0001564590-21-041869 | 10-Q | XBRL Viewer

$ 2,451

$ 1,902

$ 5,008

$ 3,656

General and administrative expenses

136

113

266

212

Other operating costs and expenses

Closures and impairment expenses, net

Other expenses (income), net

(10)

(5)

(26)

Total costs and expenses, net

2,218

1,774

4,433

3,431

Income Before Income Taxes

233

128

575

225

Interest income, net

^[1]

Investment gain (loss)

^[1]

(4)

257

181

602

279

Income tax provision

(64)

(45)

(166)

(77)

Net income – including noncontrolling interests

193

136

436

202

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 181

$ 132

$ 411

$ 194

Weighted-average common shares outstanding (in millions):

Basic

^[2]

421

377

420

376

Diluted

^[2]

435

388

434

387

Basic Earnings Per Common Share

$ 0.43

$ 0.35

$ 0.98

$ 0.51

Diluted Earnings Per Common Share

$ 0.42

$ 0.34

$ 0.95

$ 0.50

Company Sales [Member]

Revenues

$ 2,233

$ 1,692

$ 4,564

$ 3,240

Franchise [Member]

Revenues

Cost of goods and services sold

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Revenues

164

157

335

318

Cost of goods and services sold

160

329

316

Other Revenues [Member]

Revenues

Company Restaurant Expenses [Member]

Payroll and employee benefits

Food and paper

686

556

1,390

1,051

540

384

1,084

778

Occupancy and other operating expenses

653

521

1,301

1,015

Cost of goods and services sold

$ 1,879

$ 1,461

$ 3,775

$ 2,844

[1]

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

[2]

As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. In September 2020, 41,910,700 common shares were issued as a result of the Company’s global offering and secondary listing on the HKEX and they were included in the calculated weighted-average common shares outstanding.

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 193	$ 136	$ 436	$ 202
Other comprehensive income (loss), net of tax of nil:
Foreign currency translation adjustments	58	7	40	(35)
Comprehensive income - including noncontrolling interests	251	143	476	167
Comprehensive income - noncontrolling interests	15	4	27	6
Comprehensive Income - Yum China Holdings, Inc.	$ 236	$ 139	$ 449	$ 161

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income (loss) and other comprehensive income (loss), attributable to noncontrolling interests. Excludes changes in equity resulting from investments by owners and distributions to owners.

Amount after tax of increase (decrease) in equity from transactions and other events and circumstances from net income and other comprehensive income. Excludes changes in equity resulting from investments by owners and distributions to owners.

The consolidated profit or loss for the period, net of income taxes, including the portion attributable to the noncontrolling interest.

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Net income - including noncontrolling interests

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Cash Flows – Operating Activities

$ 436

$ 202

Depreciation and amortization

252

214

Non-cash operating lease cost

204

178

Closures and impairment expenses

Investment loss (gain)

^[1]

(37)

Equity income from investments in unconsolidated affiliates

(27)

(34)

Distributions of income received from unconsolidated affiliates

Deferred income taxes

Share-based compensation expense

Changes in accounts receivable

(5)

Changes in inventories

Changes in prepaid expenses and other current assets

Changes in accounts payable and other current liabilities

(16)

Changes in income taxes payable

Changes in non-current operating lease liabilities

(204)

(194)

Other, net

(20)

(13)

Net Cash Provided by Operating Activities

773

452

Cash Flows – Investing Activities

Capital spending

(303)

(185)

Purchases of short-term investments

(2,824)

(1,093)

Purchases of long-term time deposits

(25)

(57)

Maturities of short-term investments

2,801

662

Contribution to unconsolidated affiliates

(13)

Acquisition of business, net of cash acquired

(177)

Investment in equity securities

(261)

Disposal of equity securities

Other, net

Net Cash Used in Investing Activities

(611)

(761)

Cash Flows – Financing Activities

Repurchase of shares of common stock

(8)

Cash dividends paid on common stock

(101)

(45)

Dividends paid to noncontrolling interests

(14)

(7)

Other, net

(4)

Net Cash Used in Financing Activities

(119)

(59)

Effect of Exchange Rates on Cash, Cash Equivalents and Restricted Cash

(6)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash

(374)

Cash, Cash Equivalents and Restricted Cash - Beginning of Period

1,158

1,055

Cash, Cash Equivalents and Restricted Cash - End of Period

1,209

681

Supplemental Cash Flow Data

Cash paid for income tax

150

Non-cash Investing and Financing Activities

Capital expenditures included in accounts payable and other current liabilities

$ 185

$ 122

[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 1,209	$ 1,158
Short-term investments	3,139	3,105
Accounts receivable, net	105	99
Inventories, net	380	398
Prepaid expenses and other current assets	207	176
Total Current Assets	5,040	4,936
Property, plant and equipment, net	1,822	1,765
Operating lease right-of-use assets	2,205	2,164
Goodwill	841	832
Intangible assets, net	228	246
Deferred income tax assets	73	98
Investments in unconsolidated affiliates	301	85
Other assets	794	749
Total Assets	11,304	10,875
Current Liabilities
Accounts payable and other current liabilities	2,042	1,995
Income taxes payable	74	72
Total Current Liabilities	2,116	2,067
Non-current operating lease liabilities	1,941	1,915
Non-current finance lease liabilities	28	28
Deferred income tax liabilities	232	227
Other liabilities	159	167
Total Liabilities	4,476	4,404
Redeemable Noncontrolling Interest	12	12
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 441 million shares and 440 million shares issued at June 30, 2021 and December 31, 2020, respectively; 421 million shares and 420 million shares outstanding at June 30, 2021 and December 31, 2020, respectively	4	4
Treasury stock	(728)	(728)
Additional paid-in capital	4,679	4,658
Retained earnings	2,415	2,105
Accumulated other comprehensive income	205	167
Total Yum China Holdings, Inc. Stockholders' Equity	6,575	6,206
Noncontrolling interests	241	253
Total Equity	6,816	6,459
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 11,304	$ 10,875

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	441,000,000	440,000,000
Common stock, shares outstanding	421,000,000	420,000,000

Description of Business

6 Months Ended

Jun. 30, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business

Note 1 – Description of Business

Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us” and “our”) was incorporated in Delaware on April 1, 2016.

The Company owns, franchises or has ownership in entities that own and operate restaurants (also referred to as “stores” or “units”) under the KFC, Pizza Hut, Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell and Lavazza concepts (collectively, the “concepts”). In connection with the separation of the Company in 2016 from its former parent company, YUM! Brands, Inc. (“YUM”), a master license agreement was entered into between Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of the Company, and YUM, through YRI China Franchising LLC, a subsidiary of YUM, effective from January 1, 2020 and previously through Yum! Restaurants Asia Pte. Ltd., another subsidiary of YUM, from October 31, 2016 to December 31, 2019. Pursuant to the master license agreement, we are the exclusive licensee of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China (the “PRC” or “China”), excluding Hong Kong, Macau and Taiwan. The term of the license is 50 years with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew. In exchange, we pay a license fee to YUM equal to 3% of net system sales from both our Company and franchise restaurants. We own the intellectual property of Little Sheep, Huang Ji Huang, COFFii & JOY and East Dawning, and pay no license fee related to these concepts.

The Company also owns a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider in China.

In 2017, the Company started an e-commerce business offering a wide selection of products including electronics, home and kitchen accessories, fresh groceries, and other general merchandise to customers directly through the Company’s e-commerce platform.

In April 2020, the Company completed the acquisition of a 93.3% interest in the Huang Ji Huang group (“Huang Ji Huang”), a leading Chinese-style casual dining franchise business, for cash consideration of $185 million. Upon acquisition, Huang Ji Huang became an operating segment of the Company. The acquisition was considered immaterial. Following the acquisition, we established a Chinese dining business unit comprising our three Chinese dining brands, namely Little Sheep, Huang Ji Huang and East Dawning.

Also in April 2020, the Company partnered with Lavazza Group, the world-renowned family-owned Italian coffee company, and entered into a joint venture to explore and develop the Lavazza coffee shop concept in China.

In August 2020, the Company completed the acquisition of an additional 25% equity interest in an unconsolidated affiliate that operates KFC stores in and around Suzhou, China (“Suzhou KFC”), for cash consideration of $149 million. Upon closing of the acquisition, the Company increased its equity interest to 72%, allowing the Company to consolidate Suzhou KFC. The acquisition was considered immaterial.

The Company has two reportable segments: KFC and Pizza Hut. Our remaining operating segments, including the operations of Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell, Lavazza, Daojia and our e-commerce business, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Additional details on our reportable operating segments are included in Note 13.

The Company’s common stock is listed on the New York Stock Exchange (“NYSE”) under the symbol “YUMC”. On September 10, 2020, the Company completed a secondary listing of its common stock on the Main Board of the Hong Kong Stock Exchange (“HKEX”) under the stock code “9987”, in connection with a global offering of 41,910,700 shares of its common stock. Net proceeds raised by the Company from the global offering after deducting underwriting fees and the offering expenses amounted to US$2.2 billion.

Basis of Presentation

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Basis of Presentation

Note 2 – Basis of Presentation

Our preparation of the accompanying Condensed Consolidated Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

We have prepared the Condensed Consolidated Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of June 30, 2021, results of our operations and comprehensive income for the quarters and years to date ended June 30, 2021 and 2020, and cash flows for the years to date ended June 30, 2021 and 2020. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto defined and included in the Company’s Annual Report on Form 10-K as filed with the SEC on February 26, 2021.

Through the acquisition of Daojia, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance, and is entitled to substantially all of the profits and has the obligation to absorb all of the expected losses of the VIE. The acquired VIE and its subsidiaries were considered immaterial, both individually and in the aggregate. The results of Daojia’s operations have been included in the Company’s Condensed Consolidated Financial Statements since the acquisition date.

The results of Huang Ji Huang and Suzhou KFC’s operations have been included in the Company’s Condensed Consolidated Financial Statements since the acquisition dates of April 8, 2020 and August 3, 2020, respectively.

Certain comparative items in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison.

Recently Adopted Accounting Pronouncements

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Tax (Topic 740), Simplifying the Accounting for Income Taxes (“ASU 2019-12”), which simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in Topic 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The guidance also simplifies the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted the standard on January 1, 2021 and such adoption did not have a material impact on our financial statements.

In January 2020, the FASB issued ASU 2020-01, Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) (“ASU 2020-01”), which clarifies the interaction between equity securities under Topic 321 and investments accounted for under the equity method in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. We adopted the standard on January 1, 2021 and such adoption did not have a material impact on our financial statements.

In October 2020, the FASB issued ASU 2020-08, Codification Improvements to Subtopic 310-20, Receivables—Nonrefundable Fees and Other Costs (“ASU 2020-08”), which clarifies that an entity should reevaluate for each reporting period whether a callable debt security is within the scope of certain guidance in ASC 310-20 that was issued in ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities. We adopted the standard on January 1, 2021 and such adoption did not have a material impact on our financial statements.

Revenue Recognition

6 Months Ended

Jun. 30, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note 3 – Revenue Recognition

The Company’s revenues primarily include Company sales, Franchise fees and income and Revenues from transactions with franchisees and unconsolidated affiliates.

Company Sales

Revenues from Company-owned restaurants are recognized when a customer takes possession of the food and tenders payment, which is when our obligation to perform is satisfied. The Company presents sales net of sales-related taxes. We also offer our customers delivery through both our own mobile applications and third-party aggregators’ platforms. For delivery orders placed through our mobile applications, we use our dedicated riders, while for orders placed through third-party aggregators’ platforms, we either used our dedicated riders or third-party aggregators’ delivery staff in the past. Starting in 2019, we use our own dedicated riders to deliver orders placed through aggregators’ platforms to customers of KFC and Pizza Hut stores. With respect to delivery orders delivered by our dedicated riders, we control and determine the price for the delivery service and generally recognize revenue, including delivery fees, when a customer takes possession of the food. When orders are fulfilled by the delivery staff of third-party aggregators, who control and determine the price for the delivery service, we recognize revenue, excluding delivery fees, when control of the food is transferred to the third-party aggregators’ delivery staff. The payment terms with respect to these sales are short-term in nature.

