0000950170-24-023147 | 10-K | XBRL Viewer

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Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Feb. 06, 2024	Oct. 04, 2017
Subsequent Event [Line Items]
Dividends declared date		Oct. 04, 2017
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends declared date	Feb. 06, 2024
Dividends payable, amount per share	$ 0.16
Dividends payable date	Mar. 26, 2024
Dividends payable, date of record	Mar. 05, 2024
Estimated cash dividend payable	$ 64

Fair Value Measurements and Disclosures (Tables)

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Assets Measured on Recurring Basis or Disclosed at Fair Value

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 bank deposits and notes, 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.


			Fair Value Measurement or Disclosure at December 31, 2023
	Balance at December 31, 2023		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	293			$	293
Fixed income debt securities(a)		14		14
Money market funds		11		11
Total cash equivalents		318		25		293		—
Short-term investments:
Time deposits		1,113				1,113
Fixed income debt securities(a)		200				200
Structured deposits		138				138
Variable return investments		21		21
Total short-term investments		1,472		21		1,451		—
Long-term bank deposits and notes
Time deposits		903				903
Fixed income bank notes		362				362
Total long-term bank deposits and notes		1,265				1,265
Equity investments:
Investment in equity securities		45		45
Total	$	3,100	$	91	$	3,009	$	—


			Fair Value Measurement or Disclosure at December 31, 2022
	Balance at December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	355			$	355
Fixed income debt securities(a)		129		29		100
Money market funds		59		59
Total cash equivalents		543		88		455		—
Short-term investments:
Time deposits		1,434				1,434
Fixed income debt securities(a)		500				500
Structured deposits		88				88
Total short-term investments		2,022		—		2,022		—
Long-term bank deposits and notes
Time deposits		680				680
Equity investments:
Investment in equity securities		95		95
Total	$	3,340	$	183	$	3,157	$	—

(a)

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

The Company is required to place bank deposits or purchase insurance to secure the balance of prepaid stored-value cards issued by the Company pursuant to regulatory requirements. $21 million of time deposits in Short-term investments and $28 million of time deposits in Long-term bank deposits and notes were restricted for use as of December 31, 2023, and $81 million of time deposits in Long-term bank deposits and notes was restricted for use as of December 31, 2022. The decrease was primarily due to insurance purchased by the Company to secure a portion of prepaid stored-value cards.

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements

The following table presents amounts recognized from all non-recurring fair value measurements based on unobservable inputs (Level 3) during the years ended December 31, 2023, 2022 and 2021. These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective year-end dates.


	2023		2022		2021		Account Classification

Restaurant-level impairment(a)		20		24		32	Closures and impairment expenses, net

(a)

Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted mainly 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. After considering the impairment charges recorded during the corresponding years, the fair value of such assets as of the relevant measurement date was $68 million, $97 million and $112 million during the years ended December 31, 2023, 2022 and 2021, respectively.

Share-Based Compensation (Parenthetical) (Details 1)	Dec. 31, 2023 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Stock options outstanding at the end of 2022 (in shares) \| shares	87,077
SARs outstanding at the end of 2022 (in shares) \| shares	8,384,079
Stock options outstanding at the end of 2022, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 21.66
SARs outstanding at the end of 2022, Weighted-average exercise price (in dollars per share) \| $ / shares	$ 37.32

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Lease, Cost [Abstract]

Operating lease cost

$ 517

$ 564

Finance lease cost

Amortization of leased assets

Interest on lease liabilities

Variable lease cost

^[1]

402

303

346

Short-term lease cost

Sub-lease income

(21)

(23)

(26)

Total lease cost

$ 920

$ 862

$ 898

[1]

The Company was granted $11 million, $39 million and $12 million in lease concessions from landlords related to the effects of the COVID-19 pandemic for the years ended December 31, 2023, 2022 and 2021, 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 question-and-answer 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.

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 1,128	$ 1,130
Short-term investments	1,472	2,022
Accounts receivable, net	68	64
Inventories, net	424	417
Prepaid expenses and other current assets	339	307
Total Current Assets	3,431	3,940
Property, plant and equipment, net	2,310	2,118
Operating lease right-of-use assets	2,217	2,219
Goodwill	1,932	1,988
Intangible assets, net	150	159
Long-term bank deposits and notes	1,265	680
Equity investments	332	361
Deferred income tax assets	129	113
Other assets	265	248
Total Assets	12,031	11,826
Current Liabilities
Accounts payable and other current liabilities	2,164	2,096
Short-term borrowings	168	2
Income taxes payable	90	68
Total Current Liabilities	2,422	2,166
Non-current operating lease liabilities	1,899	1,906
Non-current finance lease liabilities	44	42
Deferred income tax liabilities	390	390
Other liabilities	157	162
Total Liabilities	4,912	4,666
Redeemable Noncontrolling Interest	13	12
Equity
Common stock, $0.01 par value; 1,000 million shares authorized; 407 million shares and 419 million shares issued and outstanding at December 31, 2023 and 2022, respectively.	4	4
Additional paid-in capital	4,320	4,390
Retained earnings	2,310	2,191
Accumulated other comprehensive loss	(229)	(103)
Total Yum China Holdings, Inc. Stockholders' Equity	6,405	6,482
Noncontrolling interests	701	666
Total Equity	7,106	7,148
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 12,031	$ 11,826

Revenue

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Note 4 – Revenue

The following tables present revenue disaggregated by types of arrangements and segments:


	2023
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	8,116	$	2,214	$	61	$	—	$	10,391	$	—		$	10,391
Franchise fees and income		62		7		20		—		89		—			89
Revenues from transactions with franchisees		45		4		74		249		372		—			372
Other revenues		17		21		624		44		706		(580	)		126
Total revenues	$	8,240	$	2,246	$	779	$	293	$	11,558	$	(580	)	$	10,978


	2022
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	7,120	$	1,939	$	51	$	—	$	9,110	$	—		$	9,110
Franchise fees and income		56		7		18		—		81		—			81
Revenues from transactions with franchisees		33		4		39		211		287		—			287
Other revenues		10		10		563		42		625		(534	)		91
Total revenues	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	6,816	$	2,092	$	53	$	—	$	8,961	$	—		$	8,961
Franchise fees and income		120		8		25		—		153		—			153
Revenues from transactions with franchisees		59		6		98		500		663		—			663
Other revenues		8		3		297		20		328		(252	)		76
Total revenues	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853

Franchise Fees and Income


	2023		2022		2021
Initial fees, including renewal fees	$	6	$	6	$	8
Continuing fees and rental income		83		75		145
Franchise fees and income	$	89	$	81	$	153

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, 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 in the 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. 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 $6 million at both December 31, 2023 and 2022.

Contract Liabilities

Contract liabilities at December 31, 2023 and 2022 were as follows:


	2023		2022
Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	142	$	139
- Deferred revenue related to upfront franchise fees		37		32
- Deferred revenue related to customer loyalty programs		24		23
- Deferred revenue related to privilege membership programs		24		16
- Others		1		—
Total	$	228	$	210

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 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 Consolidated Balance Sheets. Revenue recognized that was included in the contract liability balance at the beginning of the year amounted to $106 million and $110 million in 2023 and 2022, 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 years 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 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 based on a certain percentage of sales, as those sales occur.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-9

Reference 2: 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 7: http://www.xbrl.org/2003/role/disclosureRef
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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
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org//606/tableOfContent

+ Details

Share-Based Compensation (Details 1) - Stock Options and Stock Appreciation Rights [Member]
$ / shares in Units, shares in Thousands, $ in Millions

12 Months Ended

Dec. 31, 2023

USD ($)

$ / shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Outstanding at the beginning of 2023 (in shares) | shares

9,605

Granted (in shares) | shares

345

Exercised (in shares) | shares

(1,367)

Forfeited or expired (in shares) | shares

(112)

Outstanding at the end of 2023 (in shares) | shares

8,471

^[1]

Exercisable at the end of 2023 (in shares) | shares

6,766

Outstanding at the beginning 2023, Weighted-average exercise price (in dollars per share) | $ / shares

$ 34.71

Granted, Weighted-average exercise price (in dollars per share) | $ / shares

62.14

Exercised, Weighted-average exercise price (in dollars per share) | $ / shares

24.98

Forfeited or expired, Weighted-average exercise price (in dollars per share) | $ / shares

52.81

Outstanding at the end of 2023, Weighted-average exercise price (in dollars per share) | $ / shares

37.16

Exercisable at the end of 2023, Weighted-average exercise price (in dollars per share) | $ / shares

$ 33.09

Outstanding at the end of 2023, Weighted-average remaining contractual term (in years)

4 years 6 months 7 days

Exercisable at the end of 2023, Weighted-average remaining contractual term (in years)

3 years 8 months 15 days

Outstanding at the end of 2023, Aggregate intrinsic value (in dollars) | $

$ 73

Exercisable at the end of 2023, Aggregate intrinsic value (in dollars) | $

$ 73

[1]	Outstanding awards include 87,077 stock options and 8,384,079 SARs with weighted-average exercise prices of $21.66 and $37.32, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

Income Taxes (Details) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
U.S. and foreign income (loss) before income taxes [Abstract]
U.S.	$ 42	$ 7	$ (1)
Mainland China	1,165	686	1,424
Other Foreign	19	(6)	(31)
Income Before Income Taxes	$ 1,226	$ 687	$ 1,392

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 944
-SubTopic 220
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(11))
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income Taxes (Details 4) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 4) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Beginning of Year	$ 21	$ 20
Additions for tax positions of prior years	5	6
Reductions due to statute expiration	(6)	(5)
End of Year	$ 20	$ 21

Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions		1 Months Ended	12 Months Ended
	Oct. 24, 2022 TradingDays shares	Feb. 29, 2020	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 2022 USD ($) $ / shares shares	Dec. 31, 2021 USD ($) $ / shares shares	Oct. 31, 2016 shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense			$ 64.0	$ 42.0	$ 41.0
Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of common stock granted \| shares			45,843	47,820	31,182
Grant date fair value			$ 2.7	$ 2.1	$ 2.1
Stock Options and Stock Appreciation Rights [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years
Vesting schedule of grants under stock award plans			25.00%
Total intrinsic value of stock options and SARs exercised			$ 25.0	$ 22.0	$ 22.0
RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 61.17	$ 50.11	$ 58.77
Unrecognized compensation cost			$ 34.0
Remaining weighted-average vesting period			1 year 7 months 24 days
Total fair value at grant date or modification date of awards vested			$ 8.0	$ 7.0	$ 11.0
Unvested shares \| shares			1,166,863	875,000
RSUs [Member] \| Third Grant Anniversary [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting schedule of grants under stock award plans			100.00%
Annual PSU Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period			3 years
PSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 71.01	$ 61.33	$ 68.04
Unrecognized compensation cost			$ 13.0
Remaining weighted-average vesting period			1 year 10 months 17 days
Total fair value at grant date or modification date of awards vested			$ 41.0	$ 5.0	$ 3.0
Incremental compensation expense				$ 6.0
Unvested shares \| shares			268,435	1,076,000
Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance period		4 years
Stock Appreciation Rights (SARs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of awards granted (in dollars per share) \| $ / shares			$ 24.67	$ 15.55	$ 17.44
Unrecognized compensation cost			$ 18.0
Remaining weighted-average vesting period			1 year 6 months 10 days
Total fair value at grant date or modification date of awards vested			$ 15.0	$ 16.0	$ 15.0
Minimum [Member] \| RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
Minimum [Member] \| Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation PSU award percentage		0.00%
Maximum [Member] \| RSUs [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
Maximum [Member] \| Partner PSU Awards[Member] \| Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation PSU award percentage		200.00%
Long Term Incentive Plan (the "2016" Plan) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock reserved for future issuance \| shares						45,000,000
2022 Long Term Incentive Plan (the "2022 Plan") [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of trading days \| TradingDays	5
2022 Long Term Incentive Plan (the "2022 Plan") [Member] \| Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for grants \| shares	31,000,000
2016 and 2022 Plan [Member] \| Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			3 years
2016 and 2022 Plan [Member] \| Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			5 years

Business Acquisitions and Equity Investments (Tables)

12 Months Ended

Dec. 31, 2023

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

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


	2023			2022			2021
Unrealized losses recorded on equity securities still held as of the end of the year	$	(50	)	$	(27	)	$	(38	)

Income Taxes (Details 1) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 1) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Details of income tax provision (benefit) [Abstract]
Current: Federal	$ 14	$ 5
Current: Foreign	325	222	$ 209
Total current income tax provision (benefit)	339	227	209
Deferred: Federal	(11)	(6)	(8)
Deferred: Foreign	1	(14)	168
Total deferred income tax provision	(10)	(20)	160
Effective income tax rate	$ 329	$ 207	$ 369

- Definition

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

+ References + Details

Government Subsidies - Schedule Of Government Subsidies (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Government Assistance [Line Items]
General and administrative expenses	$ 638	$ 594	$ 564
Total costs and expenses, net	9,872	8,940	8,467
Company Restaurant Expenses [Member]
Government Assistance [Line Items]
Payroll and employee benefits	2,725	2,389	2,258
Occupancy and other operating expenses	2,752	2,604	2,664
Cost of goods and services sold	$ 8,701	$ 7,829	$ 7,734

Summary of Significant Accounting Policies - Narrative (Details 1) - USD ($)	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Oct. 24, 2022
Foreign Currency [Abstract]
License fee percentage	3.00%
Total license fees paid	$ 317,000,000	$ 277,000,000	$ 298,000,000
Direct Marketing Costs [Abstract]
Direct marketing expenses	374,000,000	343,000,000	368,000,000
Research and Development Expenses [Abstract]
Research and development expenses	$ 6,000,000	6,000,000	6,000,000
Impairment or Disposal of Long-Lived Assets [Abstract]
Number of consecutive years of operating losses used as primary indicator of potential impairment for our semi-annual impairment testing of restaurant assets	2 years
Income Taxes [Abstract]
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)	50.00%			50.00%
Receivables [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due	30 days
Provision for accounts receivable	$ 1,000,000	2,000,000
Goodwill and Intangible Assets [Abstract]
Goodwill Written Off Related To Sale Of Business Unit Years From Acquisition	2 years
Fair Value Goodwill Written Off Related To Sale Of Business Unit Minimum Years Refranchised	2 years
Common Stock Repurchases [Abstract]
VAT deductions recognized	$ 44,000,000	16,000,000
Minimum [Member]
Common Stock Repurchases [Abstract]
Percentage of additional input VAT available to offset	10.00%
Percentage Of additional input Vat available to off set during extended period	5.00%
Maximum [Member]
Common Stock Repurchases [Abstract]
Percentage of additional input VAT available to offset	15.00%
Percentage Of additional input Vat available to off set during extended period	10.00%
Buildings [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	20 years
Buildings [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	50 years
Leasehold Improvements [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	5 years
Leasehold Improvements [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	12 years
Machinery and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	3 years
Machinery and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	10 years
Capitalized Software Costs [Member] \| Minimum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	3 years
Capitalized Software Costs [Member] \| Maximum [Member]
Property, Plant and Equipment [Abstract]
Estimated useful life used in the calculation of the depreciation and amortization on a straight-line basis (in years)	5 years
Payment Processors and Aggregators [Member]
Receivables [Abstract]
Allowance for doubtful accounts	$ 0	0
Chinese Local Tax Authority [Member]
Income Taxes [Abstract]
PRC withholding tax on dividends	10.00%
Percentage of withholding tax on dividends by Hong Kong	5.00%
Minimum percentage of equity interest in a PRC-resident enterprise to be held by Hong Kong resident enterprise	25.00%
Tax withholding reduction percentage	5.00%
2022 Long Term Incentive Plan (the "2022 Plan") [Member] \| Common Stock [Member]
Compensation Related Costs [Abstract]
Number of shares authorized for grants					31,000,000
Transactions With Franchisees and Unconsolidated Affiliates [Member]
Direct Marketing Costs [Abstract]
Direct marketing expenses	$ 25,000,000	23,000,000	$ 55,000,000
COVID-19 [Member]
Government Assistance [Abstract]
One-time government relief		$ 33,000,000

Revenue - Schedule of Franchise Fees and Income (Details) - Franchise [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Revenue From Contract With Customer [Line Items]
Franchise fees and income	$ 89	$ 81	$ 153
Transferred at Point in Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income	6	6	8
Transferred over Time [Member]
Revenue From Contract With Customer [Line Items]
Franchise fees and income	$ 83	$ 75	$ 145

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 924
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479941/924-10-S99-1

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-5

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 30
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-30

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 4
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479806/606-10-50-4

+ Details

Equity - Narrative (Details) - USD ($)		12 Months Ended
Equity - Narrative (Details) - USD ($)	Oct. 04, 2017	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Nov. 02, 2023	Oct. 31, 2016
Class of Stock [Line Items]
Common stock, shares authorized		1,000,000,000	1,000,000,000			1,000,000,000
Common stock, par value		$ 0.01	$ 0.01			$ 0.01
Common stock, shares issued		407,000,000	419,000,000			364,000,000
Common stock, shares outstanding		407,000,000	419,000,000			364,000,000
Treasury stock repurchased, shares		12,400,000	10,500,000	1,300,000
Treasury stock repurchased, value				$ 75,000,000
Treasury stock repurchased, value		$ 617,000,000	$ 466,000,000	75,000,000
Stock repurchase program, remaining authorized repurchase amount		$ 1,500,000,000
Excise tax on net share repurchases		1.00%
Excise tax on net share repurchases cost		$ 6,000,000
Dividends declared date	Oct. 04, 2017
Total cash dividend paid		216,000,000	202,000,000	203,000,000
Other comprehensive Income (loss)		(146,000,000)	(431,000,000)	108,000,000
Accumulated other comprehensive Income (loss)		(229,000,000)	(103,000,000)
Tax effect related to components of other comprehensive income (loss)		$ 0	$ 0	$ 0
Percentage of annual after tax profit required to be allocated to general reserve		10.00%
Maximum percentage of annual after tax profit to be allocated to general reserve based on registered capital		50.00%
Restricted net assets		$ 1,000,000,000
Stock repurchase program, authorized amount					$ 3,400,000,000
Increased amount in share repurchase authorization					$ 1,000,000,000
$4 Million Settled Subsequent to December 31, 2023 [Member]
Class of Stock [Line Items]
Treasury stock repurchased, value		$ 4,000,000

Items Affecting Comparability of Net Income - Narrative (Details) - USD ($)
$ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2021

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Mar. 31, 2021

Operating profit

$ 1,106

$ 629

$ 1,386

Gain from re-measurement of equity interest upon acquisition

^[1]

628

Hangzhou KFC [Member]

Gain from re-measurement of equity interest upon acquisition

$ 618

Meituan Dianping [Member]

Pre-tax loss from disposal of equity security

$ 50

$ 27

Fujian Sunner Development Co., Ltd. [Member]

Pre-tax loss from disposal of equity security

$ 22

Percentage of equity interest acquired

5.00%

[1]

In the fourth and third quarters of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value. (See Note 3 for additional information).

