10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

FORM 10-Q

(Mark One)

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
	EXCHANGE ACT OF 1934 for the quarterly period ended	June 30, 2024
OR
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ____________ to _________________

 Commission file number 1-13163

________________________

YUM! BRANDS, INC.

(Exact name of registrant as specified in its charter)

North Carolina				13-3951308
(State or other jurisdiction of				(I.R.S. Employer
incorporation or organization)				Identification No.)
1441 Gardiner Lane,	Louisville,	Kentucky		40213
(Address of principal executive offices)				(Zip Code)
Registrant’s telephone number, including area code:			(502)	874-8300

Securities registered pursuant to Section 12(b) of the Act
	Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
	Common Stock, no par value	YUM	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐
Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐ No x

The number of shares outstanding of the registrant’s Common Stock as of August 2, 2024, was 281,165,002 shares.

YUM! BRANDS, INC.

INDEX

		Page
		No.
Part I.	Financial Information
	Item 1 - Financial Statements
	Condensed Consolidated Statements of Income	4
	Condensed Consolidated Statements of Comprehensive Income	5
	Condensed Consolidated Statements of Cash Flows	6
	Condensed Consolidated Balance Sheets	7
	Condensed Consolidated Statements of Shareholders' Deficit	8
	Notes to Condensed Consolidated Financial Statements	9
	Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
	Item 3 - Quantitative and Qualitative Disclosures About Market Risk	37
	Item 4 - Controls and Procedures	38
	Report of Independent Registered Public Accounting Firm	39
Part II.	Other Information and Signatures
	Item 1 - Legal Proceedings	40
	Item 1A - Risk Factors	40
	Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds	40
	Item 5 - Other Information	40
	Item 6 - Exhibits	42
	Signatures	43

2

PART I - FINANCIAL INFORMATION

Item 1.Financial Statements

3

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
YUM! BRANDS, INC. AND SUBSIDIARIES
(in millions, except per share data)
	Quarter ended				Year to date
Revenues	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Company sales	$	572	$	511	$	1,046	$	985
Franchise and property revenues	789		785		1,546		1,555
Franchise contributions for advertising and other services	402		391		769		792
Total revenues	1,763		1,687		3,361		3,332
Costs and Expenses, Net
Company restaurant expenses	470		415		870		818
General and administrative expenses	281		291		567		573
Franchise and property expenses	23		32		54		68
Franchise advertising and other services expense	401		388		768		783
Refranchising (gain) loss	(14)		(17)		(19)		(21)
Other (income) expense	(5)		5		(6)		15
Total costs and expenses, net	1,156		1,114		2,234		2,236
Operating Profit	607		573		1,127		1,096
Investment (income) expense, net	—		(29)		22		(5)
Other pension (income) expense	(1)		(1)		(3)		(3)
Interest expense, net	121		125		238		255
Income Before Income Taxes	487		478		870		849
Income tax provision	120		60		189		131
Net Income	$	367	$	418	$	681	$	718
Basic Earnings Per Common Share	$	1.30	$	1.49	$	2.41	$	2.55
Diluted Earnings Per Common Share	$	1.28	$	1.46	$	2.38	$	2.51
Dividends Declared Per Common Share	$	0.67	$	0.605	$	1.34	$	1.21
See accompanying Notes to Condensed Consolidated Financial Statements.

4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
YUM! BRANDS, INC. AND SUBSIDIARIES
(in millions)
	Quarter ended				Year to date
	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Net Income	$	367	$	418	$	681	$	718
Other comprehensive income, net of tax
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature
Adjustments and gains (losses) arising during the period	2		4		(8)		12
Reclassification of adjustments and (gains) losses into Net Income	—		60		—		60
	2		64		(8)		72
Tax (expense) benefit	—		—		—		—
	2		64		(8)		72
Changes in pension and post-retirement benefits
Unrealized gains (losses) arising during the period	—		—		—		—
Reclassification of (gains) losses into Net Income	1		1		1		1
	1		1		1		1
Tax (expense) benefit	—		—		—		(2)
	1		1		1		(1)
Changes in derivative instruments
Unrealized gains (losses) arising during the period	4		26		16		18
Reclassification of (gains) losses into Net Income	(8)		(8)		(16)		(11)
	(4)		18		—		7
Tax (expense) benefit	1		(5)		—		(2)
	(3)		13		—		5
Other comprehensive income (loss), net of tax	—		78		(7)		76
Comprehensive Income	$	367	$	496	$	674	$	794
See accompanying Notes to Condensed Consolidated Financial Statements.

5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
YUM! BRANDS, INC. AND SUBSIDIARIES
(in millions)
	Year to date
	6/30/2024		6/30/2023
Cash Flows – Operating Activities
Net Income	$	681	$	718
Depreciation and amortization	76		67
Refranchising (gain) loss	(19)		(21)
Investment (income) expense, net	22		(5)
Deferred income taxes	12		(73)
Share-based compensation expense	38		47
Changes in accounts and notes receivable	15		(21)
Changes in prepaid expenses and other current assets	(36)		(19)
Changes in accounts payable and other current liabilities	(78)		(107)
Changes in income taxes payable	(46)		19
Other, net	40		73
Net Cash Provided by Operating Activities	705		678
Cash Flows – Investing Activities
Capital spending	(99)		(122)
Proceeds from sale of Devyani Investment	104		—
Proceeds from sale of KFC Russia	—		121
Acquisition of KFC U.K. and Ireland restaurants	(174)		—
Proceeds from refranchising of restaurants	30		31
Maturities (purchases) of Short term investments, net	(116)		1
Other, net	2		(5)
Net Cash Provided by (Used in) Investing Activities	(253)		26
Cash Flows – Financing Activities
Proceeds from long-term debt	237		—
Repayments of long-term debt	(463)		(40)
Revolving credit facility, three months or less, net	175		(249)
Repurchase shares of Common Stock	(50)		(50)
Dividends paid on Common Stock	(377)		(339)
Other, net	(69)		(20)
Net Cash Used in Financing Activities	(547)		(698)
Effect of Exchange Rates on Cash and Cash Equivalents	(6)		6
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(101)		12
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period	724		647
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period	$	623	$	659
See accompanying Notes to Condensed Consolidated Financial Statements.

6

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
YUM! BRANDS, INC. AND SUBSIDIARIES
(in millions)
	6/30/2024		12/31/2023
ASSETS
Current Assets
Cash and cash equivalents	$	404	$	512
Accounts and notes receivable, net	713		737
Prepaid expenses and other current assets	518		360
Total Current Assets	1,635		1,609
Property, plant and equipment, net	1,272		1,197
Goodwill	718		642
Intangible assets, net	417		377
Other assets	1,335		1,361
Deferred income taxes	1,018		1,045
Total Assets	$	6,395	$	6,231
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current Liabilities
Accounts payable and other current liabilities	$	1,098	$	1,169
Income taxes payable	14		55
Short-term borrowings	24		53
Total Current Liabilities	1,136		1,277
Long-term debt	11,140		11,142
Other liabilities and deferred credits	1,749		1,670
Total Liabilities	14,025		14,089
Shareholders’ Deficit
Common Stock, no par value, 750 shares authorized; 281 shares issued in 2024 and 2023	—		60
Accumulated deficit	(7,321)		(7,616)
Accumulated other comprehensive loss	(309)		(302)
Total Shareholders’ Deficit	(7,630)		(7,858)
Total Liabilities and Shareholders’ Deficit	$	6,395	$	6,231
See accompanying Notes to Condensed Consolidated Financial Statements.

7

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' DEFICIT (Unaudited)
YUM! BRANDS, INC. AND SUBSIDIARIES
Quarters and years to date ended June 30, 2024 and 2023
(in millions)
	Yum! Brands, Inc.
	Issued Common Stock			Accumulated Deficit		Accumulated Other Comprehensive Loss		Total Shareholders' Deficit
	Shares	Amount
Balance at March 31, 2024	281	$	45	$	(7,492)	$	(309)	$	(7,756)
Net Income				367				367
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature						2		2
Pension and post-retirement benefit plans						1		1
Net loss on derivative instruments (net of tax impact of $1 million)						(3)		(3)
Comprehensive Income								367
Dividends declared				(190)				(190)
Repurchase of shares of Common Stock		(44)		(6)				(50)
Employee share-based award exercises		(19)						(19)
Share-based compensation events		18						18
Balance at June 30, 2024	281	$	—	$	(7,321)	$	(309)	$	(7,630)
Balance at December 31, 2023	281	$	60	$	(7,616)	$	(302)	$	(7,858)
Net Income				681				681
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature						(8)		(8)
Pension and post-retirement benefit plans						1		1
Comprehensive Income								674
Dividends declared				(380)				(380)
Repurchase of shares of Common Stock		(44)		(6)				(50)
Employee share-based award exercises		(66)						(66)
Share-based compensation events		50						50
Balance at June 30, 2024	281	$	—	$	(7,321)	$	(309)	$	(7,630)
Balance at March 31, 2023	280	$	—	$	(8,403)	$	(371)	$	(8,774)
Net Income				418				418
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature						4		4
Reclassification of translation adjustments into income						60		60
Pension and post-retirement benefit plans						1		1
Net gain on derivative instruments (net of tax impact of $5 million)						13		13
Comprehensive Income								496
Dividends declared				(171)				(171)
Employee share-based award exercises		(10)						(10)
Share-based compensation events		23						23
Balance at June 30, 2023	280	$	13	$	(8,156)	$	(293)	$	(8,436)
Balance at December 31, 2022	280	$	—	$	(8,507)	$	(369)	$	(8,876)
Net Income				718				718
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature						12		12
Reclassification of translation adjustments into income						60		60
Pension and post-retirement benefit plans (net of tax impact of $2 million)						(1)		(1)
Net gain on derivative instruments (net of tax impact of $2 million)						5		5
Comprehensive Income								794
Dividends declared				(341)				(341)
Repurchase of shares of Common Stock		(24)		(26)				(50)
Employee share-based award exercises		(20)						(20)
Share-based compensation events		57						57
Balance at June 30, 2023	280	$	13	$	(8,156)	$	(293)	$	(8,436)
See accompanying Notes to Condensed Consolidated Financial Statements.

8

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Tabular amounts in millions, except per share data)

Note 1 - 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, 2023 (“2023 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 59,000 restaurants in more than 155 countries and territories.  As of June 30, 2024, 98% 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-style 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 June 30, 2024, 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

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. For subsidiaries that operate on this periodic weekly calendar, 2024 will include a 53rd week. 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 2023 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 and year to date ended June 30, 2024. These reclassifications had no effect on previously reported Net Income.

Note 2 - KFC United Kingdom ("U.K.") and Ireland Restaurant Acquisition

On April 29, 2024, we completed the acquisition of all of the issued shares of two franchisee entities that owned 216 KFC restaurants in the U.K. and Ireland. The acquisition creates a significant opportunity to accelerate KFC's growth strategy in the large and growing U.K. and Ireland chicken market. The purchase price to be allocated for accounting purposes of $171 million consisted of cash, net of cash acquired, in the amount of $174 million offset by the settlement of a liability of $3 million related to our preexisting contractual relationship with the franchisee.

The acquisition was accounted for as a business combination using the acquisition method of accounting. The preliminary allocation of the purchase price is based on management's analysis, including preliminary work performed by third party

9

valuation specialists, as of April 29, 2024. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period.

The components of the preliminary purchase price allocation upon the April 29, 2024 acquisition were as follows:

Total Current Assets	$	2
Property, plant and equipment, net	88
Reacquired franchise rights (included in Intangible assets, net)	47
Operating lease right-of-use assets (included in Other assets)	109
Total Assets	246
Total Current Liabilities	(18)
Operating lease liabilities (included in Other liabilities and deferred credits)	(102)
Other liabilities	(31)
Total Liabilities	(151)
Total identifiable net assets	95
Goodwill	76
Purchase price to be allocated	$	171

Reacquired franchise rights, which were valued based on after-royalty cash flows expected to be earned by the acquired restaurants over the remaining term of their then-existing franchise agreements, have an estimated weighted average useful life of 5 years. The excess of the purchase price over the preliminary estimated fair value of the net, identifiable assets acquired was recorded as goodwill. The goodwill recognized represents expected benefits of the acquisition that do not qualify for recognition as intangible assets. This includes value arising from cash flows expected to be earned in years subsequent to the expiration of the terms of franchise agreements existing upon acquisition. The goodwill is expected to be partially deductible for income tax purposes and has been allocated to our KFC U.K. reporting unit.

The financial results of the acquired restaurants have been included in our Condensed Consolidated Financial Statements since the date of the acquisition but did not significantly impact our results for the quarter ended June 30, 2024. The pro forma impact on our results of operations if the acquisition had been completed as of the beginning of 2023 would not have been material. The direct transaction costs associated with the acquisition were also not material and were expensed as incurred.

Note 3 - Earnings Per Common Share (“EPS”)

	Quarter ended				Year to date
	2024		2023		2024		2023
Net Income	$	367	$	418	$	681	$	718
Weighted-average common shares outstanding (for basic calculation)	282		281		282		281
Effect of dilutive share-based employee compensation	4		5		4		5
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)	286		286		286		286
Basic EPS	$	1.30	$	1.49	$	2.41	$	2.55
Diluted EPS	$	1.28	$	1.46	$	2.38	$	2.51
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)	1.9		1.7		1.8		1.6

(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.

10

Note 4 - Shareholders' Deficit

Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date ended June 30, 2024 and 2023 as indicated below.  All amounts exclude applicable transaction fees. 

	Shares Repurchased (thousands)		Dollar Value of Shares Repurchased				Remaining Dollar Value of Shares that may be Repurchased
Authorization Date	2024	2023	2024		2023		2024
September 2022	366	387	50		50		—
Total	366	387	$	50	$	50	$	—

In September 2022, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through June 30, 2024. Upon its expiration on June 30, 2024, we had remaining capacity to repurchase up to $1.65 billion of Common Stock under the September 2022 authorization. In May 2024, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through December 31, 2026. The new authorization took effect on July 1, 2024 upon the expiration of the authorization approved in September 2022.

Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.

	Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature		Pension and Post-Retirement Benefits		Derivative Instruments		Total
Balance at March 31, 2024, net of tax	$	(211)	$	(104)	$	6	$	(309)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	2		—		3		5
(Gains) losses reclassified from AOCI, net of tax	—		1		(6)		(5)
	2		1		(3)		—
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)
Balance at December 31, 2023, net of tax	$	(201)	$	(104)	$	3	$	(302)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	(8)		—		12		4
(Gains) losses reclassified from AOCI, net of tax	—		1		(12)		(11)
	(8)		1		—		(7)
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)

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Note 5 - Other (Income) Expense

	Quarter ended				Year to date
	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Foreign exchange net (gain) loss	$	—	$	1	$	5	$	4
Impairment and closure expense	—		—		—		1
Other	(5)		4		(11)		10
Other (income) expense	$	(5)	$	5	$	(6)	$	15

Note 6 - 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.

	6/30/2024		12/31/2023
Accounts and notes receivable, gross	$	762	$	776
Allowance for doubtful accounts	(49)		(39)
Accounts and notes receivable, net	$	713	$	737

Prepaid Expenses and Other Current Assets

	6/30/2024		12/31/2023
Income tax receivable	$	20	$	20
Restricted cash	183		177
Short term investments	116		—
Other prepaid expenses and current assets	199		163
Prepaid expenses and other current assets	$	518	$	360

Property, Plant and Equipment, net

	6/30/2024		12/31/2023
Property, plant and equipment, gross	$	2,633	$	2,529
Accumulated depreciation and amortization	(1,361)		(1,332)
Property, plant and equipment, net	$	1,272	$	1,197

Other Assets	6/30/2024		12/31/2023
Operating lease right-of-use assets(a)	$	865	$	764
Franchise incentives	178		175
Investment in Devyani International Limited (See Note 13)	—		124
Other	292		298
Other assets	$	1,335	$	1,361

(a)    Non-current operating lease liabilities of $848 million and $757 million as of June 30, 2024 and December 31, 2023, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.

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Reconciliation of Cash and Cash Equivalents for Condensed Consolidated Statements of Cash Flows

	6/30/2024		12/31/2023
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	404	$	512
Restricted cash included in Prepaid expenses and other current assets(a)	183		177
Restricted cash and restricted cash equivalents included in Other assets(b)	36		35
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows	$	623	$	724

(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.

Note 7 - Income Taxes

	Quarter ended						Year to date
	2024			2023			2024			2023
Income tax provision	$	120		$	60		$	189		$	131
Effective tax rate	24.7		%	12.6		%	21.8		%	15.4		%

Our estimated effective tax rate on income for the full fiscal year is expected to be higher than the U.S. federal statutory rate of 21%, primarily due to state income taxes and U.S. taxes on foreign earnings partially offset by taxes on income earned in foreign jurisdictions with statutory tax rates below 21%.

Our second quarter and year to date effective tax rate is higher than the prior year primarily due to the lapping of higher foreign tax benefits recorded in the quarter ended June 30, 2023, associated with the favorable resolutions of tax audits and the establishment of additional net operating loss carryforward deferred tax assets in foreign jurisdictions, as well as higher taxes paid in foreign jurisdictions where our intellectual property rights are domiciled and higher current U.S. tax expense on foreign earnings. These unfavorable items were partially offset by current quarter and year to date favorability associated with tax deductions for share-based compensation.