We recognize revenues from prepaid stored-value products, including gift cards and product vouchers, when they are redeemed by the customer. Prepaid gift cards sold at any given point generally expire over the next 36 months, and product vouchers generally expire over a period of up to 12 months. We recognize breakage revenue, which is the amount of prepaid stored-value products that is not expected to be redeemed, either (1) proportionally in earnings as redemptions occur, in situations where the Company expects to be entitled to a breakage amount, or (2) when the likelihood of redemption is remote, in situations where the Company does not expect to be entitled to breakage, provided that there is no requirement for remitting balances to government agencies under unclaimed property laws. The Company reviews its breakage estimates at least annually based upon the latest available information regarding redemption and expiration patterns.

Our privilege membership programs offer privilege members rights to multiple benefits, such as free delivery and discounts on certain products. For certain KFC and Pizza Hut privilege membership programs offering a pre-defined amount of benefits that can be redeemed ratably over the membership period, revenue is ratably recognized over the period based on the elapse of time. With respect to the KFC and Pizza Hut family privilege membership program offering members a mix of distinct benefits, including a welcome gift and assorted discount coupons with pre-defined quantities, consideration collected is allocated to the benefits provided based on their relative standalone selling price and revenue is recognized when food or services are delivered or the benefits expire. In determining the relative standalone selling price of the benefits, the Company considers likelihood of future redemption based on historical redemption pattern and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Franchise Fees and Income

Franchise fees and income primarily include upfront franchise fees, such as initial fees and renewal fees, and continuing fees. We have determined that the services we provide in exchange for upfront franchise fees and continuing fees are highly interrelated with the franchise right. We recognize upfront franchise fees received from a franchisee as revenue over the term of the franchise agreement or the renewal agreement because the franchise rights are accounted for as rights to access our symbolic intellectual property in accordance with ASC 606. The franchise agreement term is generally 10 years for KFC and Pizza Hut, five or 10 years for Little Sheep and three or 10 years for Huang Ji Huang. We recognize continuing fees, which are based upon a percentage of franchisee sales, as those sales occur.

Revenues from Transactions with Franchisees and Unconsolidated Affiliates

Revenues from transactions with franchisees and unconsolidated affiliates consist primarily of sales of food and paper products, advertising services and other services provided to franchisees and unconsolidated affiliates.

The Company centrally purchases substantially all food and paper products from suppliers for substantially all of our restaurants, including franchisees and unconsolidated affiliates, and then sells and delivers them to the restaurants. In addition, the Company owns seasoning facilities for its Chinese dining business unit, which manufacture and sell seasoning products to Huang Ji Huang and Little Sheep franchisees. The performance obligation arising from such transactions is considered distinct from the franchise agreement as it is not highly dependent on the franchise agreement and the customer can benefit from the procurement service on its own. We consider ourselves the principal in this arrangement as we have the ability to control a promised good or service before transferring that good or service to the franchisees and unconsolidated affiliates. Revenue is recognized upon transfer of control over ordered items, generally upon delivery to the franchisees and unconsolidated affiliates.

For advertising services, the Company often engages third parties to provide services and acts as a principal in the transaction based on our responsibilities of defining the nature of the services and administering and directing all marketing and advertising programs in accordance with the provisions of our franchise agreements. The Company collects advertising contributions, which are generally based on certain percentage of sales from substantially all of our restaurants, including franchisees and unconsolidated affiliates. Other services provided to franchisees and unconsolidated affiliates consist primarily of customer and technology support services. Advertising services and other services provided are highly interrelated to franchise right, and are not considered individually distinct. We recognize revenue when the related sales occur.

Loyalty Programs

Each of the Company’s KFC and Pizza Hut reportable segments operates a loyalty program that allows registered members to earn points for each qualifying purchase. Points, which generally expire 18 months after being earned, may be redeemed for future purchases of KFC or Pizza Hut branded products or other products for free or at a discounted price. Points cannot be redeemed or exchanged for cash. The estimated value of points earned by the loyalty program members is recorded as a reduction of revenue at the time the points are earned, based on the percentage of points that are projected to be redeemed, with a corresponding deferred revenue liability included in Accounts payable and other current liabilities on the Condensed Consolidated Balance Sheets and subsequently recognized into revenue when the points are redeemed or expire. The Company estimates the value of the future redemption obligations based on the estimated value of the product for which points are expected to be redeemed and historical redemption patterns and reviews such estimates periodically based upon the latest available information regarding redemption and expiration patterns.

Disaggregation of Revenue

The following table presents revenue disaggregated by types of arrangements and segments:

	Quarter Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	1,687	$	533	$	13	$	—	$	2,233	$	—		$	2,233
Franchise fees and income		30		2		6		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		14		2		23		125		164		—			164
Other revenues		3		1		64		2		70		(54	)		16
Total revenues	$	1,734	$	538	$	106	$	127	$	2,505	$	(54	)	$	2,451

	Quarter Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	1,260	$	422	$	10	$	—	$	1,692	$	—		$	1,692
Franchise fees and income		32		1		4		—		37		—			37
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		11		130		157		—			157
Other revenues		—		—		25		1		26		(10	)		16
Total revenues	$	1,307	$	424	$	50	$	131	$	1,912	$	(10	)	$	1,902

	Year to Date Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	3,470	$	1,071	$	23	$	—	$	4,564	$	—		$	4,564
Franchise fees and income		63		4		13		—		80		—			80
Revenues from transactions with franchisees and unconsolidated affiliates		29		3		49		254		335		—			335
Other revenues		4		1		99		4		108		(79	)		29
Total revenues	$	3,566	$	1,079	$	184	$	258	$	5,087	$	(79	)	$	5,008

	Year to Date Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	2,480	$	744	$	16	$	—	$	3,240	$	—		$	3,240
Franchise fees and income		65		2		5		—		72		—			72
Revenues from transactions with franchisees and unconsolidated affiliates		31		2		16		269		318		—			318
Other revenues		—		—		41		2		43		(17	)		26
Total revenues	$	2,576	$	748	$	78	$	271	$	3,673	$	(17	)	$	3,656

Accounts Receivable

Accounts receivable primarily consist of trade receivables and royalties from franchisees and unconsolidated affiliates, and are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts receivable on the Condensed Consolidated Balance Sheets. Our provision of credit losses for accounts receivable is based upon the current expected credit losses (“CECL”) model. The CECL model requires an estimate of the credit losses expected over the life of accounts receivable since initial recognition, and accounts receivable with similar risk characteristics are grouped together when estimating CECL. In assessing the CECL, the Company considers both quantitative and qualitative information that is reasonable and supportable, including historical credit loss experience, adjusted for relevant factors impacting collectability and forward-looking information indicative of external market conditions. While we use the best information available in making our determination, the ultimate recovery of recorded receivables is also dependent upon future economic events and other conditions that may be beyond our control. Accounts receivable that are ultimately deemed to be uncollectible, and for which collection efforts have been exhausted, are written off against the allowance for doubtful accounts. As of June 30, 2021 and December 31, 2020, the ending balances of provision for accounts receivable were both $1 million, and amounts of accounts receivable past due were immaterial. Receivables due from unconsolidated affiliates, including accounts receivable and dividend receivables, were $88 million and $50 million as of June 30, 2021 and December 31, 2020, respectively.

Costs to Obtain Contracts

Costs to obtain contracts consist of upfront franchise fees that we paid to YUM prior to the separation in relation to initial fees or renewal fees we received from franchisees and unconsolidated affiliates, as well as license fees that are payable to YUM in relation to our deferred revenue of prepaid stored-value products, privilege membership programs and customer loyalty programs. They meet the requirements to be capitalized as they are incremental costs of obtaining contracts with customers and the Company expects to generate future economic benefits from such costs incurred. Such costs to obtain contracts are included in Other assets on the Condensed Consolidated Balance Sheets and are amortized on a systematic basis that is consistent with the transfer to the customer of the goods or services to which the assets relate. Subsequent to the separation, we are no longer required to pay YUM initial or renewal fees that we receive from franchisees and unconsolidated affiliates. The Company did not incur any impairment losses related to costs to obtain contracts during any of the periods presented. Costs to obtain contracts were $8 million and $9 million at June 30, 2021 and December 31, 2020, respectively.

Contract Liabilities

Contract liabilities at June 30, 2021 and December 31, 2020 were as follows:

Contract liabilities	6/30/2021		12/31/2020
- Deferred revenue related to prepaid stored-value products	$	121	$	117
- Deferred revenue related to upfront franchise fees		41		38
- Deferred revenue related to customer loyalty programs		24		23
- Deferred revenue related to privilege membership programs		18		27
- Others		2		1
Total	$	206	$	206

Contract liabilities primarily consist of deferred revenue related to prepaid stored-value products, privilege membership programs, customer loyalty programs and upfront franchise fees. Deferred revenue related to prepaid stored-value products, privilege membership programs and customer loyalty programs is included in Accounts payable and other current liabilities in the Condensed Consolidated Balance Sheets. Deferred revenue related to upfront franchise fees that we expect to recognize as revenue in the next 12 months is included in Accounts payable and other current liabilities, and the remaining balance is included in Other liabilities in the Condensed Consolidated Balance Sheets. Revenue recognized that was included in the contract liability balance at the beginning of each period amounted to $68 million and $48 million for the quarters ended June 30, 2021 and 2020, respectively, and $101 million and $63 million for the years to date ended June 30, 2021 and 2020, respectively. Changes in contract liability balances were not materially impacted by business acquisition, change in estimate of transaction price or any other factors during any of the periods presented.

The Company has elected, as a practical expedient, not to disclose the value of remaining performance obligations associated with sales-based royalty promised to franchisees in exchange for the franchise right and other related services. The remaining duration of the performance obligation is the remaining contractual term of each franchise agreement. We recognize continuing franchisee fees and revenues from advertising services and other services provided to franchisees and unconsolidated affiliates based on a certain percentage of sales, as those sales occur.

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Earning Per Common Share (EPS)

Earnings Per Common Share ("EPS")

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Note 4 – Earnings Per Common Share (“EPS”)

The following table summarizes the components of basic and diluted EPS (in millions, except per share data):

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020
Net Income – Yum China Holdings, Inc.	$	181	$	132	$	411	$	194
Weighted-average common shares outstanding (for basic calculation)^(a)		421		377		420		376
Effect of dilutive share-based awards^(a)		6		6		6		7
Effect of dilutive warrants^(b)		8		5		8		4
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)^(a)		435		388		434		387
Basic Earnings Per Common Share	$	0.43	$	0.35	$	0.98	$	0.51
Diluted Earnings Per Common Share	$	0.42	$	0.34	$	0.95	$	0.50
Share-based awards excluded from the diluted EPS computation^(c)		2		4		2		4

(a)

(b)

Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The incremental shares arising from outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the periods exceeds the applicable exercise price of the warrants.

(c)

These outstanding stock appreciation rights (“SARs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) were excluded from the computation of diluted EPS because to do so would have been antidilutive for the quarters presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of June 30, 2021 and 2020.

