YUM BRANDS INCYUM
YUM BRANDS INC Segments Disclosure
Reportable Operating Segments
See Note 1 for a description of our operating segments.
The Company's operating segments maintain separate financial information, and the 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.
| 2025 | ||||||||||||||||||||||||||||||||
| KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | ||||||||||||||||||||||||||||
Company Sales | $ | 1,057 | $ | 1,281 | $ | 51 | $ | 555 | $ | 2,945 | ||||||||||||||||||||||
Franchise and property revenues | 1,807 | 1,060 | 602 | 12 | 3,480 | |||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 679 | 754 | 360 | 3 | 1,796 | |||||||||||||||||||||||||||
| 3,542 | 3,095 | 1,013 | 570 | 8,220 | ||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||
| Company restaurant expenses | 929 | 971 | 52 | 509 | 2,462 | |||||||||||||||||||||||||||
| General and administrative expenses | 372 | 215 | 219 | 54 | 861 | |||||||||||||||||||||||||||
| Franchise and property expenses | 66 | 29 | 41 | 4 | 140 | |||||||||||||||||||||||||||
| Franchise advertising and other services expense | 670 | 750 | 376 | 3 | 1,799 | |||||||||||||||||||||||||||
| Other (income) expense | 1 | — | (14) | 12 | — | |||||||||||||||||||||||||||
Division Operating Profit (Loss) | $ | 1,503 | $ | 1,129 | $ | 340 | $ | (13) | $ | 2,959 | ||||||||||||||||||||||
Unallocated amounts:(a) | ||||||||||||||||||||||||||||||||
Corporate and unallocated G&A expenses | $ | (402) | ||||||||||||||||||||||||||||||
Unallocated Company restaurant expenses(b) | (22) | |||||||||||||||||||||||||||||||
Unallocated Franchise and property revenues | (7) | |||||||||||||||||||||||||||||||
Unallocated Refranchising gain (loss)(c) | 48 | |||||||||||||||||||||||||||||||
Unallocated Other income (expense) | (3) | |||||||||||||||||||||||||||||||
| Consolidated Operating Profit | 2,574 | |||||||||||||||||||||||||||||||
| Investment income (expense), net | 1 | |||||||||||||||||||||||||||||||
| Other pension income (expense) | 2 | |||||||||||||||||||||||||||||||
| Interest expense, net | (501) | |||||||||||||||||||||||||||||||
| Income before income taxes | $ | 2,077 | ||||||||||||||||||||||||||||||
Other Segment Disclosures
| KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Corporate and Unallocated | Total | |||||||||||||||||||||||||||||||||
Depreciation and Amortization(d) | $ | 50 | $ | 78 | $ | 23 | $ | 29 | $ | 26 | $ | 206 | ||||||||||||||||||||||||||
| Capital Spending | 109 | 131 | 27 | 60 | 44 | 371 | ||||||||||||||||||||||||||||||||
| 2024 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | ||||||||||||||||||||||||||||
Company Sales | $ | 801 | $ | 1,155 | $ | 8 | $ | 588 | $ | 2,552 | ||||||||||||||||||||||
Franchise and property revenues | 1,685 | 997 | 622 | 9 | 3,313 | |||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 613 | 708 | 378 | 3 | 1,702 | |||||||||||||||||||||||||||
| 3,099 | 2,860 | 1,008 | 600 | 7,567 | ||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
| Company restaurant expenses | 703 | 872 | 8 | 529 | 2,112 | |||||||||||||||||||||||||||
| General and administrative expenses | 363 | 199 | 219 | 54 | 835 | |||||||||||||||||||||||||||
| Franchise and property expenses | 63 | 33 | 34 | 4 | 134 | |||||||||||||||||||||||||||
| Franchise advertising and other services expense | 610 | 708 | 390 | 3 | 1,711 | |||||||||||||||||||||||||||
| Other (income) expense | (3) | (1) | (16) | 10 | (10) | |||||||||||||||||||||||||||
Division Operating Profit (Loss) | $ | 1,363 | $ | 1,049 | $ | 373 | $ | — | $ | 2,785 | ||||||||||||||||||||||
Unallocated amounts:(a) | ||||||||||||||||||||||||||||||||
Corporate and unallocated G&A expenses | $ | (346) | ||||||||||||||||||||||||||||||
Unallocated Company restaurant expenses(b) | (8) | |||||||||||||||||||||||||||||||
Unallocated Franchise and property revenues | (18) | |||||||||||||||||||||||||||||||
Unallocated Refranchising gain (loss)(c) | 34 | |||||||||||||||||||||||||||||||
Unallocated Other income (expense) | (44) | |||||||||||||||||||||||||||||||
| Consolidated Operating Profit | 2,403 | |||||||||||||||||||||||||||||||
| Investment income (expense), net | (21) | |||||||||||||||||||||||||||||||
| Other pension income (expense) | 7 | |||||||||||||||||||||||||||||||
| Interest expense, net | (489) | |||||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,900 | ||||||||||||||||||||||||||||||
Other Segment Disclosures
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Corporate and Unallocated | Total | |||||||||||||||||||||||||||||||||
