit/(expense)(3)— — 1 
v3.26.1
Fair Value Disclosures (Tables)
 3 Months Ended
Mar. 31, 2026
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:
3/31/202612/31/2025
Carrying ValueFair Value (Level 2)Carrying ValueFair Value (Level 2)
Securitization Notes(a)
$4,306 $4,151 $4,306 $4,160 
Subsidiary Senior Unsecured Notes(b)
750 762 750 753 
Term Loan A Facility(b)
491 489 494 492 
Term Loan B Facility(b)
1,425 1,434 1,429 1,440 
YUM Senior Unsecured Notes(b)
4,550 4,478 4,550 4,581 
(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.
v3.26.1
Financial Statement Presentation (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
operating_segments
Months
countries_and_territiories
restaurants
Rate
Mar. 31, 2025
USD ($)
Number of Stores | restaurants 63,000  
Number of Countries in which Entity Operates | countries_and_territiories 155  
Percent Of System Units Located Outside United States | Rate 97.00%  
Number of Reportable Segments | operating_segments 4  
Fiscal period months standard for each quarter | Months 3  
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | $ $ 0 $ 0
v3.26.1
Business Combinations, Asset Acquisitions, and Joint Venture Formation (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
restaurants
Dec. 31, 2025
USD ($)
restaurants
Mar. 31, 2025
USD ($)
Asset Acquisition [Line Items]      
Number of Stores | restaurants 63,000    
Goodwill $ 971 $ 969  
Business Combination, Consideration Transferred   $ 1  
Other      
Asset Acquisition [Line Items]      
Payments to Acquire Long-Term Investments $ 5   $ 16
TB U.S. Store Acquisition      
Asset Acquisition [Line Items]      
Number of Stores | restaurants   128  
TB U.S. Store Acquisition      
Asset Acquisition [Line Items]      
Business Combination, Consideration Transferred   $ 666  
TB U.S. Store Acquisition      
Asset Acquisition [Line Items]      
Acquisition of The Habit Restaurants, Inc., net of cash acquired   $ 667  
v3.26.1
Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Net Income $ 432 $ 253
Weighted-average common shares outstanding (for basic calculation) 277.0 280.0
Effect of dilutive share-based employee compensation 2.0 2.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 279.0 282.0
Basic EPS $ 1.56 $ 0.91
Diluted EPS $ 1.55 $ 0.90
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation [1] 1.1 1.5
[1] These unexercised employee stock appreciation rights (“SARs”), restricted stock units (“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.
v3.26.1
Shareholders' Deficit (Details) - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Repurchase Of Shares Of Common Stock [Line Items]      
Shares Repurchased 1,174 1,556  
Repurchase of shares of Common Stock, value $ 186 $ 229  
Stock Repurchase Program, Remaining Authorized Repurchase Amount 874    
Stock Repurchased and Retired During Period, Value 185 $ 228  
Accumulated other comprehensive loss $ (312)   $ (311)
May 2024      
Repurchase Of Shares Of Common Stock [Line Items]      
Shares Repurchased 1,174 1,556  
Repurchase of shares of Common Stock, value $ 185 $ 228  
Stock Repurchase Program, Authorized Amount 2,000    
Stock Repurchase Program, Remaining Authorized Repurchase Amount 874    
Issued Common Stock      
Repurchase Of Shares Of Common Stock [Line Items]      
Repurchase of shares of Common Stock, value 5 $ 0  
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent      
Repurchase Of Shares Of Common Stock [Line Items]      
Schedule of changes in accumulated comprehensive income [Line Items] (14)   (18)
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature      
Repurchase Of Shares Of Common Stock [Line Items]      
Schedule of changes in accumulated comprehensive income [Line Items] (166)   (161)
Pension and Post-Retirement Benefits      
Repurchase Of Shares Of Common Stock [Line Items]      
Schedule of changes in accumulated comprehensive income [Line Items] $ (132)   $ (132)
v3.26.1
Shareholders' Deficit (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Schedule of changes in accumulated comprehensive income [Line Items]    
Accumulated other comprehensive loss $ (311)  
Gains (losses) arising during the year classified into AOCI, net of tax 3  
(Gains) losses reclassified from AOCI, net of tax (3)  
Other comprehensive income (loss), net of tax 0 $ 22
Accumulated other comprehensive loss (312)  
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature    
Schedule of changes in accumulated comprehensive income [Line Items]    
Gains (losses) arising during the year classified into AOCI, net of tax (4)  
(Gains) losses reclassified from AOCI, net of tax 0  
Other comprehensive income (loss), net of tax (4)  