Income Taxes (Details 2) - USD ($) $ in Millions	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract]
U.S. federal statutory rate	$ 257	$ 144	$ 292
Statutory rate differential attributable to foreign operations	49	31	50
Withholding tax on distributable earnings	36	28	25
Effect of preferential tax benefit	(15)	(5)	(2)
Adjustments to reserves and prior years	(3)	(3)	(4)
Change in valuation allowances	4	9	9
Other, net	1	3	(1)
Effective income tax rate	$ 329	$ 207	$ 369
Effective income tax rate reconciliation [Abstract]
U.S. federal statutory rate, percent	21.00%	21.00%	21.00%
Statutory rate differential attributable to foreign operations, percent	4.00%	4.50%	3.60%
Withholding tax on distributable earnings, percent	2.90%	4.10%	1.80%
Effect of preferential tax benefit, percent	(1.20%)	(0.70%)	(0.20%)
Adjustments to reserves and prior years	(0.30%)	(0.60%)	(0.30%)
Change in valuation allowances, percent	0.30%	1.30%	0.70%
Other, net, percent	0.20%	0.50%	(0.10%)
Effective income tax rate, percent	26.90%	30.10%	26.50%

Leases - Summary of Lease Cost (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Lease, Cost [Abstract]
Lease concessions from landlords related to the effects of COVID-19	$ 11	$ 39	$ 12

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
Contingencies - Narrative (Details) - USD ($)	Feb. 28, 2015	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Income tax rate on gains derived from indirect transfer of assets	10.00%
Percentage of tax assessed on difference between fair market value and tax basis	10.00%
Fair value obligations related to indemnifications		$ 0

Income Taxes (Details 5) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Income Tax Disclosure [Abstract]
Accrued interest and penalties	$ 4	$ 4

Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the Carrying Amount of Goodwill

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


	Total Company			KFC			Pizza Hut			All Other Segments
Balance as of December 31, 2021
Goodwill, gross	$	2,533		$	2,040		$	20		$	473
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	2,142		$	2,040		$	20		$	82
Goodwill acquired(b)		16			15			1			—
Effect of currency translation adjustments		(170	)		(162	)		(2	)		(6	)
Balance as of December 31, 2022
Goodwill, gross		2,379			1,893			19			467
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,988		$	1,893		$	19		$	76
Goodwill acquired(b)		1			1			—			—
Effect of currency translation adjustments		(57	)		(54	)		(1	)		(2	)
Balance as of December 31, 2023
Goodwill, gross		2,323			1,840			18			465
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,932		$	1,840		$	18		$	74

(a)

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

(b)

Goodwill acquired resulted from the acquisition of restaurants from our existing franchisees during 2022 and 2023, which was immaterial.

Schedule of Finite and Indefinite Lived Intangible Assets by Major Class

Intangible assets, net as of December 31, 2023 and 2022 are as follows:


	2023										2022
	Gross Carrying Amount(a)		Accumulated Amortization(a)			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	$	268	$	(265	)	$	—		$	3	$	276	$	(271	)	$	—		$	5
Huang Ji Huang franchise related assets		21		(4	)		—			17		22		(3	)		—			19
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(10	)		(2	)		—		12		(9	)		(2	)		1
Other		9		(6	)		—			3		9		(5	)		—			4
	$	326	$	(289	)	$	(14	)	$	23	$	335	$	(292	)	$	(14	)	$	29
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	52	$	—		$	—		$	52
Huang Ji Huang trademark		76		—			—			76		78		—			—			78
	$	127	$	—		$	—		$	127	$	130	$	—		$	—		$	130

Total intangible assets	$	453	$	(289	)	$	(14	)	$	150	$	465	$	(292	)	$	(14	)	$	159

(a)

Changes in gross carrying amount and accumulated amortization include the effect of currency translation adjustments.

(b)

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

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
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-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
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-Name Accounting Standards Codification
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-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Property Plant And Equipment [Line Items]
PP&E, gross	$ 4,883	$ 4,586
Accumulated depreciation	(2,573)	(2,468)
PP&E, net	2,310	2,118
Buildings and Improvements, and Construction in Progress [Member]
Property Plant And Equipment [Line Items]
PP&E, gross	3,073	2,912
Finance Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
PP&E, gross	68	62
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
PP&E, gross	$ 1,742	$ 1,612

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

3 Months Ended

12 Months Ended

Dec. 31, 2021

Sep. 30, 2021

Dec. 31, 2021

Dec. 31, 2023

Dec. 31, 2020

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

^[1]

$ 628

Hangzhou KFC [Member]

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

$ 618

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

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 66

Remaining franchise contract period

1 year

Lavazza Group [Member]

Other Operating Income Expense Net [Line Items]

Gain from re-measurement of previously held equity interest

$ 10

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

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

2 years 4 months 24 days

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

Other Operating Income Expense Net [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

5 years

[1]

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Earnings Per Share [Abstract]

Net Income - Yum China Holdings, Inc.

$ 827

$ 442

$ 990

Weighted-average common shares outstanding (for basic calculation)

^[1]

416

421

422

Effect of dilutive share-based awards

^[1]

Effect of dilutive warrants

^[2]

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

420

425

434

Basic Earnings Per Common Share

$ 1.99

$ 1.05

$ 2.34

Diluted Earnings Per Common Share

$ 1.97

$ 1.04

$ 2.28

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 were 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. See Note 14 for a further discussion of share-based compensation.
[2]	Pursuant to the investment agreements dated September 1, 2016 (Note 10), 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 were exercisable at any time through October 31, 2021. The incremental shares arising from outstanding warrants were included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the applicable exercise price of the warrants. During 2021, an aggregate of 7,534,316 common shares were issued as a result of the cashless exercise of all warrants outstanding, which upon exercise were excluded from the calculation of dilutive warrants and included in the weighted-average common shares outstanding.
[3]	These outstanding SARs, RSUs and PSUs were excluded from the computation of diluted EPS because to do so would have been antidilutive for the years presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of December 31, 2023, 2022 and 2021.

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 250
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
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+ Details

- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

Earnings Per Common Share ("EPS")

12 Months Ended

Dec. 31, 2023

Earnings Per Share [Abstract]

Earning Per Common Share (EPS)

Note 5 – Earnings Per Common Share (“EPS”)

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


	2023		2022		2021
Net Income – Yum China Holdings, Inc.	$	827	$	442	$	990
Weighted-average common shares outstanding (for basic calculation)(a)		416		421		422
Effect of dilutive share-based awards(a)		4		4		6
Effect of dilutive warrants(b)		—		—		6
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		420		425		434
Basic Earnings Per Common Share	$	1.99	$	1.05	$	2.34
Diluted Earnings Per Common Share	$	1.97	$	1.04	$	2.28
Share-based awards excluded from the diluted EPS computation(c)		3		4		2

(a)

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 were 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. See Note 14 for a further discussion of share-based compensation.

(b)

Pursuant to the investment agreements dated September 1, 2016 (Note 10), 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 were exercisable at any time through October 31, 2021. The incremental shares arising from outstanding warrants were included in the computation of diluted EPS, if there is dilutive effect when the average market price of Yum China common stock for the year exceeds the applicable exercise price of the warrants. During 2021, an aggregate of 7,534,316 common shares were issued as a result of the cashless exercise of all warrants outstanding, which upon exercise were excluded from the calculation of dilutive warrants and included in the weighted-average common shares outstanding.

(c)

These outstanding SARs, RSUs and PSUs were excluded from the computation of diluted EPS because to do so would have been antidilutive for the years presented, or because certain PSUs are contingently issuable based on the achievement of performance and market conditions, which have not been met as of December 31, 2023, 2022 and 2021.

Summary of Significant Accounting Policies - Narrative (Details) $ in Millions	12 Months Ended
	Dec. 31, 2023 USD ($)
Summary Of Significant Accounting Policies [Line Items]
Future lease payments due from franchisees on a nominal basis	$ 34
Prepaid gift cards expiration period	36 months
Product vouchers maximum expiration period	12 months
Points expiration period	18 months
KFC [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years
Pizza Hut [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years
Little Sheep [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	5 years
Huang Ji Huang [Member] \| Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	3 years
Huang Ji Huang [Member] \| Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Franchisee agreement term	10 years

Fair Value Measurements and Disclosures

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements and Disclosures

Note 12 – Fair Value Measurements and Disclosures

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

The Company's financial assets also include its investment in the equity securities of Meituan, which is measured at fair value based on the closing market price for the shares at the end of each reporting period, with subsequent fair value changes recorded in our Consolidated Statements of Income.


			Fair Value Measurement or Disclosure at December 31, 2023
	Balance at December 31, 2023		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	293			$	293
Fixed income debt securities(a)		14		14
Money market funds		11		11
Total cash equivalents		318		25		293		—
Short-term investments:
Time deposits		1,113				1,113
Fixed income debt securities(a)		200				200
Structured deposits		138				138
Variable return investments		21		21
Total short-term investments		1,472		21		1,451		—
Long-term bank deposits and notes
Time deposits		903				903
Fixed income bank notes		362				362
Total long-term bank deposits and notes		1,265				1,265
Equity investments:
Investment in equity securities		45		45
Total	$	3,100	$	91	$	3,009	$	—


			Fair Value Measurement or Disclosure at December 31, 2022
	Balance at December 31, 2022		Level 1		Level 2		Level 3
Cash equivalents:
Time deposits	$	355			$	355
Fixed income debt securities(a)		129		29		100
Money market funds		59		59
Total cash equivalents		543		88		455		—
Short-term investments:
Time deposits		1,434				1,434
Fixed income debt securities(a)		500				500
Structured deposits		88				88
Total short-term investments		2,022		—		2,022		—
Long-term bank deposits and notes
Time deposits		680				680
Equity investments:
Investment in equity securities		95		95
Total	$	3,340	$	183	$	3,157	$	—

(a)

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

Non-recurring fair value measurements

In addition, certain of the Company’s restaurant-level assets (including operating lease ROU assets, PP&E), 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. 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 the 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 a sub-lease of each of the 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 any difference in factors such as location and property size.


	2023		2022		2021		Account Classification

Restaurant-level impairment(a)		20		24		32	Closures and impairment expenses, net

(a)

- Definition

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.

+ References + Details

Consolidated Statements of Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Stockholders' Equity [Abstract]
Cash dividends declared, per common share	$ 0.52	$ 0.48	$ 0.48

Revenue - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
Revenue - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Impairment losses related to costs to obtain contracts	$ 0	$ 0
Costs to obtain contracts	6	6
Revenue recognized	$ 106	$ 110

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

12 Months Ended

Dec. 31, 2023

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):


	2023		2022		2021
Net Income – Yum China Holdings, Inc.	$	827	$	442	$	990
Weighted-average common shares outstanding (for basic calculation)(a)		416		421		422
Effect of dilutive share-based awards(a)		4		4		6
Effect of dilutive warrants(b)		—		—		6
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		420		425		434
Basic Earnings Per Common Share	$	1.99	$	1.05	$	2.34
Diluted Earnings Per Common Share	$	1.97	$	1.04	$	2.28
Share-based awards excluded from the diluted EPS computation(c)		3		4		2

(a)

(b)

(c)

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

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

Operating cash flows from operating leases

$ 531

$ 549

$ 573

Operating cash flows from finance leases

Financing cash flows from finance leases

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

Operating leases

^[1]

456

191

541

Finance leases

^[1]

$ 7

$ 10

$ 11

[1]

This supplemental non-cash disclosure for ROU assets obtained in exchange for lease liabilities includes an increase in lease liabilities associated with obtaining new ROU assets of $451 million, $344 million and $557 million for the years ended December 31, 2023, 2022 and 2021, respectively, as well as adjustments to lease liabilities or ROU assets due to modification or other reassessment events, which resulted in an increase of $12 million, a decrease of $143 million and $5 million in lease liabilities for the years ended December 31, 2023, 2022 and 2021, respectively.

Pay vs Performance Disclosure - USD ($) $ in Millions	12 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Pay vs Performance Disclosure
Net Income (Loss)	$ 827	$ 442	$ 990

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

+ Details

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Segment Reporting Information [Line Items]

Revenues

$ 10,978

$ 9,569

$ 9,853

Operating Profit

1,106

629

1,386

Unallocated Other income

^[1]

642

Interest income, net

^[2]

169

Investment (loss) gain

^[2]

(49)

(26)

(54)

Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments

1,226

687

1,392

Depreciation and amortization

453

602

516

Impairment Charges

Capital Spending

710

679

689

Capital Spending

710

679

689

Total Assets

12,031

11,826

KFC [Member]

Segment Reporting Information [Line Items]

Impairment Charges

^[3]

Pizza Hut [Member]

Segment Reporting Information [Line Items]

Impairment Charges

^[3]

All Other Segments [Member]

Segment Reporting Information [Line Items]

Impairment Charges

^[3]

Revenue From External Customers [Member]

Segment Reporting Information [Line Items]

Revenues

10,978

9,569

9,853

Operating Segments [Member] | KFC [Member]

Segment Reporting Information [Line Items]

Revenues

8,240

7,219

7,003

Operating Profit

^[4]

1,202

787

827

Depreciation and amortization

319

460

378

Capital Spending

358

327

398

Total Assets

5,371

5,296

Operating Segments [Member] | Pizza Hut [Member]

Segment Reporting Information [Line Items]

Revenues

2,246

1,960

2,109

Operating Profit

142

111

Depreciation and amortization

108

111

Capital Spending

113

116

Total Assets

904

880

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

Segment Reporting Information [Line Items]

Revenues

779

671

473

Operating Profit

(31)

(50)

(29)

Depreciation and amortization

Capital Spending

Total Assets

347

381

Operating Segments [Member] | Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[2]

293

253

520

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

Segment Reporting Information [Line Items]

Revenues

8,240

7,219

7,003

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

Segment Reporting Information [Line Items]

Revenues

2,246

1,960

2,109

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

Segment Reporting Information [Line Items]

Revenues

199

155

227

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

Segment Reporting Information [Line Items]

Revenues

^[2]

293

235

514

Operating Segments [Member] | Inter-Segment Revenue [Member] | All Other Segments [Member]

Segment Reporting Information [Line Items]

Revenues

580

516

246

Operating Segments [Member] | Inter-Segment Revenue [Member] | Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Revenues

^[2]

Corporate and Unallocated [Member]

Segment Reporting Information [Line Items]

Unallocated revenues from transactions with franchisees

^[5]

249

211

500

Unallocated Other revenues

Unallocated expenses for transactions with franchisees

^[5]

(246)

(211)

(497)

Unallocated Other operating costs and expenses

(42)

(39)

(17)

Unallocated and corporate G&A expenses

(214)

(184)

(171)

Depreciation and amortization

Capital Spending

221

220

177

Total Assets

^[6]

5,409

5,269

Combined [Member]

Segment Reporting Information [Line Items]

Revenues

11,558

10,103

10,105

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

Segment Reporting Information [Line Items]

Revenues

10,978

9,569

9,853

Combined [Member] | Inter-Segment Revenue [Member]

Segment Reporting Information [Line Items]

Revenues

580

534

252

Elimination [Member]

Segment Reporting Information [Line Items]

Revenues

$ (580)

$ (534)

$ (252)

[1]	In 2021, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Hangzhou KFC and the Lavazza joint venture. See Note 3 for more information.
[2]	Amounts have not been allocated to any segment for performance reporting purposes.
[3]	Primarily includes store closure impairment charges and restaurant-level impairment charges resulting from our semi-annual impairment evaluation. See Note 12 for more information.
[4]	Includes equity income of $50 million from our investment in Hangzhou KFC in the year ended 2021 before we consolidated its results upon completion of the acquisition. See Note 3 for details.
[5]	Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers then sells and delivers to KFC and Pizza Hut restaurants, including franchisees and former 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.
[6]	Primarily includes cash and cash equivalents, short-term investments, long-term bank deposits and notes, equity investments, and inventories that are centrally managed and PP&E that are not specifically identifiable within each segment.