Note 8 - 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.

13

	Quarter ended 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	14	$	268	$	2	$	139	$	423
Franchise revenues		47		209		66		2		324
Property revenues		3		10		1		—		14
Franchise contributions for advertising and other services		10		161		73		—		244
China
Franchise revenues		62		—		17		—		79
Other
Company sales		149		—		—		—		149
Franchise revenues		282		15		63		—		360
Property revenues		11		—		1		—		12
Franchise contributions for advertising and other services		139		3		16		—		158
		$	717	$	666	$	239	$	141	$	1,763

	Quarter ended 6/30/2023
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	17	$	253	$	4	$	139	$	413
Franchise revenues	49		194		66		2		311
Property revenues	3		10		1		—		14
Franchise contributions for advertising and other services	8		148		74		1		231
China
Franchise revenues	61		—		16		—		77
Other
Company sales	98		—		—		—		98
Franchise revenues	290		14		65		—		369
Property revenues	13		—		1		—		14
Franchise contributions for advertising and other services	143		2		15		—		160
	$	682	$	621	$	242	$	142	$	1,687

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	Year to date 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	28	$	508	$	4	$	266	$	806
Franchise revenues		90		397		134		3		624
Property revenues		6		19		2		1		28
Franchise contributions for advertising and other services		20		307		146		1		474
China
Franchise revenues		130		—		34		—		164
Other
Company sales		240		—		—		—		240
Franchise revenues		554		28		125		—		707
Property revenues		22		—		1		—		23
Franchise contributions for advertising and other services		259		5		31		—		295
		$	1,349	$	1,264	$	477	$	271	$	3,361

	Year to date 6/30/2023
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	33	$	482	$	9	$	269	$	793
Franchise revenues		95		372		136		3		606
Property revenues		6		20		2		1		29
Franchise contributions for advertising and other services		16		288		152		1		457
China
Franchise revenues		127		—		34		—		161
Other
Company sales		192		—		—		—		192
Franchise revenues		574		27		131		—		732
Property revenues		26		—		1		—		27
Franchise contributions for advertising and other services		300		4		31		—		335
		$	1,369	$	1,193	$	496	$	274	$	3,332

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 2024 is presented below.

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	Deferred Franchise Fees
Balance at December 31, 2023	$	444
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(40)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	36
Other(a)	(5)
Balance at June 30, 2024	$	435

(a)    Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 2) and 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	$	73
1 - 2 years	65
2 - 3 years	59
3 - 4 years	52
4 - 5 years	44
Thereafter	142
Total	$	435

Note 9 - Reportable Operating Segments

We identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:

	Quarter ended				Year to date
Revenues	2024		2023		2024		2023
KFC Division	$	717	$	682	$	1,349	$	1,369
Taco Bell Division	666		621		1,264		1,193
Pizza Hut Division	239		242		477		496
Habit Burger Grill Division	141		142		271		274
	$	1,763	$	1,687	$	3,361	$	3,332

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	Quarter ended				Year to date
Operating Profit	2024		2023		2024		2023
KFC Division	$	334	$	326	$	647	$	631
Taco Bell Division	250		228		458		432
Pizza Hut Division	94		91		187		195
Habit Burger Grill Division	2		3		(3)		(2)
Corporate and unallocated G&A expenses	(86)		(86)		(175)		(170)
Unallocated Company restaurant expenses(a)	(1)		—		(1)		—
Unallocated Franchise and property income (expenses)	—		(1)		—		(2)
Unallocated Refranchising gain (loss)	14		17		19		21
Unallocated Other income (expense)	—		(5)		(5)		(9)
Operating Profit	$	607	$	573	$	1,127	$	1,096
Investment income (expense), net(b)	—		29		(22)		5
Other pension income (expense)	1		1		3		3
Interest expense, net	(121)		(125)		(238)		(255)
Income before income taxes	$	487	$	478	$	870	$	849

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Unallocated Company restaurant expenses include amortization of reacquired franchise rights (see Note 2).

(b)Includes changes in the value of our investment in Devyani International Limited (see Note 13).

Note 10 - 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				Year to date
	2024		2023		2024		2023
Service cost	$	1	$	1	$	2	$	2
Interest cost	10		11		21		21
Expected return on plan assets	(13)		(13)		(26)		(25)
Amortization of net (gain) / loss	1		(1)		1		(1)
Amortization of prior service cost	1		1		1		1
Net periodic benefit cost (income)	$	—	$	(1)	$	(1)	$	(2)

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Note 11 - Short-term Borrowings and Long-term Debt

Short-term Borrowings	6/30/2024		12/31/2023
Current maturities of long-term debt	$	26	$	56
Less current portion of debt issuance costs and discounts	(2)		(3)
Short-term borrowings	$	24	$	53
Long-term Debt
Securitization Notes	$	3,743	$	3,743
Subsidiary Senior Unsecured Notes	750		750
Revolving Facility	180		—
Term Loan A Facility	500		717
Term Loan B Facility	1,451		1,459
YUM Senior Unsecured Notes	4,550		4,550
Finance lease obligations	68		50
	$	11,242	$	11,269
Less long-term portion of debt issuance costs and discounts	(76)		(71)
Less current maturities of long-term debt	(26)		(56)
Long-term debt	$	11,140	$	11,142

Details of our Short-term borrowings and Long-term debt as of December 31, 2023 can be found within our 2023 Form 10-K.

On April 26, 2024, KFC Holding Co, Pizza Hut Holdings, LLC and Taco Bell of America, LLC (collectively, the "Borrowers"), each of which is a wholly-owned subsidiary of the Company, completed the refinancing of the then outstanding $713 million under the term loan A facility and $1.25 billion capacity under the revolving facility through the issuance of a new $500 million term loan A facility (the "Term Loan A Facility") and a $1.5 billion revolving facility (the "Revolving Facility") pursuant to an amendment to the Credit Agreement (as defined in our 2023 Form 10-K). The transaction did not add any additional net new debt to the Company's Balance Sheet. 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 Borrowers' 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 Borrowers' existing Subsidiary Senior Unsecured Notes if more than $250 million of such Subsidiary Senior Unsecured Notes remains outstanding as of such date. The amendment also removed the excess cash flow mandatory prepayment requirement with respect to the Term Loan A Facility.

The refinanced Term Loan A Facility is subject to quarterly amortization payments in an amount equal to 0.625% of the principal amount of the facility as of the refinance date now beginning with the third quarter of 2025. The Term Loan A Facility quarterly amortization payments increase to 1.25% of the principal amount of the facility as of the refinance date beginning with the third quarter of 2027. All other material provisions of the Credit Agreement remain unchanged.

As a result of this refinancing, $8 million of fees were capitalized as debt issuance costs, $6 million of which were paid directly to lenders, and are presented within Long-term debt on our Condensed Consolidated Balance Sheet as of June 30, 2024. During the quarter ended June 30, 2024, previously recorded unamortized debt issuance costs of $1 million were written off and recognized within Interest expense, net due to this refinancing.

Cash paid for interest during the year to date ended June 30, 2024, was $254 million. Cash paid for interest during the year to date ended June 30, 2023 was $266 million.

Note 12 - Derivative Instruments

We use derivative instruments to manage certain of our market risks related to fluctuations in interest rates, equity prices and foreign currency exchange rates. Our use of foreign currency contracts to manage foreign currency exchange rates associated with certain foreign currency denominated intercompany receivables and payables is currently not significant.

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Interest Rate Swaps

We have entered into interest rate swaps, with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments primarily under our Term Loan B Facility. At both June 30, 2024 and December 31, 2023, we had interest rate swaps expiring in March 2025 with notional amounts of $1.5 billion. These interest rate swaps have been designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in expected future interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of June 30, 2024 or December 31, 2023.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Condensed Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through June 30, 2024, the swaps were highly effective cash flow hedges.

Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:

	Quarter ended								Year to date
	Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income				Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income
	2024		2023		2024		2023		2024		2023		2024		2023
Interest rate swaps	$	3	$	24	$	(8)	$	(7)	$	14	$	17	$	(17)	$	(12)
Income tax benefit/(expense)	(1)		(7)		2		2		(4)		(5)		4		3

As of June 30, 2024, the estimated net gain included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is $23 million, based on current Secured Overnight Financing Rate ("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 June 30, 2024 and December 31, 2023, was not significant.

As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with major financial institutions carefully selected based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At June 30, 2024, all of the counterparties to our derivative instruments had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

See Note 13 for the fair value of our derivative assets and liabilities.

Note 13 - Fair Value Disclosures

As of June 30, 2024, the carrying values of cash and cash equivalents, restricted cash, short-term investments, 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:

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	6/30/2024				12/31/2023
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Securitization Notes(a)	$	3,743	$	3,423	$	3,743	$	3,391
Subsidiary Senior Unsecured Notes(b)	750		737		750		742
Term Loan A Facility(b)	500		494		717		716
Term Loan B Facility(b)	1,451		1,457		1,459		1,466
YUM Senior Unsecured Notes(b)	4,550		4,337		4,550		4,439

(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.

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

Recurring Fair Value Measurements

The Company has interest rate swaps and other investments, all of which are required to be measured at fair value on a recurring basis (see Note 12 for discussion regarding derivative instruments). The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.  

			Fair Value
	Condensed Consolidated Balance Sheet	Level	6/30/2024		12/31/2023
Assets
Investments	Other assets	1	$	1	$	125
Investments	Other assets	3	7		7
Interest Rate Swaps	Prepaid expenses and other current assets	2	23		24
Interest Rate Swaps	Other assets	2	—		2

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

Investments as of December 31, 2023, primarily included our approximate 5% minority interest in Devyani International Limited (“Devyani”), a franchise entity that operates KFC and Pizza Hut restaurants in India, with a fair value of $124 million. During the quarter ended March 31, 2024, we sold our ownership interest in Devyani for net proceeds of $104 million and recognized pre-tax investment losses of $20 million related to changes in fair value prior to the date of sale.

Note 14 - Contingencies

Internal Revenue Service Proposed Adjustment

As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $1.2 billion through the second quarter of 2024. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.

We disagree with the IRS’s position as asserted in the RAR and intend to contest that position vigorously. In September 2022, we filed a Protest with the IRS Examination Division disputing on multiple grounds the proposed underpayment of tax and penalties. In March 2023, we received the IRS Examination Division’s Rebuttal to our Protest and the matter is proceeding with the IRS Office of Appeals.

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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 June 30, 2024, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $375 million. The present value of these potential payments discounted at our pre-tax cost of debt at June 30, 2024, was approximately $300 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 June 30, 2024, 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 $135 million. Of this amount, $130 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. In November 2022, YRIPL was notified that an administrative tribunal bench had been constituted to hear an appeal by DOE of certain findings of the January 2020 order, including claims that certain charges had been wrongly dropped and that an insufficient amount of penalty had been imposed. A hearing with the administrative tribunal that had been scheduled for July 30, 2024 has been rescheduled to October 8, 2024. A hearing held on August 1, 2024, before the Delhi High Court has been continued to September 17, 2024, 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.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Introduction and Overview

The following Management's Discussion and Analysis (“MD&A”), should be read in conjunction with the unaudited Condensed Consolidated Financial Statements (“Financial Statements”), the Forward-Looking Statements and our Annual Report on Form 10-K for the fiscal year ended December 31, 2023, (“2023 Form 10-K”). All Note references herein refer to the Notes to the Financial Statements.  Tabular amounts are displayed in millions of U.S. dollars except per share and unit count amounts, or as otherwise specifically identified. Percentages may not recompute due to rounding.

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 59,000 restaurants in more than 155 countries and territories, primarily under the concepts of KFC, Taco Bell, Pizza Hut and The Habit Burger Grill (collectively, the “Concepts”).  The Company’s KFC, Taco Bell and Pizza Hut brands are global leaders of the chicken, Mexican-style and pizza categories, respectively. The Habit Burger Grill, is a fast-casual restaurant concept specializing in made-to-order chargrilled burgers, sandwiches and more. Of the over 59,000 restaurants, 98% are operated by franchisees.

YUM currently consists 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

Through our Good Growth Strategy we intend to unlock the growth potential of our Concepts and YUM, drive increased collaboration across our Concepts and geographies and consistently deliver better customer experiences, improved unit economics and higher rates of growth. Key enablers include accelerated use of technology and better leverage of our systemwide scale.

Our global citizenship and sustainability strategy is reflected in our Good agenda, which includes our priorities for social responsibility, risk management and sustainable stewardship of our people, food and planet.  

Our Growth agenda is based on four key drivers:

•Unrivaled Culture and Talent: Leverage our culture and people capability to fuel brand performance and franchise success

•Unmatched Operating Capability: Recruit and equip the best restaurant operators in the world to deliver great customer experiences

•Relevant, Easy and Distinctive Brands: Innovate and elevate iconic restaurant brands people trust and champion

•Bold Restaurant Development: Drive market and franchise unit expansion with strong economics and value

We intend for this MD&A to provide the reader with information that will assist in understanding our results of operations, including performance metrics that management uses to assess the Company's performance. Throughout this MD&A, we commonly discuss the following performance metrics:

•Same-store sales growth is the estimated percentage change in system sales of all restaurants that have been open and in the YUM system for one year or more, including those temporarily closed. From time-to-time restaurants may be temporarily closed due to remodeling or image enhancement, rebuilding, natural disasters, health epidemic or pandemic, landlord disputes, boycotts, social or civil unrest or other issues. The system sales of restaurants we deem temporarily closed remain in our base for purposes of determining same-store sales growth and the restaurants remain in our unit count (see below). Same-store sales growth excludes, for subsidiaries operating on a monthly calendar, the extra day resulting from a leap year and excludes, for subsidiaries operating on a weekly periodic calendar, the last week of the year in fiscal years with 53rd weeks. We believe same-store sales growth is useful to investors because our results are heavily dependent on the results of our Concepts' existing store base. Additionally, same-store sales growth is reflective of the strength of our Brands, the effectiveness of our operational and advertising initiatives and local economic and consumer trends.

•Gross unit openings reflects new openings by us and our franchisees. Net new unit growth reflects gross unit openings offset by permanent store closures, by us and our franchisees. To determine whether a restaurant meets the definition of a unit we consider whether the restaurant has operations that are ongoing and independent from another YUM unit, serves the primary product of one of our Concepts, operates under a separate franchise agreement (if operated by a franchisee) and

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has substantial and sustainable sales. We believe gross unit openings and net new unit growth are useful to investors because we depend on new units for a significant portion of our growth. Additionally, gross unit openings and net new unit growth are generally reflective of the economic returns to us and our franchisees from opening and operating our Concept restaurants.

•System sales and System sales excluding the impacts of foreign currency translation (“FX”) reflect the results of all restaurants regardless of ownership, including Company-owned and franchise restaurants. Sales at franchise restaurants typically generate ongoing franchise and license fees for the Company at a rate of 3% to 6% of sales. Increasingly, customers are paying a fee to a third party to deliver or facilitate the ordering of our Concepts' products. We also include in System sales any portion of the amount customers pay these third parties for which the third party is obligated to pay us a license fee as a percentage of such amount. Franchise restaurant sales and fees paid by customers to third parties to deliver or facilitate the ordering of our Concepts' products are not included in Company sales on the Condensed Consolidated Statements of Income; however, any resulting franchise and license fees we receive are included in the Company's revenues. We believe System sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates our primary revenue drivers, Company and franchise same-store sales as well as net unit growth.

In addition to the results provided in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”), the Company provides the following non-GAAP measurements:

•Diluted Earnings Per Share excluding Special Items (as defined below);

•Effective Tax Rate excluding Special Items;

•Core Operating Profit. Core Operating Profit excludes Special Items and FX and we use Core Operating Profit for the purposes of evaluating performance internally;

•Company restaurant profit and Company restaurant margin as a percentage of sales (as defined below).

These non-GAAP measurements are not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the Company believes that the presentation of these non-GAAP measurements provide additional information to investors to facilitate the comparison of past and present operations.

Special Items are not included in any of our Division segment results as the Company does not believe they are indicative of our ongoing operations due to their size and/or nature. Our chief operating decision maker does not consider the impact of Special Items when assessing segment performance.

Company restaurant profit is defined as Company sales less Company restaurant expenses, both of which appear on the face of our Condensed Consolidated Statements of Income. Company restaurant expenses include those expenses incurred directly by our Company-owned restaurants in generating Company sales, including cost of food and paper, cost of restaurant-level labor, rent, depreciation and amortization of restaurant-level assets and advertising expenses incurred by and on behalf of that Company restaurant. Company restaurant margin as a percentage of sales (“Company restaurant margin %”) is defined as Company restaurant profit divided by Company sales. We use Company restaurant profit for the purposes of internally evaluating the performance of our Company-owned restaurants and we believe Company restaurant profit provides useful information to investors as to the profitability of our Company-owned restaurants. In calculating Company restaurant profit, the Company excludes revenues and expenses directly associated with our franchise operations as well as non-restaurant-level costs included in General and administrative expenses, some of which may support Company-owned restaurant operations. The Company also excludes restaurant-level asset impairment and closures expenses, which have historically not been significant, from the determination of Company restaurant profit as such expenses are not believed to be indicative of ongoing operations. Further, while we generally include depreciation and amortization of restaurant-level assets within Divisional Company restaurant expenses used to derive Divisional Company restaurant profit, we record amortization of reacquired franchise rights arising from acquisition accounting within Corporate and Unallocated Company restaurant expenses as such amortization is not believed to be indicative of ongoing Divisional results as well as to enhance comparability of acquired stores' margins with those of existing restaurants. Company restaurant profit and Company restaurant margin % as presented may not be comparable to other similarly titled measures of other companies in the industry.