Pension and Post-Retirement Benefits    
Schedule of changes in accumulated comprehensive income [Line Items]    
Gains (losses) arising during the year classified into AOCI, net of tax (1)  
(Gains) losses reclassified from AOCI, net of tax 1  
Other comprehensive income (loss), net of tax 0  
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent    
Schedule of changes in accumulated comprehensive income [Line Items]    
Gains (losses) arising during the year classified into AOCI, net of tax 8  
(Gains) losses reclassified from AOCI, net of tax (4)  
Other comprehensive income (loss), net of tax $ 4  
v3.26.1
Other (Income) Expense (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Other Income and Expenses [Line Items]    
Foreign Currency Transaction Gain (Loss), before Tax $ 0 $ (3)
Impairment and closure expense 2 1
Other income (expense) excluding foreign exchange gain (loss) (47) (5)
Other (income) expense (45) (8)
Gain (Loss) on Disposition of Assets (1) (5)
Income tax provision 84 $ 176
Gain (Loss) from Litigation Settlement $ 44  
v3.26.1
Supplemental Balance Sheet Information (Details)
$ in Millions
Mar. 31, 2026
USD ($)
days
Dec. 31, 2025
USD ($)
Accounts and Notes Receivable [Abstract]    
Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days 30  
Accounts and notes receivable, gross $ 915 $ 901
Allowance for doubtful accounts (88) (60)
Accounts and notes receivable, net 828 841
Income Taxes Receivable, Current 118 114
Restricted Cash, Current 176 192
Other Prepaid Expense, Current 75 65
Prepaid Expense and Other Assets, Current 513 490
Prepaid Expense $ 143 $ 119
v3.26.1
Supplemental Balance Sheet Information (Details 2) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Mar. 31, 2025
Dec. 31, 2024
Property, plant and equipment, gross $ 3,139 $ 3,091    
Accumulated depreciation and amortization (1,517) (1,485)    
Property, plant and equipment, net 1,622 1,605    
Operating lease, right-of-use assets [1] 1,231 1,213    
Other assets 1,738 1,708    
Other Assets, Miscellaneous, Noncurrent 292 286    
Operating Lease, Liability, Noncurrent 1,190 1,174    
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets 689 709    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents 889 923 $ 782 $ 807
Balance Sheet Location [Axis]: us-gaap:OtherAssets        
Restricted Cash and Cash Equivalent [2] 22 23    
Balance Sheet Location [Axis]: us-gaap:PrepaidExpenseAndOtherAssetsCurrent        
Restricted Cash and Cash Equivalent [3] 176 192    
Franchise Incentive [Member]        
Other assets $ 216 $ 209    
[1] Non-current operating lease liabilities of $1,190 million and $1,174 million as of March 31, 2026 and December 31, 2025, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.
[2] Primarily trust accounts related to our self-insurance program.
[3] Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments.
v3.26.1
Income Taxes (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Income tax provision $ 84 $ 176
Effective tax rate 16.20% 41.00%
Income (Loss) Attributable to Parent, before Tax $ 516 $ 429
Mexico Tax Deconsolidation    
Income tax provision   $ 92
Russia Exit 2022    
Income Tax Expense (Benefit), Continuing Operations, Discontinued Operations 13  
Amortizable Tax Benefit    
Income (Loss) Attributable to Parent, before Tax 22  
Other    
Income (Loss) Attributable to Parent, before Tax $ 16  
v3.26.1
Revenue Recognition Accounting Policy (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Revenues $ (2,059) $ (1,787)
Company Sales    
Revenues 785 607
Franchise and property revenues    
Revenues 856 785
Franchise contributions for advertising and other services    
Revenues 418 395
UNITED STATES    
Revenues (1,120) (980)
UNITED STATES | Company Sales    
Revenues 532 412
UNITED STATES | Franchise and property revenues    
Revenues 327 318
UNITED STATES | Property Revenues    
Revenues 13 14
UNITED STATES | Franchise contributions for advertising and other services    
Revenues 248 236
CHINA | Franchise and property revenues    
Revenues 96 86
Other, Outside the U.S. and China [Member] | Company Sales    
Revenues 252 195
Other, Outside the U.S. and China [Member] | Franchise and property revenues    
Revenues 409 358
Other, Outside the U.S. and China [Member] | Property Revenues    
Revenues 12 10
Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services    
Revenues 170 159
KFC Global Division [Member]    
Brand Total Revenue 879 773
KFC Global Division [Member] | Company Sales    
Revenues 255 216
KFC Global Division [Member] | Franchise contributions for advertising and other services    
Revenues 163 149
KFC Global Division [Member] | UNITED STATES | Company Sales    