Equity

6 Months Ended

Jun. 30, 2021

Stockholders Equity Note [Abstract]

Equity

Note 5 – Equity

Changes in Equity and Redeemable Noncontrolling Interest (in millions)

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares*		Amount		Capital		Earnings			Income (Loss)			Shares*			Amount			Interests			Equity			Interest
Balance at March 31, 2021		440	$	4	$	4,664	$	2,285		$	150			(20	)	$	(728	)	$	226		$	6,601		$	12
Net Income								181												12			193			—
Foreign currency translation adjustments											55									3			58			—
Comprehensive income																							251			—
Cash dividends declared ($0.12 per common share)								(51	)														(51	)
Exercise and vesting of share-based awards		1		—		—																	—
Share-based compensation						15																	15
Balance at June 30, 2021		441	$	4	$	4,679	$	2,415		$	205			(20	)	$	(728	)	$	241		$	6,816		$	12

Balance at March 31, 2020		396	$	4	$	2,434	$	1,433		$	(89	)		(20	)	$	(728	)	$	100		$	3,154		$	—
Net Income								132												4		136				—
Foreign currency translation adjustments											7									—			7			—
Comprehensive income																						143				—
Acquisition of business																							—			12
Dividends declared																				(32	)		(32	)
Exercise and vesting of share-based awards		1		—		—																	—
Share-based compensation					10																	10
Balance at June 30, 2020		397	$	4	$	2,444	$	1,565		$	(82	)		(20	)	$	(728	)	$	72		$	3,275		$	12

	Yum China Holdings, Inc.
											Accumulated
	Common				Additional						Other															Redeemable
	Stock				Paid-in			Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital			Earnings			Income (Loss)			Shares*			Amount			Interests			Equity			Interest
Balance at December 31, 2020		440	$	4	$	4,658		$	2,105		$	167			(20	)	$	(728	)	$	253		$	6,459		$	12
Net Income									411												25			436			—
Foreign currency translation adjustments												38									2			40			—
Comprehensive income																								476			—
Cash dividends declared ($0.24 per common share)									(101	)														(101	)
Dividends declared																					(39	)		(39	)
Exercise and vesting of share-based awards		1		—		(4	)																	(4	)
Share-based compensation						25																		25
Balance at June 30, 2021		441	$	4	$	4,679		$	2,415		$	205			(20	)	$	(728	)	$	241		$	6,816		$	12

Balance at December 31, 2019		395	$	4	$	2,427		$	1,416		$	(49	)		(19	)	$	(721	)	$	98		$	3,175		$	—
Net Income									194												8			202			—
Foreign currency translation adjustments												(33	)								(2	)		(35	)		—
Comprehensive income																								167			—
Acquisition of business																								—			12
Cash dividends declared ($0.12 per common share)									(45	)														(45	)
Dividends declared																					(32	)		(32	)
Repurchase of shares of common stock															—			(7	)					(7	)
Exercise and vesting of share-based awards		2		—		—																		—
Share-based compensation						17																		17
Balance at June 30, 2020		397	$	4	$	2,444		$	1,565		$	(82	)		(20	)	$	(728	)	$	72		$	3,275		$	12

*: Shares may not add due to rounding.

Share Repurchase Program

Our Board of Directors has authorized an aggregate of $1.4 billion for our share repurchase program. The Company suspended the share repurchase starting in the second quarter of 2020. No shares of Yum China common stock were repurchased for the year to date ended June 30, 2021 and 0.2 million shares at a total cost of $7 million were repurchased for the year to date ended June 30, 2020. As of June 30, 2021, $692 million remained available for future share repurchases under the authorization.

Items Affecting Comparability of Net Income

6 Months Ended

Jun. 30, 2021

Items Affecting Comparability Of Net Income [Abstract]

Items Affecting Comparability of Net Income

Note 6 – Items Affecting Comparability of Net Income

Impact of COVID-19 Pandemic

Starting in the first quarter of 2020, the COVID-19 pandemic significantly impacted the Company’s operations, resulting in a significant decline in Operating profit mainly driven by same-store sales declines and temporary store closures. While the lingering effects of the pandemic continue to impact our operations, the Company reported substantial year-over-year growth in the first half of 2021, as prior year periods were significantly impacted by COVID-19. Operating profit was $233 million and $128 million for the quarters ended June 30, 2021 and 2020, respectively, and $575 million and $225 million for the years to date ended June 30, 2021 and 2020, respectively.

Fujian Sunner Development Co., Ltd. (“Sunner”) Investment

In the first quarter of 2021, the Company acquired a 5% equity interest in Sunner, a Shenzhen Stock Exchange listed company, for a total consideration of approximately $261 million. Sunner is China’s largest white-feathered chicken producer and the Company’s largest poultry supplier.

The Company accounted for the equity securities at fair value based on their closing market price on each measurement date, with subsequent fair value changes recorded in our Condensed Consolidated Statements of Income.

In May 2021, a senior executive of the Company was nominated and appointed to Sunner’s board of directors upon Sunner’s shareholder approval. Through this representation, the Company participates in Sunner’s policy making process. The representation on the board, along with the Company being Sunner’s second largest shareholder, provides the Company with the ability to exercise significant influence over the operating and financial policies of Sunner. As a result, the Company started to apply the equity method of accounting to the investment and reclassified this investment from Other assets to Investment in unconsolidated affiliates in May 2021 based on its then fair value. The Company elected to report its share of Sunner’s financial results with a one-quarter lag because Sunner’s results are not available in time for the Company to record them in the concurrent period. As a result, no equity income from Sunner was recorded for the quarter ended June 30, 2021. The unrealized loss of $5 million and $22 million was included in Investment gain or loss in our Condensed Consolidated Statements of Income for the quarter and year to date ended June 30, 2021, respectively, representing changes in fair value before the equity method of accounting was applied.

Since Sunner became the Company’s unconsolidated affiliate in May 2021, the Company purchased inventories of $73 million from Sunner during the quarter ended June 30, 2021, and the Company’s accounts payable and other current liabilities due to Sunner were $55 million as of June 30, 2021.

As of June 30, 2021, the Company’s investment in Sunner was stated at the carrying amount of $243 million, with the market value of $230 million based on its quoted closing price.

Meituan Dianping (“Meituan”) Investment

In the third quarter of 2018, the Company subscribed for 8.4 million, or less than 1%, of the ordinary shares of Meituan, an e-commerce platform for services in China, for a total consideration of approximately $74 million, when it launched its initial public offering on the HKEX in September 2018. In the second quarter of 2020, the Company sold 4.2 million of the ordinary shares of Meituan for proceeds of approximately $54 million, and realized a $17 million pre-tax gain which was recognized during the holding period.

The Company accounted for the equity securities at fair value with subsequent fair value changes recorded in our Condensed Consolidated Statements of Income. The fair value of the investment in Meituan is determined based on the closing market price for the shares at the end of each reporting period. The fair value change, to the extent the closing market price of shares of Meituan as of the end of reporting period is higher than our cost, is subject to U.S. tax.

A summary of pre-tax gains or losses on investment in equity securities of Meituan recognized, which was included in Investment gain or loss in our Condensed Consolidated Statements of Income, is as follows:

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020
Unrealized gains recorded on equity securities still held as of the end of the period	$	13	$	42	$	14	$	38
Gains (losses) recorded on equity securities sold during the period		—		3		—		(1	)
Gains recorded on equity securities	$	13	$	45	$	14	$	37

Store Impairment Charges

We recorded store impairment charges of $16 million and $19 million for the quarter and year to date ended June 30, 2021, respectively, and $24 million and $36 million for the quarter and year to date ended June 30, 2020, respectively. The decrease in store impairment charges for the quarter and year to date ended June 30, 2021 is due to higher impairment recorded in the first half of 2020 considering the adverse economic effects of the COVID-19 pandemic. See Note 11 for additional information.

Other Expenses (Income), Net

6 Months Ended

Jun. 30, 2021

Other Income And Expenses [Abstract]

Other Expenses (Income), Net

Note 7 – Other Expenses (Income), net

	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020
Equity income from investments in unconsolidated affiliates	$	(10	)	$	(14	)	$	(27	)	$	(34	)
Amortization of reacquired franchise rights^(a)		10			3			19			6
Derecognition of indemnification assets related to Daojia^(b)		—			3			—			3
Foreign exchange impact and other		1			(2	)		3			(1	)
Other expenses (income), net	$	1		$	(10	)	$	(5	)	$	(26	)

(a)

Increase in amortization of reacquired franchise rights resulted from the acquisition of Suzhou KFC as disclosed in Note 1, with $61 million of the purchase price allocated to intangible assets related to reacquired franchise right, which is being amortized over the remaining franchise contract period.

(b)

In the quarter ended June 30, 2020, the Company derecognized a $3 million indemnification asset previously recorded for the Daojia acquisition as the indemnification right pursuant to the purchase agreement expired. The expense was included in Other expenses (income), net, but was not allocated to any segment for performance reporting purposes.

Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Note 8 – Supplemental Balance Sheet Information

Accounts Receivable, net	6/30/2021			12/31/2020
Accounts receivable, gross	$	106		$	100
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	105		$	99

Prepaid Expenses and Other Current Assets	6/30/2021		12/31/2020
Receivables from payment processors and aggregators	$	32	$	47
Dividends receivable from unconsolidated affiliates		44		10
Other prepaid expenses and current assets		131		119
Prepaid expenses and other current assets	$	207	$	176

Property, Plant and Equipment	6/30/2021			12/31/2020
Buildings and improvements	$	2,466		$	2,367
Finance leases, primarily buildings		37			36
Machinery and equipment, and construction in progress		1,568			1,490
Property, plant and equipment, gross		4,071			3,893
Accumulated depreciation		(2,249	)		(2,128	)
Property, plant and equipment, net	$	1,822		$	1,765

Other Assets	6/30/2021		12/31/2020
VAT assets	$	272	$	270
Land use right		139		140
Investment in equity securities		173		160
Long-term deposits		88		83
Investment in long-term time deposits^(a)		87		61
Costs to obtain contracts		8		9
Others		27		26
Other Assets	$	794	$	749

Accounts Payable and Other Current Liabilities	6/30/2021		12/31/2020
Accounts payable	$	712	$	708
Operating lease liabilities		445		448
Accrued compensation and benefits		234		238
Contract liabilities		172		175
Accrued capital expenditures		185		203
Accrued marketing expenses		120		73
Other current liabilities		174		150
Accounts payable and other current liabilities	$	2,042	$	1,995

Other Liabilities	6/30/2021		12/31/2020
Accrued income tax payable	$	53	$	66
Contract liabilities		34		31
Other non-current liabilities		72		70
Other liabilities	$	159	$	167

(a)

As of June 30, 2021 and December 31, 2020, the Company had $87 million and $61 million invested in long-term time deposits, bearing a fixed interest rate with original maturity of three years. The asset is restricted for use in order to secure the balance of prepaid stored-value cards issued by the Company pursuant to regulatory requirements.

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9 – Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC		Pizza Hut		All Other Segments
Balance as of December 31, 2020
Goodwill, gross	$	1,223		$	748	$	20	$	455
Accumulated impairment losses^(a)		(391	)		—		—		(391	)
Goodwill, net		832			748		20		64
Effect of currency translation adjustments		9			8		—		1
Balance as of June 30, 2021
Goodwill, gross		1,232			756		20		456
Accumulated impairment losses^(a)		(391	)		—		—		(391	)
Goodwill, net	$	841		$	756	$	20	$	65

(a)	Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

Intangible assets, net as of June 30, 2021 and December 31, 2020 are as follows:

	6/30/2021										12/31/2020
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	225	$	(163	)	$	—		$	62	$	223	$	(144	)	$	—		$	79
Huang Ji Huang franchise related assets		23		(2	)		—			21		23		(1	)		—			22
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(9	)		(2	)		1		12		(8	)		(2	)		2
Others		9		(4	)		—			5		9		(4	)		—			5
	$	285	$	(182	)	$	(14	)	$	89	$	283	$	(161	)	$	(14	)	$	108
Indefinite-lived intangible assets
Little Sheep trademark	$	56	$	—		$	—		$	56	$	56	$	—		$	—		$	56
Huang Ji Huang trademark		83		—			—			83		82		—			—			82
	$	139	$	—		$	—		$	139	$	138	$	—		$	—		$	138

Total intangible assets	$	424	$	(182	)	$	(14	)	$	228	$	421	$	(161	)	$	(14	)	$	246

(a)	Changes in gross carrying amount include effect of currency translation adjustments.

(b)	Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Amortization expense of finite-lived intangible assets was $11 million and $3 million for the quarters ended June 30, 2021 and 2020, respectively, and $21 million and $6 million for the years to date ended June 30, 2021 and 2020, respectively. As of June 30, 2021, expected amortization expense for the unamortized finite-lived intangible assets is approximately $21 million for the remainder of 2021, $41 million in 2022, $4 million in 2023, $2 million in 2024 and $2 million in 2025.

Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Note 10 – Leases

As of June 30, 2021, we operated over 8,500 Company-owned restaurants, leasing the underlying land and/or building. We generally enter into lease agreements for our restaurants with initial terms of 10 to 20 years. Most of our lease agreements contain termination options that permit us to terminate the lease agreement early if the restaurant’s unit contribution is negative for a specified period of time. We generally do not have renewal options for our leases. Such options are accounted for only when it is reasonably certain that we will exercise the options. The rent under the majority of our current restaurant lease agreements is generally payable in one of three ways: (i) fixed rent; (ii) the higher of a fixed base rent or a percentage of the restaurant’s sales; or (iii) a percentage of the restaurant’s sales. Most leases require us to pay common area maintenance fees for the leased property. In addition to restaurants leases, we also lease office spaces, logistics centers and equipment. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

In limited cases, we sub-lease certain restaurants to franchisees in connection with refranchising transactions or lease our properties to other third parties. The lease payments under these leases are generally based on the higher of a fixed base rent or a percentage of the restaurant’s annual sales. Income from sub-lease agreements with franchisees or lease agreements with other third parties are included in Franchise fees and income and Other revenue, respectively, within our Condensed Consolidated Statements of Income.