Certain performance metrics and non-GAAP measurements are presented excluding the impact of FX. These amounts are derived by translating current year results at prior year average exchange rates. We believe the elimination of the FX impact provides better year-to-year comparability without the distortion of foreign currency fluctuations.

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Results of Operations

Summary  

All comparisons within this summary are versus the same period a year ago.

Quarterly Financial Highlights:

	% Change
	System Sales, ex FX	Same-Store Sales	Units	GAAP Operating Profit	Core Operating Profit
KFC Division	+2	(3)	+8	+3	+6
Taco Bell Division	+7	+5	+3	+10	+10
Pizza Hut Division	Even	(3)	+3	+4	+6
YUM	+3	(1)	+5	+6	+10

Year to date Financial Highlights:

	% Change
	System Sales, ex FX	Same-Store Sales	Units	GAAP Operating Profit	Core Operating Profit
KFC Division	+3	(3)	+8	+3	+6
Taco Bell Division	+5	+3	+3	+6	+6
Pizza Hut Division	(2)	(5)	+3	(4)	(2)
YUM	+2	(2)	+5	+3	+8

Additionally:

•Foreign currency translation unfavorably impacted Divisional Operating Profit by $12 million and $23 million for the quarter and year to date ended June 30, 2024, respectively.

	Second Quarter			Year to date
	2024	2023	% Change	2024	2023	% Change
GAAP EPS	$1.28	$1.46	(12)	$2.38	$2.51	(5)
Less Special Items EPS	$(0.07)	$0.05	NM	$(0.12)	$0.05	NM
EPS Excluding Special Items	$1.35	$1.41	(4)	$2.50	$2.46	+1

•On a year-over-year basis, our diluted EPS, excluding Special Items, reflects a $0.20 and $0.19 negative impact for the quarter and year to date ended June 30, 2024, respectively, from a higher current year tax rate and unfavorability in after-tax investment gains and losses. Foreign currency translation negatively impacted our diluted EPS, excluding Special Items, by approximately $0.03 and $0.06 for the quarter and year to date ended June 30, 2024, respectively.

•Gross unit openings for the quarter were 894 units resulting in 488 net new units. Gross unit openings for the year to date were 1,702 units resulting in 909 net new units.

24

Worldwide

GAAP Results

	Quarter ended								Year to date
	2024			2023			% B/(W)		2024			2023			% B/(W)
Company sales	$	572		$	511		12		$	1,046		$	985		6
Franchise and property revenues	789			785			Even		1,546			1,555			(1)
Franchise contributions for advertising and other services	402			391			3		769			792			(3)
Total revenues	1,763			1,687			4		3,361			3,332			1
Company restaurant expenses	470			415			(13)		870			818			(6)
G&A expenses	281			291			4		567			573			1
Franchise and property expenses	23			32			31		54			68			22
Franchise advertising and other services expense	401			388			(3)		768			783			2
Refranchising (gain) loss	(14)			(17)			NM		(19)			(21)			NM
Other (income) expense	(5)			5			NM		(6)			15			NM
Total costs and expenses, net	1,156			1,114			(4)		2,234			2,236			Even
Operating Profit	607			573			6		1,127			1,096			3
Investment (income) expense, net	—			(29)			NM		22			(5)			NM
Other pension (income) expense	(1)			(1)			NM		(3)			(3)			NM
Interest expense, net	121			125			4		238			255			7
Income before income taxes	487			478			2		870			849			3
Income tax provision (benefit)	120			60			(101)		189			131			(44)
Net Income	$	367		$	418		(12)		$	681		$	718		(5)
Diluted EPS(a)	$	1.28		$	1.46		(12)		$	2.38		$	2.51		(5)
Effective tax rate	24.7		%	12.6		%	(12.1)	ppts.	21.8		%	15.4		%	(6.4)	ppts.

(a)See Note 3 for the number of shares used in this calculation.

Performance Metrics

Unit Count	6/30/2024	6/30/2023	% Increase (Decrease)
Franchise	58,256	55,416	5
Company-owned	1,242	1,009	23
Total	59,498	56,425	5

	Quarter ended		Year to date
	2024	2023	2024	2023
Same-store Sales Growth (Decline) %	(1)	9	(2)	8
System Sales Growth %, reported	1	11	1	8
System Sales Growth %, excluding FX	3	13	2	12

25

Our system sales breakdown by Company and franchise sales was as follows:

	Quarter ended				Year to date
	2024		2023		2024		2023
Consolidated
Company sales(a)	$	572	$	511	$	1,046	$	985
Franchise sales	14,979		14,916		29,551		29,457
System sales	15,551		15,427		30,597		30,442
Negative (Positive) Foreign Currency Impact(b)	277		N/A		556		N/A
System sales, excluding FX	$	15,828	$	15,427	$	31,153	$	30,442
KFC Division
Company sales(a)	$	163	$	115	$	268	$	225
Franchise sales	8,063		8,183		16,086		16,130
System sales	8,226		8,298		16,354		16,355
Negative (Positive) Foreign Currency Impact(b)	222		N/A		459		N/A
System sales, excluding FX	$	8,448	$	8,298	$	16,813	$	16,355
Taco Bell Division
Company sales(a)	$	268	$	253	$	508	$	482
Franchise sales	3,749		3,507		7,106		6,742
System sales	4,017		3,760		7,614		7,224
Negative (Positive) Foreign Currency Impact(b)	2		N/A		—		N/A
System sales, excluding FX	$	4,019	$	3,760	$	7,614	$	7,224
Pizza Hut Division
Company sales(a)	$	2	$	4	$	4	$	9
Franchise sales	3,138		3,197		6,303		6,528
System sales	3,140		3,201		6,307		6,537
Negative (Positive) Foreign Currency Impact(b)	53		N/A		97		N/A
System sales, excluding FX	$	3,193	$	3,201	$	6,404	$	6,537
Habit Burger Grill Division
Company sales(a)	$	139	$	139	$	266	$	269
Franchise sales	29		29		56		57
System sales	168		168		322		326
Negative (Positive) Foreign Currency Impact(b)	—		N/A		—		N/A
System sales, excluding FX	$	168	$	168	$	322	$	326

(a)Company sales represents sales from our Company-operated stores as presented on our Condensed Consolidated Statements of Income.

(b)    The foreign currency impact on System sales is presented in relation only to the immediately preceding year presented. When determining applicable System sales growth percentages, the System sales excluding FX for the current year should be compared to the prior year System sales.

Non-GAAP Items
Non-GAAP Items, along with the reconciliation to the most comparable GAAP financial measure, as presented below.
	Quarter ended				Year to date
	2024		2023		2024		2023
Core Operating Profit Growth %	10		12		8		11
Diluted EPS Growth (Decline) %, excluding Special Items	(4)		33		1		17
Effective Tax Rate excluding Special Items	24.7	%	18.2	%	22.4	%	18.7	%

26

	Quarter ended						Year to date
	2024			2023			2024			2023
Company restaurant profit	$	102		$	96		$	176		$	167
Company restaurant margin %	17.8		%	18.9		%	16.8		%	17.0		%

Reconciliation of GAAP Operating Profit to Core Operating Profit	Quarter ended				Year to date
	2024		2023		2024		2023
Consolidated
GAAP Operating Profit	$	607	$	573	$	1,127	$	1,096
Detail of Special Items:
(Gain) loss associated with market-wide refranchisings(a)	1		(2)		4		(5)
Operating (profit) loss impact from decision to exit Russia(b)	—		9		—		12
Charges associated with Resource Optimization(c)	25		8		46		10
Other Special Items Expense	—		—		—		1
Special Items Expense - Operating Profit	26		15		50		18
Negative Foreign Currency Impact on Operating Profit	12		N/A		23		N/A
Core Operating Profit	$	645	$	588	$	1,200	$	1,114
Special Items as shown above were recorded to the financial statement line items identified below.
Condensed Consolidated Statements of Income Line Item
General and administrative expenses	$	25	$	11	$	46	$	15
Franchise and property expenses	—		1		—		2
Refranchising (gain) loss	1		(2)		4		(5)
Other (income) expense	—		5		—		6
Special Items Expense - Operating Profit	$	26	$	15	$	50	$	18
KFC Division
GAAP Operating Profit	$	334	$	326	$	647	$	631
Negative (Positive) Foreign Currency Impact	10		N/A		20		N/A
Core Operating Profit	$	344	$	326	$	667	$	631
Taco Bell Division
GAAP Operating Profit	$	250	$	228	$	458	$	432
Negative (Positive) Foreign Currency Impact	—		N/A		—		N/A
Core Operating Profit	$	250	$	228	$	458	$	432
Pizza Hut Division
GAAP Operating Profit	$	94	$	91	$	187	$	195
Negative (Positive) Foreign Currency Impact	2		N/A		3		N/A
Core Operating Profit	$	96	$	91	$	190	$	195
Habit Burger Grill Division
GAAP Operating Loss	$	2	$	3	$	(3)	$	(2)
Negative (Positive) Foreign Currency Impact	—		N/A		—		N/A
Core Operating Profit (Loss)	$	2	$	3	$	(3)	$	(2)
Reconciliation of GAAP Net Income to Net Income excluding Special Items
GAAP Net Income	$	367	$	418	$	681	$	718
Special Items Expense - Operating Profit	26		15		50		18
Special Items Tax Benefit(d)	(7)		(30)		(17)		(32)
Net Income excluding Special Items	$	386	$	403	$	714	$	704

27

Reconciliation of Diluted EPS to Diluted EPS excluding Special Items
Diluted EPS	$	1.28		$	1.46		$	2.38		$	2.51
Less Special Items Diluted EPS	(0.07)			0.05			(0.12)			0.05
Diluted EPS excluding Special Items	$	1.35		$	1.41		$	2.50		$	2.46
Reconciliation of GAAP Effective Tax Rate to Effective Tax Rate excluding Special Items
GAAP Effective Tax Rate	24.7		%	12.6		%	21.8		%	15.4		%
Impact on Tax Rate as a result of Special Items	—		%	(5.6)		%	(0.6)		%	(3.3)		%
Effective Tax Rate excluding Special Items	24.7		%	18.2		%	22.4		%	18.7		%

(a)    Due to their size and volatility, we have reflected as Special Items those refranchising gains and losses that were recorded in connection with market-wide refranchisings. During the quarters ended June 30, 2024 and 2023, we recorded net refranchising losses of $1 million and net refranchising gains of $2 million, respectively, that have been reflected as Special Items. During the years to date ended June 30, 2024 and 2023, we recorded net refranchising losses of $4 million and net refranchising gains of $5 million, respectively, that have been reflected as Special Items.

Additionally, we recorded net refranchising gains of $15 million during both quarters ended June 30, 2024 and 2023 that have not been reflected as Special Items. During the years to date ended June 30, 2024 and 2023, we recorded net refranchising gains of $23 million and $16 million, respectively, that have not been reflected as Special Items. These net refranchising gains relate to refranchising of restaurants unrelated to market-wide refranchisings that we believe are indicative of our expected ongoing refranchising activity.

(b)In April 2023, we completed our exit from the Russia market by selling the KFC business in Russia to Smart Service Ltd. Our GAAP operating results presented herein reflect revenues from and expenses to support the Russian operations for KFC prior to the date of sale, within their historical financial statement line items and operating segments. However, given our decision to exit Russia and our pledge to direct any future net profits attributable to Russia subsequent to the date of invasion to humanitarian efforts, we reclassed such net operating profits or losses from the KFC Division segment results to Unallocated Other income (expense). Additionally, we incurred certain expenses related to the dispositions of the businesses and other one-time costs related to our exit from Russia which we recorded within Corporate and unallocated G&A and Unallocated Franchise and property expenses. The resulting net Operating Loss of $9 million and $12 million for the quarter and year to date ended June 30, 2023, respectively, has been reflected as a Special Item.

(c)We recorded charges of $25 million and $46 million during the quarter and year to date ended June 30, 2024, respectively, and $8 million and $10 million during the quarter and year to date ended June 30, 2023, respectively, to General and administrative expenses related to a resource optimization program. This program has allowed us to reallocate significant resources to accelerate our digital, technology and innovation capabilities to deliver a modern, world-class team member and customer experience and improve unit economics. We recently expanded the program to identify further opportunities to optimize the Company’s spending and identify additional, critical areas in which to potentially reallocate resources, both with a goal to enable the acceleration of the Company’s growth rate. Costs incurred to date related to the program include severance associated with positions that have been eliminated or relocated and consultant fees. Due to their scope and size, these charges have been reflected as Special Items.

(d)The below table includes the detail of Special Items Tax Benefit:

	Quarter ended				Year to date
	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Tax Benefit on Special Items Operating Profit	$	(7)	$	(2)	$	(13)	$	(2)
Tax Benefit - Income tax impacts from decision to exit Russia	—		(6)		—		(8)
Tax Benefit - Other Income tax impacts recorded as Special	—		(22)		(4)		(22)
Special Items Tax Benefit	$	(7)	$	(30)	$	(17)	$	(32)

Tax Benefit on Special Items Operating Profit was determined by assessing the tax impact of each individual component within Special Items based upon the nature of the item and jurisdictional tax law.

28

Other Income Tax impacts recorded as Special in the year to date ended June 30, 2024 and the quarter and year to date ended June 30, 2023 include benefits related to the reversal of reserves due to the favorable resolutions of tax audits in foreign jurisdictions. Such reserves were established in prior years related to income tax liabilities and deferred tax assets originally recorded as Special Items as part of intercompany restructurings of intellectual property. Other Income Tax impacts recorded as Special in the quarter and year to date ended June 30, 2023 also include the release of valuation allowances associated with a jurisdiction in which a market-wide refranchising event occurred.

Reconciliation of GAAP Operating Profit to Company Restaurant Profit
	Quarter ended 6/30/2024
	KFC Division			Taco Bell Division			Pizza Hut Division			Habit Burger Grill Division			Corporate and Unallocated		Consolidated
GAAP Operating Profit (Loss)	$	334		$	250		$	94		$	2		$	(73)	$	607
Less:
Franchise and property revenues	405			234			148			2			—		789
Franchise contributions for advertising and other services	149			164			89			—			—		402
Add:
General and administrative expenses	84			47			50			14			86		281
Franchise and property expenses	9			8			5			1			—		23
Franchise advertising and other services expense	147			163			91			—			—		401
Refranchising (gain) loss	—			—			—			—			(14)		(14)
Other (income) expense	(1)			(1)			(3)			—			—		(5)
Company restaurant profit	$	19		$	69		$	—		$	15		$	(1)	$	102
Company sales	$	163		$	268		$	2		$	139		$	—	$	572
Company restaurant margin %	11.9		%	25.6		%	(2.2)		%	10.7		%	N/A		17.8		%

	Quarter ended 6/30/2023
	KFC Division			Taco Bell Division			Pizza Hut Division			Habit Burger Grill Division			Corporate and Unallocated		Consolidated
GAAP Operating Profit (Loss)	$	326		$	228		$	91		$	3		$	(75)	$	573
Less:
Franchise and property revenues	416			218			149			2			—		785
Franchise contributions for advertising and other services	151			150			89			1			—		391
Add:
General and administrative expenses	90			49			53			13			86		291
Franchise and property expenses	16			9			6			—			1		32
Franchise advertising and other services expense	150			148			89			1			—		388
Refranchising (gain) loss	—			—			—			—			(17)		(17)
Other (income) expense	1			—			(1)			—			5		5
Company restaurant profit	$	16		$	66		$	—		$	14		$	—	$	96
Company sales	$	115		$	253		$	4		$	139		$	—	$	511
Company restaurant margin %	14.3		%	25.6		%	3.2		%	11.1		%	N/A		18.9		%

29

	Year to date 6/30/2024
	KFC Division			Taco Bell Division			Pizza Hut Division			Habit Burger Grill Division			Corporate and Unallocated		Consolidated
GAAP Operating Profit (Loss)	$	647		$	458		$	187		$	(3)		$	(162)	$	1,127
Less:
Franchise and property revenues	802			444			296			4			—		1,546
Franchise contributions for advertising and other services	279			312			177			1			—		769
Add:
General and administrative expenses	167			96			102			27			175		567
Franchise and property expenses	26			16			10			2			—		54
Franchise advertising and other services expense	276			310			181			1			—		768
Refranchising (gain) loss	—			—			—			—			(19)		(19)
Other (income) expense	(3)			(1)			(7)			—			5		(6)
Company restaurant profit	$	32		$	123		$	—		$	22		$	(1)	$	176
Company sales	$	268		$	508		$	4		$	266		$	—	$	1,046
Company restaurant margin %	12.0		%	24.2		%	(0.1)		%	8.2		%	N/A		16.8		%

	Year to date 6/30/2023
	KFC Division			Taco Bell Division			Pizza Hut Division			Habit Burger Grill Division			Corporate and Unallocated		Consolidated
GAAP Operating Profit (Loss)	$	631		$	432		$	195		$	(2)		$	(160)	$	1,096
Less:
Franchise and property revenues	828			419			304			4			—		1,555
Franchise contributions for advertising and other services	316			292			183			1			—		792
Add:
General and administrative expenses	179			94			104			26			170		573
Franchise and property expenses	42			14			9			1			2		68
Franchise advertising and other services expense	314			286			182			1			—		783
Refranchising (gain) loss	—			—			—			—			(21)		(21)
Other (income) expense	8			1			(3)			—			9		15
Company restaurant profit	$	30		$	116		$	—		$	21		$	—	$	167
Company sales	$	225		$	482		$	9		$	269		$	—	$	985
Company restaurant margin %	13.2		%	24.0		%	3.6		%	8.2		%	N/A		17.0		%

Items Impacting Reported Results and Reasonably Likely to Impact Future Results

The following items impacted reported results in 2024 and/or 2023 and/or are reasonably likely to impact future results. See also the Detail of Special Items in this MD&A for other items similarly impacting results.