Revenues 26 23
KFC Global Division [Member] | UNITED STATES | Franchise and property revenues    
Revenues 42 42
KFC Global Division [Member] | UNITED STATES | Property Revenues    
Revenues 3 3
KFC Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services    
Revenues 11 9
KFC Global Division [Member] | CHINA | Franchise and property revenues    
Revenues 76 69
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales    
Revenues 230 193
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues    
Revenues 327 283
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues    
Revenues 12 10
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services    
Revenues 151 140
Pizza Hut Global Division [Member]    
Brand Total Revenue 253 231
Pizza Hut Global Division [Member] | Company Sales    
Revenues 32 3
Pizza Hut Global Division [Member] | Franchise contributions for advertising and other services    
Revenues 80 85
Pizza Hut Global Division [Member] | UNITED STATES | Company Sales    
Revenues 13 3
Pizza Hut Global Division [Member] | UNITED STATES | Franchise and property revenues    
Revenues 56 63
Pizza Hut Global Division [Member] | UNITED STATES | Property Revenues    
Revenues 1 1
Pizza Hut Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services    
Revenues 65 69
Pizza Hut Global Division [Member] | CHINA | Franchise and property revenues    
Revenues 19 17
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales    
Revenues 19 0
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues    
Revenues 65 61
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues    
Revenues 0 0
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services    
Revenues 14 16
Taco Bell Global Division [Member]    
Brand Total Revenue 797 657
Taco Bell Global Division [Member] | Company Sales    
Revenues 372 263
Taco Bell Global Division [Member] | Franchise contributions for advertising and other services    
Revenues 175 160
Taco Bell Global Division [Member] | UNITED STATES | Company Sales    
Revenues 368 261
Taco Bell Global Division [Member] | UNITED STATES | Franchise and property revenues    
Revenues 226 211
Taco Bell Global Division [Member] | UNITED STATES | Property Revenues    
Revenues 8 9
Taco Bell Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services    
Revenues 170 157
Taco Bell Global Division [Member] | CHINA | Franchise and property revenues    
Revenues 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales    
Revenues 3 2
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues    
Revenues 17 14
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues    
Revenues 0 0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services    
Revenues 4 3
The Habit Burger Grill Global Division    
Brand Total Revenue 130 128
The Habit Burger Grill Global Division | Company Sales    
Revenues 126 125
The Habit Burger Grill Global Division | Franchise contributions for advertising and other services    
Revenues 1 1
The Habit Burger Grill Global Division | UNITED STATES | Company Sales    
Revenues 126 125
The Habit Burger Grill Global Division | UNITED STATES | Franchise and property revenues    
Revenues 2 2
The Habit Burger Grill Global Division | UNITED STATES | Property Revenues    
Revenues 1 1
The Habit Burger Grill Global Division | UNITED STATES | Franchise contributions for advertising and other services    
Revenues 1 1
The Habit Burger Grill Global Division | CHINA | Franchise and property revenues    
Revenues 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Company Sales    
Revenues 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise and property revenues    
Revenues 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Property Revenues    
Revenues 0 0
The Habit Burger Grill Global Division | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services    
Revenues 0 0
Total Division    
Brand Total Revenue 2,059 1,788
Total Division | Company Sales    
Revenues 785 607
Total Division | Franchise contributions for advertising and other services    
Revenues 418 395
Unallocated [Member]    
Revenues [1] $ 0 1
Unallocated Franchise [Member]    
Revenues   $ (1)
[1] Amounts have not been allocated to any segment for performance reporting purposes.
v3.26.1
Revenue Recognition Accounting Policy (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Dec. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue $ 434 $ 443
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period (21)  
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period 14  
Other [1] $ (1)  
[1] Primarily includes the impact of foreign currency translation.