Description of Business

12 Months Ended

Dec. 31, 2023

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, Lavazza, Huang Ji Huang, Little Sheep and Taco Bell 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, for the exclusive right to use and sublicense the use of intellectual property owned by YUM and its subsidiaries for the development and operation 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 from October 31, 2016 for the KFC and Pizza Hut brands and, subject to achieving certain agreed-upon milestones, 50 years from April 15, 2022 for the Taco Bell brand, with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to us being in “good standing” and unless we give notice of our 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 Huang Ji Huang and Little Sheep and pay no license fee related to these concepts.

In 1987, KFC was the first major global restaurant brand to enter China. As of December 31, 2023, there were 10,296 KFC stores in China. We maintain a controlling interest of 58%, 70%, 83%, 92% and approximately 60% in the entities that own and operate the KFCs in and around Shanghai, Beijing, Wuxi, Suzhou and Hangzhou, respectively.

The first Pizza Hut in China opened in 1990. As of December 31, 2023, there were 3,312 Pizza Hut restaurants in China.

In the second quarter of 2020, the Company partnered with Luigi Lavazza S.p.A. (“Lavazza Group”), the world-renowned family-owned Italian coffee company, and entered into a joint venture to explore and develop the Lavazza coffee concept in China. In September 2021, the Company and Lavazza Group entered into agreements for the previously formed joint venture (“Lavazza joint venture”) to accelerate the expansion of Lavazza coffee shops in China. Upon execution of these agreements, the Company controls and consolidates the joint venture with its 65% equity interest. The acquisition was considered immaterial.

In 2017, the Company acquired a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an online food delivery service provider in China. This business was extended to also include a team managing the delivery services for restaurants, including restaurants in our system, with their results reported under our delivery operating segment.

As part of our strategy to drive growth from off-premise occasions, we also developed our own retail brand operations, Shaofaner, which sells packaged foods through online and offline channels. The operating results of Shaofaner are included in our e-commerce business operating segment.

The Company has two reportable segments: KFC and Pizza Hut. Our non-reportable operating segments, including the operations of Lavazza, Huang Ji Huang, Little Sheep and Taco Bell, our delivery operating segment and our e-commerce business, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. For 2022 and 2021, All Other Segments also included COFFii & JOY and East Dawning. The Company decided to wind down the operations of the East Dawning brand in 2021, and closed all stores by March 2022. In addition, the Company decided to wind down the operations of COFFii & JOY and closed all stores in 2022. Additional details on our segment reporting are included in Note 17.

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 $2.2 billion. On October 24, 2022, the Company’s voluntary conversion of its secondary listing status to a primary listing status on the HKEX became effective (“Primary Conversion”) and the Company became a dual primary listed company on the NYSE and HKEX. On the same day, the Company’s shares of common stock traded on the HKEX were included in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. The Company’s common stock listed on the NYSE and HKEX continue to be fully fungible.

Income Taxes

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income Taxes

Note 16 – Income Taxes

In December 2017, the U.S. enacted 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.

In August 2022, the IRA was signed into law in the U.S., which contains certain tax measures, including a Corporate Alternative Minimum Tax (“CAMT”) of 15% on certain large corporations. On December 27, 2022, the U.S. Treasury Department and the Internal Revenue Services (the “IRS”) released Notice 2023-7, announcing their intention to issue proposed regulations addressing the application of the new CAMT. In 2023, additional notices were released to continue to provide interim guidance regarding certain CAMT issues before proposed regulations are published. The Company will monitor the regulatory developments and continue to evaluate the impact on our financial statements, if any.

In December 2022, a refined Foreign Sourced Income Exemption (“FSIE”) regime was published in Hong Kong and took effect from January 1, 2023. Under the new FSIE regime, certain foreign sourced income would be deemed as being sourced from Hong Kong and chargeable to Hong Kong Profits Tax, if the recipient entity fails to meet the prescribed exception requirements. Certain dividends, interests and disposal gains, if any, received by us and our Hong Kong subsidiaries may be subject to the new tax regime. Based on our preliminary analysis, this legislation did not have a material impact on our financial statements. The Company will monitor the developments and continue to evaluate the impact, if any.

The Organization for Economic Cooperation and Development (the "OECD"), the European Union and other jurisdictions (including jurisdictions in which we have operations or presence) have committed to enacting substantial changes to numerous long-standing tax principles impacting how large multinational enterprises are taxed. In particular, the OECD's Pillar Two initiative introduces a 15% global minimum tax applied on a country-by-country basis and for which many jurisdictions have now committed to an effective enactment date starting January 1, 2024. The Company will monitor the regulatory developments and continue to evaluate the impact, if any.

U.S. and foreign income (loss) before taxes are set forth below:


	2023		2022			2021
U.S.	$	42	$	7		$	(1	)
Mainland China		1,165		686			1,424
Other Foreign		19		(6	)		(31	)
	$	1,226	$	687		$	1,392

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


		2023			2022			2021
Current:	Federal	$	14		$	5		$	—
	Foreign		325			222			209
		$	339		$	227		$	209

Deferred:	Federal	$	(11	)	$	(6	)	$	(8	)
	Foreign		1			(14	)		168
		$	(10	)	$	(20	)	$	160
		$	329		$	207		$	369

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


	2023					2022					2021
U.S. federal statutory rate	$	257		21.0	%	$	144		21.0	%	$	292		21.0	%
Statutory rate differential attributable to foreign operations		49		4.0			31		4.5			50		3.6
Withholding tax on distributable earnings		36		2.9			28		4.1			25		1.8
Effect of preferential tax benefit		(15	)	(1.2	)		(5	)	(0.7	)		(2	)	(0.2	)
Adjustments to reserves and prior years		(3	)	(0.3	)		(3	)	(0.6	)		(4	)	(0.3	)
Change in valuation allowances		4		0.3			9		1.3			9		0.7
Other, net		1		0.2			3		0.5			(1	)	(0.1	)
Effective income tax rate	$	329		26.9	%	$	207		30.1	%	$	369		26.5	%

Statutory rate differential attributable to foreign operations. This item includes local taxes and shareholder-level taxes, net of foreign tax credits. A majority of our income is earned in China, which is generally subject to a 25% tax rate. The negative impact in 2023, 2022 and 2021 is primarily due to the U.S. federal statutory rate of 21%, which is lower than China’s statutory income tax rate.

Withholding tax on distributable earnings. This item represents withholding tax impact on planned or actual repatriation of earnings outside of China, at the withholding tax rate of 5% or 10% depending on the manner of repatriation and the applicable tax treaties or tax arrangements.

Effect of preferential tax benefit. This item represents the benefits from preferential tax rates applied at certain qualified Chinese subsidiaries.

Adjustments to reserves and prior years. This item includes: (1) changes in tax reserves, including interest thereon, established for potential exposure we may incur if a taxing authority takes a position on a matter contrary to our position; and (2) the effects of reconciling income tax amounts recorded in our Consolidated Statements of Income to amounts reflected on our tax returns, including any adjustments to the Consolidated Balance Sheets. The impact of certain effects or changes may affect items reflected in ‘Statutory rate differential attributable to foreign operations’.

Change in valuation allowances. This item relates to changes for deferred tax assets generated or utilized during the current year and changes in our judgment regarding the likelihood of using deferred tax assets that existed at the beginning of the year. The impact of certain changes may affect items reflected in ‘Statutory rate differential attributable to foreign operations’.

Others. This item primarily includes the impact of permanent differences related to current year earnings, gain or loss on investment in equity securities, as well as U.S. tax credits and deductions.

The details of 2023 and 2022 deferred tax assets (liabilities) are set forth below:


	2023									2022
	Assets			Liabilities			Total			Assets			Liabilities			Total
Operating losses and tax credit carryforwards	$	42		$	—		$	42		$	47		$	—		$	47
Tax benefit from Little Sheep restructuring		14			—			14			15			—			15
Employee compensation and benefits		12			—			12			12			—			12
Deferred income and other		112			—			112			94			—			94
Lease		600			(556	)		44			605			(556	)		49
Property, plant and equipment		—			(144	)		(144	)		—			(136	)		(136	)
Intangible assets		—			(38	)		(38	)		—			(40	)		(40	)
Gain from re-measurement of equity interest upon acquisition		—			(219	)		(219	)		—			(226	)		(226	)
Withholding tax on distributable earnings		—			(33	)		(33	)		—			(34	)		(34	)
Unrealized gains from equity securities		—			(1	)		(1	)		—			(12	)		(12	)
Others		8			—			8			11			—			11
Valuation Allowance		(58	)		—			(58	)		(57	)		—			(57	)
Net deferred tax assets (liabilities)	$	730			(991	)	$	(261	)	$	727			(1,004	)	$	(277	)

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Act as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes. We estimate that our total temporary difference for which we have not provided foreign withholding taxes is approximately $3 billion at December 31, 2023. The foreign withholding tax rate on this amount is 5% or 10% depending on the manner of repatriation and the applicable tax treaties or tax arrangements.

At December 31, 2023, the Company had operating loss carryforwards of $177 million, primarily related to certain underperforming entities, most of which will expire by 2028. These losses are being carried forward in jurisdictions where we are permitted to use tax losses from prior periods to reduce future taxable income.

Cash payments for tax liabilities on income tax returns filed were $324 million, $204 million and $255 million in 2023, 2022 and 2021, respectively.

We recognize the benefit of positions taken or expected to be taken in tax returns in the financial statements when it is more likely than not that the position would be sustained upon examination by tax authorities. A recognized tax position is measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2023			2022
Beginning of Year	$	21		$	20
Additions on tax positions		5			6
Reductions due to statute expiration		(6	)		(5	)
End of Year	$	20		$	21

In 2023 and 2022, our unrecognized tax benefits were increased by $5 million and $6 million, respectively. The unrecognized tax benefits balance of $20 million as of December 31, 2023 related to the uncertainty with regard to the deductibility of certain business expenses incurred, all of which, if recognized upon audit settlement or statute expiration, would affect the effective tax rate. The Company believes it is reasonably possible its unrecognized tax benefits of $20 million as of December 31, 2023, which is included in Other liabilities on the Consolidated Balance Sheet, may decrease by approximately $5 million in the next 12 months, which if recognized, would affect the 2024 effective tax rate. The accrued interest and penalties related to income taxes at December 31, 2023 and 2022 are set forth below:


	2023		2022
Accrued interest and penalties	$	4	$	4

During 2023, 2022 and 2021, a net benefit of nil, $1 million and nil for interest and penalties was recognized in our Consolidated Statements of Income as components of our income tax provision, respectively.

The Company’s results are subject to examination in the U.S. federal jurisdiction as well as various U.S. state jurisdictions as part of YUM’s and our own income tax filings, and separately in foreign jurisdictions. Any liability arising from these examinations related to periods prior to the separation is expected to be settled among the Company, YCCL and YUM in accordance with the tax matters agreement we entered into in connection with the separation.

We are subject to reviews, examinations and audits by Chinese tax authorities, the IRS 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 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.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480990/946-20-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//740/tableOfContent

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-14

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-21

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 270
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482526/740-270-50-1

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 17
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482685/740-10-50-17

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 30
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482603/740-30-50-2

+ Details

Revenue (Tables)

12 Months Ended

Dec. 31, 2023

Revenue from Contract with Customer [Abstract]

Schedule of Disaggregation of Revenue by Types of Arrangements and Segments

The following tables present revenue disaggregated by types of arrangements and segments:


	2023
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	8,116	$	2,214	$	61	$	—	$	10,391	$	—		$	10,391
Franchise fees and income		62		7		20		—		89		—			89
Revenues from transactions with franchisees		45		4		74		249		372		—			372
Other revenues		17		21		624		44		706		(580	)		126
Total revenues	$	8,240	$	2,246	$	779	$	293	$	11,558	$	(580	)	$	10,978


	2022
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	7,120	$	1,939	$	51	$	—	$	9,110	$	—		$	9,110
Franchise fees and income		56		7		18		—		81		—			81
Revenues from transactions with franchisees		33		4		39		211		287		—			287
Other revenues		10		10		563		42		625		(534	)		91
Total revenues	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
Revenues	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated		Combined		Elimination			Consolidated
Company sales	$	6,816	$	2,092	$	53	$	—	$	8,961	$	—		$	8,961
Franchise fees and income		120		8		25		—		153		—			153
Revenues from transactions with franchisees		59		6		98		500		663		—			663
Other revenues		8		3		297		20		328		(252	)		76
Total revenues	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853

Franchise Fees and Income


	2023		2022		2021
Initial fees, including renewal fees	$	6	$	6	$	8
Continuing fees and rental income		83		75		145
Franchise fees and income	$	89	$	81	$	153

Contract Liabilities

Contract liabilities at December 31, 2023 and 2022 were as follows:


	2023		2022
Contract liabilities
- Deferred revenue related to prepaid stored-value products	$	142	$	139
- Deferred revenue related to upfront franchise fees		37		32
- Deferred revenue related to customer loyalty programs		24		23
- Deferred revenue related to privilege membership programs		24		16
- Others		1		—
Total	$	228	$	210

Fair Value Measurements and Disclosures - Narrative (Details) - USD ($)	Dec. 31, 2023	Dec. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Equity Level 2 To Level 1 Transfer Amount	$ 0	$ 0
Fair Value Equity Level 1 To Level 2 Transfer Amount	0	0
Restricted time deposits in short term investments	21,000,000
Restricted time deposits in long term investments and notes	$ 28,000,000	$ 81,000,000

Income Taxes (Details 3) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Income Taxes Disclosure [Line Items]
Operating losses and tax credit carryforwards	$ 42	$ 47
Employee compensation and benefits	12	12
Deferred income and other	112	94
Lease	44	49
Property, plant and equipment	(144)	(136)
Intangible assets	(38)	(40)
Gain from re-measurement of equity interest upon acquisition	(219)	(226)
Withholding tax on distributable earnings	(33)	(34)
Unrealized gains from equity securities	(1)	(12)
Other liabilities	8	11
Valuation Allowance	(58)	(57)
Net deferred tax assets (liabilities)	(261)	(277)
Little Sheep Group Limited [Member]
Income Taxes Disclosure [Line Items]
Tax benefit from Little Sheep restructuring	14	15
Assets [Member]
Income Taxes Disclosure [Line Items]
Operating losses and tax credit carryforwards	42	47
Employee compensation and benefits	12	12
Deferred income and other	112	94
Lease	600	605
Other liabilities	8	11
Valuation Allowance	(58)	(57)
Net deferred tax assets	730	727
Assets [Member] \| Little Sheep Group Limited [Member]
Income Taxes Disclosure [Line Items]
Tax benefit from Little Sheep restructuring	14	15
Liabilities [Member]
Income Taxes Disclosure [Line Items]
Lease	(556)	(556)
Property, plant and equipment	(144)	(136)
Intangible assets	(38)	(40)
Gain from re-measurement of equity interest upon acquisition	(219)	(226)
Withholding tax on distributable earnings	(33)	(34)
Unrealized gains from equity securities	(1)	(12)
Net deferred tax lliabilities	$ (991)	$ (1,004)

Description of Business - Narrative (Details) $ in Millions		3 Months Ended		12 Months Ended
Description of Business - Narrative (Details) $ in Millions	Sep. 10, 2020 USD ($) shares	Dec. 31, 2021 USD ($)	Sep. 30, 2020 USD ($)	Dec. 31, 2023 Segment Restaurant	Dec. 31, 2022 USD ($)
Segment Reporting Information [Line Items]
Entity, date of incorporation				Apr. 01, 2016
Entity Incorporation, State or Country Code				DE
Additional consecutive renewal terms of license agreement				50 years
Percentage of license fees on net sales				3.00%
Number of restaurants				12,500
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
Lavazza Joint Venture [Member]
Segment Reporting Information [Line Items]
Joint venture equity interest percentage				65.00%
KFC [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants				10,296
KFC [Member] \| Shanghai [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				58.00%
KFC [Member] \| Beijing [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				70.00%
KFC [Member] \| Wuxi [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				83.00%
KFC [Member] \| Suzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				92.00%
KFC [Member] \| Hangzhou [Member] \| Owner and Operator of KFC [Member]
Segment Reporting Information [Line Items]
Controlling ownership percentage maintained				60.00%
Pizza Hut [Member] \| Minimum [Member]
Segment Reporting Information [Line Items]
Number of restaurants				3,312
KFC and Pizza Hut [Member]
Segment Reporting Information [Line Items]
Expiration term of license agreement				50 years
Taco Bell [Member]
Segment Reporting Information [Line Items]
Expiration term of license agreement				50 years
Suzhou KFC [Member]
Segment Reporting Information [Line Items]
Cash consideration paid to acquire interest \| $			$ 149		$ 115
Hangzhou Catering [Member]
Segment Reporting Information [Line Items]
Number of restaurants				70
Cash consideration paid to acquire interest \| $		$ 255

Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Note 7 – Supplemental Balance Sheet Information


Accounts Receivable, net	2023			2022
Accounts receivable, gross	$	69		$	66
Allowance for doubtful accounts		(1	)		(2	)
Accounts receivable, net	$	68		$	64


Prepaid Expenses and Other Current Assets	2023		2022
VAT assets	$	91	$	88
Receivables from payment processors and aggregators		78		53
Interest receivables		46		31
Deposits, primarily lease deposits		25		24
Other prepaid expenses and current assets		99		111
Prepaid expenses and other current assets	$	339	$	307


PP&E	2023			2022
Buildings and improvements, and construction in progress	$	3,073		$	2,912
Finance leases, primarily buildings		68			62
Machinery and equipment		1,742			1,612
PP&E, gross		4,883			4,586
Accumulated depreciation		(2,573	)		(2,468	)
PP&E, net	$	2,310		$	2,118

Depreciation and amortization expense related to property, plant and equipment was $442 million, $497 million and $465 million in 2023, 2022 and 2021, respectively.