Middle East Conflict

During the fourth quarter of 2023, certain of our markets, principally in our KFC and Pizza Hut Divisions, began being impacted by a military conflict in the Middle East region. Our sales continue to be impacted significantly in markets across the Middle East, Malaysia and Indonesia, and the recovery trajectory we observed in these markets in the quarter ended March 31, 2024 flattened during the quarter ended June 30, 2024. The impact in the Middle East, Malaysia and Indonesia represented a low single-digit headwind to YUM's overall same-store sales growth in both the quarter and year to date ended June 30, 2024.

30

Additionally, we believe we have experienced conflict-related impacts in a broader set of markets, though such amounts are difficult to precisely quantify. The Middle East conflict is ongoing, and its dynamic nature makes it difficult to forecast any impacts on the Company’s balance of year 2024 revenues, operating profit and unit count with any certainty.

Impact of Foreign Currency Translation on Operating Profit

Changes in foreign currency exchange rates negatively impacted the translation of our foreign currency denominated Divisional Operating Profit by $12 million and $23 million for the quarter and year to date ended June 30, 2024, respectively. This included a negative impact to our KFC Division Operating Profit of $10 million and $20 million for the quarter and year to date ended June 30, 2024, respectively. We currently expect changes in foreign currency to negatively impact Divisional Operating Profit by approximately $25 to $35 million on a full-year basis.

Investment in Devyani

During the quarter ended March 31, 2024, we sold our approximate 5% minority investment in Devyani International Limited ("Devyani"), a franchise entity that operates KFC and Pizza Hut restaurants in India, for pre-tax proceeds of $104 million. Changes in the fair value of our ownership interest in Devyani prior to the date of sale resulted in pre-tax investment losses of $20 million in the year to date ended June 30, 2024 and pre-tax gains of $28 million and $5 million in the quarter and year to date ended June 30, 2023, respectively.

KFC Division

The KFC Division has 30,689 units, 88% of which are located outside the U.S. Additionally, 99% of the KFC Division units were operated by franchisees as of June 30, 2024.

	Quarter ended										Year to date
							% B/(W)										% B/(W)
	2024			2023			Reported		Ex FX		2024			2023			Reported		Ex FX
System Sales	$	8,226		$	8,298		(1)		2		$	16,354		$	16,355		Even		3
Same-Store Sales Growth (Decline) %	(3)			13			N/A		N/A		(3)			11			N/A		N/A
Company sales	$	163		$	115		41		41		$	268		$	225		19		19
Franchise and property revenues	405			416			(3)		Even		802			828			(3)		(1)
Franchise contributions for advertising and other services	149			151			(2)		(1)		279			316			(12)		(11)
Total revenues	$	717		$	682		5		6		$	1,349		$	1,369		(2)		—
Company restaurant profit	$	19		$	16		17		17		$	32		$	30		8		9
Company restaurant margin %	11.9		%	14.3		%	(2.4)	ppts.	(2.4)	ppts.	12.0		%	13.2		%	(1.2)	ppts.	(1.1)	ppts.
G&A expenses	$	84		$	90		6		6		$	167		$	179		7		7
Franchise and property expenses	9			16			46		45		26			42			39		39
Franchise advertising and other services expense	147			150			2		2		276			314			12		11
Operating Profit	$	334		$	326		3		6		$	647		$	631		3		6

31

			% Increase (Decrease)
Unit Count	6/30/2024	6/30/2023
Franchise	30,255	28,282	7
Company-owned	434	218	99
Total	30,689	28,500	8

Company sales and Company restaurant margin %

The quarterly and year to date increase in Company sales, excluding the impact of foreign currency translation, was driven by the KFC U.K. and Ireland restaurant acquisition (see Note 2) in the quarter ended June 30, 2024, partially offset by Company same-store sales declines of 4%.

The quarterly and year to date decreases in Company restaurant margin percentage were driven by higher restaurant operating costs and Company same-store sales declines.

Franchise and property revenues

Franchise and property revenues, excluding the impacts of foreign currency translation, were flat during the quarter, driven by a franchise same-store sales decline of 3% and a 1% negative impact from the KFC U.K. and Ireland restaurant acquisition, partially offset by unit growth.

The year to date decrease in Franchise and property revenues, excluding the impacts of foreign currency translation, was driven by franchise same-store sales decline of 3% and a 2% negative impact from the sale of our KFC Russia business, partially offset by unit growth.

G&A

The quarterly decrease in G&A, excluding the impact of foreign currency translation, was driven by lower expenses related to our annual incentive compensation programs and lower travel related costs, partially offset by higher professional fees.

The year to date decrease in G&A, excluding the impact of foreign currency translation, was driven by lower expenses related to our annual incentive compensation programs, the impact of the sale of our KFC Russia business and lower travel related costs, partially offset by higher professional fees.

Operating Profit

The quarterly and year to date increases in Operating Profit, excluding the impact of foreign currency translation, were driven by unit growth, lower bad debt expense and lower G&A, partially offset by same-store sales declines.

Taco Bell Division

The Taco Bell Division has 8,565 units, 87% of which are in the U.S. The Company owned 7% of the Taco Bell units in the U.S. as of June 30, 2024.

32

	Quarter ended								Year to date
							% B/(W)								% B/(W)
	2024			2023			Reported	Ex FX	2024			2023			Reported	Ex FX
System Sales	$	4,017		$	3,760		7	7	$	7,614		$	7,224		5	5
Same-Store Sales Growth %	5			4			N/A	N/A	3			6			N/A	N/A
Company sales	$	268		$	253		6	6	$	508		$	482		5	5
Franchise and property revenues	234			218			7	7	444			419			6	6
Franchise contributions for advertising and other services	164			150			9	9	312			292			7	7
Total revenues	$	666		$	621		7	7	$	1,264		$	1,193		6	6
Company restaurant profit	$	69		$	66		6	6	$	123		$	116		6	6
Company restaurant margin %	25.6		%	25.6		%	Even	Even	24.2		%	24.0		%	0.2	0.2
G&A expenses	$	47		$	49		5	5	$	96		$	94		(1)	(1)
Franchise and property expenses	8			9			1	1	16			14			(15)	(15)
Franchise advertising and other services expense	163			148			(10)	(10)	310			286			(9)	(9)
Operating Profit	$	250		$	228		10	10	$	458		$	432		6	6

			% Increase (Decrease)
Unit Count	6/30/2024	6/30/2023
Franchise	8,077	7,847	3
Company-owned	488	473	3
Total	8,565	8,320	3

Company sales and Company restaurant margin %

The quarterly and year to date increases in Company sales were driven by Company same-store sales growth of 4% and 3% for the quarter and year to date, respectively, and unit growth.

Company restaurant margin percentage for the quarter was flat with prior year as same-store sales growth was offset by higher labor and other restaurant operating costs.

The year to date increase in Company restaurant margin percentage was driven by same-store sales growth partially offset by higher labor and other restaurant operating costs.

Franchise and property revenues

The quarterly and year to date increases in Franchise and property revenues were driven by franchise same-store sales growth of 5% and 3% for the quarter and year to date, respectively, and unit growth.

G&A

The quarterly decrease in G&A was driven by lower share-based compensation partially offset by higher digital and technology expenses.

33

The year to date increase in G&A was driven by higher digital and technology expenses and higher headcount and salaries partially offset by lower share-based compensation.

Operating Profit

The quarterly increase in Operating Profit was driven by same-store sales growth and unit growth partially offset by higher restaurant operating costs.

The year to date increase in Operating Profit was driven by same-store sales growth and unit growth partially offset by higher restaurant operating costs and higher Franchise advertising and other service expense primarily related to digital and technology expenses.

Pizza Hut Division

The Pizza Hut Division has 19,864 units, 67% of which are located outside the U.S. The Pizza Hut Division uses multiple distribution channels including delivery, dine-in and express (e.g. airports) and includes units operating under both the Pizza Hut and Telepizza brands. Additionally, over 99% of the Pizza Hut Division units were operated by franchisees as of June 30, 2024.

	Quarter ended										Year to date
							% B/(W)										% B/(W)
	2024			2023			Reported		Ex FX		2024			2023			Reported		Ex FX
System Sales	$	3,140		$	3,201		(2)		Even		$	6,307		$	6,537		(4)		(2)
Same-Store Sales Growth (Decline) %	(3)			4			N/A		N/A		(5)			5			N/A		N/A
Company sales	$	2		$	4		(62)		(62)		$	4		$	9		(63)		(63)
Franchise and property revenues	148			149			Even		1		296			304			(3)		(1)
Franchise contributions for advertising and other services	89			89			(1)		Even		177			183			(3)		(3)
Total revenues	$	239		$	242		(2)		(1)		$	477		$	496		(4)		(3)
Company restaurant profit	$	—		$	—		NM		NM		$	—		$	—		NM		NM
Company restaurant margin %	(2.2)		%	3.2		%	(5.4)	ppts.	(5.4)	ppts.	(0.1)		%	3.6		%	(3.7)	ppts.	(3.7)	ppts.
G&A expenses	$	50		$	53		4		4		$	102		$	104		1		1
Franchise and property expenses	5			6			26		23		10			9			(11)		(13)
Franchise advertising and other services expense	91			89			(2)		(2)		181			182			1		1
Operating Profit	$	94		$	91		4		6		$	187		$	195		(4)		(2)

			% Increase (Decrease)
Unit Count	6/30/2024	6/30/2023
Franchise	19,857	19,221	3
Company-owned	7	21	(67)
Total	19,864	19,242	3

34

Franchise and property revenues

The quarterly increase in Franchise and property revenues, excluding the impacts of foreign currency translation, was driven by unit growth, offset by a franchise same-store sales decline of 3%.

The year to date decrease in Franchise and property revenues, excluding the impacts of foreign currency translation, was driven by a franchise same-store sales decline of 5%, partially offset by unit growth.

G&A

The quarterly decrease in G&A, excluding the impacts of foreign currency translation, was driven by lower expenses related to our annual incentive compensation programs.

On a year to date basis, G&A, excluding the impacts of foreign currency translation, was largely flat.

Operating Profit

The quarterly increase in Operating Profit, excluding the impacts of foreign currency translation, was driven by unit growth and lower G&A partially offset by a same-store sales decline.

The year to date decrease in Operating Profit, excluding the impacts of foreign currency translation, was driven by a same-store sales decline partially offset by unit growth.

Habit Burger Grill Division

The Habit Burger Grill Division has 380 units, the vast majority of which are in the U.S. The Company owned 84% of the Habit Burger Grill units in the U.S. as of June 30, 2024. 

	Quarter ended							Year to date
					% B/(W)							% B/(W)
	2024		2023		Reported	Ex FX		2024		2023		Reported	Ex FX
System Sales	$	168	$	168	(1)	(1)		$	322	$	326	(1)	(1)
Same-Store Sales Growth %	(6)		Even		N/A	N/A		(7)		Even		N/A	N/A
Total revenues	$	141	$	142	—	—		$	271	$	274	(1)	(1)
Operating Profit (Loss)	$	2	$	3	(18)	$	(18)	$	(3)	$	(2)	(42)	(42)

Unit Count	6/30/2024	6/30/2023	% Increase (Decrease)
Franchise	67	66	2
Company-owned	313	297	5
Total	380	363	5

35

Corporate & Unallocated

	Quarter ended								Year to date
(Expense) / Income	2024			2023			% B/(W)		2024			2023			% B/(W)
Corporate and unallocated G&A	$	(86)		$	(86)		—		$	(175)		$	(170)		(4)
Unallocated Company restaurant expenses (See Note 9)	(1)			—			NM		(1)			—			NM
Unallocated Franchise and property expenses	—			(1)			NM		—			(2)			NM
Unallocated Refranchising gain (loss)	14			17			NM		19			21			NM
Unallocated Other income (expense)	—			(5)			NM		(5)			(9)			NM
Investment income (expense), net (See Note 9)	—			29			NM		(22)			5			NM
Other pension income (expense) (See Note 10)	1			1			NM		3			3			NM
Interest expense, net	(121)			(125)			4		(238)			(255)			7
Income tax benefit (provision) (See Note 7)	(120)			(60)			(101)		(189)			(131)			(44)
Effective tax rate (See Note 7)	24.7		%	12.6		%	(12.1)	ppts.	21.8		%	15.4		%	(6.4)	ppts.

Corporate and unallocated G&A

Corporate and unallocated G&A was flat during the quarter, as higher costs associated with our resource optimization program were offset by lower current year expenses related to our annual incentive compensation programs and lapping costs related to the prior year ransomware attack.

The year to date increases in Corporate and Unallocated G&A expense was driven by higher costs associated with our resource optimization program, partially offset by lapping costs related to the prior year ransomware attack and lower current year expenses related to our annual incentive compensation programs.

Interest expense, net

The quarterly decrease in Interest expense, net was primarily driven by lower borrowings.

The year to date decrease in Interest expense, net was primarily driven by lower borrowings and higher interest income.

Consolidated Cash Flows

Net cash provided by operating activities was $705 million in 2024 versus $678 million in 2023. The increase was primarily driven by an increase in Operating Profit before Special Items and timing of accounts receivable collections, partially offset by higher income tax payments.

Net cash used in investing activities was $253 million in 2024 compared to net cash provided by investing activities of $26 million in 2023. The change was primarily driven by outflows in the current year related to the KFC U.K. and Ireland restaurant acquisition and lapping proceeds from the prior year sale of KFC Russia. Current year proceeds arising from the sale of our approximate 5% minority investment in Devyani were primarily offset with higher current year purchases of short-term investments.

Net cash used in financing activities was $547 million in 2024 versus $698 million in 2023. The change was primarily driven by lower current year net debt repayments.

Liquidity and Capital Resources

We have historically generated substantial cash flows from our extensive franchise operations, which require a limited YUM investment, and from the operations of our Company-owned stores. Our annual operating cash flows have been in excess of $1.3 billion in each of the past five years and we expect that to continue to be the case in 2024. It is our intent to use these operating cash flows to continue to invest in growing our business and pay a competitive dividend, with any remaining excess then returned to shareholders through share repurchases. To the extent operating cash flows plus other sources of cash do not cover our anticipated cash needs, we maintain a $1.5 billion Revolving Facility under our Credit Agreement which had $180 million outstanding as of June 30, 2024. We believe that our ongoing cash from operations, cash on hand, which was approximately $400 million at June 30, 2024, and availability under our Revolving Facility will be sufficient to fund our cash requirements over the next twelve months.

36

There have been no material changes to the disclosures made in Item 7 of the Company's 2023 Form 10-K regarding our material cash requirements. Due to the ongoing significance of our debt obligations, we are providing the update below.

Debt Instruments

As of June 30, 2024, approximately 96%, including the impact of interest rate swaps, of our $11 billion of total debt outstanding, excluding the Revolving Facility balance, finance leases and debt issuance costs and discounts, is fixed with an effective overall interest rate of approximately 4.5%. We ended the quarter with a consolidated net leverage ratio of 4.1x EBITDA. We continually reassess our optimal leverage ratio to maximize shareholder returns. We target a capital structure which we believe provides an attractive balance between optimized interest rates, duration and flexibility with diversified sources of liquidity and maturities spread over multiple years. We have credit ratings of BB+ (Standard & Poor's)/Ba2 (Moody's).

The following table summarizes the future maturities of our outstanding long-term debt, excluding finance leases and debt issuance costs and discounts, as of June 30, 2024.

	2024		2025		2026		2027		2028		2029		2030		2031		2032		2037		2043		Total
Securitization Notes					$	938	$	884	$	595	$	589			$	737							$	3,743
Credit Agreement	$	8	$	21	27		34		1,424		437												1,951
Revolving Facility											180												180
Subsidiary Senior Unsecured Notes							750																750
YUM Senior Unsecured Notes													$	800	1,050		$	2,100	$	325	$	275	4,550
Total	$	8	$	21	$	965	$	1,668	$	2,019	$	1,206	$	800	$	1,787	$	2,100	$	325	$	275	$	11,174

See Note 11 for details on the Securitization Notes, the Credit Agreement, Revolving Facility, Subsidiary Senior Unsecured Notes and YUM Senior Unsecured Notes, including a refinancing of the Credit Agreement that took place in April 2024.

New Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, which updates reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The standard is effective for the Company's Annual Report on Form 10-K for fiscal 2024, and subsequent interim periods, with early adoption permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact of the standard on our disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which updates income tax disclosure requirements related to the income tax rate reconciliation and requires disclosure of income taxes paid by jurisdiction. The standard is effective for the Company's Annual Report on Form 10-K for fiscal 2025 with early adoption permitted. The amendments should be applied prospectively; however, retrospective application is permitted. We are currently evaluating the impact of the standard on our disclosures.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Except as disclosed below, there were no material changes during the year to date ended June 30, 2024, to the disclosures made in Item 7A of the Company’s 2023 Form 10-K.

Equity Investment Risk

During the quarter ended March 31, 2024, the Company sold its equity ownership interest in Devyani International Limited for pre-tax proceeds of $104 million. As a result, we are no longer exposed to material equity investment risk as of June 30, 2024.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

The Company has evaluated the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this report.  Based on the evaluation, performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer (the “CEO”) and the Chief Financial Officer (the “CFO”), the Company’s management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by the report.

Changes in Internal Control

There were no changes with respect to the Company’s internal control over financial reporting or in other factors that materially affected, or are reasonably likely to materially affect, internal control over financial reporting during the quarter ended June 30, 2024.

Forward-Looking Statements

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as “expect,” “expectation,” “believe,” “anticipate,” “may,” “could,” “intend,” “belief,” “plan,” “estimate,” “target,” “predict,” “likely,” “seek,” “project,” “model,” “ongoing,” “will,” “should,” “forecast,” “outlook” or similar terminology. Forward-looking statements are based on our current expectations, estimates, assumptions and/or projections, our perception of historical trends and current conditions, as well as other factors that we believe are appropriate and reasonable under the circumstances. Forward-looking statements are neither predictions nor guarantees of future events, circumstances or performance and are inherently subject to known and unknown risks, uncertainties and assumptions that could cause our actual results to differ materially from those indicated by those statements. There can be no assurance that our expectations, estimates, assumptions and/or projections will be achieved. Factors that could cause actual results and events to differ materially from our expectations and forward-looking statements include (i) the factors described in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Part I, Item 2 of this report, (ii) any risks and uncertainties described in the Risk Factors included in Part II, Item 1A of this report, (iii) the factors described in the Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Part II, Item 7 of our Form 10-K for the year ended December 31, 2023, and (iv) the risks and uncertainties described in the Risk Factors included in Part I, Item 1A of our Form 10-K for the year ended December 31, 2023. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. We are not undertaking to update any of these statements.

38

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Yum! Brands, Inc.:

Results of Review of Interim Financial Information

We have reviewed the condensed consolidated balance sheet of Yum! Brands, Inc. and subsidiaries (YUM) as of June 30, 2024, the related condensed consolidated statements of income, comprehensive income, and shareholders’ deficit for the three-month and six-month periods ended June 30, 2024 and 2023, the related condensed consolidated statements of cash flows for the six-month periods ended June 30, 2024 and 2023, and the related notes (collectively, the consolidated interim financial information). Based on our reviews, we are not aware of any material modifications that should be made to the consolidated interim financial information for it to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of YUM as of December 31, 2023, and the related consolidated statements of income, comprehensive income, cash flows and shareholders’ deficit for the year then ended (not presented herein); and in our report dated February 20, 2024, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2023 is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

This consolidated interim financial information is the responsibility of YUM’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to YUM in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with the standards of the PCAOB.

A review of consolidated interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ KPMG LLP

Louisville, Kentucky

August 8, 2024

39

PART II – OTHER INFORMATION AND SIGNATURES

Item 1. Legal Proceedings

Information regarding legal proceedings is incorporated by reference from Note 14 to the Company’s Condensed Consolidated Financial Statements set forth in Part I of this report.

Item 1A. Risk Factors

We face a variety of risks that are inherent in our business and our industry, including operational, legal, regulatory and product risks. Such risks could cause our actual results to differ materially from our forward-looking statements, expectations and historical trends. There have been no material changes from the risk factors disclosed in Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following tables provides information as of June 30, 2024, with respect to shares of Common Stock repurchased by the Company during the quarter then ended:

Fiscal Periods	Total number of shares purchased (thousands)	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs (thousands)	Approximate dollar value of shares that may yet be purchased under the plans or programs (millions)
4/1/24-4/30/24	—	$—	—	$1,700
5/1/24-5/31/24	298	$136.72	298	$1,659
6/1/24-6/30/24	68	$139.46	68	$—
Total	366	$137.24	366	$—

In September 2022, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through June 30, 2024. Upon its expiration on June 30, 2024, we had remaining capacity to repurchase up to $1.65 billion of Common Stock under the September 2022 authorization. In May 2024, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through December 31, 2026. The new authorization took effect July 1, 2024 upon the expiration of the authorization approved in September 2022.

Item 5. Other Information

Securities Trading Plans

During the three months ended June 30, 2024, none of the Company’s directors or executive officers adopted or terminated any contract, instruction or written plan for the purchase or sale of Company securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408 (c) of Regulation S-K except as follows:

40

Name/Title	Type of Plan	Adoption Date	End Date	Aggregate Number of Securities to be Sold	Plan Description
David Russell / Senior Vice President - Finance, Corporate Controller	Rule 10b5-1 trading plan	May 23, 2024	February 14, 2025	39,394(1)	Sale of Shares/ Exercise of Stock Appreciation Rights and Sale of Resulting Shares

(1) Represents 5,000 shares of common stock owned by Mr. Russell and a maximum of 34,394 shares of common stock to be received upon exercise of stock appreciation rights awards specified in the plan. The resulting number of shares of common stock received and sold following the stock appreciation rights exercise will depend upon the appreciation of the award and the number of shares withheld for any taxes.

41

Item 6. Exhibits

(a)	Exhibit Index
	Exhibit No.	Exhibit Description
	10.1	Refinancing Amendment No. 7, dated as of April 26, 2024, to Credit Agreement dated as of June 16, 2016 among Pizza Hut Holdings, LLC, KFC Holding Co. and Taco Bell of America, LLC, as borrowers, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Collateral Agent, Swing Line Lender, an L/C Issuer and Administrative Agent for the Lenders, which is incorporated herein by reference from Exhibit 10.1 to YUM's Report on 8-K filed on April 26, 2024.
	15	Letter from KPMG LLP regarding Unaudited Interim Financial Information (Acknowledgement of Independent Registered Public Accounting Firm).
	31.1	Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2	Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	32.1	Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	32.2	Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
	†	Indicates a management contract or compensatory plan.

42

SIGNATURES

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, duly authorized officer of the registrant.

YUM! BRANDS, INC.

(Registrant)

Date:	August 8, 2024	/s/ David Russell
		Senior Vice President, Finance and Corporate Controller
		(Principal Accounting Officer)

43

EX-15

August 8, 2024

Yum! Brands, Inc.

Louisville, Kentucky

Re: Registration Statements (No. 333-248288) on Form S-3 and (No. 333-36877, 333-32050, 333-36955, 333-36961, 333-36893, 333-32048, 333-109300, 333-64547, 333-32052, 333-109299, 333-170929, and 333-223152) on Form S-8.

With respect to the subject registration statements, we acknowledge our awareness of the use therein of our report dated August 8, 2024 related to our review of interim financial information.

Pursuant to Rule 436 under the Securities Act of 1933 (the Act), such report is not considered part of a registration statement prepared or certified by an independent registered public accounting firm, or a report prepared or certified by an independent registered public accounting firm within the meaning of Sections 7 and 11 of the Act.

/s/ KPMG LLP

Louisville, Kentucky

EX-31.1

Exhibit 31.1

CERTIFICATION

I, David Gibbs, certify that:

1.I have reviewed this report on Form 10-Q of YUM! Brands, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report.

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2024	/s/ David Gibbs
		Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Chris Turner, certify that:

1.I have reviewed this report on Form 10-Q of YUM! Brands, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant, as of, and for, the periods presented in this report.

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function):

(a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 8, 2024	/s/ Chris Turner
		Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of YUM! Brands, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Periodic Report”), I, David Gibbs, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 8, 2024	/s/ David Gibbs
		Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to YUM! Brands, Inc. and will be retained by YUM! Brands, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of YUM! Brands, Inc. (the “Company”) on Form 10-Q for the quarter ended June 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Periodic Report”), I, Chris Turner, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1.the Periodic Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.the information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	August 8, 2024	/s/ Chris Turner
		Chief Financial Officer

A signed original of this written statement required by Section 906 has been provided to YUM! Brands, Inc. and will be retained by YUM! Brands, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

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Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2024	Aug. 02, 2024
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	2024
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2024
Entity File Number	1-13163
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		281,165,002

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CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues
Total Revenues		$ 1,763	$ 1,687	$ 3,361	$ 3,332
Costs and Expenses, Net
Company restaurant expenses		470	415	870	818
General and Administrative Expense		281	291	567	573
Franchise and property expenses		23	32	54	68
Franchise advertising and other services expense		401	388	768	783
Refranchising (gain) loss		(14)	(17)	(19)	(21)
Other (income) expense		(5)	5	(6)	15
Total costs and expenses, net		1,156	1,114	2,234	2,236
Operating Profit		607	573	1,127	1,096
Investment (income) expense, net	[1]	0	(29)	22	(5)
Other pension (income) expense		(1)	(1)	(3)	(3)
Interest expense, net		121	125	238	255
Income Before Income Taxes		487	478	870	849
Income tax provision		120	60	189	131
Net Income		$ 367	$ 418	$ 681	$ 718
Basic Earnings Per Common Share		$ 1.30	$ 1.49	$ 2.41	$ 2.55
Diluted Earnings Per Common Share		1.28	1.46	2.38	2.51
Dividends Declared Per Common Share		$ 0.67	$ 0.605	$ 1.34	$ 1.21
Company Sales
Revenues
Revenues		$ 572	$ 511	$ 1,046	$ 985
Franchise and property revenues
Revenues
Revenues		789	785	1,546	1,555
Franchise contributions for advertising and other services
Revenues
Revenues		$ 402	$ 391	$ 769	$ 792

[1] Includes changes in the value of our investment in Devyani International Limited (see Note 13).

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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net Income	$ 367	$ 418	$ 681	$ 718
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature
Adjustments and gains (losses) arising during the period	2	4	(8)	12
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	0	60	0	60
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, before tax	2	64	(8)	72
Tax (expense) benefit	0	0	0	0
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, net of tax	2	64	(8)	72
Changes in pension and post-retirement benefits
Unrealized gains (losses) arising during period, before Tax	0	0	0	0
Reclassification of (gains) losses into Net Income	1	1	1	1
Changes in pension and post-retirement benefits, before Tax	1	1	1	1
Pension and post-retirement benefit plans, tax	0	0	0	(2)
Pension and post-retirement benefit plans, net of tax	1	1	1	(1)
Changes in derivative instruments
Unrealized gains (losses) arising during the period	4	26	16	18
Reclassification of (gains) losses into Net Income	(8)	(8)	(16)	(11)
Changes in derivative instruments	(4)	18	0	7
Changes in derivatives, Tax	1	(5)	0	(2)
Changes in derivatives, net of tax	(3)	13	0	5
Other comprehensive income (loss), net of tax	0	78	(7)	76
Comprehensive Income (Loss)	$ 367	$ 496	$ 674	$ 794

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023
Cash Flows - Operating Activities
Net Income		$ 681	$ 718
Depreciation and amortization		76	67
Refranchising (gain) loss		(19)	(21)
Investment (income) expense, net	[1]	22	(5)
Deferred income taxes		12	(73)
Share-based compensation expense		38	47
Changes in accounts and notes receivable		15	(21)
Changes in prepaid expenses and other current assets		(36)	(19)
Changes in accounts payable and other current liabilities		(78)	(107)
Changes in income taxes payable		(46)	19
Other, net		40	73
Net Cash Provided by Operating Activities		705	678
Cash Flows - Investing Activities
Capital spending		(99)	(122)
Proceeds from Sale of Long-Term Investments		104	0
Proceeds from Divestiture of Businesses, Net of Cash Divested		0	121
Payments to Acquire Long-Term Investments		174	0
Proceeds from Sale of Productive Assets		30	31
Payments to Acquire Short-Term Investments		116	1
Other, net		2	(5)
Net Cash Used in Investing Activities		(253)	26
Cash Flows - Financing Activities
Proceeds from long-term debt		237	0
Repayments of long-term debt		(463)	(40)
Revolving credit facilities, three months or less, net		175	(249)
Repurchase shares of Common Stock		(50)	(50)
Dividends paid on Common Stock		(377)	(339)
Other, net		(69)	(20)
Net Cash Provided by (Used in) Financing Activities		(547)	(698)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		(6)	6
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		(101)	12
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - Beginning of Period		724	647
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents - End of Period		$ 623	$ 659

[1] Includes changes in the value of our investment in Devyani International Limited (see Note 13).

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CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) shares in Millions, $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Current Assets
Cash and cash equivalents	$ 404	$ 512
Accounts and notes receivable, net	713	737
Prepaid Expense and Other Assets, Current	518	360
Total Current Assets	1,635	1,609
Property, plant and equipment, net	1,272	1,197
Goodwill	718	642
Intangible assets, net	417	377
Other assets	1,335	1,361
Deferred Income Taxes	1,018	1,045
Total Assets	6,395	6,231
Current Liabilities
Accounts payable and other current liabilities	1,098	1,169
Income taxes payable	14	55
Short-term borrowings	24	53
Total Current Liabilities	1,136	1,277
Long-term debt	11,140	11,142
Other liabilities and deferred credits	1,749	1,670
Total Liabilities	14,025	14,089
Shareholders' Equity
Common Stock, no par value, 750 shares authorized; 285 shares issued in 2022 and 289 issued in 2021	0	60
Accumulated Deficit	(7,321)	(7,616)
Accumulated other comprehensive loss	(309)	(302)
Total Shareholders' Deficit	(7,630)	(7,858)
Total Liabilities and Shareholders' Deficit	$ 6,395	$ 6,231
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	750	750
Common Stock, Shares, Issued	281

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CONDENSED STATEMENT OF SHAREHOLDERS EQUITY STATEMENT - USD ($) $ in Millions	Total	Issued Common Stock	Accumulated Deficit	Accumulated Other Comprehensive Loss
Total Shareholders' Deficit	$ (8,876)	$ 0	$ (8,507)	$ (369)
Issued Common Stock, Shares		280,000,000
Net Income	718		718
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature	12			12
Pension and post-retirement benefit plans, net of tax	1			1
Changes in derivatives, net of tax	5			5
Comprehensive Income (Loss)	794
Dividends declared	(341)		(341)
Shares Repurchased		(387,000)
Repurchase of shares of Common Stock, value	(50)	$ (24)	(26)
Employee Stock Option and SARs Exercises, Value	(20)	(20)
Share-based compensation events	57	57
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	60
Total Shareholders' Deficit	(8,774)	$ 0	(8,403)	(371)
Issued Common Stock, Shares		280,000,000
Net Income	418		418
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	(1)			(1)
Changes in derivatives, net of tax	13			13
Comprehensive Income (Loss)	496
Dividends declared	(171)		(171)
Employee Stock Option and SARs Exercises, Value	(10)	$ (10)
Share-based compensation events	23	23
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	60
Total Shareholders' Deficit	(8,436)	$ 13	(8,156)	(293)
Issued Common Stock, Shares		280,000,000
Total Shareholders' Deficit	(7,858)	$ 60	(7,616)	(302)
Issued Common Stock, Shares		281,000,000
Net Income	681		681
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature	(8)			(8)
Pension and post-retirement benefit plans, net of tax	(1)			(1)
Changes in derivatives, net of tax	0
Comprehensive Income (Loss)	674
Dividends declared	(380)		(380)
Shares Repurchased		(366,000)
Repurchase of shares of Common Stock, value	(50)	$ (44)	(6)
Employee Stock Option and SARs Exercises, Value	(66)	(66)
Share-based compensation events	50	50
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	0
Total Shareholders' Deficit	(7,756)	$ 45	(7,492)	(309)
Issued Common Stock, Shares		281,000,000
Net Income	367		367
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature	2			2
Pension and post-retirement benefit plans, net of tax	(1)			(1)
Changes in derivatives, net of tax	(3)			(3)
Comprehensive Income (Loss)	367
Dividends declared	(190)		(190)
Repurchase of shares of Common Stock, value	(50)	$ (44)	(6)
Employee Stock Option and SARs Exercises, Value	(19)	(19)
Share-based compensation events	18	18
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax	0
Total Shareholders' Deficit	$ (7,630)	$ 0	$ (7,321)	$ (309)
Issued Common Stock, Shares		281,000,000

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CONDENSED STATEMENT OF SHAREHOLDERS EQUITY (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Stockholders' Equity [Abstract]
Pension and post-retirement benefit plans, tax	$ 0	$ 0	$ 0	$ 2
Changes in derivatives, Tax	$ 1	$ (5)	$ 0	$ (2)

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Financial Statement Presentation

6 Months Ended

Jun. 30, 2024

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, 2023 (“2023 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 59,000 restaurants in more than 155 countries and territories.  As of June 30, 2024, 98% 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-style 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 June 30, 2024, 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

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. For subsidiaries that operate on this periodic weekly calendar, 2024 will include a 53rd week. 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 2023 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 and year to date ended June 30, 2024. These reclassifications had no effect on previously reported Net Income.