v3.26.1
Revenue Recognition Accounting Policy (Details 3) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue $ 434 $ 443
Less than 1 year    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized 74  
1 - 2 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized 65  
2 - 3 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized 57  
3 - 4 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized 50  
4 - 5 years    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized 44  
Thereafter    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Deferred Revenue, Revenue Expected to be Recognized $ 144  
v3.26.1
Reportable Operating Segments (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Segment Reporting [Line Items]      
Revenues $ 2,059 $ 1,787  
Operating Profit [1] 644 548  
General and Administrative Expense 322 302  
Company restaurant expenses 677 520  
Franchise and property expenses 43 34  
Refranchising (gain) loss (1) (5)  
Other (income) expense (45) (8)  
Investment (income) expense, net [1] 0 (1) [2]  
Other pension income (expense) [1] 0 0  
Interest Income (Expense), Net [1] (128) (120)  
Income Before Income Taxes [1] 516 429  
Franchise advertising and other services expense 419 396  
Segment Reporting, Long-Lived Asset, Expenditure for Addition   71  
Depreciation and amortization 60 45 [3]  
Costs Associated with Resource Optimization Initiative   17  
Costs Associated with Brand Headquarters Consolidation 1 7  
Short-term borrowings 1,741   $ 38
Costs Associated with PH Strategic Options Review 37    
Gain (Loss) from Litigation Settlement $ 44    
Revenue Recognition Revenue Recognition
Disaggregation of Total Revenues

The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
Quarter ended 3/31/2026
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$26 $368 $13 $126 $532 
Franchise revenues42 226 56 2 327 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 170 65 1 248 
China
Franchise revenues76 — 19 — 96 
Other
Company sales230 3 19 — 252 
Franchise revenues327 17 65 — 409 
Property revenues12 — — — 12 
Franchise contributions for advertising and other services151 4 14 — 170 
$879 $797 $253 $130 $2,059 
Quarter ended 3/31/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$23 $261 $3 $125 $412 
Franchise revenues42 211 63 2 318 
Property revenues3 9 1 1 14 
Franchise contributions for advertising and other services9 157 69 1 236 
China
Franchise revenues69 — 17 — 86 
Other
Company sales193 2 — — 195 
Franchise revenues283 14 61 — 358 
Property revenues10 — — — 10 
Franchise contributions for advertising and other services140 3 16 — 159 
$773 $657 $231 $128 $1,788 
(a)
(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the quarter ended March 31, 2025.
Contract Liabilities

Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2026 is presented below.

Deferred Franchise Fees
Balance at December 31, 2025
$443 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(21)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period14 
Other(a)
(1)
Balance at March 31, 2026
$434 

(a)    Primarily includes the impact of foreign currency translation.

We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:

Less than 1 year$74 
1 - 2 years65 
2 - 3 years57 
3 - 4 years50 
4 - 5 years44 
Thereafter144 
Total$434 
    
UNITED STATES      
Segment Reporting [Line Items]      
Revenues $ 1,120 980  
UNITED KINGDOM      
Segment Reporting [Line Items]      
Revenues 255 206  
Non-US & UK      
Segment Reporting [Line Items]      
Revenues 684 601  
All Countries [Domain]      
Segment Reporting [Line Items]      
Revenues 2,059 1,787  
Company Sales      
Segment Reporting [Line Items]      
Revenues 785 607  
Company Sales | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 532 412  
Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues 418 395  
Franchise contributions for advertising and other services | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 248 236  
KFC Global Division [Member]      
Segment Reporting [Line Items]      
Operating Profit 383 331  
General and Administrative Expense 87 80  
Company restaurant expenses 229 196  
Costs of Franchised Outlets 19 16  
Franchise advertising and other services expense 161 149  
Other Nonoperating Income (Expense) 0 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 25 18  
Depreciation and amortization [3] 13 11  
Brand Total Revenue 879 773  
KFC Global Division [Member] | Company Sales      
Segment Reporting [Line Items]      
Revenues 255 216  
KFC Global Division [Member] | Company Sales | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 26 23  
KFC Global Division [Member] | Franchise and property revenue      
Segment Reporting [Line Items]      
Revenues 461 407  
KFC Global Division [Member] | Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues 163 149  
KFC Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 11 9  
Pizza Hut Global Division [Member]      
Segment Reporting [Line Items]      
Operating Profit 64 74  