Equity Investments	2023		2022
Investment in equity method investees	$	287	$	266
Investment in equity securities		45		95
Equity investments	$	332	$	361


Other Assets	2023		2022
Land use right(a)	$	115	$	123
Long-term deposits, primarily lease deposits		94		90
Prepayment for acquisition of PP&E(b)		28		6
Costs to obtain contracts		6		6
VAT assets		6		5
Others		16		18
Other assets	$	265	$	248

(a)

Amortization expense related to land use right was $4 million, $5 million and $5 million in 2023, 2022 and 2021, respectively.

(b)

The increase was primarily due to a prepayment made in relation to the acquisition of a building located in Shanghai to house the Company’s headquarters and flagship stores, which is currently expected to be delivered to the Company around 2026.


Accounts Payable and Other Current Liabilities	2023		2022
Accounts payable	$	786	$	727
Operating lease liabilities		426		448
Accrued compensation and benefits		299		285
Accrued capital expenditures		226		181
Contract liabilities		196		182
Accrued marketing expenses		51		72
Dividends payable		40		51
Other current liabilities		140		150
Accounts payable and other current liabilities	$	2,164	$	2,096


Other Liabilities	2023		2022
Accrued income tax payable	$	39	$	52
Contract liabilities		32		28
Other non-current liabilities		86		82
Other liabilities	$	157	$	162

Share-Based Compensation (Details 2) - RSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2023 (in shares)	875,000
Granted (in shares)	503,000
Vested (in shares)	(154,000)
Forfeited or expired (in shares)	(57,000)
Unvested at the end of 2023 (in shares)	1,166,863	875,000
Unvested at the beginning of 2023	$ 54.13
Granted	61.17	$ 50.11	$ 58.77
Vested	51.31
Forfeited or expired	56.06
Unvested at the end of 2023	$ 57.44	$ 54.13

Segment Reporting (Tables)

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment


	2023
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	8,240	$	2,246	$	199	$	293	$	10,978	$	—		$	10,978
Inter-segment revenue		—		—		580		—		580		(580	)		—
Total	$	8,240	$	2,246	$	779	$	293	$	11,558	$	(580	)	$	10,978


	2022
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,219	$	1,960	$	155	$	235	$	9,569	$	—		$	9,569
Inter-segment revenue		—		—		516		18		534		(534	)		—
Total	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,003	$	2,109	$	227	$	514	$	9,853	$	—		$	9,853
Inter-segment revenue		—		—		246		6		252		(252	)		—
Total	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


Operating Profit (Loss)	2023			2022			2021
KFC(b)	$	1,202		$	787		$	827
Pizza Hut		142			70			111
All Other Segments		(31	)		(50	)		(29	)
Unallocated revenues from transactions with franchisees(c)		249			211			500
Unallocated Other revenues		44			42			20
Unallocated expenses for transactions with franchisees(c)		(246	)		(211	)		(497	)
Unallocated Other operating costs and expenses		(42	)		(39	)		(17	)
Unallocated and corporate G&A expenses		(214	)		(184	)		(171	)
Unallocated Other income(d)		2			3			642
Operating Profit	$	1,106		$	629		$	1,386
Interest income, net(a)		169			84			60
Investment loss(a)		(49	)		(26	)		(54	)
Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments	$	1,226		$	687		$	1,392


	Depreciation and Amortization
	2023		2022		2021
KFC	$	319	$	460	$	378
Pizza Hut		93		108		111
All Other Segments		9		10		9
Corporate and Unallocated		32		24		18
	$	453	$	602	$	516


	Impairment Charges
	2023		2022		2021
KFC(e)	$	18	$	31	$	30
Pizza Hut(e)		10		9		13
All Other Segments(e)		9		11		5
	$	37	$	51	$	48


	Capital Spending
	2023		2022		2021
KFC	$	358	$	327	$	398
Pizza Hut		113		116		98
All Other Segments		18		16		16
Corporate and Unallocated		221		220		177
	$	710	$	679	$	689


	Total Assets
	2023		2022
KFC	$	5,371	$	5,296
Pizza Hut		904		880
All Other Segments		347		381
Corporate and Unallocated(f)		5,409		5,269
	$	12,031	$	11,826

(a)

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

(b)

Includes equity income of $50 million from our investment in Hangzhou KFC in the year ended 2021 before we consolidated its results upon completion of the acquisition. See Note 3 for details.

(c)

Primarily includes revenues and associated expenses of transactions with franchisees derived from the Company’s central procurement model whereby the Company centrally purchases substantially all food and paper products from suppliers then sells and delivers to KFC and Pizza Hut restaurants, including franchisees and former 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)

In 2021, unallocated other income primarily includes gain from re-measurement of previously held equity interest in connection with the acquisition of Hangzhou KFC and the Lavazza joint venture. See Note 3 for more information.

(e)

Primarily includes store closure impairment charges and restaurant-level impairment charges resulting from our semi-annual impairment evaluation. See Note 12 for more information.

(f)

Primarily includes cash and cash equivalents, short-term investments, long-term bank deposits and notes, equity investments, and inventories that are centrally managed and PP&E that are not specifically identifiable within each segment.

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

Dec. 31, 2023

Dec. 31, 2022

Accounts Receivable, net

Accounts receivable, gross

$ 69

$ 66

Allowance for doubtful accounts

(1)

(2)

Accounts receivable, net

Prepaid Expenses and Other Current Assets

VAT assets

Receivables from payment processors and aggregators

Interest receivables

Deposits, primarily lease deposits

Other prepaid expenses and current assets

111

Prepaid expenses and other current assets

339

307

Equity investments

Investment in equity method investees

287

266

Investment in equity securities

Equity Investments

332

361

Other Assets

Land use right

^[1]

115

123

Long-term deposits, primarily lease deposits

Prepayment for acquisition of PP&E

^[2]

Costs to obtain contracts

VAT assets

Others

Other assets

265

248

Accounts Payable and Other Current Liabilities

Accounts payable

786

727

Operating lease liabilities

426

448

Accrued compensation and benefits

299

285

Accrued capital expenditures

226

181

Contract liabilities

196

182

Accrued marketing expenses

Dividends payable

Other current liabilities

140

150

Accounts payable and other current liabilities

2,164

2,096

Other Liabilities

Accrued income tax payable

Contract liabilities

Other non-current liabilities

Other liabilities

$ 157

$ 162

[1]	Amortization expense related to land use right was $4 million, $5 million and $5 million in 2023, 2022 and 2021, respectively.
[2]	The increase was primarily due to a prepayment made in relation to the acquisition of a building located in Shanghai to house the Company’s headquarters and flagship stores, which is currently expected to be delivered to the Company around 2026.

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

^[1]

$ 456

$ 191

$ 541

Non Cash Transactions [Member]

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

451

344

557

Modification or Other Reassessment Events [Member]

Schedule Of Lease Assets And Liabilities [Line Items]

Right-of-use assets non-cash transactions, operating leases

$ 12

$ 143

$ 5

[1]

Consolidated Statements of Income - USD ($)
shares in Millions, $ in Millions

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Revenues

Total revenues

$ 10,978

$ 9,569

$ 9,853

Costs and Expenses, Net

General and administrative expenses

638

594

564

Other operating costs and expenses

112

Closures and impairment expenses, net

Other expenses (income), net

(643)

Total costs and expenses, net

9,872

8,940

8,467

Operating Profit

1,106

629

1,386

Interest income, net

^[1]

169

Investment loss

^[1]

(49)

(26)

(54)

Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments

1,226

687

1,392

Income tax provision

(329)

(207)

(369)

Equity in net earnings (losses) from equity method investments

(2)

Net income – including noncontrolling interests

901

478

1,023

Net income – noncontrolling interests

Net Income – Yum China Holdings, Inc.

$ 827

$ 442

$ 990

Weighted-average common shares outstanding (in millions):

Basic

^[2]

416

421

422

Diluted

420

425

434

Basic Earnings Per Common Share

$ 1.99

$ 1.05

$ 2.34

Diluted Earnings Per Common Share

$ 1.97

$ 1.04

$ 2.28

Company Sales [Member]

Revenues

Revenues

$ 10,391

$ 9,110

$ 8,961

Franchise [Member]

Revenues

Revenues

153

Costs and Expenses, Net

Cost of goods and services sold

Transactions With Franchisees [Member]

Revenues

Revenues

372

287

663

Costs and Expenses, Net

Cost of goods and services sold

356

279

649

Other Revenues [Member]

Revenues

Revenues

126

Company Restaurant Expenses [Member]

Costs and Expenses, Net

Food and paper

3,224

2,836

2,812

Payroll and employee benefits

2,725

2,389

2,258

Occupancy and other operating expenses

2,752

2,604

2,664

Cost of goods and services sold

$ 8,701

$ 7,829

$ 7,734

[1]

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

[2]

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 8 – 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, 2021
Goodwill, gross	$	2,533		$	2,040		$	20		$	473
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	2,142		$	2,040		$	20		$	82
Goodwill acquired(b)		16			15			1			—
Effect of currency translation adjustments		(170	)		(162	)		(2	)		(6	)
Balance as of December 31, 2022
Goodwill, gross		2,379			1,893			19			467
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,988		$	1,893		$	19		$	76
Goodwill acquired(b)		1			1			—			—
Effect of currency translation adjustments		(57	)		(54	)		(1	)		(2	)
Balance as of December 31, 2023
Goodwill, gross		2,323			1,840			18			465
Accumulated impairment losses(a)		(391	)		—			—			(391	)
Goodwill, net	$	1,932		$	1,840		$	18		$	74

(a)

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

(b)

Goodwill acquired resulted from the acquisition of restaurants from our existing franchisees during 2022 and 2023, which was immaterial.

Intangible assets, net as of December 31, 2023 and 2022 are as follows:


	2023										2022
	Gross Carrying Amount(a)		Accumulated Amortization(a)			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	$	268	$	(265	)	$	—		$	3	$	276	$	(271	)	$	—		$	5
Huang Ji Huang franchise related assets		21		(4	)		—			17		22		(3	)		—			19
Daojia platform		16		(4	)		(12	)		—		16		(4	)		(12	)		—
Customer-related assets		12		(10	)		(2	)		—		12		(9	)		(2	)		1
Other		9		(6	)		—			3		9		(5	)		—			4
	$	326	$	(289	)	$	(14	)	$	23	$	335	$	(292	)	$	(14	)	$	29
Indefinite-lived intangible assets
Little Sheep trademark	$	51	$	—		$	—		$	51	$	52	$	—		$	—		$	52
Huang Ji Huang trademark		76		—			—			76		78		—			—			78
	$	127	$	—		$	—		$	127	$	130	$	—		$	—		$	130

Total intangible assets	$	453	$	(289	)	$	(14	)	$	150	$	465	$	(292	)	$	(14	)	$	159

(a)

Changes in gross carrying amount and accumulated amortization include the 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 for finite-lived intangible assets was $4 million in 2023, $99 million in 2022 and $45 million in 2021. The decrease in amortized expense for finite-lived intangible assets in 2023 was primarily due to certain reacquired franchise rights being substantially amortized as of December 31, 2022 (See Note 6 for details). Amortization expense for finite-lived intangible assets is expected to approximate $2 million in each of 2024, 2025, 2026, 2027 and 2028.

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration]	Closure And Impairment Income Expenses Net	Closure And Impairment Income Expenses Net	Closure And Impairment Income Expenses Net
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]
Restaurant-level impairment	$ 20	$ 24	$ 32

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Finite-lived intangible assets
Finite-lived intangible assets, amortization expense	$ 4	$ 99	$ 45
Approximate amortization expense for finite-lived intangible assets - 2024	2
Approximate amortization expense for finite-lived intangible assets - 2025	2
Approximate amortization expense for finite-lived intangible assets - 2026	2
Approximate amortization expense for finite-lived intangible assets - 2027	2
Approximate amortization expense for finite-lived intangible assets - 2028	$ 2

Segment Reporting (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Segment Reporting Information [Line Items]
Equity income	$ 4	$ (2)
KFC [Member]
Segment Reporting Information [Line Items]
Equity income			$ 50

Share-Based Compensation (Details 3) - PSUs [Member] - $ / shares	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unvested at the beginning of 2023 (in shares)	1,076,000
Granted (in shares)	189,000
Vested (in shares)	(963,000)
Forfeited or expired (in shares)	(34,000)
Unvested at the end of 2023 (in shares)	268,435	1,076,000
Unvested at the beginning of 2023	$ 44.04
Granted	71.01	$ 61.33	$ 68.04
Vested	42.23
Forfeited or expired	47.91
Unvested at the end of 2023	$ 69.05	$ 44.04

Equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Equity

Note 15 – Equity

Immediately after the separation on October 31, 2016, Yum China authorized capital stock consisted of 1,000 million shares of common stock, par value $0.01 per share, and 364 million shares of Yum China common stock were issued and outstanding. As of December 31, 2023, 407 million shares of Yum China common stock were issued and outstanding.

Share Repurchase and Retirement

The Company repurchased 12.4 million shares of common stock for $617 million, 10.5 million shares of common stock for $466 million and 1.3 million shares of common stock for $75 million for the years ended December 31, 2023, 2022 and 2021, respectively. The total repurchase cost of 2023 included $4 million settled subsequent to December 31, 2023 for shares repurchased with trade dates on and prior to December 31, 2023. On November 2, 2023, our Board of Directors increased the share repurchase authorization by $1 billion to an aggregate of $3.4 billion, of which $1.5 billion remained available as of December 31, 2023.

As both of December 31, 2023 and 2022, all shares repurchased were retired and resumed the status of authorized and unissued shares of common stock.

The Inflation Reduction Act of 2022 (“IRA”), which is discussed further in Note 16, imposes an excise tax of 1% on net share repurchases that occur after December 31, 2022. Estimated excise tax on net share repurchases, which was recognized as part of the cost of the shares repurchased, amounted to $6 million for the year ended December 31, 2023.

Cash Dividend

On October 4, 2017, the Board of Directors approved a regular quarterly cash dividend program, and we have paid a quarterly cash dividend on Yum China’s common stock since the fourth quarter of 2017, except for the second and third quarters of 2020 due to the unprecedented effects of the COVID-19 pandemic. Cash dividends totaling $216 million, $202 million and $203 million were paid to stockholders in 2023, 2022 and 2021, respectively.

Accumulated Other Comprehensive Income (Loss) (“AOCI”)

The Company’s Other comprehensive income (loss) for the years ended December 31, 2023, 2022 and 2021 and AOCI balances as of December 31, 2023 and 2022 were comprised solely of foreign currency translation adjustments. Other comprehensive loss was $146 million and $431 million for the year ended December 31, 2023 and 2022, respectively, and other comprehensive income was $108 million for the years ended December 31, 2021. The accumulated balances reported in AOCI in the Consolidated Balance Sheets for currency translation adjustments were a net loss of $229 million and $103 million as of December 31, 2023 and 2022, respectively. There was no tax effect related to the components of Other comprehensive income (loss) for all years presented.

Restricted net assets

The Company’s ability to pay dividends is primarily dependent on the Company receiving distributions of funds from its subsidiaries. Relevant PRC statutory laws and regulations permit payments of dividends by the Company’s PRC subsidiaries only out of their retained earnings, if any, as determined in accordance with PRC accounting standards and regulations. The results of operations reflected in the Consolidated Financial Statements prepared in accordance with U.S. GAAP differ from those reflected in the statutory financial statements of the Company’s subsidiaries.

In accordance with the PRC Regulations on Enterprises with Foreign Investment and the articles of association of the Company’s PRC subsidiaries, a foreign-invested enterprise established in the PRC is required to provide certain statutory reserves, namely general reserve fund, the enterprise expansion fund and staff welfare and bonus fund which are appropriated from net profit as reported in the enterprise’s PRC statutory accounts. A foreign-invested enterprise is required to allocate at least 10% of its annual after-tax profit to the general reserve until such reserve has reached 50% of its respective registered capital based on the enterprise’s PRC statutory accounts. Appropriations to the enterprise expansion fund and staff welfare and bonus fund are at the discretion of the board of directors for all foreign-invested enterprises. The aforementioned reserves can only be used for specific purposes and are not distributable as cash dividends.

As a result of these Chinese laws and regulations subject to the limit discussed above that require annual appropriations of 10% of after-tax income to be set aside, prior to payment of dividends as general reserve fund, the Company’s PRC subsidiaries are restricted in their ability to transfer a portion of their net assets to the Company in the form of dividend payments, loans or advances. The restricted net assets of the PRC subsidiaries were approximately $1 billion as of December 31, 2023.