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Business Combinations, Asset Acquisitions, and Joint Venture Formation

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Business Combination Disclosure [Text Block]

KFC United Kingdom ("U.K.") and Ireland Restaurant Acquisition

On April 29, 2024, we completed the acquisition of all of the issued shares of two franchisee entities that owned 216 KFC restaurants in the U.K. and Ireland. The acquisition creates a significant opportunity to accelerate KFC's growth strategy in the large and growing U.K. and Ireland chicken market. The purchase price to be allocated for accounting purposes of $171 million consisted of cash, net of cash acquired, in the amount of $174 million offset by the settlement of a liability of $3 million related to our preexisting contractual relationship with the franchisee.

The acquisition was accounted for as a business combination using the acquisition method of accounting. The preliminary allocation of the purchase price is based on management's analysis, including preliminary work performed by third party

valuation specialists, as of April 29, 2024. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period.

The components of the preliminary purchase price allocation upon the April 29, 2024 acquisition were as follows:

Total Current Assets	$	2
Property, plant and equipment, net	88
Reacquired franchise rights (included in Intangible assets, net)	47
Operating lease right-of-use assets (included in Other assets)	109
Total Assets	246
Total Current Liabilities	(18)
Operating lease liabilities (included in Other liabilities and deferred credits)	(102)
Other liabilities	(31)
Total Liabilities	(151)
Total identifiable net assets	95
Goodwill	76
Purchase price to be allocated	$	171

Reacquired franchise rights, which were valued based on after-royalty cash flows expected to be earned by the acquired restaurants over the remaining term of their then-existing franchise agreements, have an estimated weighted average useful life of 5 years. The excess of the purchase price over the preliminary estimated fair value of the net, identifiable assets acquired was recorded as goodwill. The goodwill recognized represents expected benefits of the acquisition that do not qualify for recognition as intangible assets. This includes value arising from cash flows expected to be earned in years subsequent to the expiration of the terms of franchise agreements existing upon acquisition. The goodwill is expected to be partially deductible for income tax purposes and has been allocated to our KFC U.K. reporting unit.

The financial results of the acquired restaurants have been included in our Condensed Consolidated Financial Statements since the date of the acquisition but did not significantly impact our results for the quarter ended June 30, 2024. The pro forma impact on our results of operations if the acquisition had been completed as of the beginning of 2023 would not have been material. The direct transaction costs associated with the acquisition were also not material and were expensed as incurred.

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Earnings Per Common Share ("EPS")

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Common Share (EPS)

Earnings Per Common Share (“EPS”)

	Quarter ended				Year to date
	2024		2023		2024		2023
Net Income	$	367	$	418	$	681	$	718
Weighted-average common shares outstanding (for basic calculation)	282		281		282		281
Effect of dilutive share-based employee compensation	4		5		4		5
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)	286		286		286		286
Basic EPS	$	1.30	$	1.49	$	2.41	$	2.55
Diluted EPS	$	1.28	$	1.46	$	2.38	$	2.51
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)	1.9		1.7		1.8		1.6

(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.

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Shareholders' Deficit

6 Months Ended

Jun. 30, 2024

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 June 30, 2024 and 2023 as indicated below.  All amounts exclude applicable transaction fees. 

	Shares Repurchased (thousands)		Dollar Value of Shares Repurchased				Remaining Dollar Value of Shares that may be Repurchased
Authorization Date	2024	2023	2024		2023		2024
September 2022	366	387	50		50		—
Total	366	387	$	50	$	50	$	—

In September 2022, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through June 30, 2024. Upon its expiration on June 30, 2024, we had remaining capacity to repurchase up to $1.65 billion of Common Stock under the September 2022 authorization. In May 2024, our Board of Directors authorized share repurchases of up to $2 billion (excluding applicable transaction fees) of our outstanding Common Stock through December 31, 2026. The new authorization took effect on July 1, 2024 upon the expiration of the authorization approved in September 2022.

Changes in Accumulated other comprehensive loss (“AOCI”) are presented below.

	Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature		Pension and Post-Retirement Benefits		Derivative Instruments		Total
Balance at March 31, 2024, net of tax	$	(211)	$	(104)	$	6	$	(309)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	2		—		3		5
(Gains) losses reclassified from AOCI, net of tax	—		1		(6)		(5)
	2		1		(3)		—
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)
Balance at December 31, 2023, net of tax	$	(201)	$	(104)	$	3	$	(302)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	(8)		—		12		4
(Gains) losses reclassified from AOCI, net of tax	—		1		(12)		(11)
	(8)		1		—		(7)
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)

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Other (Income) Expense

6 Months Ended

Jun. 30, 2024

Other Income and Expenses [Abstract]

Other (Income) Expense

Other (Income) Expense

	Quarter ended				Year to date
	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Foreign exchange net (gain) loss	$	—	$	1	$	5	$	4
Impairment and closure expense	—		—		—		1
Other	(5)		4		(11)		10
Other (income) expense	$	(5)	$	5	$	(6)	$	15

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Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2024

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.

	6/30/2024		12/31/2023
Accounts and notes receivable, gross	$	762	$	776
Allowance for doubtful accounts	(49)		(39)
Accounts and notes receivable, net	$	713	$	737

Prepaid Expenses and Other Current Assets

	6/30/2024		12/31/2023
Income tax receivable	$	20	$	20
Restricted cash	183		177
Short term investments	116		—
Other prepaid expenses and current assets	199		163
Prepaid expenses and other current assets	$	518	$	360

Property, Plant and Equipment, net

	6/30/2024		12/31/2023
Property, plant and equipment, gross	$	2,633	$	2,529
Accumulated depreciation and amortization	(1,361)		(1,332)
Property, plant and equipment, net	$	1,272	$	1,197

Other Assets	6/30/2024		12/31/2023
Operating lease right-of-use assets(a)	$	865	$	764
Franchise incentives	178		175
Investment in Devyani International Limited (See Note 13)	—		124
Other	292		298
Other assets	$	1,335	$	1,361

(a)    Non-current operating lease liabilities of $848 million and $757 million as of June 30, 2024 and December 31, 2023, 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

	6/30/2024		12/31/2023
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	404	$	512
Restricted cash included in Prepaid expenses and other current assets(a)	183		177
Restricted cash and restricted cash equivalents included in Other assets(b)	36		35
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows	$	623	$	724

(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.

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Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

	Quarter ended						Year to date
	2024			2023			2024			2023
Income tax provision	$	120		$	60		$	189		$	131
Effective tax rate	24.7		%	12.6		%	21.8		%	15.4		%

Our estimated effective tax rate on income for the full fiscal year is expected to be higher than the U.S. federal statutory rate of 21%, primarily due to state income taxes and U.S. taxes on foreign earnings partially offset by taxes on income earned in foreign jurisdictions with statutory tax rates below 21%.

Our second quarter and year to date effective tax rate is higher than the prior year primarily due to the lapping of higher foreign tax benefits recorded in the quarter ended June 30, 2023, associated with the favorable resolutions of tax audits and the establishment of additional net operating loss carryforward deferred tax assets in foreign jurisdictions, as well as higher taxes paid in foreign jurisdictions where our intellectual property rights are domiciled and higher current U.S. tax expense on foreign earnings. These unfavorable items were partially offset by current quarter and year to date favorability associated with tax deductions for share-based compensation.

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Revenue Recognition Accounting Policy

6 Months Ended

Jun. 30, 2024

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 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	14	$	268	$	2	$	139	$	423
Franchise revenues		47		209		66		2		324
Property revenues		3		10		1		—		14
Franchise contributions for advertising and other services		10		161		73		—		244
China
Franchise revenues		62		—		17		—		79
Other
Company sales		149		—		—		—		149
Franchise revenues		282		15		63		—		360
Property revenues		11		—		1		—		12
Franchise contributions for advertising and other services		139		3		16		—		158
		$	717	$	666	$	239	$	141	$	1,763

	Quarter ended 6/30/2023
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	17	$	253	$	4	$	139	$	413
Franchise revenues	49		194		66		2		311
Property revenues	3		10		1		—		14
Franchise contributions for advertising and other services	8		148		74		1		231
China
Franchise revenues	61		—		16		—		77
Other
Company sales	98		—		—		—		98
Franchise revenues	290		14		65		—		369
Property revenues	13		—		1		—		14
Franchise contributions for advertising and other services	143		2		15		—		160
	$	682	$	621	$	242	$	142	$	1,687

	Year to date 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	28	$	508	$	4	$	266	$	806
Franchise revenues		90		397		134		3		624
Property revenues		6		19		2		1		28
Franchise contributions for advertising and other services		20		307		146		1		474
China
Franchise revenues		130		—		34		—		164
Other
Company sales		240		—		—		—		240
Franchise revenues		554		28		125		—		707
Property revenues		22		—		1		—		23
Franchise contributions for advertising and other services		259		5		31		—		295
		$	1,349	$	1,264	$	477	$	271	$	3,361

	Year to date 6/30/2023
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	33	$	482	$	9	$	269	$	793
Franchise revenues		95		372		136		3		606
Property revenues		6		20		2		1		29
Franchise contributions for advertising and other services		16		288		152		1		457
China
Franchise revenues		127		—		34		—		161
Other
Company sales		192		—		—		—		192
Franchise revenues		574		27		131		—		732
Property revenues		26		—		1		—		27
Franchise contributions for advertising and other services		300		4		31		—		335
		$	1,369	$	1,193	$	496	$	274	$	3,332

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 2024 is presented below.

	Deferred Franchise Fees
Balance at December 31, 2023	$	444
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(40)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	36
Other(a)	(5)
Balance at June 30, 2024	$	435

(a)    Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 2) and 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	$	73
1 - 2 years	65
2 - 3 years	59
3 - 4 years	52
4 - 5 years	44
Thereafter	142
Total	$	435

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Reportable Operating Segments

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Reportable Operating Segments

Reportable Operating Segments

We identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:

	Quarter ended				Year to date
Revenues	2024		2023		2024		2023
KFC Division	$	717	$	682	$	1,349	$	1,369
Taco Bell Division	666		621		1,264		1,193
Pizza Hut Division	239		242		477		496
Habit Burger Grill Division	141		142		271		274
	$	1,763	$	1,687	$	3,361	$	3,332

	Quarter ended				Year to date
Operating Profit	2024		2023		2024		2023
KFC Division	$	334	$	326	$	647	$	631
Taco Bell Division	250		228		458		432
Pizza Hut Division	94		91		187		195
Habit Burger Grill Division	2		3		(3)		(2)
Corporate and unallocated G&A expenses	(86)		(86)		(175)		(170)
Unallocated Company restaurant expenses(a)	(1)		—		(1)		—
Unallocated Franchise and property income (expenses)	—		(1)		—		(2)
Unallocated Refranchising gain (loss)	14		17		19		21
Unallocated Other income (expense)	—		(5)		(5)		(9)
Operating Profit	$	607	$	573	$	1,127	$	1,096
Investment income (expense), net(b)	—		29		(22)		5
Other pension income (expense)	1		1		3		3
Interest expense, net	(121)		(125)		(238)		(255)
Income before income taxes	$	487	$	478	$	870	$	849

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Unallocated Company restaurant expenses include amortization of reacquired franchise rights (see Note 2).

(b)Includes changes in the value of our investment in Devyani International Limited (see Note 13).

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Pension Benefits

6 Months Ended

Jun. 30, 2024

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				Year to date
	2024		2023		2024		2023
Service cost	$	1	$	1	$	2	$	2
Interest cost	10		11		21		21
Expected return on plan assets	(13)		(13)		(26)		(25)
Amortization of net (gain) / loss	1		(1)		1		(1)
Amortization of prior service cost	1		1		1		1
Net periodic benefit cost (income)	$	—	$	(1)	$	(1)	$	(2)

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Short-term Borrowings and Long-term Debt

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Short-term Borrowings and Long-term Debt

Short-term Borrowings and Long-term Debt

Short-term Borrowings	6/30/2024		12/31/2023
Current maturities of long-term debt	$	26	$	56
Less current portion of debt issuance costs and discounts	(2)		(3)
Short-term borrowings	$	24	$	53
Long-term Debt
Securitization Notes	$	3,743	$	3,743
Subsidiary Senior Unsecured Notes	750		750
Revolving Facility	180		—
Term Loan A Facility	500		717
Term Loan B Facility	1,451		1,459
YUM Senior Unsecured Notes	4,550		4,550
Finance lease obligations	68		50
	$	11,242	$	11,269
Less long-term portion of debt issuance costs and discounts	(76)		(71)
Less current maturities of long-term debt	(26)		(56)
Long-term debt	$	11,140	$	11,142

Details of our Short-term borrowings and Long-term debt as of December 31, 2023 can be found within our 2023 Form 10-K.

On April 26, 2024, KFC Holding Co, Pizza Hut Holdings, LLC and Taco Bell of America, LLC (collectively, the "Borrowers"), each of which is a wholly-owned subsidiary of the Company, completed the refinancing of the then outstanding $713 million under the term loan A facility and $1.25 billion capacity under the revolving facility through the issuance of a new $500 million term loan A facility (the "Term Loan A Facility") and a $1.5 billion revolving facility (the "Revolving Facility") pursuant to an amendment to the Credit Agreement (as defined in our 2023 Form 10-K). The transaction did not add any additional net new debt to the Company's Balance Sheet. 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 Borrowers' 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 Borrowers' existing Subsidiary Senior Unsecured Notes if more than $250 million of such Subsidiary Senior Unsecured Notes remains outstanding as of such date. The amendment also removed the excess cash flow mandatory prepayment requirement with respect to the Term Loan A Facility.

The refinanced Term Loan A Facility is subject to quarterly amortization payments in an amount equal to 0.625% of the principal amount of the facility as of the refinance date now beginning with the third quarter of 2025. The Term Loan A Facility quarterly amortization payments increase to 1.25% of the principal amount of the facility as of the refinance date beginning with the third quarter of 2027. All other material provisions of the Credit Agreement remain unchanged.

As a result of this refinancing, $8 million of fees were capitalized as debt issuance costs, $6 million of which were paid directly to lenders, and are presented within Long-term debt on our Condensed Consolidated Balance Sheet as of June 30, 2024. During the quarter ended June 30, 2024, previously recorded unamortized debt issuance costs of $1 million were written off and recognized within Interest expense, net due to this refinancing.

Cash paid for interest during the year to date ended June 30, 2024, was $254 million. Cash paid for interest during the year to date ended June 30, 2023 was $266 million.

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Derivative Instruments

6 Months Ended

Jun. 30, 2024

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 interest rates, equity prices and foreign currency exchange rates. Our use of foreign currency contracts to manage foreign currency exchange rates associated with certain foreign currency denominated intercompany receivables and payables is currently not significant.

Interest Rate Swaps

We have entered into interest rate swaps, with the objective of reducing our exposure to interest rate risk for a portion of our variable-rate debt interest payments primarily under our Term Loan B Facility. At both June 30, 2024 and December 31, 2023, we had interest rate swaps expiring in March 2025 with notional amounts of $1.5 billion. These interest rate swaps have been designated cash flow hedges as the changes in the future cash flows of the swaps are expected to offset changes in expected future interest payments on the related variable-rate debt. There were no other interest rate swaps outstanding as of June 30, 2024 or December 31, 2023.

Gains or losses on the interest rate swaps are reported as a component of AOCI and reclassified into Interest expense, net in our Condensed Consolidated Statements of Income in the same period or periods during which the related hedged interest payments affect earnings. Through June 30, 2024, the swaps were highly effective cash flow hedges.

Gains and losses on these interest rate swaps recognized in OCI and reclassifications from AOCI into Net Income were as follows:

	Quarter ended								Year to date
	Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income				Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income
	2024		2023		2024		2023		2024		2023		2024		2023
Interest rate swaps	$	3	$	24	$	(8)	$	(7)	$	14	$	17	$	(17)	$	(12)
Income tax benefit/(expense)	(1)		(7)		2		2		(4)		(5)		4		3

As of June 30, 2024, the estimated net gain included in AOCI related to our cash flow hedges that will be reclassified into earnings in the next 12 months is $23 million, based on current Secured Overnight Financing Rate ("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 June 30, 2024 and December 31, 2023, was not significant.

As a result of the use of derivative instruments, the Company is exposed to risk that the counterparties will fail to meet their contractual obligations. To mitigate the counterparty credit risk, we only enter into contracts with major financial institutions carefully selected based upon their credit ratings and other factors, and continually assess the creditworthiness of counterparties. At June 30, 2024, all of the counterparties to our derivative instruments had investment grade ratings according to the three major ratings agencies. To date, all counterparties have performed in accordance with their contractual obligations.

See Note 13 for the fair value of our derivative assets and liabilities.

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Fair Value Disclosures

6 Months Ended

Jun. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Disclosures

As of June 30, 2024, the carrying values of cash and cash equivalents, restricted cash, short-term investments, 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:

	6/30/2024				12/31/2023
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Securitization Notes(a)	$	3,743	$	3,423	$	3,743	$	3,391
Subsidiary Senior Unsecured Notes(b)	750		737		750		742
Term Loan A Facility(b)	500		494		717		716
Term Loan B Facility(b)	1,451		1,457		1,459		1,466
YUM Senior Unsecured Notes(b)	4,550		4,337		4,550		4,439

(a)    We estimated the fair value of the Securitization Notes using market quotes and calculations. The markets in which the Securitization Notes trade are not considered active markets.