General and Administrative Expense 59 55  
Company restaurant expenses 31 4  
Costs of Franchised Outlets 17 11  
Franchise advertising and other services expense 84 89  
Other Nonoperating Income (Expense) (3) (2)  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 2 5  
Depreciation and amortization [3] 6 4  
Brand Total Revenue 253 231  
Pizza Hut Global Division [Member] | Company Sales      
Segment Reporting [Line Items]      
Revenues 32 3  
Pizza Hut Global Division [Member] | Company Sales | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 13 3  
Pizza Hut Global Division [Member] | Franchise and property revenue      
Segment Reporting [Line Items]      
Revenues 142 143  
Pizza Hut Global Division [Member] | Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues 80 85  
Pizza Hut Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 65 69  
Taco Bell Global Division [Member]      
Segment Reporting [Line Items]      
Operating Profit 281 241  
General and Administrative Expense 53 49  
Company restaurant expenses 284 204  
Costs of Franchised Outlets 6 6  
Franchise advertising and other services expense 173 157  
Other Nonoperating Income (Expense) 1 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 22 31  
Depreciation and amortization [3] 28 16  
Brand Total Revenue 797 657  
Taco Bell Global Division [Member] | Company Sales      
Segment Reporting [Line Items]      
Revenues 372 263  
Taco Bell Global Division [Member] | Company Sales | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 368 261  
Taco Bell Global Division [Member] | Franchise and property revenue      
Segment Reporting [Line Items]      
Revenues 251 234  
Taco Bell Global Division [Member] | Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues 175 160  
Taco Bell Global Division [Member] | Franchise contributions for advertising and other services | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 170 157  
The Habit Burger Grill Global Division      
Segment Reporting [Line Items]      
Operating Profit (7) (1)  
General and Administrative Expense 13 13  
Company restaurant expenses 121 114  
Costs of Franchised Outlets 1 1  
Franchise advertising and other services expense 1 1  
Other Nonoperating Income (Expense) 1 0  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 15 6  
Depreciation and amortization [3] 7 7  
Brand Total Revenue 130 128  
The Habit Burger Grill Global Division | Company Sales      
Segment Reporting [Line Items]      
Revenues 126 125  
The Habit Burger Grill Global Division | Company Sales | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 126 125  
The Habit Burger Grill Global Division | Franchise and property revenue      
Segment Reporting [Line Items]      
Revenues 3 2  
The Habit Burger Grill Global Division | Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues 1 1  
The Habit Burger Grill Global Division | Franchise contributions for advertising and other services | UNITED STATES      
Segment Reporting [Line Items]      
Revenues 1 1  
Unallocated [Member]      
Segment Reporting [Line Items]      
Revenues [1] 0 (1)  
General and Administrative Expense [1],[4] (111) (105)  
Costs of Franchised Outlets [1],[5] (12) (3)  
Other Nonoperating Income (Expense) [1] 45 6  
Gain (Loss) on Disposition of Property Plant Equipment, Excluding Oil and Gas Property and Timber Property [1] 1 5  
Segment Reporting, Long-Lived Asset, Expenditure for Addition 12 11  
Depreciation and amortization [3] 6 7  
Total Division      
Segment Reporting [Line Items]      
Operating Profit 721 646  
General and Administrative Expense 211 197  
Costs of Franchised Outlets 43 34  
Other Nonoperating Income (Expense) 0 (2)  
Brand Total Revenue 2,059 1,788  
Brand Total Cost of Product and Service Sold 665 518  
Brand Total Cooperative Advertising Expense 419 396  
Total Division | Company Sales      
Segment Reporting [Line Items]      
Revenues 785 607  
Total Division | Franchise and property revenue      
Segment Reporting [Line Items]      
Revenues 856 786  
Total Division | Franchise contributions for advertising and other services      
Segment Reporting [Line Items]      
Revenues $ 418 $ 395  
[1] Amounts have not been allocated to any segment for performance reporting purposes.
[2] The United States and United Kingdom represented 10% or more of our total revenues for all periods presented.
[3] The amounts of depreciation and amortization disclosed by reportable segment are primarily included within the segment expense captions of Company restaurant expenses and G&A expenses
[4] Corporate and unallocated G&A expenses include charges of $37 million in the quarter ended March 31, 2026, related to our Pizza Hut strategic options review, a charge of $17 million in the quarter ended March 31, 2025, related to our resource optimization program and charges of $1 million and $7 million in the quarters ended March 31, 2026 and 2025, respectively, related to our brand headquarters consolidation.