Furthermore, cash transfers from the Company’s PRC subsidiaries to its subsidiaries outside of China are subject to PRC government control of currency conversion. Shortages in the availability of foreign currency may restrict the ability of the PRC subsidiaries to remit sufficient foreign currency to pay dividends or other payments to the Company, or otherwise satisfy their foreign currency-denominated obligations.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 235
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481062/946-235-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
-SubTopic 505
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481004/946-505-50-6

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
-SubTopic 40
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480237/815-40-50-6

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480008/505-10-S99-1

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e)(1))
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 505
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//505/tableOfContent

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-13

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 15: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 14
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-14

Reference 16: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 16
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-16

Reference 17: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 18: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

Reference 19: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 18
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147481112/505-10-50-18

+ Details

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2023	Dec. 31, 2022	Oct. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000	1,000,000,000
Common stock, shares issued	407,000,000	419,000,000	364,000,000
Common stock, shares outstanding	407,000,000	419,000,000	364,000,000

Credit Facilities and Short-term Borrowings - Narrative (Details) ¥ in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2023 CNY (¥)	Dec. 31, 2023 USD ($)	Dec. 31, 2022 CNY (¥)	Dec. 31, 2022 USD ($)
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount	¥ 7,112	$ 1,002
Credit facility expiration period	1 year
Short-term bank borrowing outstanding		168		$ 2
Bank guarantees outstanding	¥ 222	31
Unused credit facilities		881
Short-term investments		1,472		2,022
Short-Term Debt [Member]
Line Of Credit Facility [Line Items]
Short-term investments		$ 79		$ 1
Weighted-average interest rate	1.70%	1.70%
Onshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount		$ 782	¥ 5,550
Offshore Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility maximum borrowing amount		$ 220
Revolving Credit Facility [Member]
Line Of Credit Facility [Line Items]
Credit facility terms	The credit facilities had remaining terms ranging from less than one year to three years as of December 31, 2023. Our credit facilities mainly include term loans, overdrafts, letters of credit, banker’s acceptance notes and bank guarantees. The credit facilities in general bear interest based on the Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC, or Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreements.
Credit facility expiration start period	less than one year
Revolving Credit Facility [Member] \| Maximum [Member]
Line Of Credit Facility [Line Items]
Credit facility expiration period	3 years

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Cash Flows – Operating Activities

Net income - including noncontrolling interests

$ 901

$ 478

$ 1,023

Depreciation and amortization

453

602

516

Non-cash operating lease cost

404

435

424

Closures and impairment expenses

Gain from re-measurement of equity interest upon acquisition

^[1]

(628)

Investment loss

Equity in net (earnings) losses from equity method investments

(4)

Equity income from investments in unconsolidated affiliates

(44)

Distributions of income received from equity method investments

Deferred income taxes

(10)

(20)

160

Share-based compensation expense

Changes in accounts receivable

(6)

(1)

(5)

Changes in inventories

(19)

(16)

Changes in prepaid expenses, other current assets and value-added tax assets

(35)

207

(72)

Changes in accounts payable and other current liabilities

118

Changes in income taxes payable

(26)

Changes in non-current operating lease liabilities

(407)

(396)

(461)

Other, net

(66)

(23)

(18)

Net Cash Provided by Operating Activities

1,473

1,413

1,131

Cash Flows – Investing Activities

Capital spending

(710)

(679)

(689)

Purchases of short-term investments, long-term bank deposits and notes

(3,517)

(5,189)

(6,139)

Maturities of short-term investments, long-term bank deposits and notes

3,499

5,365

6,383

Acquisition of business, net of cash acquired

(23)

(115)

Acquisitions of equity investments

(20)

(300)

Other, net

Net Cash Used in Investing Activities

(743)

(522)

(855)

Cash Flows – Financing Activities

Proceeds from short-term borrowings

264

Repayment of short-term borrowings

(100)

Repurchase of shares of common stock

(613)

(466)

(75)

Cash dividends paid on common stock

(216)

(202)

(203)

Dividends paid to noncontrolling interests

(77)

(72)

(57)

Acquisitions of noncontrolling interests

(113)

Contributions from noncontrolling interests

Payment of acquisition related holdback

(3)

(7)

(8)

Other, net

(6)

(4)

(7)

Net Cash Used in Financing Activities

(716)

(844)

(313)

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

(16)

(53)

Net Decrease in Cash, Cash Equivalents and Restricted Cash

(2)

(6)

(22)

Cash, Cash Equivalents and Restricted Cash - Beginning of Year

1,130

1,136

1,158

Cash, Cash Equivalents and Restricted Cash - End of Year

1,128

1,130

1,136

Supplemental Cash Flow Data

Cash paid for income tax

324

204

255

Cash paid for interest

Non-cash Investing and Financing Activities

Capital expenditures included in accounts payable and other current liabilities

$ 226

$ 181

$ 269

[1]

Other Expenses (Income), Net (Tables)

12 Months Ended

Dec. 31, 2023

Other Income and Expenses [Abstract]

Other Expenses (Income), Net


	2023			2022			2021
Amortization of reacquired franchise rights(a)	$	2		$	97		$	43
Gain from re-measurement of equity interest upon acquisition(b)		—			—			(628	)
Equity income from investments in unconsolidated affiliates(c)		—			—			(43	)
Foreign exchanges and other		(2	)		(3	)		(15	)
Other expenses (income), net	$	—		$	94		$	(643	)

(a)

As a result of the acquisition of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which are being amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years. (See Note 3 for additional information). The above reacquired franchise rights were substantially amortized as of December 31, 2022 and resulted in the decrease of amortization expenses in 2023.

(b)

(c)

Includes equity income from our investments in Hangzhou KFC and the Lavazza joint venture before we consolidated the results of these entities upon completion of acquisitions. (See Note 3 for additional information).

Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Note 11 – Leases

As of December 31, 2023, we leased over 12,500 properties in China for our Company-owned restaurants. 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 profit 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 revenues, respectively, within our Consolidated Statements of Income.


Supplemental Balance Sheet
	2023/12/31		2022/12/31		Account Classification
Assets
Operating lease right-of-use assets	$	2,217	$	2,219	Operating lease right-of-use assets
Finance lease right-of-use assets		41		38	PP&E
Total leased assets	$	2,258	$	2,257

Liabilities
Current
Operating lease liabilities	$	426	$	448	Accounts payable and other current liabilities
Finance lease liabilities		5		5	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,899		1,906	Non-current operating lease liabilities
Finance lease liabilities		44		42	Non-current finance lease liabilities
Total lease liabilities	$	2,374	$	2,401


Summary of Lease Cost										Account Classification
	2023			2022			2021

Operating lease cost	$	517		$	564		$	564		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		5			4			3		Occupancy and other operating expenses
Interest on lease liabilities		2			2			2		Interest expense, net
Variable lease cost(a)		402			303			346		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		15			12			9		Occupancy and other operating expenses or G&A
Sub-lease income		(21	)		(23	)		(26	)	Franchise fees and income or Other revenues
Total lease cost	$	920		$	862		$	898

(a)


Supplemental Cash Flow Information
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	531	$	549	$	573
Operating cash flows from finance leases		2		2		2
Financing cash flows from finance leases		5		4		2
Right-of-use assets obtained in exchange for lease liabilities(b):
Operating leases	$	456	$	191	$	541
Finance leases		7		10		11

(b)


Lease Term and Discount Rate	2023			2022
Weighted-average remaining lease term (years)
Operating leases		7.1			7.1
Finance leases		10.9			11.2

Weighted-average discount rate
Operating leases		4.9	%		5.1	%
Finance leases		5.0	%		5.1	%

Summary of Future Lease Payments and Lease Liabilities

Maturities of lease liabilities as of December 31, 2023 were as follows:


	Amount of Operating Leases		Amount of Finance Leases		Total
2024	$	525	$	7	$	532
2025		445		6		451
2026		399		6		405
2027		345		6		351
2028		280		6		286
Thereafter		763		32		795
Total undiscounted lease payment		2,757		63		2,820
Less: imputed interest(c)		432		14		446
Present value of lease liabilities	$	2,325	$	49	$	2,374

(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 December 31, 2023, we have additional lease agreements that have been signed but not yet commenced, with total undiscounted minimum lease payments of $110 million. These leases will commence between 2024 and 2026 with lease terms of 1 year to 20 years.

Investment Agreements with Strategic Investors - Narrative (Details) $ / shares in Units, $ in Millions			12 Months Ended
	Jan. 09, 2017 Tranche	Nov. 01, 2016 USD ($) $ / shares shares	Dec. 31, 2023 Tranche	Dec. 31, 2021 shares
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 460
Common stock shares		18,000,000
Number of tranches of warrants \| Tranche	2		2
Warrants exercisable period			Oct. 31, 2021
Number of common shares issued as result of cashless exercise				7,534,316
Percentage of common stock shares issued upon cashless exercise of warrants				1.80%
Percentage of common stock shares outstanding upon cashless exercise of warrants				1.80%
Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 410
Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Investment agreements, consideration received \| $		$ 50
Warrants First Tranche [Member] \| Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares		$ 31.40
Warrants First Tranche [Member] \| Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		7,309,057
Warrants First Tranche [Member] \| Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		891,348
Warrants Second Tranche [Member] \| Primavera & Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrant exercise price \| $ / shares		$ 39.25
Warrants Second Tranche [Member] \| Primavera [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		7,309,057
Warrants Second Tranche [Member] \| Ant Financial [Member]
Subsidiary Sale Of Stock [Line Items]
Warrants to purchase common stock		891,348

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false
Rule 10b5-1 Arrangement Modified	false
Non-Rule 10b5-1 Arrangement Modified	false

Fair Value Measurements and Disclosures - Schedule of Amounts Recognized From Non-recurring Fair Value Measurements (Parenthetical) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Assets measured at fair value	$ 68	$ 97	$ 112
Investment, Type [Extensible Enumeration]	Restaurants [Member]	Restaurants [Member]	Restaurants [Member]

- Definition

Indicates type of investment. Includes, but is not limited to, common stock, preferred stock, convertible security, fixed income security, government security, option purchased, warrant, loan participation and assignment, commercial paper, bankers' acceptance, certificates of deposit, short-term security, repurchase agreement, and other investment company.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 946
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-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (a)(1)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Subparagraph (SX 210.12-12A(Column A)(Footnote 2))
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

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

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Dec. 31, 2023

Goodwill [Line Items]

Goodwill, gross

$ 2,379

$ 2,533

$ 2,323

Accumulated impairment losses

^[1]

(391)

Goodwill, net

1,988

2,142

1,932

Goodwill acquired

^[2]

Effect of currency translation adjustments

(57)

(170)

KFC [Member]

Goodwill [Line Items]

Goodwill, gross

1,893

2,040

1,840

Goodwill, net

1,893

2,040

1,840

Goodwill acquired

^[2]

Effect of currency translation adjustments

(54)

(162)

Pizza Hut [Member]

Goodwill [Line Items]

Goodwill, gross

Goodwill, net

Goodwill acquired

^[2]

Effect of currency translation adjustments

(1)

(2)

All Other Segments [Member]

Goodwill [Line Items]

Goodwill, gross

467

473

465

Accumulated impairment losses

^[1]

(391)

Goodwill, net

$ 74

Effect of currency translation adjustments

$ (2)

$ (6)

[1]	Accumulated impairment losses represent goodwill impairment attributable to the reporting units of Little Sheep and Daojia.
[2]	Goodwill acquired resulted from the acquisition of restaurants from our existing franchisees during 2022 and 2023, which was immaterial.

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Credit Facilities and Short-term Borrowings

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

Credit Facilities and Short-term Borrowings

Note 9 – Credit Facilities and Short-term Borrowings

As of December 31, 2023, the Company had credit facilities of RMB7,112 million (approximately $1,002 million), comprised of onshore credit facilities in the aggregate amount of RMB5,550 million (approximately $782 million) and offshore credit facilities in the aggregate amount of $220 million.

The credit facilities had remaining terms ranging from less than one year to three years as of December 31, 2023. Our credit facilities mainly include term loans, overdrafts, letters of credit, banker’s acceptance notes and bank guarantees. The credit facilities in general bear interest based on the Loan Prime Rate (“LPR”) published by the National Interbank Funding Centre of the PRC, or Secured Overnight Financing Rate (“SOFR”) published by the Federal Reserve Bank of New York. Each credit facility contains a cross-default provision whereby our failure to make any payment on a principal amount from any credit facility will constitute a default on other credit facilities. Some of the credit facilities contain covenants limiting, among other things, certain additional indebtedness and liens, and certain other transactions specified in the respective agreements. As of December 31, 2023 and 2022, we had outstanding short-term bank borrowings of $168 million and $2 million, respectively, mainly to manage working capital at our operating subsidiaries, which were secured by short-term investments of $79 million and $1 million, respectively. The RMB denominated bank borrowings bear a weighted-average interest rate of 1.7%, and are due within one year from their issuance dates. As of December 31, 2023, we also had outstanding bank guarantees of RMB222 million (approximately $31 million) mainly to secure our lease payments to landlords for certain Company-owned restaurants. Our credit facilities were therefore reduced by outstanding short-term bank borrowings, adjusted for unamortized interest and collateral, and outstanding guarantees. As of December 31, 2023, the Company had unused credit facilities of approximately $881 million.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1B
-Subparagraph (h)
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Share-Based Compensation

12 Months Ended

Dec. 31, 2023

Share-Based Compensation

Note 14 – Share-Based Compensation

Overview

Upon the separation, 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, to maintain the pre-separation intrinsic value of the awards. Depending on the tax laws of the country of employment, awards were modified using either the shareholder method or the employer method. Share issuances for Yum China awards held by YUM’s employees will be satisfied by Yum China. Share issuances for YUM awards held by the Company’s employees will be satisfied by YUM. The shareholder method was based on the premise that employees holding YUM awards prior to the separation should receive an equal number of awards of both YUM and Yum China. Under the employer method, employees holding YUM awards prior to the separation had their awards converted into awards of the Company that they worked for subsequent to the separation. As a result, Yum China may issue shares of common stock to YUM’s employees upon exercise or vesting of various types of awards, including stock options, SARs, RSUs, and awards from the executive income deferral plan.

The modified equity awards have the same terms and conditions as the awards held immediately before the separation, except that the number of shares and the price were adjusted. Share-based compensation for the Company’s employees is based on both YUM awards and Yum China awards held by those employees.

Effective October 31, 2016, the Company adopted the Yum China Holdings, Inc. Long Term Incentive Plan (the “2016 Plan”). The Company has reserved for issuance under the 2016 Plan of 45,000,000 shares of our common stock. Under this plan, the exercise price of stock options and SARs granted must be equal to or greater than the fair market value of the Company’s stock on the date of grant.

In connection with the Primary Conversion, the Company’s stockholders approved the Yum China Holdings, Inc. 2022 Long Term Incentive Plan (the “2022 Plan”), with 31,000,000 shares of Company common stock authorized for grants. The 2022 Plan replaced the 2016 Plan and became effective on October 24, 2022. The 2016 Plan continued to govern awards granted prior to the effectiveness of the 2022 Plan. Under the 2022 Plan, the exercise price of stock options and SARs granted must be the higher of 1) the fair market value of the Company’s stock on the date of grant and (ii) the average fair market value for the five trading days immediately preceding the date of grant. The 2022 Plan is largely based on the 2016 Plan, but with updates to conform to the requirements of the HKEX, to delete provisions relating to our spin-off that are no longer applicable and to make certain other administrative changes.

Similar to the 2016 Plan, potential awards to employees and non-employee directors under the 2022 Plan include stock options, incentive options, SARs, restricted stock, stock units, RSUs, performance shares, performance units, and cash incentive awards. While awards under the 2016 and 2022 Plan can have varying vesting provisions and exercise periods, outstanding awards vest in periods ranging from three to five years. Stock options and SARs expire 10 years after grant.

The Company recognizes all share-based payments to employees and non-employee directors in the Consolidated Financial Statements as compensation cost on a straight-line basis over the service period based on their fair value on the date of grant, for awards that actually vest and when performance conditions are probable of being achieved, if applicable. If no substantive service condition exists, the grant-date fair value is fully recognized as expense upon grant.

Award Valuation

Stock Options and SARs

The Company estimated the fair value of each stock option and SAR award granted to the Company’s employees as of the date of grant, using the BS model with the following assumptions:


	2023			2022			2021
Risk-free interest rate		3.9	%		1.6	%		0.4	%
Expected term (years)		6.50			6.25			6.25
Expected volatility		36.3	%		32.4	%		33.9	%
Expected dividend yield		0.8	%		1.0	%		0.8	%

Share option and SAR awards granted to employees typically have a graded vesting schedule of 25% per year over four years and expire 10 years after grant. The Company uses a single weighted-average term for awards that have a graded vesting schedule and determined average terms of exercise based on analysis of the historical exercise and post-vesting termination behavior. Forfeitures were estimated based on historical experience. Historical data used to estimate the expected term and forfeiture rate include data associated with the Company’s employees who were granted share-based awards by YUM prior to the separation.

For those awards granted by the Company after the separation, the Company considered the volatility of common shares of comparable companies in the same business as the Company, as well as the historical volatility of the Company stock. The dividend yield was estimated based on the Company’s dividend policy at the time of the grant.

RSUs

RSU awards generally vest over three to four years, with either cliff vesting at 100% on the third grant anniversary or graded vesting on anniversary dates. The fair values of RSU awards are based on the closing price of the Company’s stock on the date of grant.

PSUs

In February 2020, the Company’s Board of Directors approved new grants of a special award of PSUs (“Partner PSU Awards”) to select employees who were deemed critical to the Company’s execution of its strategic operating plan under the 2016 Plan. These Partner PSU Awards are subject to market and performance conditions, and will cliff vest only if threshold performance goals are achieved over a four-year performance period, with the payout ranging from 0% to 200% of the target number of shares.