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

Recurring Fair Value Measurements

The Company has interest rate swaps and other investments, all of which are required to be measured at fair value on a recurring basis (see Note 12 for discussion regarding derivative instruments). The following table presents fair values for those assets and liabilities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the measurements fall.  

			Fair Value
	Condensed Consolidated Balance Sheet	Level	6/30/2024		12/31/2023
Assets
Investments	Other assets	1	$	1	$	125
Investments	Other assets	3	7		7
Interest Rate Swaps	Prepaid expenses and other current assets	2	23		24
Interest Rate Swaps	Other assets	2	—		2

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

Investments as of December 31, 2023, primarily included our approximate 5% minority interest in Devyani International Limited (“Devyani”), a franchise entity that operates KFC and Pizza Hut restaurants in India, with a fair value of $124 million. During the quarter ended March 31, 2024, we sold our ownership interest in Devyani for net proceeds of $104 million and recognized pre-tax investment losses of $20 million related to changes in fair value prior to the date of sale.

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Guarantees

6 Months Ended

Jun. 30, 2024

Guarantees and Product Warranties [Abstract]

Guarantees, Commitments and Contingencies

Contingencies

Internal Revenue Service Proposed Adjustment

As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $1.2 billion through the second quarter of 2024. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.

We disagree with the IRS’s position as asserted in the RAR and intend to contest that position vigorously. In September 2022, we filed a Protest with the IRS Examination Division disputing on multiple grounds the proposed underpayment of tax and penalties. In March 2023, we received the IRS Examination Division’s Rebuttal to our Protest and the matter is proceeding with the IRS Office of Appeals.

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

An unfavorable resolution of this matter could have a material, adverse impact on our 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 June 30, 2024, the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee was approximately $375 million. The present value of these potential payments discounted at our pre-tax cost of debt at June 30, 2024, was approximately $300 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 June 30, 2024, 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 $135 million. Of this amount, $130 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. In November 2022, YRIPL was notified that an administrative tribunal bench had been constituted to hear an appeal by DOE of certain findings of the January 2020 order, including claims that certain charges had been wrongly dropped and that an insufficient amount of penalty had been imposed. A hearing with the administrative tribunal that had been scheduled for July 30, 2024 has been rescheduled to October 8, 2024. A hearing held on August 1, 2024, before the Delhi High Court has been continued to September 17, 2024, 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.

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income	$ 367	$ 418	$ 681	$ 718

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Non-Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Business Combinations, Asset Acquisitions, and Joint Venture Formation (Tables)

6 Months Ended

Jun. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Asset Acquisition

The components of the preliminary purchase price allocation upon the April 29, 2024 acquisition were as follows:

Total Current Assets	$	2
Property, plant and equipment, net	88
Reacquired franchise rights (included in Intangible assets, net)	47
Operating lease right-of-use assets (included in Other assets)	109
Total Assets	246
Total Current Liabilities	(18)
Operating lease liabilities (included in Other liabilities and deferred credits)	(102)
Other liabilities	(31)
Total Liabilities	(151)
Total identifiable net assets	95
Goodwill	76
Purchase price to be allocated	$	171

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Earnings Per Common Share ("EPS") Earnings Per Common Share ("EPS") (Tables)

6 Months Ended

Jun. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Quarter ended				Year to date
	2024		2023		2024		2023
Net Income	$	367	$	418	$	681	$	718
Weighted-average common shares outstanding (for basic calculation)	282		281		282		281
Effect of dilutive share-based employee compensation	4		5		4		5
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)	286		286		286		286
Basic EPS	$	1.30	$	1.49	$	2.41	$	2.55
Diluted EPS	$	1.28	$	1.46	$	2.38	$	2.51
Unexercised employee SARs, RSUs, PSUs and stock options (in millions) excluded from the diluted EPS computation(a)	1.9		1.7		1.8		1.6

(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.

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Shareholders' Deficit (Tables)

6 Months Ended

Jun. 30, 2024

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 Date	2024	2023	2024		2023		2024
September 2022	366	387	50		50		—
Total	366	387	$	50	$	50	$	—

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 Nature		Pension and Post-Retirement Benefits		Derivative Instruments		Total
Balance at March 31, 2024, net of tax	$	(211)	$	(104)	$	6	$	(309)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	2		—		3		5
(Gains) losses reclassified from AOCI, net of tax	—		1		(6)		(5)
	2		1		(3)		—
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)
Balance at December 31, 2023, net of tax	$	(201)	$	(104)	$	3	$	(302)
OCI, net of tax
Gains (losses) arising during the period classified into AOCI, net of tax	(8)		—		12		4
(Gains) losses reclassified from AOCI, net of tax	—		1		(12)		(11)
	(8)		1		—		(7)
Balance at June 30, 2024, net of tax	$	(209)	$	(103)	$	3	$	(309)

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Other Income and Expenses (Tables)

6 Months Ended

Jun. 30, 2024

Other Income and Expenses [Abstract]

Schedule of Other Operating Cost and Expense, by Component

	Quarter ended				Year to date
	6/30/2024		6/30/2023		6/30/2024		6/30/2023
Foreign exchange net (gain) loss	$	—	$	1	$	5	$	4
Impairment and closure expense	—		—		—		1
Other	(5)		4		(11)		10
Other (income) expense	$	(5)	$	5	$	(6)	$	15

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Supplemental Balance Sheet Information (Tables)

6 Months Ended

Jun. 30, 2024

Supplemental Balance Sheet Information Disclosure [Abstract]

Accounts and Notes Receivable

	6/30/2024		12/31/2023
Accounts and notes receivable, gross	$	762	$	776
Allowance for doubtful accounts	(49)		(39)
Accounts and notes receivable, net	$	713	$	737

Schedule of Other Current Assets

	6/30/2024		12/31/2023
Income tax receivable	$	20	$	20
Restricted cash	183		177
Short term investments	116		—
Other prepaid expenses and current assets	199		163
Prepaid expenses and other current assets	$	518	$	360

Property, Plant and Equipment

	6/30/2024		12/31/2023
Property, plant and equipment, gross	$	2,633	$	2,529
Accumulated depreciation and amortization	(1,361)		(1,332)
Property, plant and equipment, net	$	1,272	$	1,197

Schedule of Other Assets

Other Assets	6/30/2024		12/31/2023
Operating lease right-of-use assets(a)	$	865	$	764
Franchise incentives	178		175
Investment in Devyani International Limited (See Note 13)	—		124
Other	292		298
Other assets	$	1,335	$	1,361

(a)    Non-current operating lease liabilities of $848 million and $757 million as of June 30, 2024 and December 31, 2023, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.

Schedule of Cash and Cash Equivalents [Table Text Block]

	6/30/2024		12/31/2023
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets	$	404	$	512
Restricted cash included in Prepaid expenses and other current assets(a)	183		177
Restricted cash and restricted cash equivalents included in Other assets(b)	36		35
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents as presented in Condensed Consolidated Statements of Cash Flows	$	623	$	724

(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.

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Income Taxes (Tables)

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax And Effective Tax Rate

	Quarter ended						Year to date
	2024			2023			2024			2023
Income tax provision	$	120		$	60		$	189		$	131
Effective tax rate	24.7		%	12.6		%	21.8		%	15.4		%

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Revenue Recognition Accounting Policy (Tables)

3 Months Ended

6 Months Ended

Jun. 30, 2024

Jun. 30, 2023

Jun. 30, 2024

Jun. 30, 2023

Revenue Recognition and Deferred Revenue [Abstract]

Disaggregation of Revenue [Table Text Block]

	Quarter ended 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	14	$	268	$	2	$	139	$	423
Franchise revenues		47		209		66		2		324
Property revenues		3		10		1		—		14
Franchise contributions for advertising and other services		10		161		73		—		244
China
Franchise revenues		62		—		17		—		79
Other
Company sales		149		—		—		—		149
Franchise revenues		282		15		63		—		360
Property revenues		11		—		1		—		12
Franchise contributions for advertising and other services		139		3		16		—		158
		$	717	$	666	$	239	$	141	$	1,763

	Quarter ended 6/30/2023
	KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales	$	17	$	253	$	4	$	139	$	413
Franchise revenues	49		194		66		2		311
Property revenues	3		10		1		—		14
Franchise contributions for advertising and other services	8		148		74		1		231
China
Franchise revenues	61		—		16		—		77
Other
Company sales	98		—		—		—		98
Franchise revenues	290		14		65		—		369
Property revenues	13		—		1		—		14
Franchise contributions for advertising and other services	143		2		15		—		160
	$	682	$	621	$	242	$	142	$	1,687

	Year to date 6/30/2024
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	28	$	508	$	4	$	266	$	806
Franchise revenues		90		397		134		3		624
Property revenues		6		19		2		1		28
Franchise contributions for advertising and other services		20		307		146		1		474
China
Franchise revenues		130		—		34		—		164
Other
Company sales		240		—		—		—		240
Franchise revenues		554		28		125		—		707
Property revenues		22		—		1		—		23
Franchise contributions for advertising and other services		259		5		31		—		295
		$	1,349	$	1,264	$	477	$	271	$	3,361

	Year to date 6/30/2023
		KFC Division		Taco Bell Division		Pizza Hut Division		Habit Burger Grill Division		Total
U.S.
Company sales		$	33	$	482	$	9	$	269	$	793
Franchise revenues		95		372		136		3		606
Property revenues		6		20		2		1		29
Franchise contributions for advertising and other services		16		288		152		1		457
China
Franchise revenues		127		—		34		—		161
Other
Company sales		192		—		—		—		192
Franchise revenues		574		27		131		—		732
Property revenues		26		—		1		—		27
Franchise contributions for advertising and other services		300		4		31		—		335
		$	1,369	$	1,193	$	496	$	274	$	3,332

Deferred Franchise Fees [Table Text Block]

	Deferred Franchise Fees
Balance at December 31, 2023	$	444
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period	(40)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period	36
Other(a)	(5)
Balance at June 30, 2024	$	435

(a)    Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 2) and 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	$	73
1 - 2 years	65
2 - 3 years	59
3 - 4 years	52
4 - 5 years	44
Thereafter	142
Total	$	435

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	$	73
1 - 2 years	65
2 - 3 years	59
3 - 4 years	52
4 - 5 years	44
Thereafter	142
Total	$	435

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Reportable Operating Segments (Tables)

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

Reportable Operating Segments

We identify our operating segments based on management responsibility. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments:

	Quarter ended				Year to date
Revenues	2024		2023		2024		2023
KFC Division	$	717	$	682	$	1,349	$	1,369
Taco Bell Division	666		621		1,264		1,193
Pizza Hut Division	239		242		477		496
Habit Burger Grill Division	141		142		271		274
	$	1,763	$	1,687	$	3,361	$	3,332

	Quarter ended				Year to date
Operating Profit	2024		2023		2024		2023
KFC Division	$	334	$	326	$	647	$	631
Taco Bell Division	250		228		458		432
Pizza Hut Division	94		91		187		195
Habit Burger Grill Division	2		3		(3)		(2)
Corporate and unallocated G&A expenses	(86)		(86)		(175)		(170)
Unallocated Company restaurant expenses(a)	(1)		—		(1)		—
Unallocated Franchise and property income (expenses)	—		(1)		—		(2)
Unallocated Refranchising gain (loss)	14		17		19		21
Unallocated Other income (expense)	—		(5)		(5)		(9)
Operating Profit	$	607	$	573	$	1,127	$	1,096
Investment income (expense), net(b)	—		29		(22)		5
Other pension income (expense)	1		1		3		3
Interest expense, net	(121)		(125)		(238)		(255)
Income before income taxes	$	487	$	478	$	870	$	849

Our chief operating decision maker (“CODM”) does not consider the impact of Corporate and unallocated amounts when assessing Divisional segment performance. As such, we do not allocate such amounts to our Divisional segments for performance reporting purposes.

(a)Unallocated Company restaurant expenses include amortization of reacquired franchise rights (see Note 2).

(b)Includes changes in the value of our investment in Devyani International Limited (see Note 13).

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Pension Benefits (Tables)

6 Months Ended

Jun. 30, 2024

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				Year to date
	2024		2023		2024		2023
Service cost	$	1	$	1	$	2	$	2
Interest cost	10		11		21		21
Expected return on plan assets	(13)		(13)		(26)		(25)
Amortization of net (gain) / loss	1		(1)		1		(1)
Amortization of prior service cost	1		1		1		1
Net periodic benefit cost (income)	$	—	$	(1)	$	(1)	$	(2)

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Short-term Borrowings and Long-term Debt (Tables)

6 Months Ended

Jun. 30, 2024

Debt Disclosure [Abstract]

Schedule of Short-term Borrowings and Long-term Debt

Short-term Borrowings	6/30/2024		12/31/2023
Current maturities of long-term debt	$	26	$	56
Less current portion of debt issuance costs and discounts	(2)		(3)
Short-term borrowings	$	24	$	53
Long-term Debt
Securitization Notes	$	3,743	$	3,743
Subsidiary Senior Unsecured Notes	750		750
Revolving Facility	180		—
Term Loan A Facility	500		717
Term Loan B Facility	1,451		1,459
YUM Senior Unsecured Notes	4,550		4,550
Finance lease obligations	68		50
	$	11,242	$	11,269
Less long-term portion of debt issuance costs and discounts	(76)		(71)
Less current maturities of long-term debt	(26)		(56)
Long-term debt	$	11,140	$	11,142

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Derivative Instruments (Tables)

6 Months Ended

Jun. 30, 2024

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								Year to date
	Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income				Gains/(Losses) Recognized in OCI				(Gains)/Losses Reclassified from AOCI into Net Income
	2024		2023		2024		2023		2024		2023		2024		2023
Interest rate swaps	$	3	$	24	$	(8)	$	(7)	$	14	$	17	$	(17)	$	(12)
Income tax benefit/(expense)	(1)		(7)		2		2		(4)		(5)		4		3

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Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2024

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:

	6/30/2024				12/31/2023
	Carrying Value		Fair Value (Level 2)		Carrying Value		Fair Value (Level 2)
Securitization Notes(a)	$	3,743	$	3,423	$	3,743	$	3,391
Subsidiary Senior Unsecured Notes(b)	750		737		750		742
Term Loan A Facility(b)	500		494		717		716
Term Loan B Facility(b)	1,451		1,457		1,459		1,466
YUM Senior Unsecured Notes(b)	4,550		4,337		4,550		4,439

(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.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

			Fair Value
	Condensed Consolidated Balance Sheet	Level	6/30/2024		12/31/2023
Assets
Investments	Other assets	1	$	1	$	125
Investments	Other assets	3	7		7
Interest Rate Swaps	Prepaid expenses and other current assets	2	23		24
Interest Rate Swaps	Other assets	2	—		2

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Financial Statement Presentation (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024 USD ($) countries_and_territiories restaurants Rate	Jun. 30, 2023 USD ($)	Jun. 30, 2024 USD ($) Months countries_and_territiories operating_segments restaurants Rate	Jun. 30, 2023 USD ($)
Number of Stores | restaurants	59,000		59,000
Number of Countries in which Entity Operates | countries_and_territiories	155		155
Percent Of System Units Located Outside United States | Rate	98.00%		98.00%
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	$ 60	$ 0	$ 60
Proceeds from Divestiture of Businesses, Net of Cash Divested			$ 0	$ 121

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Business Combinations, Asset Acquisitions, and Joint Venture Formation (Details) $ in Millions		6 Months Ended
	Apr. 29, 2024 USD ($) restaurants	Jun. 30, 2024 USD ($) restaurants	Jun. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Asset Acquisition [Line Items]
Number of Stores | restaurants		59,000
Payments to Acquire Long-Term Investments		$ 174	$ 0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets	$ 2
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	88
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	47
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Assets	109
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets	246
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities	(18)
Business Combination, Recognized Identifiable Asset Acquired and Liability Assumed, Lease Obligation	(102)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(31)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities	(151)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net	95
Goodwill		718		$ 642
Business Combination, Consideration Transferred, Other	3
Business Combination, Consideration Transferred		171
KFC U.K. and Ireland Store Acquisition [Member]
Asset Acquisition [Line Items]
Goodwill	$ 76
KFC U.K. and Ireland Store Acquisition [Member]
Asset Acquisition [Line Items]
Number of Stores | restaurants	216
Acquisition of The Habit Restaurants, Inc., net of cash acquired		$ 174

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Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Net Income		$ 367	$ 418	$ 681	$ 718
Weighted-average common shares outstanding (for basic calculation)		282.0	281.0	282.0	281.0
Effect of dilutive share-based employee compensation		4.0	5.0	4.0	5.0
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		286.0	286.0	286.0	286.0
Basic EPS		$ 1.30	$ 1.49	$ 2.41	$ 2.55
Diluted EPS		$ 1.28	$ 1.46	$ 2.38	$ 2.51
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation	[1]	1.9	1.7	1.8	1.6

[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.