Supplemental Balance Sheet
	6/30/2021		12/31/2020		Account Classification
Assets
Operating lease right-of-use assets	$	2,205	$	2,164	Operating lease right-of-use assets
Finance lease right-of-use assets		20		20	Property, plant and equipment, net
Total leased assets	$	2,225	$	2,184

Liabilities
Current
Operating lease liabilities	$	445	$	448	Accounts payable and other current liabilities
Finance lease liabilities		2		2	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,941		1,915	Non-current operating lease liabilities
Finance lease liabilities		28		28	Non-current finance lease liabilities
Total lease liabilities	$	2,416	$	2,393

Summary of Lease Cost	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020			Account Classification

Operating lease cost	$	138		$	120		$	274		$	241		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			—			1			1		Occupancy and other operating expenses
Interest on lease liabilities		1			1			1			1		Interest expense, net
Variable lease cost ^(a)		87			55			182			104		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			2			5			5		Occupancy and other operating expenses or G&A
Sub-lease income		(6	)		(6	)		(14	)		(12	)	Franchise fees and income or Other revenues
Total lease cost	$	223		$	172		$	449		$	340

(a)

The Company was granted $2 million and $11 million in lease concessions from landlords related to the effects of the COVID-19 pandemic during the quarters ended June 30, 2021 and 2020, respectively, and $7 million and $25 million during the years to date ended June 30, 2021 and 2020, respectively. The lease concessions were primarily in the form of rent reduction over the period of time when the Company’s restaurant business was adversely impacted. The Company applied the interpretive guidance in a FASB staff Q&A document issued in April 2020 and elected: (1) not to evaluate whether a concession received in response to the COVID-19 pandemic is a lease modification and (2) to assume such concession was contemplated as part of the existing lease contract with no contract modification. Such concession was recognized as negative variable lease cost in the period the concession was granted.

Supplemental Cash Flow Information	Year to Date Ended
	6/30/2021		6/30/2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	286	$	233
Operating cash flows from finance leases		1		1
Financing cash flows from finance leases		1		1
Right-of-use assets obtained in exchange for new lease liabilities^(b):
Operating leases	$	215	$	93
Finance leases		—		(1	)

(b)	This supplemental non-cash disclosure for right-of-use (“ROU”) assets obtained in exchange for new lease liabilities also includes non-cash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.


Lease Term and Discount Rate	6/30/2021			6/30/2020
Weighted-average remaining lease term (years)
Operating leases		7.0			6.9
Finance leases		10.7			11.1

Weighted-average discount rate
Operating leases		5.8	%		6.0	%
Finance leases		5.7	%		5.8	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of June 30, 2021 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2021	$	306	$	2	$	308
2022		509		4		513
2023		447		4		451
2024		379		4		383
2025		316		4		320
Thereafter		956		22		978
Total undiscounted lease payment		2,913		40		2,953
Less: imputed interest^(c)		527		10		537
Present value of lease liabilities	$	2,386	$	30	$	2,416

(c)

As the rate implicit in the lease cannot be readily determined, we use our incremental borrowing rate based on the information available at the lease commencement date in determining the imputed interest and present value of lease payments. We used the incremental borrowing rate on January 1, 2019 for operating leases that commenced prior to that date.

As of June 30, 2021, we have additional lease agreements that have been signed but not yet commenced, with total undiscounted minimum lease payments of $166 million. These leases will commence between the third quarter of 2021 and 2023 with lease terms of 1 year to 20 years.

Fair Value Measurements and Disclosures

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements and Disclosures

Note 11 – Fair Value Measurements and Disclosures

The Company’s financial assets and liabilities primarily consist of cash and cash equivalents, short-term investments, long-term time deposits, accounts receivable, accounts payable and lease liabilities, and the carrying values of these assets and liabilities approximate their fair value in general.

The Company accounts for its investment in equity securities at fair value, which is determined based on the respective closing market price for the securities at the end of each reporting period, with subsequent fair value changes recorded in our Condensed Consolidated Statements of Income.

The following table is a summary of our financial assets measured on a recurring basis or disclosed at fair value and the level within the fair value hierarchy in which the measurement falls. The Company classifies its cash equivalents, short-term investments, long-term time deposits and investment in equity securities within Level 1 or Level 2 in the fair value hierarchy because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value, respectively. No transfers among the levels within the fair value hierarchy occurred during the quarters and years to date ended June 30, 2021 and 2020.

			Fair Value Measurement or Disclosure at June 30, 2021
	Balance at June 30, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	551			$	551
Fixed income debt securities^(a)		170				170
Total cash equivalents		721		—		721		—
Short-term investments:
Time deposits		2,024				2,024
Fixed income debt securities^(a)		830				830
Structured deposits^(b)		234				234
Variable return investments		51		51
Total short-term investments		3,139		51		3,088		—
Other assets:
Investment in equity securities		173		173
Long-term time deposits		87				87
Total	$	4,120	$	224	$	3,896	$	—

			Fair Value Measurement or Disclosure at December 31, 2020
	Balance at December 31, 2020		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	601			$	601
Fixed income debt securities^(a)		207		207
Total cash equivalents		808		207		601		—
Short-term investments:
Time deposits		2,165				2,165
Fixed income debt securities^(a)		784		104		680
Variable return investments		156		156
Total short-term investments		3,105		260		2,845		—
Other assets:
Investment in equity securities		160		160
Long-term time deposits		61				61
Total	$	4,134	$	627	$	3,507	$	—

(a)	Classified as held-to-maturity investments and measured at amortized cost.

(b)

Represented certain structured deposits invested in 2021. These investments are principal-protected and provide returns in the form of both fixed and variable interests. Such variable interest rates indexed to gold prices or foreign exchange rates are considered embedded derivatives and bifurcated from host contracts, and measured at fair value on a recurring basis. The fair value change of the embedded derivatives is recorded in Investment gain or loss in our Condensed Consolidated Statements of Income. The remaining host contracts to receive guaranteed principal and fixed interest are measured at amortized cost, with accretion of interest recorded in Interest income in our Condensed Consolidated Statements of Income. As of June 30, 2021, the fair value of embedded derivatives included in Short-term investments was immaterial.

Non-Recurring Fair Value Measurements

In addition, certain of the Company’s restaurant-level assets (including operating lease ROU assets, property, plant and equipment), goodwill and intangible assets, are measured at fair value based on unobservable inputs (Level 3) on a non-recurring basis, if determined to be impaired.

In determining the fair value of restaurant-level assets, the Company considered the highest and best use of the assets from market participants’ perspective, which is represented by the higher of the forecasted discounted cash flows from operating restaurants and the price market participants would pay to sub-lease the ROU assets and acquire remaining restaurants assets, even if that use differs from the current use by the Company. The after-tax cash flows incorporate reasonable assumptions we believe a franchisee would make, such as sales growth, and include a deduction for royalties we would receive under a franchise agreement with terms substantially at market. The discount rate used in the fair value calculation is our estimate of the required rate-of-return that a franchisee would expect to receive when purchasing a similar restaurant and the related long-lived assets. In situations where the highest and best use of restaurant-level assets are represented by sub-leasing the operating lease ROU assets and acquiring remaining restaurant assets, the Company continues to use these assets in operating its restaurant business, which is consistent with its long-term strategy of growing revenue through operating restaurant concepts.

As of each relevant measurement date, the fair value of restaurant-level assets, if determined to be impaired, are primarily represented by the price market participant would pay to sub-lease the operating lease ROU assets and acquire remaining restaurants assets, which reflects the highest and best use of the assets. Significant unobservable inputs used in the fair value measurement include market rental prices, which were determined with the assistance of an independent valuation specialist. The direct comparison approach is used as the valuation technique by assuming sub-lease of each of these properties in its existing state with vacant possession. By making reference to lease transactions as available in the relevant market, comparable properties in close proximity have been selected and adjustments have been made to account for the difference in factors such as location and property size.

The following table presents amounts recognized from all non-recurring fair value measurements based on unobservable inputs (Level 3) during the quarters and years to date ended June 30, 2021 and 2020. These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective period-end dates.

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020		Account Classification
Restaurant-level impairment^(a)	$	13	$	21	$	13	$	30	Closure and impairment expenses, net
Total	$	13	$	21	$	13	$	30

(a)

Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted primarily from our semi-annual impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. We performed an additional impairment evaluation in the first quarter of 2020, considering the adverse effects of the COVID-19 pandemic as an impairment indicator. After considering the impairment charges recorded during the corresponding periods, the fair value of assets as of the relevant measurement date was both $50 million for the quarter and year to date ended June 30, 2021,and $49 million and $76 million for the quarter and year to date ended June 30, 2020, respectively.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

Note 12 – Income Taxes

	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020
Income tax provision	$	64		$	45		$	166		$	77
Effective tax rate		24.8	%		25.2	%		27.6	%		27.8	%

The lower effective tax rate for the quarter and year to date ended June 30, 2021 was primarily due to lower residual U.S. tax, offset by less tax benefit from equity income from investments in unconsolidated affiliates, and higher estimated repatriation of earnings outside of China subject to foreign withholding tax.

In December 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”), which included a broad range of tax reforms. The Tax Act requires a U.S. shareholder to be subject to tax on Global Intangible Low Taxed Income (“GILTI”) earned by certain foreign subsidiaries. We have elected the option to account for current year GILTI tax as a period cost as incurred, and therefore included it in estimating the annual effective tax rate.

We are subject to reviews, examinations and audits by Chinese tax authorities, the Internal Revenue Service and other tax authorities with respect to income and non-income based taxes. Since 2016, we have been under a national audit on transfer pricing by the Chinese State Taxation Administration (“STA”) in China regarding our related party transactions for the period from 2006 to 2015. The information and views currently exchanged with the tax authorities focus on our franchise arrangement with YUM. We continue to provide information requested by the tax authorities to the extent it is available to the Company. It is reasonably possible that there could be significant developments, including expert review and assessment by the STA, within the next 12 months. The ultimate assessment and decision of the STA will depend upon further review of the information provided, as well as ongoing technical and other discussions with the STA and in-charge local tax authorities, and therefore, it is not possible to reasonably estimate the potential impact at this time. We will continue to defend our transfer pricing position. However, if the STA prevails in the assessment of additional tax due based on its ruling, the assessed tax, interest and penalties, if any, could have a material adverse impact on our financial position, results of operations and cash flows.

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

Segment Reporting

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Reporting

Note 13 –Segment Reporting

We have two reportable segments: KFC and Pizza Hut. Our remaining non-reportable operating segments, including the operations of Little Sheep, Huang Ji Huang, COFFii & JOY, East Dawning, Taco Bell, Lavazza, Daojia and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in aggregate.