In addition, the Company also granted annual PSU awards since 2020. These annual PSU awards are based on the Company’s achievement of one or more performance goals, including relative total shareholder return against selected indices or the constituents of the indices, and will cliff vest only if threshold performance goals are achieved over a three-year performance period.

The fair value of PSU awards was determined based on the closing price of the Company's stock on the date of the grant and the outcome of the MCS model with the following assumptions:



	2023			2022			2021
Risk-free interest rate		4.2	%		1.8	%		0.2	%
Expected volatility		39.3	%		30.8	%		35.7	%

Compensation costs associated with annual and Partner PSU Awards are recognized on a straight-line basis over the performance period when performance conditions are probable of being achieved, adjusted for estimated forfeiture rate.

Others

Commencing from November 11, 2016, Yum China also granted annual awards of common stock to non-employee directors for their service on Yum China’s Board of Directors. The fair value of these awards is based on the closing price of the Company’s common stock on the date of grant. The shares were issued outright to the directors on the date of grant, with no conditions attached. Therefore, the fair value of the awards was fully recognized as expenses upon grant. For the years ended December 31, 2023, 2022 and 2021, a total of 45,843, 47,820 and 31,182 shares of Yum China common stock, respectively, were granted to non-employee directors and the grant-date fair value of $2.7 million, $2.1 million and $2.1 million, respectively, was immediately recognized in full in the Consolidated Statements of Income.

Award Activity

Stock Options and SARs


	Shares (in thousands)				Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2023		9,605				34.71
Granted		345				62.14
Exercised		(1,367	)			24.98
Forfeited or expired		(112	)			52.81
Outstanding at the end of 2023		8,471		(a)		37.16		4.52		73
Exercisable at the end of 2023		6,766				33.09		3.71		73

(a)

Outstanding awards include 87,077 stock options and 8,384,079 SARs with weighted-average exercise prices of $21.66 and $37.32, respectively. Outstanding awards represent Yum China awards held by employees of both the Company and YUM.

The weighted-average grant-date fair value of SARs granted in 2023, 2022 and 2021 was $24.67, $15.55 and $17.44, respectively. The total intrinsic value of stock options and SARs exercised by the Company’s employees during the years ended December 31, 2023, 2022 and 2021 was $25 million, $22 million and $22 million, respectively.

As of December 31, 2023, $18 million of unrecognized compensation cost related to unvested SARs, which will be reduced by any forfeitures that occur, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.53 years. The total fair value at grant date of awards held by the Company’s employees that vested during 2023, 2022 and 2021 was $15 million, $16 million and $15 million, respectively.

RSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2023		875			54.13
Granted		503			61.17
Vested		(154	)		51.31
Forfeited or expired		(57	)		56.06
Unvested at the end of 2023		1,167			57.44

The weighted-average grant-date fair value of RSUs granted in 2023, 2022 and 2021 was $61.17, $50.11 and $58.77, respectively. As of December 31, 2023, $34 million of unrecognized compensation cost related to 1,166,863 unvested RSUs, which will be reduced by any forfeiture that occurs, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.65 years. The total fair value at grant date of awards that vested during 2023, 2022 and 2021 was $8 million, $7 million and $11 million, respectively.

PSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2023		1,076			44.04
Granted		189			71.01
Vested		(963	)		42.23
Forfeited or expired		(34	)		47.91
Unvested at the end of 2023		268			69.05

The weighted-average grant-date fair value of PSUs granted in 2023, 2022 and 2021 was $71.01, $61.33 and $68.04, respectively. As of December 31, 2023, $13 million of unrecognized compensation cost related to 268,435 unvested PSUs, which will be reduced by any forfeiture that occurs and adjusted based on the Company’s achievement of performance goals, is expected to be recognized over a remaining weighted-average vesting period of approximately 1.88 years. The total fair value at grant date of awards that vested during 2023, 2022 and 2021 was $41 million, $5 million and $3 million, respectively.

On December 30, 2022, in recognition of the extended impact of the COVID-19 pandemic and the Company’s performance over the three-year performance period of the 2020 annual PSU awards, the Compensation Committee of the Board of Directors determined to adjust the weighting of the performance goals applicable to the 2020 annual PSU awards. This modification pertained to all recipients of this award, and resulted in incremental compensation expense of $6 million recognized during the year ended December 31, 2022.

Impact on Net Income

Share-based compensation expense was $64 million, $42 million and $41 million for 2023, 2022 and 2021, respectively. Deferred tax benefits and tax benefits realized on our tax returns from tax deductions associated with share-based compensation were immaterial in each of 2023, 2022 and 2021.

Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of Intangible Assets (Details)	Dec. 31, 2023
Reacquired Franchise Rights [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	1 year
Reacquired Franchise Rights [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	10 years
Huang Ji Huang Group [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	19 years
Daojia platform [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	8 years
Customer-related Assets [Member] \| Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	2 years
Customer-related Assets [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	15 years
Others [Member] \| Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated useful lives	20 years

Supplemental Balance Sheet Information - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Supplemental Balance Sheet Information Disclosure [Abstract]
Depreciation and amortization expense related to property, plant and equipment	$ 442	$ 497	$ 465

Other Expenses (Income), Net

12 Months Ended

Dec. 31, 2023

Other Income and Expenses [Abstract]

Other Expenses (Income), Net

Note 6 – Other Expenses (Income), net


	2023			2022			2021
Amortization of reacquired franchise rights(a)	$	2		$	97		$	43
Gain from re-measurement of equity interest upon acquisition(b)		—			—			(628	)
Equity income from investments in unconsolidated affiliates(c)		—			—			(43	)
Foreign exchanges and other		(2	)		(3	)		(15	)
Other expenses (income), net	$	—		$	94		$	(643	)

(a)

(b)

(c)

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

Dec. 31, 2023

USD ($)

Amount of Operating Leases

$ 525

445

399

345

280

763

Total undiscounted lease payment

2,757

Less: imputed interest

432

^[1]

Present value of lease liabilities

2,325

Amount of Finance Leases

Total undiscounted lease payment

Less: imputed interest

^[1]

Present value of lease liabilities

Amount of Operating And Finance Leases, Total

532

451

405

351

286

795

Total undiscounted lease payment

2,820

Less: imputed interest

446

^[1]

Present value of lease liabilities

$ 2,374

[1]

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Other Income and Expenses [Abstract]

Amortization of reacquired franchise rights

^[1]

$ 2

$ 97

$ 43

Gain from re-measurement of equity interest upon acquisition

^[2]

(628)

Equity income from investments in unconsolidated affiliates

^[3]

(43)

Foreign exchanges and other

$ (2)

(3)

(15)

Other expenses (income), net

$ 94

$ (643)

[1]	As a result of the acquisition of Hangzhou KFC, Suzhou KFC and Wuxi KFC, $66 million, $61 million and $61 million of the purchase price were allocated to intangible assets related to reacquired franchise rights, respectively, which are being amortized over the remaining franchise contract period of 1 year, 2.4 years and 5 years. (See Note 3 for additional information). The above reacquired franchise rights were substantially amortized as of December 31, 2022 and resulted in the decrease of amortization expenses in 2023.
[2]	In the fourth and third quarters of 2021, as a result of the consolidation of Hangzhou KFC and the Lavazza joint venture, the Company recognized a gain of $618 million and $10 million, respectively, from the re-measurement of our previously held equity interest at fair value. (See Note 3 for additional information).
[3]	Includes equity income from our investments in Hangzhou KFC and the Lavazza joint venture before we consolidated the results of these entities upon completion of acquisitions. (See Note 3 for additional information).

Leases - Narrative (Details) $ in Millions	12 Months Ended
Leases - Narrative (Details) $ in Millions	Dec. 31, 2023 USD ($) Restaurant
Schedule Of Lease Assets And Liabilities [Line Items]
Number of restaurants leased \| Restaurant	12,500
Additional lease signed but not commenced with total undiscounted minimum lease payments \| $	$ 110
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

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

Dec. 31, 2023

Dec. 31, 2022

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

Cash equivalents, Fair Value Measurement or Disclosure

$ 318

$ 543

Investments, Fair Value Measurement or Disclosure

1,472

2,022

Long-term bank deposits and notes

1,265

Total assets, Fair Value Measurement or Disclosure

3,100

3,340

Level 1 [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

Investments, Fair Value Measurement or Disclosure

Total assets, Fair Value Measurement or Disclosure

183

Level 2 [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

293

455

Investments, Fair Value Measurement or Disclosure

1,451

2,022

Long-term bank deposits and notes

1,265

Total assets, Fair Value Measurement or Disclosure

3,009

3,157

Time Deposits [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

293

355

Investments, Fair Value Measurement or Disclosure

1,113

1,434

Long-term bank deposits and notes

903

680

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

293

355

Investments, Fair Value Measurement or Disclosure

1,113

1,434

Long-term bank deposits and notes

903

680

Fixed Income Securities [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

^[1]

129

Investments, Fair Value Measurement or Disclosure

^[1]

200

500

Long-term bank deposits and notes

362

Fixed Income 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]

Fixed Income 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]

100

Investments, Fair Value Measurement or Disclosure

^[1]

200

500

Long-term bank deposits and notes

362

Money Market Funds [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

Money Market Funds [Member] | Level 1 [Member]

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

Cash equivalents, Fair Value Measurement or Disclosure

Structured Deposits [Member]

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

Investments, Fair Value Measurement or Disclosure

138

Structured Deposits [Member] | Level 2 [Member]

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

Investments, Fair Value Measurement or Disclosure

138

Variable Return Investments [Member]

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

Investments, Fair Value Measurement or Disclosure

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

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

Investments, Fair Value Measurement or Disclosure

Investment in Equity Securities [Member]

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

Equity investments: Investment in equity securities

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

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

Equity investments: Investment in equity securities

$ 45

$ 95

[1]	Classified as held-to-maturity investments and measured at amortized cost.

Supplemental Balance Sheet Information (Tables)

12 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Accounts Receivable, Net


Accounts Receivable, net	2023			2022
Accounts receivable, gross	$	69		$	66
Allowance for doubtful accounts		(1	)		(2	)
Accounts receivable, net	$	68		$	64

Prepaid Expenses and Other Current Assets


Prepaid Expenses and Other Current Assets	2023		2022
VAT assets	$	91	$	88
Receivables from payment processors and aggregators		78		53
Interest receivables		46		31
Deposits, primarily lease deposits		25		24
Other prepaid expenses and current assets		99		111
Prepaid expenses and other current assets	$	339	$	307

PP&E


PP&E	2023			2022
Buildings and improvements, and construction in progress	$	3,073		$	2,912
Finance leases, primarily buildings		68			62
Machinery and equipment		1,742			1,612
PP&E, gross		4,883			4,586
Accumulated depreciation		(2,573	)		(2,468	)
PP&E, net	$	2,310		$	2,118

Equity Investments


Equity Investments	2023		2022
Investment in equity method investees	$	287	$	266
Investment in equity securities		45		95
Equity investments	$	332	$	361

Accounts Payable and Other Current Liabilities


Other Assets	2023		2022
Land use right(a)	$	115	$	123
Long-term deposits, primarily lease deposits		94		90
Prepayment for acquisition of PP&E(b)		28		6
Costs to obtain contracts		6		6
VAT assets		6		5
Others		16		18
Other assets	$	265	$	248

(a)

Amortization expense related to land use right was $4 million, $5 million and $5 million in 2023, 2022 and 2021, respectively.

(b)


Accounts Payable and Other Current Liabilities	2023		2022
Accounts payable	$	786	$	727
Operating lease liabilities		426		448
Accrued compensation and benefits		299		285
Accrued capital expenditures		226		181
Contract liabilities		196		182
Accrued marketing expenses		51		72
Dividends payable		40		51
Other current liabilities		140		150
Accounts payable and other current liabilities	$	2,164	$	2,096

Other Liabilities and Deferred Credits


Other Liabilities	2023		2022
Accrued income tax payable	$	39	$	52
Contract liabilities		32		28
Other non-current liabilities		86		82
Other liabilities	$	157	$	162

Earnings Per Common Share ("EPS") (Parenthetical) (Details)		12 Months Ended
	Jan. 09, 2017 Tranche $ / shares shares	Dec. 31, 2023 Tranche	Dec. 31, 2021 shares
Class Of Warrant Or Right [Line Items]
Number of tranches of warrants \| Tranche	2	2
Number of common shares issued as result of cashless exercise			7,534,316
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

Retirement Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Retirement Plans

Note 13 – Retirement Plans

For executives who were hired or re-hired after September 30, 2001, YUM has implemented the YUM LRP. This is an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from YUM or attainment of age 55. The Company adopted the YCHLRP upon separation while the assets and liabilities associated with these employees under YUM LRP were transferred to YCHLRP. YCHLRP will continue to be in effect until terminated by the Company’s Board of Directors. The terms of the YCHLRP are substantially similar to the terms of the YUM LRP. Under the YCHLRP, certain executives who are at least age 21, who are classified as salary level 12, who are not eligible to participate in a tax-qualified defined benefit plan, and who satisfy certain additional requirements as to work location and assignment, are eligible to participate in the YCHLRP if selected for participation by the Company. The YCHLRP is an unfunded, unsecured account-based retirement plan that allocates a percentage of pay to an account payable to an executive following the later to occur of the executive’s separation of employment from the Company or attainment of age 55. Under the YCHLRP, participants aged 55 or older are entitled to a lump sum distribution of their account balance on the last day of the calendar quarter that occurs on or follows their separation of employment. The liabilities attributable to our employees under the YCHLRP were insignificant as of December 31, 2023 and 2022.

YUM offers certain of the Company’s executives working in China retirement benefits under the Bai Sheng Restaurants China Holdings Limited Retirement Scheme (previously known as the Bai Sheng Restaurants (Hong Kong) Ltd. Retirement Scheme). Under this defined contribution plan, YUM provides a Company-funded contribution ranging from 5% to 10% of an executive’s base salary. Upon termination, participants will receive a lump sum equal to a percentage of the Company’s contributions inclusive of investment return. This percentage is based on a vesting schedule that provides participants with a vested 30% interest upon completion of a minimum of 3 years of service, and an additional 10% vested interest for each additional completed year, up to a maximum of 100%. The Company adopted the same plan after the separation and the contribution amount to the plan for the years ended December 31, 2023, 2022 and 2021 was immaterial.

As stipulated by Chinese state regulations, the Company participates in a government-sponsored defined contribution retirement plan. Substantially all employees are entitled to an annual pension equal to a fixed proportion of the average basic salary amount of the geographical area of their last employment at their retirement date. We are required to make contributions to the local social security bureau between 13% and 20% of the previous year’s average basic salary amount of the geographical area where the employees are under our employment. Contributions are recorded in the Consolidated Statements of Income as they become payable. We have no obligation for the payment of pension benefits beyond the annual contributions as set out above. In 2022, in relation to effect of the COVID-19 pandemic, the Company also recorded one-time relief of enterprise social security contributions as a reduction to related expense (See Note 2 government subsidies for additional information). The Company contributed $230 million, $183 million and $183 million to the government-sponsored plan for the year ended December 31, 2023, 2022 and 2021, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 70
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480794/715-70-50-1

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 17
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-URI https://asc.fasb.org//1943274/2147480482/715-20-55-17

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(iv)(03)
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

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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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
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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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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-URI https://asc.fasb.org//1943274/2147480506/715-20-50-1

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 715
-SubTopic 20
-Name Accounting Standards Codification
-Section S99
-Paragraph 2
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480126/715-20-S99-2

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 60
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-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480266/715-60-50-3

+ Details

Income Taxes - Narrative (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Millions	Aug. 31, 2022	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2024
Income Taxes Disclosure [Line Items]
Corporate alternative minimum tax rate	15.00%	15.00%
U.S. federal statutory rate, percent		21.00%	21.00%	21.00%
Effective income tax rate		26.90%	30.10%	26.50%
Foreign withholding taxes not recognized, cumulative amount of temporary differences		$ 3,000
Cash payments for tax liabilities on income tax returns		$ 324	$ 204	$ 255
Percentage threshold that the positions taken or expected to be taken is more likely than not sustained upon examination by tax authorities (in hundredths)		50.00%			50.00%
Increase (decrease) in unrecognized tax benefits		$ 5	6
Amount of unrecognized tax benefits balance		20	21	20
Total interest and penalties recorded during the period			$ (1)
Scenario Forecast [Member]
Income Taxes Disclosure [Line Items]
Increase (decrease) in unrecognized tax benefits in the next 12 months						$ (5)
Other Liabilities [Member]
Income Taxes Disclosure [Line Items]
Amount of unrecognized tax benefits balance		20
Little Sheep Group Limited and Daojia [Member]
Income Taxes Disclosure [Line Items]
Operating loss carryforwards		$ 177
Operating loss carryforwards expiration year		2028
Minimum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding		5.00%
Maximum [Member]
Income Taxes Disclosure [Line Items]
Effective Income Tax Rate Foreign Tax Withholding		10.00%
China [Member]
Income Taxes Disclosure [Line Items]
Effective income tax rate		25.00%

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 901	$ 478	$ 1,023
Other comprehensive (loss) income, net of tax of nil
Foreign currency translation adjustments	(146)	(431)	108
Comprehensive income (loss) - including noncontrolling interests	755	47	1,131
Comprehensive income (loss) - noncontrolling interests	54	(24)	40
Comprehensive Income - Yum China Holdings, Inc.	$ 701	$ 71	$ 1,091

- Definition

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.

+ References + Details

- Definition

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.