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Shareholders' Deficit (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023
Repurchase Of Shares Of Common Stock [Line Items]
Repurchase of shares of Common Stock, value	$ 50	$ 50	$ 50
Stock Repurchase Program, Remaining Authorized Repurchase Amount	0	0
September 2022
Repurchase Of Shares Of Common Stock [Line Items]
Repurchase of shares of Common Stock, value		50	$ 50
Stock Repurchase Program, Authorized Amount	2,000	2,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	0	0
May 2024
Repurchase Of Shares Of Common Stock [Line Items]
Stock Repurchase Program, Authorized Amount	2,000	2,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount	1,650	$ 1,650
Issued Common Stock
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased		366,000	387,000
Repurchase of shares of Common Stock, value	$ 44	$ 44	$ 24
Issued Common Stock | September 2022
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased		366,000	387,000

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Shareholders' Deficit (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule of changes in accumulated comprehensive income [Line Items]
Accumulated other comprehensive loss	$ (309)		$ (302)
Gains (losses) arising during the year classified into AOCI, net of tax	5		4
(Gains) losses reclassified from AOCI, net of tax	(5)		(11)
Other comprehensive income (loss), net of tax	0	$ 78	(7)	$ 76
Accumulated other comprehensive loss	(309)		(309)
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature
Schedule of changes in accumulated comprehensive income [Line Items]
Accumulated other comprehensive loss	(211)		(201)
Gains (losses) arising during the year classified into AOCI, net of tax	2		(8)
(Gains) losses reclassified from AOCI, net of tax	0		0
Other comprehensive income (loss), net of tax	2		(8)
Accumulated other comprehensive loss	(209)		(209)
Pension and Post-Retirement Benefits
Schedule of changes in accumulated comprehensive income [Line Items]
Accumulated other comprehensive loss	(104)		(104)
Gains (losses) arising during the year classified into AOCI, net of tax	0		0
(Gains) losses reclassified from AOCI, net of tax	1		1
Other comprehensive income (loss), net of tax	1		1
Accumulated other comprehensive loss	(103)		(103)
Derivative Instruments
Schedule of changes in accumulated comprehensive income [Line Items]
Accumulated other comprehensive loss	6		3
Gains (losses) arising during the year classified into AOCI, net of tax	3		12
(Gains) losses reclassified from AOCI, net of tax	(6)		(12)
Other comprehensive income (loss), net of tax	(3)		0
Accumulated other comprehensive loss	$ 3		$ 3

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Other (Income) Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Other Income and Expenses [Line Items]
Foreign Currency Transaction Gain (Loss), before Tax	$ 0	$ 1	$ 5	$ 4
Impairment and closure expense	0	0	0	1
Other income (expense) excluding foreign exchange gain (loss)	(5)	4	(11)	10
Other (income) expense	(5)	5	(6)	15
Gain (Loss) on Disposition of Assets	(14)	(17)	(19)	(21)
Income tax provision	$ 120	$ 60	$ 189	$ 131

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Supplemental Balance Sheet Information (Details) $ in Millions	Jun. 30, 2024 USD ($) days	Dec. 31, 2023 USD ($)
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	$ 762	$ 776
Allowance for doubtful accounts	(49)	(39)
Accounts and notes receivable, net	713	737
Income Taxes Receivable, Current	20	20
Restricted Cash, Current	183	177
Short-Term Investments	116	0
Other Prepaid Expense, Current	199	163
Prepaid Expense and Other Assets, Current	$ 518	$ 360

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Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions		Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023	Dec. 31, 2022
Property, plant and equipment, gross		$ 2,633	$ 2,529
Accumulated depreciation and amortization		(1,361)	(1,332)
Property, plant and equipment, net		1,272	1,197
Operating lease, right-of-use assets	[1]	865	764
Other assets		1,335	1,361
Other Assets, Miscellaneous, Noncurrent		292	298
Operating Lease, Liability, Noncurrent		848	757
Cash and cash equivalents as presented in Condensed Consolidated Balance Sheets		404	512
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents		623	724	$ 659	$ 647
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member]
Equity Securities, FV-NI		0	124
Prepaid Expenses and Other Current Assets [Member]
Restricted Cash and Cash Equivalents	[2]	183	177
Other Current Assets [Member]
Restricted Cash and Cash Equivalents	[3]	36	35
Franchise Incentive [Member]
Other assets		$ 178	$ 175

[1] Non-current operating lease liabilities of $848 million and $757 million as of June 30, 2024 and December 31, 2023, respectively, are included in Other liabilities and deferred credits in our Condensed Consolidated Balance Sheets.

[2] Restricted cash within Prepaid expenses and other current assets reflects the cash related to advertising cooperatives which we consolidate that can only be used to settle obligations of the respective cooperatives and cash held in reserve for Taco Bell Securitization interest payments.

[3] Primarily trust accounts related to our self-insurance program.

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Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Income tax provision	$ (120)	$ (60)	$ (189)	$ (131)
Effective tax rate	24.70%	12.60%	21.80%	15.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

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Revenue Recognition Accounting Policy (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues	$ 1,763	$ 1,687	$ 3,361	$ 3,332
Company Sales
Revenues	572	511	1,046	985
Franchise and property revenues
Revenues	789	785	1,546	1,555
Franchise contributions for advertising and other services
Revenues	402	391	769	792
UNITED STATES | Company Sales
Revenues	423	413	806	793
UNITED STATES | Franchise and property revenues
Revenues	324	311	624	606
UNITED STATES | Property Revenues
Revenues	14	14	28	29
UNITED STATES | Franchise contributions for advertising and other services
Revenues	244	231	474	457
CHINA | Franchise and property revenues
Revenues	79	77	164	161
Other, Outside the U.S. and China [Member] | Company Sales
Revenues	149	98	240	192
Other, Outside the U.S. and China [Member] | Franchise and property revenues
Revenues	360	369	707	732
Other, Outside the U.S. and China [Member] | Property Revenues
Revenues	12	14	23	27
Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services
Revenues	158	160	295	335
KFC Global Division [Member]
Revenues	717	682	1,349	1,369
KFC Global Division [Member] | UNITED STATES | Company Sales
Revenues	14	17	28	33
KFC Global Division [Member] | UNITED STATES | Franchise and property revenues
Revenues	47	49	90	95
KFC Global Division [Member] | UNITED STATES | Property Revenues
Revenues	3	3	6	6
KFC Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services
Revenues	10	8	20	16
KFC Global Division [Member] | CHINA | Franchise and property revenues
Revenues	62	61	130	127
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales
Revenues	149	98	240	192
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues
Revenues	282	290	554	574
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues
Revenues	11	13	22	26
KFC Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services
Revenues	139	143	259	300
Pizza Hut Global Division [Member]
Revenues	239	242	477	496
Pizza Hut Global Division [Member] | UNITED STATES | Company Sales
Revenues	2	4	4	9
Pizza Hut Global Division [Member] | UNITED STATES | Franchise and property revenues
Revenues	66	66	134	136
Pizza Hut Global Division [Member] | UNITED STATES | Property Revenues
Revenues	1	1	2	2
Pizza Hut Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services
Revenues	73	74	146	152
Pizza Hut Global Division [Member] | CHINA | Franchise and property revenues
Revenues	17	16	34	34
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales
Revenues	0	0	0	0
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues
Revenues	63	65	125	131
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues
Revenues	1	1	1	1
Pizza Hut Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services
Revenues	16	15	31	31
Taco Bell Global Division [Member]
Revenues	666	621	1,264	1,193
Taco Bell Global Division [Member] | UNITED STATES | Company Sales
Revenues	268	253	508	482
Taco Bell Global Division [Member] | UNITED STATES | Franchise and property revenues
Revenues	209	194	397	372
Taco Bell Global Division [Member] | UNITED STATES | Property Revenues
Revenues	10	10	19	20
Taco Bell Global Division [Member] | UNITED STATES | Franchise contributions for advertising and other services
Revenues	161	148	307	288
Taco Bell Global Division [Member] | CHINA | Franchise and property revenues
Revenues	0	0	0	0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales
Revenues	0	0	0	0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues
Revenues	15	14	28	27
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues
Revenues	0	0	0	0
Taco Bell Global Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services
Revenues	3	2	5	4
Habit Division [Member]
Revenues	141	142	271	274
Habit Division [Member] | UNITED STATES | Company Sales
Revenues	139	139	266	269
Habit Division [Member] | UNITED STATES | Franchise and property revenues
Revenues	2	2	3	3
Habit Division [Member] | UNITED STATES | Property Revenues
Revenues	0	0	1	1
Habit Division [Member] | UNITED STATES | Franchise contributions for advertising and other services
Revenues	0	1	1	1
Habit Division [Member] | CHINA | Franchise and property revenues
Revenues	0	0	0	0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Company Sales
Revenues	0	0	0	0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Franchise and property revenues
Revenues	0	0	0	0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Property Revenues
Revenues	0	0	0	0
Habit Division [Member] | Other, Outside the U.S. and China [Member] | Franchise contributions for advertising and other services
Revenues	$ 0	$ 0	$ 0	$ 0

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Revenue Recognition Accounting Policy (Details 2) - USD ($) $ in Millions		6 Months Ended
		Jun. 30, 2024	Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred Revenue		$ 435	$ 444
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period		(40)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period		36
Foreign Currency Gain (Loss) and Refranchising Gain (Loss) [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Other	[1]	$ (5)

[1] Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 2) and the impact of foreign currency translation.

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Revenue Recognition Accounting Policy (Details 3) - USD ($) $ in Millions	Jun. 30, 2024	Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred Revenue	$ 435	$ 444
Less than 1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred Revenue, Revenue Expected to be Recognized	73
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	59
3 - 4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Deferred Revenue, Revenue Expected to be Recognized	52
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	$ 142

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Reportable Operating Segments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Segment Reporting Information [Line Items]
Revenues		$ 1,763	$ 1,687	$ 3,361	$ 3,332
Operating Profit		607	573	1,127	1,096
General and Administrative Expense		281	291	567	573
Company restaurant expenses		470	415	870	818
Franchise and property expenses		23	32	54	68
Refranchising (gain) loss		(14)	(17)	(19)	(21)
Other (income) expense		(5)	5	(6)	15
Investment (income) expense, net	[1]	0	(29)	22	(5)
Other pension income (expense)		1	1	3	3
Interest Income (Expense), Net		(121)	(125)	(238)	(255)
Income Before Income Taxes		487	478	870	849
KFC Global Division [Member]
Segment Reporting Information [Line Items]
Revenues		717	682	1,349	1,369
Operating Profit		334	326	647	631
Pizza Hut Global Division [Member]
Segment Reporting Information [Line Items]
Revenues		239	242	477	496
Operating Profit		94	91	187	195
Taco Bell Global Division [Member]
Segment Reporting Information [Line Items]
Revenues		666	621	1,264	1,193
Operating Profit		250	228	458	432
Habit Division [Member]
Segment Reporting Information [Line Items]
Revenues		141	142	271	274
Operating Profit		2	3	(3)	(2)
Unallocated [Member]
Segment Reporting Information [Line Items]
General and Administrative Expense		86	86	175	170
Company restaurant expenses	[2]	1	0	1	0
Franchise and property expenses		0	1	0	2
Refranchising (gain) loss		(14)	(17)	(19)	(21)
Other (income) expense		$ 0	$ 5	$ 5	$ 9

[1] Includes changes in the value of our investment in Devyani International Limited (see Note 13).

[2] Unallocated Company restaurant expenses include amortization of reacquired franchise rights (see Note 2).

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Pension Benefits (Details) - UNITED STATES - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1	$ 1	$ 2	$ 2
Interest cost	10	11	21	21
Expected return on plan assets	(13)	(13)	(26)	(25)
Amortization of net loss	1	(1)	1	(1)
Amortization of prior service cost	1	1	1	1
Net periodic benefit cost	$ 0	$ (1)	$ (1)	$ (2)

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Short-term Borrowings and Long-term Debt (Details) - USD ($) $ in Millions		2 Months Ended	3 Months Ended		6 Months Ended
	Apr. 26, 2024	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Debt Instrument [Line Items]
Long-term Line of Credit		$ 180	$ 180		$ 180		$ 0
Finance Lease, Liability, Noncurrent		68	68		68		50
Long-term debt and capital less obligations, including current maturities and debt issuance costs		11,242	11,242		11,242		11,269
Less Debt Issuance Costs, Noncurrent, Net		(76)	(76)		(76)		(71)
Long-term debt		11,140	11,140		11,140		11,142
Interest Paid, Including Capitalized Interest, Operating and Investing Activities			254	$ 266
Long-term Debt, Current Maturities		26	26		26		56
Less current portion of debt issuance costs and discounts		(2)	(2)		(2)		(3)
Short-term borrowings		24	24		24		53
Revolving credit facilities, three months or less, net					175	$ (249)
Debt Related Commitment Fees and Debt Issuance Costs					$ 1
Debt Instrument, Maturity Date, Description					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 Borrowers' 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 Borrowers' existing Subsidiary Senior Unsecured Notes if more than $250 million of such Subsidiary Senior Unsecured Notes remains outstanding as of such date.
Paid to Lender
Debt Instrument [Line Items]
Debt Issuance Costs					$ 6
Secured Debt [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Gross		8	8		8
Subsidiary Senior Unsecured Notes [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Senior Notes		750	750		750		750
Term Loan A Facility [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Debt	$ 713	$ 500	500		$ 500		717
Term Loan A Facility Repayments Of Principal In Year Two And Three		0.625%			1.25%
Term Loan B Facility [Member] | Secured Debt [Member]
Debt Instrument [Line Items]
Long-term Debt		$ 1,451	1,451		$ 1,451		1,459
YUM Senior Unsecured Notes [Member] [Domain] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Senior Notes		$ 4,550	$ 4,550		4,550		$ 4,550
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Revolving credit facilities, three months or less, net	$ 1,250				$ 1,500

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Derivative Instruments (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions	3 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months	$ (23)
Forward-starting interest rate swap [Member]
Derivative, Maturity Date	Mar. 01, 2025
Derivative, Notional Amount	$ 1,500	$ 1,500

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Derivative Instruments (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gains (losses) arising during the period	$ 4	$ 26	$ 16	$ 18
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, Tax	(1)	(7)	(4)	(5)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, Tax	2	2	4	3
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Unrealized gains (losses) arising during the period	3	24	14	17
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net	$ (8)	$ (7)	$ (17)	$ (12)

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Fair Value Disclosures (Details) - USD ($) $ in Millions		3 Months Ended	6 Months Ended
		Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023	Apr. 26, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment Owned, at Fair Value						$ 124
Unrealized Gain (Loss) on Investments		$ 20
Proceeds from Sale of Long-Term Investments		$ 104	$ 104	$ 0
Devyani
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity Method Investment, Ownership Percentage						5.00%
Secured Debt [Member] | Securitization Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes, Noncurrent			3,743			$ 3,743
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]		3,423			3,391
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			500		$ 713	717
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]		494			716
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			1,451			1,459
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]		1,457			1,466
Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Senior Notes, Noncurrent			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]		737			742
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			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]		4,337			4,439
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure			1			125
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments, Fair Value Disclosure			7			7
Other Assets [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Subject to Master Netting Arrangement, before Offset			0			2
Prepaid Expenses and Other Current Assets [Member] | Interest Rate Swap [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Asset, Subject to Master Netting Arrangement, before Offset			$ 23			$ 24

[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.

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Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2024 USD ($)
Guarantor Obligations [Line Items]
Deferred Tax Liability Not Recognized, Events that Would Cause Temporary Difference to be Taxable, Undistributed Earnings of Foreign Subsidiaries	As a result of an audit by the Internal Revenue Service (“IRS”) for fiscal years 2013 through 2015, in August 2022, we received a Revenue Agent’s Report (“RAR”) from the IRS asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year. Additionally, interest on the underpayment is estimated to be approximately $1.2 billion through the second quarter of 2024. The proposed underpayment relates primarily to a series of reorganizations we undertook during that year in connection with the business realignment of our corporate and management reporting structure along brand lines. The IRS asserts that these transactions resulted in taxable distributions of approximately $6.0 billion.We disagree with the IRS’s position as asserted in the RAR and intend to contest that position vigorously. In September 2022, we filed a Protest with the IRS Examination Division disputing on multiple grounds the proposed underpayment of tax and penalties. In March 2023, we received the IRS Examination Division’s Rebuttal to our Protest and the matter is proceeding with the IRS Office of Appeals.The Company does not expect resolution of this matter within twelve months and cannot predict with certainty the timing of such resolution. The Company believes that it is more likely than not the Company’s tax position will be sustained; therefore, no reserve is recorded with respect to this matter.An unfavorable resolution of this matter could have a material, adverse impact on our Condensed Consolidated Financial Statements in future periods.
Property Lease Guarantee [Member]
Guarantor Obligations [Line Items]
Year longest lease expires	2065
Guarantor Obligations, Maximum Exposure	$ 375
Guarantee Obligations Maximum Exposure At Present Value	$ 300

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Contingencies (Details 2)	6 Months Ended
	Jun. 30, 2024
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 $135 million. Of this amount, $130 million relates to the alleged failure to invest a total of $80 million in India within an initial seven-year period. We have been advised by external counsel that the order is flawed and have filed a writ petition with the Delhi High Court, which granted an interim stay of the penalty order on March 5, 2020. In November 2022, YRIPL was notified that an administrative tribunal bench had been constituted to hear an appeal by DOE of certain findings of the January 2020 order, including claims that certain charges had been wrongly dropped and that an insufficient amount of penalty had been imposed. A hearing with the administrative tribunal that had been scheduled for July 30, 2024 has been rescheduled to October 8, 2024. A hearing held on August 1, 2024, before the Delhi High Court has been continued to September 17, 2024, 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.