[5] Unallocated Company restaurant expenses include amortization of reacquired franchise rights.
v3.26.1
Pension Benefits (Details) - UNITED STATES - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Defined Benefit Plan Disclosure [Line Items]    
Service cost $ 1 $ 1
Interest cost 10 11
Expected return on plan assets (12) (13)
Amortization of net loss 1 0
Net periodic benefit cost 0 (1)
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement [1] $ 0 $ 1
[1] Loss is a result of settlement transactions which exceeded the sum of annual service and interest costs for the applicable plan. This loss was recorded in Other pension (income) expense
v3.26.1
Short-term Borrowings and Long-term Debt (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Dec. 31, 2025
Debt Instrument [Line Items]      
Long-term Line of Credit $ 350   $ 300
Finance Lease, Liability, Noncurrent 146   148
Long-term debt and capital less obligations, including current maturities and debt issuance costs 12,018   11,976
Less Debt Issuance Costs, Noncurrent, Net (56)   (66)
Long-term debt 10,213   11,872
Interest Paid, Including Capitalized Interest, Operating and Investing Activities 107 $ 102  
Long-term Debt, Current Maturities 1,751   39
Other Short-Term Borrowings 0   2
Less current portion of debt issuance costs and discounts (10)   (3)
Short-term borrowings 1,741   38
Revolving credit facilities, three months or less, net 50 $ 24  
Short-term Debt, excluding debt issuance costs 1,751   41
Forward-starting interest rate swap [Member] | Cash Flow Hedging [Member]      
Debt Instrument [Line Items]      
Derivative, Notional Amount 1,500    
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]      
Debt Instrument [Line Items]      
Senior Notes [1] 750   750
Term Loan A Facility [Member] | Secured Debt [Member]      
Debt Instrument [Line Items]      
Long-term Debt [1] 491   494
Term Loan B Facility [Member] | Secured Debt [Member]      
Debt Instrument [Line Items]      
Long-term Debt [1] 1,425   1,429
YUM Senior Unsecured Notes [Member] [Domain] | Unsecured Debt [Member]      
Debt Instrument [Line Items]      
Senior Notes [1] 4,550   4,550
Securitization Notes [Member] | Secured Debt [Member]      
Debt Instrument [Line Items]      
Senior Notes [2] $ 4,306   $ 4,306
[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.
v3.26.1
Derivative Instruments (Details)
$ in Millions
Mar. 31, 2026
USD ($)
Rate
Forward Contracts  
Derivative, Notional Amount $ 75
Cash Flow Hedging [Member] | Forward-starting interest rate swap [Member]  
Derivative, Notional Amount $ 1,500
Interest Rate Swap [Member] | July 2021 through March 2025 | Term Loan B Facility [Member] | Designated as Hedging Instrument | Fixed Income Interest Rate  
Derivative, Forward Interest Rate | Rate 5.09%
v3.26.1
Derivative Instruments (Details 2) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2026
Mar. 31, 2025
Derivative Instruments, Gain (Loss) [Line Items]    
Unrealized gains (losses) arising during the period $ 11 $ 1
Cash Flow Hedging [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax (3) 0
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax 0 1
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months 4  
Interest Rate Swap [Member] | Cash Flow Hedging [Member]    
Derivative Instruments, Gain (Loss) [Line Items]    
Unrealized gains (losses) arising during the period 10 0
Derivative, Gain (Loss) on Derivative, Net $ (1) $ (5)
v3.26.1
Fair Value Disclosures (Details) - USD ($)
$ in Millions
Mar. 31, 2026
Dec. 31, 2025
Secured Debt [Member] | Securitization Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent [1] $ 4,306 $ 4,306
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 [1] 4,151 4,160
Secured Debt [Member] | Term Loan A Facility [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt obligations, excluding capital leases, carrying amount [2] 491 494
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 [2] 489 492
Secured Debt [Member] | Term Loan B Facility [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Debt obligations, excluding capital leases, carrying amount [2] 1,425 1,429
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 [2] 1,434 1,440
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent [2] 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 [2] 762 753
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Senior Notes, Noncurrent [2] 4,550 4,550
Unsecured Debt [Member] | YUM Senior Unsecured Notes [Member] [Domain] | 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] $ 4,478 $ 4,581
[1] 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.
[2] 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.
v3.26.1
Contingencies (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2026
USD ($)
Guarantor Obligations [Line Items]  
Deferred Tax Liability Not Recognized, Events that Would Cause Temporary Difference to be Taxable, Undistributed Earnings of Foreign Subsidiaries
Property Lease Guarantee [Member]  
Guarantor Obligations [Line Items]  
Year longest lease expires 2065
Guarantor Obligations, Maximum Exposure $ 325
Guarantee Obligations Maximum Exposure At Present Value $ 275
v3.26.1
Contingencies (Details 2)
 3 Months Ended
Mar. 31, 2026
INDIA  
Loss Contingencies [Line Items]  
Litigation, Nature 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 $120 million. Of this amount, $115 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. Hearings before an administrative tribunal as well as the Delhi High Court have been continued and rescheduled, and the stay order remains in effect. 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.