	Quarter Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,734	$	538	$	52	$	127	$	2,451	$	—		$	2,451
Inter-segment revenue		—		—		54		—		54		(54	)		—
Total	$	1,734	$	538	$	106	$	127	$	2,505	$	(54	)	$	2,451

	Quarter Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,307	$	424	$	40	$	131	$	1,902	$	—		$	1,902
Inter-segment revenue		—		—		10		—		10		(10	)		—
Total	$	1,307	$	424	$	50	$	131	$	1,912	$	(10	)	$	1,902

	Year to Date Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	3,566	$	1,079	$	105	$	258	$	5,008	$	—		$	5,008
Inter-segment revenue		—		—		79		—		79		(79	)		—
Total	$	3,566	$	1,079	$	184	$	258	$	5,087	$	(79	)	$	5,008

	Year to Date Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	2,576	$	748	$	61	$	271	$	3,656	$	—		$	3,656
Inter-segment revenue		—		—		17		—		17		(17	)		—
Total	$	2,576	$	748	$	78	$	271	$	3,673	$	(17	)	$	3,656

	Quarter Ended						Year to Date Ended
Operating Profit (Loss)	6/30/2021			6/30/2020			6/30/2021			6/30/2020
KFC^(b)	$	240		$	159		$	567		$	312
Pizza Hut		39			15			99			(13	)
All Other Segments		(6	)		(2	)		(9	)		(12	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		125			130			254			269
Unallocated Other revenues		2			1			4			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(123	)		(135	)		(252	)		(270	)
Unallocated Other operating costs and expenses		(2	)		(1	)		(5	)		(2	)
Unallocated and corporate G&A expenses		(40	)		(37	)		(81	)		(58	)
Unallocated Other expenses		(2	)		(2	)		(2	)		(3	)
Operating Profit	$	233		$	128		$	575		$	225
Interest income, net^(a)		16			8			31			17
Investment gain (loss)^(a)		8			45			(4	)		37
Income Before Income Taxes	$	257		$	181		$	602		$	279

	Quarter Ended				Year to Date Ended
Impairment Charges	6/30/2021		6/30/2020		6/30/2021		6/30/2020
KFC^(d)	$	9	$	12	$	11	$	16
Pizza Hut^(d)		6		10		7		17
All Other Segments^(d)		1		2		1		3
	$	16	$	24	$	19	$	36

	Total Assets
	6/30/2021		12/31/2020
KFC^(e)	$	4,188	$	4,084
Pizza Hut		906		906
All Other Segments		377		378
Corporate and Unallocated^(f)		5,833		5,507
	$	11,304	$	10,875

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

(b)	Includes equity income from investments in unconsolidated affiliates of $13 million and $14 million for the quarters ended June 30, 2021 and 2020, respectively, and $32 million and $34 million for the years to date ended June 30, 2021 and 2020, respectively.

(c)

Primarily includes revenues and associated expenses of transactions with franchisees and unconsolidated affiliates derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers and then sells and delivers them to KFC and Pizza Hut restaurants, including franchisees and unconsolidated affiliates. Amounts have not been allocated to any segment for purposes of making operating decisions or assessing financial performance as the transactions are deemed corporate revenues and expenses in nature.

(d)	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation as well as our additional impairment evaluation performed in the first quarter of 2020 in response to adverse impact from the COVID-19 pandemic. See Note 11.

(e)	Includes investments in unconsolidated affiliates.

(f)	Primarily includes cash and cash equivalents, short-term investments, investments in Meituan and Sunner, long-term time deposits and inventories that are centrally managed.

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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Commitments And Contingencies Disclosure [Abstract]

Contingencies

6 Months Ended

Jun. 30, 2021

Contingencies

Note 14 – Contingencies

Indemnification of China Tax on Indirect Transfers of Assets

In February 2015, the STA issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise, by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%.

YUM concluded, and we concurred, that it is more likely than not that YUM will not be subject to this tax with respect to the pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM in connection with the separation (the “distribution”). However, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted, and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such a tax could be significant.

Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the 30 trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable.

Guarantees for Franchisees and Unconsolidated Affiliates

From time to time, we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of June 30, 2021, no guarantees were outstanding for unconsolidated affiliates and franchisees.

Legal Proceedings

The Company is subject to various lawsuits covering a variety of allegations from time to time. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Subsequent Events

6 Months Ended

Jun. 30, 2021

Subsequent Events [Abstract]

Subsequent Events

Note 15 – Subsequent Events

On July 28, 2021, the Company announced that the Board of Directors declared a cash dividend of $0.12 per share on Yum China's common stock, payable as of the close of business on September 16, 2021, to stockholders of record as of the close of business on August 25, 2021. Total estimated cash dividend payable is approximately $51 million.

Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2021

Accounting Policies [Abstract]

Recently Adopted Accounting Pronouncements

Revenue Recognition

Company Sales

Franchise Fees and Income

Revenues from Transactions with Franchisees and Unconsolidated Affiliates

Loyalty Programs

Accounts Receivable

Costs to Obtain Contracts

Fair Value Measurements and Disclosures

(b)

Non-Recurring Fair Value Measurements

Disclosure of accounting policy for revenue from contract with customer.

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/exampleRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Revenue From Contract With Customer [Abstract]

Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2021

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

The following table presents revenue disaggregated by types of arrangements and segments:

	Quarter Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	1,687	$	533	$	13	$	—	$	2,233	$	—		$	2,233
Franchise fees and income		30		2		6		—		38		—			38
Revenues from transactions with franchisees and unconsolidated affiliates		14		2		23		125		164		—			164
Other revenues		3		1		64		2		70		(54	)		16
Total revenues	$	1,734	$	538	$	106	$	127	$	2,505	$	(54	)	$	2,451

	Quarter Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	1,260	$	422	$	10	$	—	$	1,692	$	—		$	1,692
Franchise fees and income		32		1		4		—		37		—			37
Revenues from transactions with franchisees and unconsolidated affiliates		15		1		11		130		157		—			157
Other revenues		—		—		25		1		26		(10	)		16
Total revenues	$	1,307	$	424	$	50	$	131	$	1,912	$	(10	)	$	1,902

	Year to Date Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	3,470	$	1,071	$	23	$	—	$	4,564	$	—		$	4,564
Franchise fees and income		63		4		13		—		80		—			80
Revenues from transactions with franchisees and unconsolidated affiliates		29		3		49		254		335		—			335
Other revenues		4		1		99		4		108		(79	)		29
Total revenues	$	3,566	$	1,079	$	184	$	258	$	5,087	$	(79	)	$	5,008

	Year to Date Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	2,480	$	744	$	16	$	—	$	3,240	$	—		$	3,240
Franchise fees and income		65		2		5		—		72		—			72
Revenues from transactions with franchisees and unconsolidated affiliates		31		2		16		269		318		—			318
Other revenues		—		—		41		2		43		(17	)		26
Total revenues	$	2,576	$	748	$	78	$	271	$	3,673	$	(17	)	$	3,656

Contract Liabilities

Contract liabilities at June 30, 2021 and December 31, 2020 were as follows:

Contract liabilities	6/30/2021		12/31/2020
- Deferred revenue related to prepaid stored-value products	$	121	$	117
- Deferred revenue related to upfront franchise fees		41		38
- Deferred revenue related to customer loyalty programs		24		23
- Deferred revenue related to privilege membership programs		18		27
- Others		2		1
Total	$	206	$	206

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

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Common Share

The following table summarizes the components of basic and diluted EPS (in millions, except per share data):

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020
Net Income – Yum China Holdings, Inc.	$	181	$	132	$	411	$	194
Weighted-average common shares outstanding (for basic calculation)^(a)		421		377		420		376
Effect of dilutive share-based awards^(a)		6		6		6		7
Effect of dilutive warrants^(b)		8		5		8		4
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)^(a)		435		388		434		387
Basic Earnings Per Common Share	$	0.43	$	0.35	$	0.98	$	0.51
Diluted Earnings Per Common Share	$	0.42	$	0.34	$	0.95	$	0.50
Share-based awards excluded from the diluted EPS computation^(c)		2		4		2		4

(a)

(b)

(c)

Equity (Tables)

6 Months Ended

Jun. 30, 2021

Stockholders Equity Note [Abstract]

Changes in Equity and Redeemable Noncontrolling Interest

	Yum China Holdings, Inc.
										Accumulated
	Common				Additional					Other															Redeemable
	Stock				Paid-in		Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares*		Amount		Capital		Earnings			Income (Loss)			Shares*			Amount			Interests			Equity			Interest
Balance at March 31, 2021		440	$	4	$	4,664	$	2,285		$	150			(20	)	$	(728	)	$	226		$	6,601		$	12
Net Income								181												12			193			—
Foreign currency translation adjustments											55									3			58			—
Comprehensive income																							251			—
Cash dividends declared ($0.12 per common share)								(51	)														(51	)
Exercise and vesting of share-based awards		1		—		—																	—
Share-based compensation						15																	15
Balance at June 30, 2021		441	$	4	$	4,679	$	2,415		$	205			(20	)	$	(728	)	$	241		$	6,816		$	12

Balance at March 31, 2020		396	$	4	$	2,434	$	1,433		$	(89	)		(20	)	$	(728	)	$	100		$	3,154		$	—
Net Income								132												4		136				—
Foreign currency translation adjustments											7									—			7			—
Comprehensive income																						143				—
Acquisition of business																							—			12
Dividends declared																				(32	)		(32	)
Exercise and vesting of share-based awards		1		—		—																	—
Share-based compensation					10																	10
Balance at June 30, 2020		397	$	4	$	2,444	$	1,565		$	(82	)		(20	)	$	(728	)	$	72		$	3,275		$	12

	Yum China Holdings, Inc.
											Accumulated
	Common				Additional						Other															Redeemable
	Stock				Paid-in			Retained			Comprehensive			Treasury Stock						Noncontrolling			Total			Noncontrolling
	Shares		Amount		Capital			Earnings			Income (Loss)			Shares*			Amount			Interests			Equity			Interest
Balance at December 31, 2020		440	$	4	$	4,658		$	2,105		$	167			(20	)	$	(728	)	$	253		$	6,459		$	12
Net Income									411												25			436			—
Foreign currency translation adjustments												38									2			40			—
Comprehensive income																								476			—
Cash dividends declared ($0.24 per common share)									(101	)														(101	)
Dividends declared																					(39	)		(39	)
Exercise and vesting of share-based awards		1		—		(4	)																	(4	)
Share-based compensation						25																		25
Balance at June 30, 2021		441	$	4	$	4,679		$	2,415		$	205			(20	)	$	(728	)	$	241		$	6,816		$	12

Balance at December 31, 2019		395	$	4	$	2,427		$	1,416		$	(49	)		(19	)	$	(721	)	$	98		$	3,175		$	—
Net Income									194												8			202			—
Foreign currency translation adjustments												(33	)								(2	)		(35	)		—
Comprehensive income																								167			—
Acquisition of business																								—			12
Cash dividends declared ($0.12 per common share)									(45	)														(45	)
Dividends declared																					(32	)		(32	)
Repurchase of shares of common stock															—			(7	)					(7	)
Exercise and vesting of share-based awards		2		—		—																		—
Share-based compensation						17																		17
Balance at June 30, 2020		397	$	4	$	2,444		$	1,565		$	(82	)		(20	)	$	(728	)	$	72		$	3,275		$	12

*: Shares may not add due to rounding.

Items Affecting Comparability of Net Income (Tables)

6 Months Ended

Jun. 30, 2021

Meituan Dianping [Member]

Schedule Of Trading Securities And Other Trading Assets [Line Items]

Summary of Pre-tax Gains or Losses on Investment in Equity Securities

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020
Unrealized gains recorded on equity securities still held as of the end of the period	$	13	$	42	$	14	$	38
Gains (losses) recorded on equity securities sold during the period		—		3		—		(1	)
Gains recorded on equity securities	$	13	$	45	$	14	$	37

Other Expenses (Income), Net (Tables)

6 Months Ended

Jun. 30, 2021

Other Income And Expenses [Abstract]

Other Expenses (Income), Net

	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020
Equity income from investments in unconsolidated affiliates	$	(10	)	$	(14	)	$	(27	)	$	(34	)
Amortization of reacquired franchise rights^(a)		10			3			19			6
Derecognition of indemnification assets related to Daojia^(b)		—			3			—			3
Foreign exchange impact and other		1			(2	)		3			(1	)
Other expenses (income), net	$	1		$	(10	)	$	(5	)	$	(26	)

(a)

(b)

Supplemental Balance Sheet Information (Tables)

6 Months Ended

Jun. 30, 2021

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net

Accounts Receivable, net	6/30/2021			12/31/2020
Accounts receivable, gross	$	106		$	100
Allowance for doubtful accounts		(1	)		(1	)
Accounts receivable, net	$	105		$	99

Prepaid Expenses and Other Current Assets

Prepaid Expenses and Other Current Assets	6/30/2021		12/31/2020
Receivables from payment processors and aggregators	$	32	$	47
Dividends receivable from unconsolidated affiliates		44		10
Other prepaid expenses and current assets		131		119
Prepaid expenses and other current assets	$	207	$	176