+ References + Details

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
-SubTopic 10
-Name Accounting Standards Codification
-Section S99
-Paragraph 1
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 1
-Subparagraph (f)
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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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-URI https://asc.fasb.org//1943274/2147480767/946-205-45-3

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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+ Details

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Dec. 31, 2023	Feb. 22, 2024	Jun. 30, 2023
Document And Entity Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	FY
Trading Symbol	YUMC
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	0001673358
Current Fiscal Year End Date	--12-31
Entity Well Known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		400,758,801
Entity Public Float			$ 23.5
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Interactive Data Current	Yes
Entity File Number	001-37762
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	81-2421743
Entity Address, Address Line One	101 East Park Boulevard, Suite 805
Entity Address, City or Town	Plano
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75074
Entity Address, Country	US
City Area Code	469
Local Phone Number	980-2898
Document Annual Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Security Exchange Name	NYSE
ICFR Auditor Attestation Flag	true
Document Financial Statement Error Correction [Flag]	false
Auditor Name	KPMG Huazhen LLP
Auditor Location	Shanghai, China
Auditor Firm ID	1186
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the definitive proxy statement for the registrant’s 2024 annual meeting of stockholders (the “2024 Proxy Statement”), to be filed not later than 120 days after the end of the registrant’s fiscal year, are incorporated by reference into Part III of this Form 10-K.
The Stock Exchange of Hong Kong Limited [Member]
Document And Entity Information [Line Items]
Trading Symbol	9987
Other Address [Member]
Document And Entity Information [Line Items]
Entity Address, Address Line One	Yum China Building
Entity Address, City or Town	Shanghai
Entity Address, Postal Zip Code	200030
Entity Address, Country	CN
Entity Address, Address Line Two	20 Tian Yao Qiao Road

Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Summary of Supplemental Balance Sheet


Supplemental Balance Sheet
	2023/12/31		2022/12/31		Account Classification
Assets
Operating lease right-of-use assets	$	2,217	$	2,219	Operating lease right-of-use assets
Finance lease right-of-use assets		41		38	PP&E
Total leased assets	$	2,258	$	2,257

Liabilities
Current
Operating lease liabilities	$	426	$	448	Accounts payable and other current liabilities
Finance lease liabilities		5		5	Accounts payable and other current liabilities
Non-current
Operating lease liabilities		1,899		1,906	Non-current operating lease liabilities
Finance lease liabilities		44		42	Non-current finance lease liabilities
Total lease liabilities	$	2,374	$	2,401

Summary of Lease Cost


Summary of Lease Cost										Account Classification
	2023			2022			2021

Operating lease cost	$	517		$	564		$	564		Occupancy and other operating expenses, G&A or Franchise expenses
Finance lease cost
Amortization of leased assets		5			4			3		Occupancy and other operating expenses
Interest on lease liabilities		2			2			2		Interest expense, net
Variable lease cost(a)		402			303			346		Occupancy and other operating expenses or Franchise expenses
Short-term lease cost		15			12			9		Occupancy and other operating expenses or G&A
Sub-lease income		(21	)		(23	)		(26	)	Franchise fees and income or Other revenues
Total lease cost	$	920		$	862		$	898

(a)

Schedule of Supplemental Cash Flow Information


Supplemental Cash Flow Information
	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	531	$	549	$	573
Operating cash flows from finance leases		2		2		2
Financing cash flows from finance leases		5		4		2
Right-of-use assets obtained in exchange for lease liabilities(b):
Operating leases	$	456	$	191	$	541
Finance leases		7		10		11

(b)

Schedule of Lease Terms and Discount Rate


Lease Term and Discount Rate	2023			2022
Weighted-average remaining lease term (years)
Operating leases		7.1			7.1
Finance leases		10.9			11.2

Weighted-average discount rate
Operating leases		4.9	%		5.1	%
Finance leases		5.0	%		5.1	%

Summary of Maturities of Lease Liabilities

Maturities of lease liabilities as of December 31, 2023 were as follows:


	Amount of Operating Leases		Amount of Finance Leases		Total
2024	$	525	$	7	$	532
2025		445		6		451
2026		399		6		405
2027		345		6		351
2028		280		6		286
Thereafter		763		32		795
Total undiscounted lease payment		2,757		63		2,820
Less: imputed interest(c)		432		14		446
Present value of lease liabilities	$	2,325	$	49	$	2,374

(c)

Share-Based Compensation (Details)	12 Months Ended
Share-Based Compensation (Details)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Stock Options and Stock Appreciation Rights [Member]
Award Valuation
Risk-free interest rate	3.90%	1.60%	0.40%
Expected term (years)	6 years 6 months	6 years 3 months	6 years 3 months
Expected volatility	36.30%	32.40%	33.90%
Expected dividend yield	0.80%	1.00%	0.80%
Partner PSU Awards[Member]
Award Valuation
Risk-free interest rate	4.20%	1.80%	0.20%
Expected volatility	39.30%	30.80%	35.70%

Business Acquisitions and Equity Investments

12 Months Ended

Dec. 31, 2023

Business Acquisitions And Equity Investments [Abstract]

Business Acquisitions and Equity Investments

Note 3 – Business Acquisitions and Equity Investments

Consolidation of Hangzhou KFC and Equity Investment in Hangzhou Catering

In the fourth quarter of 2021, the Company completed its investment in a 28% equity interest in Hangzhou Catering for cash consideration of $255 million. Hangzhou Catering holds a 45% equity interest in Hangzhou KFC, of which the Company previously held a 47% equity interest. Along with the investment, the Company also obtained two additional seats on the board of directors in Hangzhou KFC. Upon completion of the transaction, the Company directly and indirectly holds an approximately 60% equity interest in Hangzhou KFC and has majority representation on the board, and thus obtained control over Hangzhou KFC and started to consolidate its results from the acquisition date.

As a result of the consolidation of the Hangzhou KFC, the Company also recognized a gain of $618 million in the fourth quarter of 2021 from the re-measurement of our previously held equity interest at fair value. The gain was recorded in Other income, net and not allocated to any segment for performance reporting purposes. Additionally, $66 million of the purchase price was allocated to the reacquired franchise right, which is amortized over the remaining franchise contract period of 1 year.

In addition to its equity interest in Hangzhou KFC, Hangzhou Catering operates approximately 70 Chinese dining restaurants under four time-honored brands and a food processing business. The Company applies the equity method of accounting to the 28% equity interest in Hangzhou Catering excluding the Hangzhou KFC business and recorded this investment in Equity investment based on its then fair value. The Company elected to report its share of Hangzhou Catering’s financial results with a one-quarter lag because its results are not available in time for the Company to record them in the concurrent period. The Company's equity income (losses) from Hangzhou Catering, net of taxes, were immaterial for the years ended December 31, 2023 and 2022, and included in Equity in net earnings (losses) from equity method investments in our Consolidated Statement of Income. As of December 31, 2023 and 2022, the carrying amount of the Company’s equity method investment in Hangzhou Catering was $41 million and $37 million, respectively, exceeding the Company’s interest in Hangzhou Catering’s underlying net assets by $24 million and $26 million, respectively. Substantially all of this difference was attributable to its self-owned properties and impact of related deferred tax liabilities determined upon acquisition, which is being depreciated over a weighted-average remaining useful life of 20 years.

The Company purchased inventories of $6 million from Hangzhou Catering for the year ended December 31, 2023, and the purchase amount was immaterial for the years ended December 31, 2022 and 2021, respectively. The Company’s accounts payable and other current liabilities due to Hangzhou Catering were immaterial at both December 31, 2023 and 2022.

Consolidation of Suzhou KFC

In the third quarter of 2020, the Company completed the acquisition of an additional 25% equity interest in Suzhou KFC for cash consideration of $149 million, increasing its equity interest to 72%, and thus the Company obtained control over Suzhou KFC and started to consolidate its results from the acquisition date.

As a result of the consolidation of Suzhou KFC, $61 million of the purchase price was allocated to the reacquired franchise right in 2020, which is amortized over the remaining franchise contract period of 2.4 years.

In December 2022, the Company acquired an additional 20% equity interest in Suzhou KFC for cash consideration of $115 million, bringing its total ownership to 92%. As the Company has previously obtained control of Suzhou KFC, this transaction was accounted for as an equity transaction. Upon completion of the transaction, the excess of purchase consideration over the carrying amount of the non-controlling interests was $15 million, which was recorded in Additional paid-in capital.

Consolidation of Lavazza Joint Venture

In April 2020, the Company and Lavazza Group established the Lavazza joint venture to explore and develop the Lavazza coffee concept in China, with ownership of a 65% and 35% equity interest, respectively. The Company accounted for the Lavazza joint venture under the equity method of accounting because Lavazza Group held substantive participating rights on certain significant financial and operating decisions. In September 2021, the Company and Lavazza Group entered into agreements for the joint venture, whereby substantive participating rights previously held by Lavazza Group were removed, and thus the Company obtained control over the joint venture and started to consolidate its results from the acquisition date.

As a result of the consolidation of the Lavazza joint venture, the Company also recognized a gain of $10 million in the third quarter of 2021 from the re-measurement of our previously held equity interest at fair value. The gain was recorded in Other expenses (income), net and not allocated to any segment for performance reporting purposes.

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 Consolidated Statements of Income. The unrealized loss of $22 million were included in Investment gain or loss in our Consolidated Statements of Income for the year ended December 31, 2021, representing changes in fair value before the equity method of accounting was applied.

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 one of Sunner’s significant shareholders, 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 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. The Company’s equity income from Sunner, net of taxes, was $6 million for the year ended December 31, 2023 and immaterial for both the years ended December 31, 2022 and 2021, and included in Equity in net earnings (losses) from equity method investments in our Consolidated Statement of Income.

Since Sunner became the Company’s equity method investees in May 2021, the Company purchased inventories of $318 million from Sunner for the year ended December 31, 2021. The Company purchased inventories of $507 million and $433 million for years ended December 31, 2023 and 2022, respectively. The Company’s accounts payable and other current liabilities due to Sunner were $51 million and $53 million as of December 31, 2023 and 2022, respectively.

As of December 31, 2023 and 2022, the Company’s investment in Sunner was stated at the carrying amount of $225 million and $227 million, respectively, which was $152 million and $157 million higher than the Company’s interest in Sunner’s underlying net assets, respectively. Of this basis difference, $16 million and $18 million was related to finite-lived intangible assets which are being amortized over estimated useful life of 20 years, respectively. The remaining differences were related to goodwill and indefinite-lived intangible assets, which are not subject to amortization, as well as deferred tax liabilities impact. As of December 31, 2023 and 2022, the market value of the Company’s investment in Sunner was $151 million and $214 million based on its quoted closing price, respectively.

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, a delivery aggregator 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.

The Company accounts for the equity securities at fair value with subsequent fair value changes recorded in our 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 losses on investment in equity securities of Meituan recognized, which were included in Investment gain or loss in our Consolidated Statements of Income, is as follows:


	2023			2022			2021
Unrealized losses recorded on equity securities still held as of the end of the year	$	(50	)	$	(27	)	$	(38	)

Revenue - Contract Liabilities (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Contract liabilities
Contract liabilities	$ 228	$ 210
Deferred Revenue Related To Prepaid Stored Value Products [Member]
Contract liabilities
Contract liabilities	142	139
Deferred Revenue Related To Upfront Franchise Fees [Member]
Contract liabilities
Contract liabilities	37	32
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	24	$ 16
Others [Member]
Contract liabilities
Contract liabilities	$ 1

Contingencies

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Contingencies

Note 18 – 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 (“Chinese interests”), 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 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.

Indemnification of Officers and Directors

The Company’s amended and restated certificate of incorporation and amended and restated bylaws include provisions that require the Company to indemnify directors or officers for monetary damages for actions taken as a director or officer of the Company or while serving at the Company’s request as a director or officer or another position at another corporation or enterprise, as the case may be. The Company purchases standard directors and officers insurance to cover claims or a portion of the claims made against its directors and officers. Since a maximum obligation is not explicitly stated in the Company’s bylaws or in the indemnification agreements and will depend on the facts and circumstances that arise out of any future claims, the overall maximum amount of the obligations cannot be reasonably estimated. The Company has not been required to make payments related to these obligations, and the fair value for these obligations is zero as of December 31, 2023.

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 Consolidated Financial Statements, is not likely to have a material adverse effect on the Company’s annual 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.

Retirement Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plan, vesting interest percentage	30.00%
Deferred compensation arrangement with individual, minimum service period	3 years
Defined contribution plan, additional annual vesting interest percentage	10.00%
Government-Sponsored Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company	$ 230	$ 183	$ 183
Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	5.00%
Minimum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	13.00%
Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	10.00%
Defined contribution plan, additional annual vesting interest percentage	100.00%
Maximum [Member] \| Local Social Security Bureau [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, contributed by company, in percentage	20.00%

Consolidated Statements of Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Noncontrolling Interests [Member]	Treasury Stock [Member]	Total equity Including Noncontrolling Interest [Member]	Redeemable Noncontrolling Interest [Member]
Balance at Dec. 31, 2020	$ 6,459	$ 4	$ 4,658	$ 2,105	$ 167	$ 253	$ (728)		$ 12
Balance (in shares) at Dec. 31, 2020		440.0					(20.0)
Net Income (loss)	1,023			990		32		$ 1,022	1
Foreign currency translation adjustments	108				101	7
Comprehensive income (loss) - including noncontrolling interests	1,131							1,130	1
Cash dividends declared	(203)			(203)
Acquisition of business	562					562
Distributions to/contributions from noncontrolling interests	(2)					(2)
Repurchase of shares of common stock	$ (75)						$ (75)
Repurchase of shares of common stock (in shares)	(1.3)						(1.0)
Exercise and vesting of share-based awards	$ (3)		(3)
Exercise and vesting of share-based awards (in shares)		2.0
Exercise of the warrants, shares		8.0
Share-based compensation	41		41
Revaluation of redeemable noncontrolling interest	(1)		(1)						1
Balance at Dec. 31, 2021		$ 4	4,695	2,892	268	852	$ (803)	7,908	14
Balance (in shares) at Dec. 31, 2021		449.0					(21.0)
Net Income (loss)	478			442		37		479	(1)
Foreign currency translation adjustments	(431)				(371)	(60)
Comprehensive income (loss) - including noncontrolling interests	47							48	(1)
Cash dividends declared	(202)			(202)
Distributions to/contributions from noncontrolling interests	$ (63)					(63)
Repurchase of shares of common stock (in shares)	(10.5)
Exercise and vesting of share-based awards	$ (3)		(3)
Exercise and vesting of share-based awards (in shares)		1.0
Share-based compensation	41		41
Repurchase and retirement of shares (shares)		(31.0)					21.0
Repurchase and retirement of shares	(466)		(328)	(941)			$ 803
Acquisition of noncontrolling interests	(115)		(15)			(100)			(1)
Balance at Dec. 31, 2022	7,148	$ 4	4,390	2,191	(103)	666			12
Balance (in shares) at Dec. 31, 2022		419.0
Net Income (loss)	901			827		73		900	1
Foreign currency translation adjustments	(146)				(126)	(20)
Comprehensive income (loss) - including noncontrolling interests	755							$ 754	1
Cash dividends declared	(216)			(216)
Distributions to/contributions from noncontrolling interests	$ (19)					(19)
Repurchase of shares of common stock (in shares)	(12.4)
Exercise and vesting of share-based awards	$ (2)		(2)
Exercise and vesting of share-based awards (in shares)		1.0
Share-based compensation	64		63			1
Repurchase and retirement of shares (shares)		(12.0)
Repurchase and retirement of shares	(623)		(131)	(492)
Balance at Dec. 31, 2023	$ 7,106	$ 4	$ 4,320	$ 2,310	$ (229)	$ 701			$ 13
Balance (in shares) at Dec. 31, 2023		407.0

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Note 2 – Summary of Significant Accounting Policies

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

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

Our most significant variable interests are in entities that operate restaurants under franchise arrangements. We do not generally have an equity interest in our franchisee businesses. Additionally, we do not typically provide significant financial support such as loans or guarantees to our franchisees. We have variable interests in certain entities that operate restaurants under franchise agreements through real estate and property, plant and equipment (“PP&E”) lease arrangements with them to which we are a party. At December 31, 2023, the Company had future lease payments due from franchisees, on a nominal basis, of approximately $34 million. As our franchise arrangements provide our franchisee entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might otherwise be considered a VIE.

Through the acquisition of Daojia, the Company also acquired a 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 Consolidated Financial Statements since the acquisition date.

We consolidate the entities that operate KFCs in and around Shanghai, Beijing, Wuxi, Suzhou and Hangzhou, as well as the Lavazza joint venture where we have controlling interests since the respective acquisition dates (see Note 3 for additional information). We refer to these joint ventures that operate our concepts as former unconsolidated affiliates before the acquisitions. As a result of the acquisitions of all former unconsolidated affiliates by December 2021, the Company consolidated their results since their respective acquisition dates, and therefore we no longer have franchise fees and expenses from and revenues and expenses from transactions with former unconsolidated affiliates for years ended December 31, 2023 and 2022.

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

Fiscal Calendar. Our fiscal year ends on December 31, with each quarter comprised of three months.

Foreign Currency. Our functional currency for the operating entities in China is the Chinese Renminbi (“RMB”), the currency of the primary economic environment in which they operate. Income and expense accounts for our operations are then translated into U.S. dollars at the average exchange rates prevailing during the period. Assets and liabilities are then translated into U.S. dollars at exchange rates in effect at the balance sheet date. Foreign currency translation adjustments are recorded in the Accumulated other comprehensive income on the Consolidated Balance Sheets. Gains and losses arising from the impact of foreign currency exchange rate fluctuations on transactions in foreign currency, to the extent they arise, are included in Other expenses (income), net in our Consolidated Statements of Income.