Depreciation and Amortization(d) | $ | 33 | $ | 64 | $ | 16 | $ | 31 | $ | 31 | $ | 175 | ||||||||||||||||||||||||||
| Capital Spending | 73 | 98 | 15 | 39 | 32 | 257 | ||||||||||||||||||||||||||||||||
| 2023 | ||||||||||||||||||||||||||||||||
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | ||||||||||||||||||||||||||||
Company Sales | $ | 484 | $ | 1,069 | $ | 14 | $ | 575 | $ | 2,142 | ||||||||||||||||||||||
Franchise and property revenues | 1,698 | 918 | 622 | 9 | 3,247 | |||||||||||||||||||||||||||
Franchise contributions for advertising and other services | 648 | 654 | 383 | 2 | 1,687 | |||||||||||||||||||||||||||
| 2,830 | 2,641 | 1,019 | 586 | 7,076 | ||||||||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
| Company restaurant expenses | 417 | 817 | 14 | 526 | 1,774 | |||||||||||||||||||||||||||
| General and administrative expenses | 383 | 204 | 221 | 59 | 867 | |||||||||||||||||||||||||||
| Franchise and property expenses | 72 | 32 | 15 | 3 | 122 | |||||||||||||||||||||||||||
| Franchise advertising and other services expense | 648 | 644 | 389 | 2 | 1,683 | |||||||||||||||||||||||||||
| Other (income) expense | 6 | — | (11) | 10 | 5 | |||||||||||||||||||||||||||
Division Operating Profit (Loss) | $ | 1,304 | $ | 944 | $ | 391 | $ | (14) | $ | 2,625 | ||||||||||||||||||||||
Unallocated amounts:(a) | ||||||||||||||||||||||||||||||||
Corporate and unallocated G&A expenses | $ | (326) | ||||||||||||||||||||||||||||||
Unallocated Franchise and property expenses | (1) | |||||||||||||||||||||||||||||||
Unallocated Refranchising gain (loss)(c) | 29 | |||||||||||||||||||||||||||||||
Unallocated Other income (expense) | (9) | |||||||||||||||||||||||||||||||
| Consolidated Operating Profit | 2,318 | |||||||||||||||||||||||||||||||
| Investment income (expense), net | 7 | |||||||||||||||||||||||||||||||
| Other pension income (expense) | 6 | |||||||||||||||||||||||||||||||
| Interest expense, net | (513) | |||||||||||||||||||||||||||||||
| Income before income taxes | $ | 1,818 | ||||||||||||||||||||||||||||||
Other Segment Disclosures
KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Corporate and Unallocated | Total | |||||||||||||||||||||||||||||||||
Depreciation and Amortization(d) | $ | 22 | $ | 61 | $ | 20 | $ | 30 | $ | 20 | $ | 153 | ||||||||||||||||||||||||||
| Capital Spending | 73 | 101 | 12 | 64 | 35 | 285 | ||||||||||||||||||||||||||||||||
Revenues by Country(e)
| 2025 | 2024 | 2023 | ||||||||||||||||||
United States | $ | 4,525 | $ | 4,333 | $ | 4,106 | ||||||||||||||
United Kingdom | 1,021 | 799 | 506 | |||||||||||||||||
Other | 2,668 | 2,417 | 2,464 | |||||||||||||||||
| $ | 8,214 | $ | 7,549 | $ | 7,076 | |||||||||||||||
(a)Amounts have not been allocated to any segment for performance reporting purposes.
(b)Unallocated Company restaurant expenses include amortization of reacquired franchise rights.
(c)The Refranchising gain (loss) by our Divisional reportable segments is presented below. Given the size and volatility of refranchising initiatives, our CODM does not consider the impact of Refranchising gain (loss) when assessing
Divisional segment performance. As such, we do not allocate such gains and losses to our Divisional segments for performance reporting purposes.
During the years ended December 31, 2025, 2024 and 2023, we refranchised 23, 1 and 15 restaurants, respectively, and we sold certain restaurant assets (primarily land) associated with existing franchise restaurants to the franchisee. We received $78 million, $49 million and $60 million in pre-tax cash refranchising proceeds in 2025, 2024 and 2023, respectively, as a result of the sales of these restaurants and restaurant assets.
A summary of Refranchising gain (loss) is as follows:
Refranchising gain (loss) | |||||||||||||||||||||||
2025 | 2024 | 2023 | |||||||||||||||||||||
| KFC Division | $ | 13 | $ | (1) | $ | (2) | |||||||||||||||||
| Taco Bell Division | 33 | 32 | 33 | ||||||||||||||||||||
| Pizza Hut Division | — | 2 | (2) | ||||||||||||||||||||
| Habit Burger & Grill Division | 2 | 1 | — | ||||||||||||||||||||
| Worldwide | $ | 48 | $ | 34 | $ | 29 | |||||||||||||||||
(d)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.
(e)The United States and United Kingdom represented 10% or more of our total revenues for certain periods presented.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 16, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.