Property, Plant and Equipment

Property, Plant and Equipment	6/30/2021			12/31/2020
Buildings and improvements	$	2,466		$	2,367
Finance leases, primarily buildings		37			36
Machinery and equipment, and construction in progress		1,568			1,490
Property, plant and equipment, gross		4,071			3,893
Accumulated depreciation		(2,249	)		(2,128	)
Property, plant and equipment, net	$	1,822		$	1,765

Accounts Payable and Other Current Liabilities

Other Assets	6/30/2021		12/31/2020
VAT assets	$	272	$	270
Land use right		139		140
Investment in equity securities		173		160
Long-term deposits		88		83
Investment in long-term time deposits^(a)		87		61
Costs to obtain contracts		8		9
Others		27		26
Other Assets	$	794	$	749

Accounts Payable and Other Current Liabilities	6/30/2021		12/31/2020
Accounts payable	$	712	$	708
Operating lease liabilities		445		448
Accrued compensation and benefits		234		238
Contract liabilities		172		175
Accrued capital expenditures		185		203
Accrued marketing expenses		120		73
Other current liabilities		174		150
Accounts payable and other current liabilities	$	2,042	$	1,995

(a)

Other Liabilities and Deferred Credits

Other Liabilities	6/30/2021		12/31/2020
Accrued income tax payable	$	53	$	66
Contract liabilities		34		31
Other non-current liabilities		72		70
Other liabilities	$	159	$	167

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

The changes in the carrying amount of goodwill are as follows:

	Total Company			KFC		Pizza Hut		All Other Segments
Balance as of December 31, 2020
Goodwill, gross	$	1,223		$	748	$	20	$	455
Accumulated impairment losses^(a)		(391	)		—		—		(391	)
Goodwill, net		832			748		20		64
Effect of currency translation adjustments		9			8		—		1
Balance as of June 30, 2021
Goodwill, gross		1,232			756		20		456
Accumulated impairment losses^(a)		(391	)		—		—		(391	)
Goodwill, net	$	841		$	756	$	20	$	65

(a)	Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of June 30, 2021 and December 31, 2020 are as follows:

	6/30/2021										12/31/2020
	Gross Carrying Amount^(a)		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment Losses^(b)			Net Carrying Amount
Finite-lived intangible assets
Reacquired franchise rights	$	225	$	(163	)	$	—		$	62	$	223	$	(144	)	$	—		$	79
Huang Ji Huang franchise related assets		23		(2	)		—			21		23		(1	)		—			22
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(9	)		(2	)		1		12		(8	)		(2	)		2
Others		9		(4	)		—			5		9		(4	)		—			5
	$	285	$	(182	)	$	(14	)	$	89	$	283	$	(161	)	$	(14	)	$	108
Indefinite-lived intangible assets
Little Sheep trademark	$	56	$	—		$	—		$	56	$	56	$	—		$	—		$	56
Huang Ji Huang trademark		83		—			—			83		82		—			—			82
	$	139	$	—		$	—		$	139	$	138	$	—		$	—		$	138

Total intangible assets	$	424	$	(182	)	$	(14	)	$	228	$	421	$	(161	)	$	(14	)	$	246

(a)	Changes in gross carrying amount include effect of currency translation adjustments.

(b)	Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Summary of Supplemental Balance Sheet

Supplemental Balance Sheet
	6/30/2021		12/31/2020		Account Classification
Assets
Operating lease right-of-use assets	$	2,205	$	2,164	Operating lease right-of-use assets
Finance lease right-of-use assets		20		20	Property, plant and equipment, net
Total leased assets	$	2,225	$	2,184

Liabilities
Current
Operating lease liabilities	$	445	$	448	Accounts payable and other current liabilities
Finance lease liabilities		2		2	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,941		1,915	Non-current operating lease liabilities
Finance lease liabilities		28		28	Non-current finance lease liabilities
Total lease liabilities	$	2,416	$	2,393

Summary of Lease Cost

Summary of Lease Cost	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020			Account Classification

Operating lease cost	$	138		$	120		$	274		$	241		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		—			—			1			1		Occupancy and other operating expenses
Interest on lease liabilities		1			1			1			1		Interest expense, net
Variable lease cost ^(a)		87			55			182			104		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		3			2			5			5		Occupancy and other operating expenses or G&A
Sub-lease income		(6	)		(6	)		(14	)		(12	)	Franchise fees and income or Other revenues
Total lease cost	$	223		$	172		$	449		$	340

(a)

Schedule of Supplemental Cash Flow Information

Supplemental Cash Flow Information	Year to Date Ended
	6/30/2021		6/30/2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	286	$	233
Operating cash flows from finance leases		1		1
Financing cash flows from finance leases		1		1
Right-of-use assets obtained in exchange for new lease liabilities^(b):
Operating leases	$	215	$	93
Finance leases		—		(1	)

(b)	This supplemental non-cash disclosure for right-of-use (“ROU”) assets obtained in exchange for new lease liabilities also includes non-cash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Schedule of Lease Terms and Discount Rate


Lease Term and Discount Rate	6/30/2021			6/30/2020
Weighted-average remaining lease term (years)
Operating leases		7.0			6.9
Finance leases		10.7			11.1

Weighted-average discount rate
Operating leases		5.8	%		6.0	%
Finance leases		5.7	%		5.8	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of June 30, 2021 were as follows:

	Amount of Operating Leases		Amount of Finance Leases		Total
Remainder of 2021	$	306	$	2	$	308
2022		509		4		513
2023		447		4		451
2024		379		4		383
2025		316		4		320
Thereafter		956		22		978
Total undiscounted lease payment		2,913		40		2,953
Less: imputed interest^(c)		527		10		537
Present value of lease liabilities	$	2,386	$	30	$	2,416

(c)

Fair Value Measurements and Disclosures (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Assets Measured on Recurring Basis or Disclosed at Fair Value

			Fair Value Measurement or Disclosure at June 30, 2021
	Balance at June 30, 2021		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	551			$	551
Fixed income debt securities^(a)		170				170
Total cash equivalents		721		—		721		—
Short-term investments:
Time deposits		2,024				2,024
Fixed income debt securities^(a)		830				830
Structured deposits^(b)		234				234
Variable return investments		51		51
Total short-term investments		3,139		51		3,088		—
Other assets:
Investment in equity securities		173		173
Long-term time deposits		87				87
Total	$	4,120	$	224	$	3,896	$	—

			Fair Value Measurement or Disclosure at December 31, 2020
	Balance at December 31, 2020		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	601			$	601
Fixed income debt securities^(a)		207		207
Total cash equivalents		808		207		601		—
Short-term investments:
Time deposits		2,165				2,165
Fixed income debt securities^(a)		784		104		680
Variable return investments		156		156
Total short-term investments		3,105		260		2,845		—
Other assets:
Investment in equity securities		160		160
Long-term time deposits		61				61
Total	$	4,134	$	627	$	3,507	$	—

(a)	Classified as held-to-maturity investments and measured at amortized cost.

(b)

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements

	Quarter Ended				Year to Date Ended
	6/30/2021		6/30/2020		6/30/2021		6/30/2020		Account Classification
Restaurant-level impairment^(a)	$	13	$	21	$	13	$	30	Closure and impairment expenses, net
Total	$	13	$	21	$	13	$	30

(a)

Income Taxes (Tables)

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Tax And Effective Tax Rate

	Quarter Ended						Year to Date Ended
	6/30/2021			6/30/2020			6/30/2021			6/30/2020
Income tax provision	$	64		$	45		$	166		$	77
Effective tax rate		24.8	%		25.2	%		27.6	%		27.8	%

Segment Reporting (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

	Quarter Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,734	$	538	$	52	$	127	$	2,451	$	—		$	2,451
Inter-segment revenue		—		—		54		—		54		(54	)		—
Total	$	1,734	$	538	$	106	$	127	$	2,505	$	(54	)	$	2,451

	Quarter Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	1,307	$	424	$	40	$	131	$	1,902	$	—		$	1,902
Inter-segment revenue		—		—		10		—		10		(10	)		—
Total	$	1,307	$	424	$	50	$	131	$	1,912	$	(10	)	$	1,902

	Year to Date Ended 6/30/2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	3,566	$	1,079	$	105	$	258	$	5,008	$	—		$	5,008
Inter-segment revenue		—		—		79		—		79		(79	)		—
Total	$	3,566	$	1,079	$	184	$	258	$	5,087	$	(79	)	$	5,008

	Year to Date Ended 6/30/2020
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated^(a)		Combined		Elimination			Consolidated
Revenue from external customers	$	2,576	$	748	$	61	$	271	$	3,656	$	—		$	3,656
Inter-segment revenue		—		—		17		—		17		(17	)		—
Total	$	2,576	$	748	$	78	$	271	$	3,673	$	(17	)	$	3,656

	Quarter Ended						Year to Date Ended
Operating Profit (Loss)	6/30/2021			6/30/2020			6/30/2021			6/30/2020
KFC^(b)	$	240		$	159		$	567		$	312
Pizza Hut		39			15			99			(13	)
All Other Segments		(6	)		(2	)		(9	)		(12	)
Unallocated revenues from transactions with franchisees and unconsolidated affiliates^(c)		125			130			254			269
Unallocated Other revenues		2			1			4			2
Unallocated expenses from transactions with franchisees and unconsolidated affiliates^(c)		(123	)		(135	)		(252	)		(270	)
Unallocated Other operating costs and expenses		(2	)		(1	)		(5	)		(2	)
Unallocated and corporate G&A expenses		(40	)		(37	)		(81	)		(58	)
Unallocated Other expenses		(2	)		(2	)		(2	)		(3	)
Operating Profit	$	233		$	128		$	575		$	225
Interest income, net^(a)		16			8			31			17
Investment gain (loss)^(a)		8			45			(4	)		37
Income Before Income Taxes	$	257		$	181		$	602		$	279

	Quarter Ended				Year to Date Ended
Impairment Charges	6/30/2021		6/30/2020		6/30/2021		6/30/2020
KFC^(d)	$	9	$	12	$	11	$	16
Pizza Hut^(d)		6		10		7		17
All Other Segments^(d)		1		2		1		3
	$	16	$	24	$	19	$	36

	Total Assets
	6/30/2021		12/31/2020
KFC^(e)	$	4,188	$	4,084
Pizza Hut		906		906
All Other Segments		377		378
Corporate and Unallocated^(f)		5,833		5,507
	$	11,304	$	10,875

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

(b)	Includes equity income from investments in unconsolidated affiliates of $13 million and $14 million for the quarters ended June 30, 2021 and 2020, respectively, and $32 million and $34 million for the years to date ended June 30, 2021 and 2020, respectively.

(c)

(d)	Primarily includes store closure impairment charges, restaurant-level impairment charges resulting from our semi-annual impairment evaluation as well as our additional impairment evaluation performed in the first quarter of 2020 in response to adverse impact from the COVID-19 pandemic. See Note 11.

(e)	Includes investments in unconsolidated affiliates.

(f)	Primarily includes cash and cash equivalents, short-term investments, investments in Meituan and Sunner, long-term time deposits and inventories that are centrally managed.

Description of Business - Narrative (Details) $ in Millions		1 Months Ended		6 Months Ended
Description of Business - Narrative (Details) $ in Millions	Sep. 10, 2020 USD ($) shares	Aug. 31, 2020 USD ($)	Apr. 30, 2020 USD ($)	Jun. 30, 2021 Segment
Segment Reporting Information [Line Items]
Entity, date of incorporation				Apr. 01, 2016
Entity incorporation, state name				DE
Additional consecutive renewal terms of license agreement				50 years
Percentage of license fees on net sales				3.00%
Number of reportable segments \| Segment				2
Global Offering [Member]
Segment Reporting Information [Line Items]
Global offering shares of common stock \| shares	41,910,700
Net proceeds from global offering	$ 2,200
Huang Ji Huang Group [Member]
Segment Reporting Information [Line Items]
Percentage of additional equity interest acquired			93.30%
Cash consideration paid to acquire interest			$ 185
Suzhou KFC [Member]
Segment Reporting Information [Line Items]
Percentage of additional equity interest acquired		25.00%
Cash consideration paid to acquire interest		$ 149
Equity interest in acquiree, including subsequent acquisition, percentage		72.00%

Basis of Presentation - Narrative (Details)	6 Months Ended
Basis of Presentation - Narrative (Details)	Jun. 30, 2021
Huang Ji Huang Group [Member]
Summary Of Significant Accounting Policies [Line Items]
Acquisition date	Apr. 08, 2020
Suzhou KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Acquisition date	Aug. 03, 2020

Revenue Recognition - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Revenue From Contract With Customer [Line Items]
Prepaid gift cards expiration period			36 months
Product vouchers maximum expiration period			12 months
Points expiration period			18 months
Number of days from the period in which the corresponding sales occur that trade receivables are generally due			30 days
Provision for accounts receivable	$ 1		$ 1		$ 1
Receivables due from unconsolidated affiliates including trade receivables and dividend receivables	88		88		50
Impairment losses related to costs to obtain contracts			0		0
Costs to obtain contracts	8		8		$ 9
Revenue recognized	$ 68	$ 48	$ 101	$ 63
KFC [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Pizza Hut [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Little Sheep [Member] \| Minimum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			5 years
Little Sheep [Member] \| Maximum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years
Huang Ji Huang \| Minimum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			3 years
Huang Ji Huang \| Maximum [Member]
Revenue From Contract With Customer [Line Items]
Franchisee agreement term			10 years

Revenue Recognition - Schedule of Disaggregation of Revenue by Types of Arrangements and Segments (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Corporate and Unallocated [Member]

$ 2,451

$ 1,902

$ 5,008

$ 3,656

^[1]

127

131

258

271

Combined [Member]

2,505

1,912

5,087

3,673

Elimination [Member]

Elimination [Member] | All Other Segments [Member]

(54)

(10)

(79)

(17)

Operating Segments [Member] | KFC [Member]

Operating Segments [Member] | Pizza Hut [Member]

1,734

1,307

3,566

2,576

Operating Segments [Member] | All Other Segments [Member]

538

424

1,079

748

106

184

Company Sales [Member]

Company Sales [Member] | KFC [Member]

2,233

1,692

4,564

3,240

Company Sales [Member] | Pizza Hut [Member]

1,687

1,260

3,470

2,480

Company Sales [Member] | All Other Segments [Member]

533

422

1,071

744

Company Sales [Member] | Combined [Member]

2,233

1,692

4,564

3,240

Franchise [Member]

Franchise [Member] | KFC [Member]

Franchise [Member] | Pizza Hut [Member]

Franchise [Member] | All Other Segments [Member]

Franchise [Member] | Combined [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member] | KFC [Member]

164

157

335

318

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Pizza Hut [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member] | All Other Segments [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Corporate and Unallocated [Member]

Transactions With Franchisees and Unconsolidated Affiliates [Member] | Combined [Member]

125

130

254

269

164

157

335

318

Other Revenues [Member]

Other Revenues [Member] | KFC [Member]

Other Revenues [Member] | Pizza Hut [Member]

Other Revenues [Member] | All Other Segments [Member]

Other Revenues [Member] | Corporate and Unallocated [Member]

Other Revenues [Member] | Combined [Member]

Other Revenues [Member] | Elimination [Member]

108

Net Income – Yum China Holdings, Inc.

$ (54)

$ (10)

$ (79)

$ (17)

[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Revenue Recognition - Contract Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Contract liabilities
Contract liabilities	$ 206	$ 206
Deferred Revenue Related To Prepaid Stored Value Products [Member]
Contract liabilities
Contract liabilities	121	117
Deferred Revenue Related To Upfront Franchise Fees [Member]
Contract liabilities
Contract liabilities	41	38
Deferred Revenue Related To Customer Loyalty Programs [Member]
Contract liabilities
Contract liabilities	24	23
Deferred Revenue Related To Privilege Membership Programs [Member]
Contract liabilities
Contract liabilities	18	27
Others [Member]
Contract liabilities
Contract liabilities	$ 2	$ 1

Earnings Per Common Share ("EPS") (Details) - USD ($)
$ / shares in Units, shares in Millions, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Earnings Per Share [Abstract]

$ 181

$ 132

$ 411

$ 194

Weighted-average common shares outstanding (for basic calculation)

^[1]

421

377

420

376

Effect of dilutive share-based awards

^[1]

Effect of dilutive warrants

^[2]

Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)

^[1]

435

388

434

387

Basic Earnings Per Common Share

$ 0.43

$ 0.35

$ 0.98

$ 0.51

Diluted Earnings Per Common Share

$ 0.42

$ 0.34

$ 0.95

$ 0.50

Share-based awards excluded from the diluted EPS computation

^[3]

[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The incremental shares arising from outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. In September 2020, 41,910,700 common shares were issued as a result of the Company’s global offering and secondary listing on the HKEX and they were included in the calculated weighted-average common shares outstanding.
[2]	Pursuant to the investment agreements dated September 1, 2016, Yum China issued to strategic investors two tranches of warrants on January 9, 2017, with each tranche initially providing the right to purchase 8,200,405 shares of Yum China common stock, at an initial exercise price of $31.40 and $39.25 per share, respectively, subject to customary anti-dilution adjustments. The warrants may be exercised at any time through October 31, 2021. The incremental shares arising from outstanding warrants are included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the periods exceeds the applicable exercise price of the warrants.
[3]	These outstanding stock appreciation rights (“SARs”), restricted stock units (“RSUs”) and performance stock units (“PSUs”) were excluded from the computation of diluted EPS because to do so would have been antidilutive for the quarters presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of June 30, 2021 and 2020.

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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Earnings Per Common Share ("EPS") (Parenthetical) (Details)		1 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Sep. 30, 2020 shares
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants \| Tranche	2
Tranche One Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock	8,200,405
Exercise price of warrants \| $ / shares	$ 31.40
Tranche Two Warrants [Member]
Class Of Warrant Or Right [Line Items]
Warrants to purchase shares of common stock	8,200,405
Exercise price of warrants \| $ / shares	$ 39.25
Secondary Listing [Member]
Class Of Warrant Or Right [Line Items]
Global offering shares of common stock		41,910,700

Equity (Details) - USD ($)
shares in Millions, $ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Foreign currency translation adjustments

$ 6,601

$ 3,154

$ 6,459

$ 3,175

Net Income

193

136

436

202

(35)

Comprehensive income - including noncontrolling interests

251

143

476

167

Cash dividends declared

(51)

(101)

(45)

Dividends declared

(32)

$ (39)

(32)

Repurchase of shares of common stock

$ (7)

Repurchase of shares of common stock, shares

0.0

(0.2)

Exercise and vesting of share-based awards

$ (4)

Share-based compensation

$ 17

6,816

3,275

6,816

3,275

Common Stock [Member]

Beginning balance (in shares)

$ 4

^[1]

440.0

396.0

440.0

395.0

Exercise and vesting of share-based awards, shares

^[1]

1.0

2.0

Ending balance (in shares)

$ 4

^[1]

441.0

397.0

441.0

397.0

Additional Paid-in Capital [Member]

Exercise and vesting of share-based awards

$ 4,664

$ 2,434

$ 4,658

$ 2,427

(4)

Share-based compensation

Retained Earnings [Member]

4,679

2,444

4,679

2,444

2,285

1,433

2,105

1,416

Net Income

181

132

411

194

Cash dividends declared

(51)

(101)

(45)

Accumulated Other Comprehensive Income (Loss) [Member]

2,415

1,565

2,415

1,565

Foreign currency translation adjustments

150

(89)

167

(49)

(33)

205

(82)

205

(82)

Treasury Stock [Member]

Beginning balance (in shares)

$ (728)

$ (721)

^[1]

(20.0)

(19.0)

Repurchase of shares of common stock

$ (7)

Ending balance (in shares)

$ (728)

^[1]

(20.0)

Noncontrolling Interests [Member]

Foreign currency translation adjustments

$ 226

$ 100

$ 253

$ 98

Net Income

(2)

Dividends declared

(32)

(39)

(32)

Redeemable Noncontrolling Interest [Member]

241

Acquisition of business

Other Income And Expenses [Line Items]

$ 12

[1]	Shares may not add due to rounding.

Equity (Parenthetical) (Details) - $ / shares	3 Months Ended	6 Months Ended
Equity (Parenthetical) (Details) - $ / shares	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020
Equity [Abstract]
Cash dividends declared, per common share	$ 0.12	$ 0.24	$ 0.12

Equity - Narrative (Details) - USD ($) shares in Millions	6 Months Ended
Equity - Narrative (Details) - USD ($) shares in Millions	Jun. 30, 2021	Jun. 30, 2020
Equity [Abstract]
Stock repurchase program, authorized amount	$ 1,400,000,000
Treasury stock repurchased, shares	0.0	0.2
Treasury stock repurchased, value		$ 7,000,000
Stock repurchase program, remaining authorized repurchase amount	$ 692,000,000

Items Affecting Comparability of Net Income - Narrative (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2018
Operating profit	$ 233		$ 128	$ 575	$ 225
Impairment of long lived asset	16		24	19	36
Fujian Sunner Development Co., Ltd. [Member]
Percentage of equity interest acquired		5.00%
Total consideration paid to acquire interest		$ 261
Unrealized investment gain (loss)	(5)			(22)
Purchase of inventories	73
Investment carrying amount				243
Market value	230			230
Fujian Sunner Development Co., Ltd. [Member] \| Accounts payable and other current liabilities [Member]
Accounts payable and other current liabilities due to Sunner	55			55
Meituan Dianping [Member]
Unrealized investment gain (loss)	13		$ 42	14	$ 38
Number of ordinary shares subscribed						8.4
Maximum percentage of ordinary shares subscribed						1.00%
Fair value of Investment in Meituan's ordinary shares						$ 74
Number of ordinary shares sold			4.2		4.2
Proceeds from disposal of equity security			$ 54
Pre-tax gain from disposal of equity security			17
COVID-19 [Member]
Operating profit	$ 233		$ 128	$ 575	$ 225

Items Affecting Comparability of Net Income - Summary of Pre-tax Gains or Losses in Investment in Equity Securities (Details) - Meituan Dianping [Member] - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Unrealized gains recorded on equity securities still held as of the end of the period	$ 13	$ 42	$ 14	$ 38
Gains (losses) recorded on equity securities sold during the period		3		(1)
Gains recorded on equity securities	$ 13	$ 45	$ 14	$ 37

Other Expenses (Income), Net (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Equity income from investments in unconsolidated affiliates

$ (10)

$ (14)

$ (27)

$ (34)

Amortization of reacquired franchise rights

^[1]

Foreign exchange impact and other

(2)

(1)

Other expenses (income), net

$ 1

(10)

$ (5)

(26)

Daojia platform [Member]

Other Income And Expenses [Line Items]

Derecognition of indemnification assets

^[2]

$ 3

[1]	Increase in amortization of reacquired franchise rights resulted from the acquisition of Suzhou KFC as disclosed in Note 1, with $61 million of the purchase price allocated to intangible assets related to reacquired franchise right, which is being amortized over the remaining franchise contract period.
[2]	In the quarter ended June 30, 2020, the Company derecognized a $3 million indemnification asset previously recorded for the Daojia acquisition as the indemnification right pursuant to the purchase agreement expired. The expense was included in Other expenses (income), net, but was not allocated to any segment for performance reporting purposes.

Other Expenses (Income), Net (Parenthetical) (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2020

Jun. 30, 2021

Daojia platform [Member]

Other Operating Income Expense Net [Line Items]

Derecognition of indemnification assets related to Daojia

^[1]

$ 3

Suzhou KFC [Member] | Reacquired Franchise Rights [Member]

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 61

[1]

Supplemental Balance Sheet Information (Details) - USD ($)
$ in Millions

Jun. 30, 2021

Dec. 31, 2020

Accounts Receivable, net

Accounts receivable, gross

$ 106

$ 100

Allowance for doubtful accounts

(1)

Accounts receivable, net

105

Prepaid Expenses and Other Current Assets

Receivables from payment processors and aggregators

Dividends receivable from unconsolidated affiliates

Other prepaid expenses and current assets

131

119

Prepaid expenses and other current assets

207

176

Other Assets

VAT assets

272

270

Land use right

139

140

Investment in equity securities

173

160

Long-term deposits

Investment in long-term time deposits

^[1]

Costs to obtain contracts

Others

Other Assets

794

749

Accounts Payable and Other Current Liabilities

Accounts payable

712

708

Operating lease liabilities

445

448

Accrued compensation and benefits

234

238

Contract liabilities

172

175

Accrued capital expenditures

185

203

Accrued marketing expenses

120

Other current liabilities

174

150

Accounts payable and other current liabilities

2,042

1,995

Other Liabilities

Accrued income tax payable

Contract liabilities

Other non-current liabilities

Other liabilities

$ 159

$ 167

[1]

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 4,071	$ 3,893
Accumulated depreciation	(2,249)	(2,128)
Property, plant and equipment, net	1,822	1,765
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,466	2,367
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	37	36
Machinery and Equipment, and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,568	$ 1,490

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($)
$ in Millions

6 Months Ended

12 Months Ended

Jun. 30, 2021

Dec. 31, 2020

Supplemental Balance Sheet Information Disclosure [Abstract]

Investment in long-term time deposits

^[1]

$ 87

$ 61

Investment in long-term time deposits, maturity term

3 years

[1]

Goodwill and Intangible Assets (Details) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2021

Dec. 31, 2020

$ 1,232

$ 1,223

^[1]

(391)

Effect of currency translation adjustments

841

832

KFC [Member]

756

748

Effect of currency translation adjustments

756

748

Pizza Hut [Member]

All Other Segments [Member]

456

455

^[1]

(391)

Effect of currency translation adjustments

$ 64

$ 1

[1]	Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.

Goodwill and Intangible Assets (Details 1) - USD ($)
$ in Millions

Jun. 30, 2021

Dec. 31, 2020

$ 285

^[1]

$ 283

(182)

(161)

^[2]

(14)

108

Indefinite-lived intangible assets

139

138

Total intangible assets

Little Sheep [Member] | Trademark [Member]

424

^[1]

421

Intangible assets, net

228

246

Indefinite-lived intangible assets

Huang Ji Huang Group [Member] | Trademark [Member]

Indefinite-lived intangible assets

Reacquired franchise rights [Member]

225

^[1]

223

(163)

(144)

Huang Ji Huang Group [Member]

^[1]

(2)

(1)

Daojia platform [Member]

^[1]

(4)

Customer-related assets [Member]

^[2]

(12)

^[1]

(9)

(8)

^[2]

(2)

Others [Member]

^[1]

(4)

Amortization of leased assets

$ 5

[1]	Changes in gross carrying amount include effect of currency translation adjustments.
[2]	Accumulated impairment losses represent impairment charges on intangible assets acquired from Daojia primarily attributable to the Daojia platform.

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Finite-lived intangible assets
Finite-lived intangible assets, amortization expense	$ 11	$ 3	$ 21	$ 6
Expected amortization expense for the unamortized finite-lived intangible assets - remainder of 2021	21		21
Expected amortization expense for the unamortized finite-lived intangible assets - 2022	41		41
Expected amortization expense for the unamortized finite-lived intangible assets - 2023	4		4
Expected amortization expense for the unamortized finite-lived intangible assets - 2024	2		2
Expected amortization expense for the unamortized finite-lived intangible assets - 2025	$ 2		$ 2

Leases - Narrative (Details) $ in Millions	6 Months Ended
Leases - Narrative (Details) $ in Millions	Jun. 30, 2021 USD ($) Restaurant
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants operated \| Restaurant	8,500
Additional lease signed but not commenced with total undiscounted minimum lease payments \| $	$ 166
Maximum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	20 years
Lease terms	20 years
Minimum [Member]
Schedule Of Lease Assets And Liabilities [Line Items]
Lease agreements initial terms	10 years
Lease terms	1 year

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Jun. 30, 2021	Dec. 31, 2020
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 2,205	$ 2,164
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	yumc:OperatingLeaseRightOfUseAssetMember	yumc:OperatingLeaseRightOfUseAssetMember
Finance lease right-of-use assets	$ 20	$ 20
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:PropertyPlantAndEquipmentMember	us-gaap:PropertyPlantAndEquipmentMember
Total leased assets	$ 2,225	$ 2,184
Operating lease liabilities	445	448
Finance lease liabilities, Current	$ 2	$ 2
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accounts payable and other current liabilities	Accounts payable and other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accounts payable and other current liabilities	Accounts payable and other current liabilities
Non-current operating lease liabilities	$ 1,941	$ 1,915
Non-current finance lease liabilities	$ 28	$ 28
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentOperatingLeasesLiabilitiesMember	yumc:NonCurrentOperatingLeasesLiabilitiesMember
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	yumc:NonCurrentFinancingLeasesLiabilitiesMember	yumc:NonCurrentFinancingLeasesLiabilitiesMember
Total lease liabilities	$ 2,416	$ 2,393

Leases - Summary of Lease Cost (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Lease Cost [Abstract]

Operating lease cost

$ 138

$ 120

$ 274

$ 241

Finance lease cost

Interest on lease liabilities

Variable lease cost

^[1]

182

104

Short-term lease cost

Sub-lease income

(6)

(14)

(12)

Total lease cost

$ 223

$ 172

$ 449

$ 340

[1]

Leases - Summary of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease Cost [Abstract]
Lease concessions from landlords related to the effects of COVID-19	$ 2	$ 11	$ 7	$ 25

Leases - Schedule of Supplemental Cash Flow Information (Details) - USD ($)
$ in Millions

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Cash paid for amounts included in the measurement of lease liabilities:

Operating cash flows from operating leases

$ 286

$ 233

Operating cash flows from finance leases

Financing cash flows from finance leases

Right-of-use assets obtained in exchange for new lease liabilities

Operating leases

^[1]

$ 215

Finance leases

^[1]

$ (1)

[1]	This supplemental non-cash disclosure for right-of-use (“ROU”) assets obtained in exchange for new lease liabilities also includes non-cash transactions resulting in adjustments to the lease liability or ROU asset due to modification or other reassessment events.

Leases - Schedule of Lease Term and Discount Rate (Details)	Jun. 30, 2021	Jun. 30, 2020
Weighted-average remaining lease term (years)
Operating leases	7 years	6 years 10 months 24 days
Finance leases	10 years 8 months 12 days	11 years 1 month 6 days
Weighted-average discount rate
Operating leases	5.80%	6.00%
Finance leases	5.70%	5.80%

Leases - Summary of Maturities of Lease Liabilities (Details)
$ in Millions

Jun. 30, 2021

USD ($)

Amount of Operating Leases

$ 306

509

447

379

316

956

Total undiscounted lease payment

2,913

Less: imputed interest

527

^[1]

Present value of lease liabilities

2,386

Amount of Finance Leases

Total undiscounted lease payment

Less: imputed interest

^[1]

Present value of lease liabilities

Amount of Operating And Finance Leases, Total

308

513

451

383

320

978

Total undiscounted lease payment

2,953

Less: imputed interest

537

^[1]

Present value of lease liabilities

$ 2,416

[1]

Fair Value Measurements and Disclosures - Narrative (Details) - USD ($)	Jun. 30, 2021	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Transfer from Level 1 to Level 2	$ 0	$ 0
Transfer from Level 2 to Level 1	$ 0	$ 0

Fair Value Measurements and Disclosures - Assets Measured on Recurring Basis or Disclosed at Fair Value (Details) - Recurring Fair Value Measurements [Member] - USD ($)
$ in Millions

Jun. 30, 2021

Dec. 31, 2020

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

$ 721

$ 808

Short-term investments, Fair Value Measurement or Disclosure

3,139

3,105

Total assets, Fair Value Measurement or Disclosure

4,120

4,134

Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

207

Short-term investments, Fair Value Measurement or Disclosure

260

Total assets, Fair Value Measurement or Disclosure

224

627

Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

721

601

Short-term investments, Fair Value Measurement or Disclosure

3,088

2,845

Total assets, Fair Value Measurement or Disclosure

3,896

3,507

Time Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

551

601

Short-term investments, Fair Value Measurement or Disclosure

2,024

2,165

Time Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

551

601

Short-term investments, Fair Value Measurement or Disclosure

2,024

2,165

Fixed Income Debt Securities [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

170

207

Short-term investments, Fair Value Measurement or Disclosure

^[1]

830

784

Fixed Income Debt Securities [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

207

Short-term investments, Fair Value Measurement or Disclosure

^[1]

104

Fixed Income Debt Securities [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

170

Short-term investments, Fair Value Measurement or Disclosure

^[1]

830

680

Structured Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Short-term investments, Fair Value Measurement or Disclosure

^[2]

234

Structured Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Short-term investments, Fair Value Measurement or Disclosure

^[2]

234

Investment in Equity Securities [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Investment in Equity Securities [Member] | Level 1 [Member]

173

160

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Variable Return Investments [Member]

173

160

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Short-term investments, Fair Value Measurement or Disclosure

156

Variable Return Investments [Member] | Level 1 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Short-term investments, Fair Value Measurement or Disclosure

156

Long-term Time Deposits [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Long-term Time Deposits [Member] | Level 2 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

$ 87

$ 61

[1]	Classified as held-to-maturity investments and measured at amortized cost.
[2]	Represented certain structured deposits invested in 2021. These investments are principal-protected and provide returns in the form of both fixed and variable interests. Such variable interest rates indexed to gold prices or foreign exchange rates are considered embedded derivatives and bifurcated from host contracts, and measured at fair value on a recurring basis.

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Total expense recognized from non-recurring fair value measurements

$ 16

$ 24

$ 19

$ 36

Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Total expense recognized from non-recurring fair value measurements

Fair Value, Measurements, Nonrecurring [Member] | Level 3 [Member] | Restaurant-level impairment [Member]

Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]

Total expense recognized from non-recurring fair value measurements

^[1]

$ 13

$ 21

$ 13

$ 30

[1]

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Parenthetical) (Details) - Restaurant-level impairment [Member] - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020
Asset Group June.30, 2021 QTD [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 50
Asset Group June.30, 2021 YTD [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 50
Asset Group June.30, 2020 QTD [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		$ 49
Asset Group June.30, 2020 YTD [Member]
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value		$ 76

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax provision	$ 64	$ 45	$ 166	$ 77
Effective tax rate	24.80%	25.20%	27.60%	27.80%

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

Segment Reporting - Narrative (Details)	6 Months Ended
Segment Reporting - Narrative (Details)	Jun. 30, 2021 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Reporting (Details) - USD ($)
$ in Millions

3 Months Ended

6 Months Ended

Jun. 30, 2021

Jun. 30, 2020

Jun. 30, 2021

Jun. 30, 2020

Dec. 31, 2020

$ 2,451

$ 1,902

$ 5,008

$ 3,656

Unallocated Other expenses

233

128

575

225

(2)

(3)

Interest income, net

^[1]

Investment gain (loss)

^[1]

(4)

Income Before Income Taxes

257

181

602

279

Revenue From External Customers [Member]

11,304

$ 10,875

Revenue From External Customers [Member] | KFC [Member]

2,451

1,902

5,008

3,656

Revenue From External Customers [Member] | Pizza Hut [Member]

1,734

1,307

3,566

2,576

Revenue From External Customers [Member] | All Other Segments [Member]

538

424

1,079

748

Corporate and Unallocated [Member]

105

Unallocated revenues from transactions with franchisees and unconsolidated affiliates

^[1]

127

131

258

271

^[2]

125

130

254

269

Unallocated Other revenues

Unallocated expenses from transactions with franchisees and unconsolidated affiliates

^[2]

(123)

(135)

(252)

(270)

Unallocated Other operating costs and expenses

(2)

(1)

(5)

(2)

Unallocated and corporate G&A expenses

(40)

(37)

(81)

(58)

Corporate and Unallocated [Member] | Revenue From External Customers [Member]

^[3]

5,833

5,507

Operating Segments [Member] | KFC [Member]

^[1]

127

131

258

271

1,734

1,307

3,566

2,576

^[4]

240

159

567

312

^[5]

Operating Segments [Member] | Pizza Hut [Member]

^[6]

4,188

4,084

538

424

1,079

748

(13)

^[5]

Operating Segments [Member] | All Other Segments [Member]

906

106

184

(6)

(2)

(9)

(12)

^[5]

Operating Segments [Member] | Revenue From External Customers [Member]

377

$ 378

2,451

1,902

5,008

3,656

Elimination [Member]

Elimination [Member] | All Other Segments [Member]

(54)

(10)

(79)

(17)

Combined [Member]