Franchise Operations. We execute agreements which set out the terms of our arrangement with franchisees. Our franchise agreements typically require the franchisee to pay an initial, non-refundable fee and continuing fees based upon a percentage of sales. Subject to our approval and their payment of a renewal fee, a franchisee may generally renew the franchise agreement upon its expiration.

The 3% license fees we pay to YUM for the right to sublicense the KFC, Pizza Hut and Taco Bell intellectual property to franchisees and former unconsolidated affiliates that operate our concepts are recorded in Franchise expenses. License fees due to YUM for our Company-owned stores are included in Occupancy and other operating expenses. Total license fees paid to YUM were $317 million, $277 million and $298 million during the years ended December 31, 2023, 2022 and 2021, respectively.

Certain direct costs of our franchise operations are charged to Franchise expenses. These costs include provisions for estimated uncollectible fees, rent or depreciation expense associated with restaurants we sub-lease to franchisees, and certain other direct incremental franchise support costs.

We also have certain transactions with franchisees and former unconsolidated affiliates that operate our concepts, which consist primarily of sales of food and paper products, advertising services, delivery services and other services. Related expenses are included in Expenses for transactions with franchisees.

Revenue Recognition. The Company’s revenues include Company sales, Franchise fees and income, Revenues from transactions with franchisees, and Other revenues.

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, and we primarily use our dedicated riders to deliver orders. When orders are fulfilled 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 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 privilege membership programs 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. The franchise agreement term is generally 10 years for KFC and Pizza Hut, generally five years for Little Sheep and three to 10 years for Huang Ji Huang. We recognize continuing fees, which are based upon a percentage of franchisee sales, as those sales occur. During 2021, it also includes franchise fees and income from former unconsolidated affiliates that operate our concepts before acquisition.

Revenues from Transactions with Franchisees

Revenues from transactions with franchisees consist primarily of sales of food and paper products, advertising services, delivery services and other services provided to franchisees. During 2021, it also includes revenues from transactions with former unconsolidated affiliates that operate our concepts before acquisition.

The Company centrally purchases substantially all food and paper products from suppliers for substantially all of our restaurants, including franchisees, 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 Company also provides delivery services to 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 such services 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. Revenue is recognized upon transfer of control over ordered items or services, generally upon delivery to the franchisees.

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 a certain percentage of sales from substantially all of our restaurants, including franchisees. Other services provided to franchisees 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.

Other Revenues

Other revenues primarily include i) sales of products to customers through e-commerce channels, sales of Lavazza coffee retail products beyond Lavazza coffee shops, and sales of our seasoning products to distributors, and ii) revenues from logistics and warehousing services provided to third parties through our supply chain network. Our segment disclosures also include revenues relating to delivery services that were provided to our Company-owned restaurants and, therefore, were eliminated for consolidation purposes.

Other revenues are recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services.

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 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.

Direct Marketing Costs. We charge direct marketing costs to expense ratably in relation to revenues over the year in which incurred and, in the case of advertising production costs, in the year the advertisement is first shown. Deferred direct marketing costs, which are classified as prepaid expenses, consist of media and related advertising production costs which will generally be used for the first time in the next fiscal year and have historically not been significant. Our direct marketing expenses incurred for Company-owned restaurants were $374 million, $343 million and $368 million in 2023, 2022 and 2021, respectively, and were included in Occupancy and other operating expenses. In addition, the direct marketing costs incurred for franchisees and former unconsolidated affiliates were $25 million, $23 million and $55 million in 2023, 2022 and 2021, respectively, and were recorded in Expenses for transactions with franchisees.

Research and Development Expenses. Research and development expenses associated with our food innovation activities, which are expensed as incurred, are reported in general and administrative ("G&A") expenses. Research and development expenses were $6 million in each of 2023, 2022 and 2021.

Share-Based Compensation. We recognize all share-based payments to employees and directors, including grants of stock options, restricted stock units (“RSUs”), stock appreciation rights (“SARs”) and performance share units (“PSUs”), in the Consolidated Financial Statements as compensation cost over the service period based on their fair value on the date of grant. This compensation cost is recognized over the service period on a straight-line basis, net of an assumed forfeiture rate, for awards that actually vest and when performance conditions are probable of being achieved, if applicable. Forfeiture rates are estimated at grant date based on historical experience and compensation cost is adjusted in subsequent periods for differences in actual forfeitures from the previous estimates. We present this compensation cost consistent with the other compensation costs for the employee recipient in either payroll and employee benefits or G&A expenses.

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

For purposes of impairment testing for our restaurants, we have concluded that an individual restaurant is the lowest level of independent cash flows unless our intent is to refranchise restaurants as a group. We review our long-lived assets of such individual restaurants (primarily operating lease ROU assets and PP&E) semi-annually for impairment, or whenever events or changes in circumstances indicate that the carrying amount of a restaurant may not be recoverable. Our primary indicators of potential impairment for our semi-annual impairment testing of these restaurant assets include two consecutive years of operating losses after a restaurant has been open for three years. We evaluate the recoverability of these restaurant assets by comparing the forecasted undiscounted cash flows of the restaurant’s operation, which are based on our entity-specific assumptions, to the carrying value of such assets. The forecasted undiscounted cash flows incorporate our best estimate of sales growth based upon our operation plans for the unit and actual results at comparable restaurants. For restaurant assets that are not deemed to be recoverable, we write down an impaired restaurant to its estimated fair value, which becomes its new cost basis. Fair value is an estimate of the price market participants would pay for the restaurant and its related assets. In determining the fair value of restaurant-level assets, we 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 operating lease ROU assets and acquire remaining restaurant 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. The discount rate incorporates rates of returns for historical refranchising market transactions and is commensurate with the risks and uncertainty inherent in the forecasted cash flows. Estimates of the price market participants would pay to sub-lease the operating lease ROU assets are based on comparable market rental information that could be reasonably obtained for the property. In situations where the highest and best use of the restaurant-level assets from market participants’ perspective is 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.

When we believe it is more likely than not a restaurant or groups of restaurants will be refranchised for a price less than their carrying value, but do not believe the restaurant(s) have met the criteria to be classified as held for sale, we review the restaurants for impairment. We evaluate the recoverability of these restaurant assets by comparing estimated sales proceeds plus holding period cash flows, if any, to the carrying value of the restaurant or group of restaurants. For restaurant assets that are not deemed to be recoverable, we recognize impairment for any excess of carrying value over the fair value of the restaurants, which is based on the expected net sales proceeds. To the extent ongoing agreements to be entered into with the franchisee simultaneous with the refranchising are expected to contain terms, such as royalty rates, not at prevailing market rates, we consider the off-market terms in our impairment evaluation. We recognize any such impairment charges in Refranchising gain. Refranchising gain includes the gains or losses from the sales of our restaurants to new and existing franchisees, including any impairment charges discussed above. We recognize gains on restaurant refranchising when the sale transaction closes, the franchisee has a minimum amount of the purchase price in at-risk equity and we are satisfied that the franchisee can meet its financial obligations.

When we decide to close a restaurant, it is reviewed for impairment, and depreciable lives are adjusted based on the expected disposal date. Other costs incurred when closing a restaurant such as costs of disposing of the assets as well as other facility-related expenses are generally expensed as incurred. Additionally, at the time we decide to close a restaurant, we reassess whether it is reasonably certain that we will exercise the termination option, and remeasure lease liability to reflect changes in lease term and remaining lease payments based on the planned exit date, if applicable. The amount of the re-measurement of the lease liability is recorded as an adjustment to the operating lease ROU asset first, with any remaining amount recorded in Closures and impairment expenses if the carrying amount of the operating lease ROU asset is reduced to zero. Any costs recorded upon store closure as well as any subsequent adjustments to remaining operating lease ROU assets and lease liabilities as a result of lease termination are recorded in Closures and impairment expenses. In the event we are forced to close a store and receive compensation for such closure, that compensation is recorded in Closures and impairment expenses. To the extent we sell assets associated with a closed store, any gain or loss upon that sale is also recorded in Closures and impairment expenses.

Considerable management judgment is necessary to estimate future cash flows, including cash flows from continuing use, terminal value, lease term and refranchising proceeds. Accordingly, actual results could vary significantly from our estimates.

Government Subsidies. Government subsidies generally consist of financial subsidies received from provincial and local governments for operating a business in their jurisdictions and compliance with specific policies promoted by the local governments. The eligibility to receive such benefits and amount of financial subsidy to be granted are determined at the discretion of the relevant government authorities. Government subsidies are recognized when it is probable that the Company will comply with the conditions attached to them, and the subsidies are received. If the subsidy is related to an expense item, it is recognized as a reduction to the related expense to match the subsidy to the costs that it is intended to compensate. If the subsidy is related to an asset, it is deferred and recorded in Other liabilities and then recognized ratably over the expected useful life of the related asset in the Consolidated Statements of Income. The balances of deferred government subsidies included in Other liabilities were immaterial as of both December 31, 2023 and 2022. There were no significant commitment or contingencies for the government subsidies received for the years ended December 31, 2023, 2022 and 2021.

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2023		2022		2021
Company restaurant
Payroll and employee benefits(a)	$	7	$	15	$	14
Occupancy and other operating expenses		1		3		3
Company restaurant expenses		8		18		17
General and administrative expenses		22		26		28
Total	$	30	$	44	$	45

(a)

This primarily represents government subsidies for employee benefits and providing training to employees, with higher amounts received during 2022 and 2021, the years impacted by the COVID-19 pandemic.

Based on the policy related to COVID-19 issued in 2020 on reducing enterprise social security contribution, the Company also recorded one-time relief of $33 million during 2022, which were recognized as a reduction to the Company restaurant expenses and G&A expenses.

Income Taxes. We record deferred tax assets and liabilities for the future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as operating loss, capital loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences or carryforwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Additionally, in determining the need for recording a valuation allowance against the carrying amount of deferred tax assets, we consider the amount of taxable income and periods over which it must be earned, actual levels of past taxable income and known trends and events or transactions that are expected to affect future levels of taxable income. Where we determine that it is more likely than not that all or a portion of an asset will not be realized, we record a valuation allowance.

We are subject to reviews, examinations and audits by Chinese tax authorities, the IRS and other taxing authorities with respect to income and non-income based taxes. We recognize the benefit of positions taken or expected to be taken in our tax returns when it is more likely than not that the position would be sustained upon examination by these tax authorities. A recognized tax position is then measured at the largest amount of benefit that is greater than 50% likely of being realized upon settlement. We evaluate unrecognized tax benefits, including interest thereon, on a quarterly basis to ensure that they have been appropriately adjusted for events, including change or developments with respect to tax audits, audit settlements and expiration of the statute of limitation, which may impact our ultimate payment for such exposures.

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Cuts and Jobs Act (“Tax Act”) as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes.

Pursuant to the China Enterprise Income Tax Law (“EIT Law”), a 10% PRC withholding tax is generally levied on dividends declared by companies in China to their non-resident enterprise investors unless otherwise reduced according to treaties or arrangements between the Chinese central government and the governments of other countries or regions where the non-China resident enterprises are incorporated. Hong Kong has a tax arrangement with mainland China that provides for a 5% withholding tax on dividends distributed to a Hong Kong resident enterprise, upon meeting certain conditions and requirements, including, among others, that the Hong Kong resident enterprise own at least 25% equity interest of the Chinese enterprise and is a “beneficial owner” of the dividends. We believe that our principal Hong Kong subsidiary, which is the equity holder of our Chinese subsidiaries operating substantially all of our KFC and Pizza Hut restaurants, met the relevant requirements pursuant to the tax arrangement between mainland China and Hong Kong in 2018 and is expected to meet the requirements in the subsequent years; thus, it is more likely than not that our dividends or earnings expected to be repatriated to our principal Hong Kong subsidiary since 2018 are subject to the reduced withholding tax of 5%.

See Note 16 for a further discussion of our income taxes.

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


Level 1		Inputs based upon quoted prices in active markets for identical assets.

Level 2		Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3		Inputs that are unobservable for the asset.

In addition, when we acquire additional equity interest in the unconsolidated affiliates to obtain control, it may result in gain or loss from re-measurement of our previously held equity interest at fair value using a discounted cash flow valuation approach and incorporating assumptions and estimates that are Level 3 inputs. Key assumptions used in estimating future cash flows included projected revenue growth and costs and expenses, which were based on internal projections, store expansion plans, historical performance of stores and the business environment, as well as the selection of an appropriate discount rate based on the weighted-average cost of capital which includes company-specific risk premium.

Cash and Cash Equivalents. Cash equivalents represent highly liquid investments with original maturities not exceeding three months and are primarily comprised of time deposits, fixed income debt securities and money market funds. Cash and overdraft balances that meet the criteria for right to offset are presented net on our Consolidated Balance Sheets. See Note 12 for detail discussion on our Cash equivalents.

Short-term Investments. Short-term investments purchased primarily represent i) time deposits, fixed income debt securities with original maturities of over three months but less than one year when purchased; ii) time deposits with original maturities over one year but are expected to be realized in cash during the next 12 months; iii) variable return investments offered by financial institutions measured at fair value; and iv) certain structured deposits that are principal-protected and provide returns in the form of both fixed and variable interests with original maturities of less than one year. 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 the 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, net in the Consolidated Statements of Income. As of December 31, 2023 and 2022, the fair value of embedded derivatives included in Short-term investments was immaterial. See Note 12 for detail discussion on our Short-term investments.

Long-term Bank Deposits and Notes. Long-term bank deposits and notes represent time deposits and bank notes bearing fixed interest rate with remaining maturities exceeding one year for which the Company has the positive intent to hold for more than one year. See Note 12 for detail discussion on our Long-term bank deposits and notes.

Accounts Receivable. Accounts receivable primarily consist of trade receivables and royalties from franchisees, and are generally due within 30 days of the period in which the corresponding sales occur. 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 December 31, 2023 and 2022, the ending balances of provision for accounts receivable were $1 million and $2 million, respectively, and amounts of accounts receivable past due were immaterial.

Receivables from Payment Processors or Aggregators. Receivables from payment processors such as WeChat and Alipay or aggregators including delivery aggregators and third-party e-commerce platforms are cash due from them for clearing transactions and are included in Prepaid expenses and other current assets. The cash was paid by customers through these payment processors or aggregators for food provided or coupons sold by the Company. The Company considers and monitors the credit worthiness of the third-party payment processors and aggregators used. We adopted the same methodology of estimating expected credit losses based upon the CECL model as described above. Receivable balances are written off after all collection efforts have been exhausted. As of December 31, 2023 and 2022, no allowance for doubtful accounts was provided for such receivables.

Inventories. We value our inventories at the lower of cost (computed on the first-in, first-out method) or net realizable value.

Property, Plant and Equipment. We state PP&E at cost less accumulated depreciation and amortization. We calculate depreciation and amortization on a straight-line basis over the estimated useful lives of the assets as follows: generally 20 to 50 years for buildings, the lesser of estimated useful lives (generally 5 to 12 years) and remaining lease term for leasehold improvements, 3 to 10 years for restaurant machinery and equipment and 3 to 5 years for capitalized software costs. We suspend depreciation and amortization on assets related to restaurants that are held for sale. The useful life of PP&E is periodically reviewed.

We capitalize direct costs associated with the site acquisition and construction of a Company unit on that site, including direct internal payroll and payroll-related costs. Only those site-specific costs incurred subsequent to the time that the site acquisition is considered probable are capitalized. If we subsequently make a determination that it is probable a site for which internal development costs have been capitalized will not be acquired or developed, any previously capitalized internal development costs are expensed and included in G&A expenses.

We capitalize software costs incurred in connection with developing or obtaining computer software for internal use. We capitalize payroll and payroll-related costs for employees that are directly attributable to the development of our internal-use software. Internal costs incurred in the software application development stage are capitalized and amortized over the estimated useful lives of software. Costs associated with planning and post-implementation operation and software maintenance costs are expensed and included in G&A expenses.

Leases. ROU assets and lease liabilities are recognized upon lease commencement for operating leases based on the present value of lease payments over the lease term. As the rate implicit in the lease cannot be readily determined, we use our incremental borrowing rate at the lease commencement date in determining the imputed interest and present value of lease payments. The incremental borrowing rate was determined using a portfolio approach based on the rate of interest that we would have to borrow an amount equal to the lease payments on a collateralized basis over a similar term. The incremental borrowing rate is primarily influenced by the risk-free interest rate of China, the Company’s credit rating and lease term, and is updated on a quarterly basis for measurement of new lease liabilities.

For operating leases, the Company recognizes a single lease cost on a straight-line basis over the remaining lease term. For finance leases, the Company recognizes straight-line amortization of the ROU asset and interest on the lease liability. For rental payments either based on a percentage of the restaurant’s sales in excess of a fixed base amount or solely based on a percentage of the restaurant’s sales, they are recognized as variable lease expenses as incurred.

The Company has elected not to recognize ROU assets or lease liabilities for leases with an initial term of 12 months or less; we recognize lease expense for these leases on a straight-line basis over the lease term. In addition, the Company has elected not to separate non-lease components (e.g., common area maintenance fees) from the lease components.

From time to time, we purchase the rights to use government-owned land and the building occupying the land for a fixed period of time. Prior to the adoption of Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASC 842”), these land use rights and related buildings were recorded in Other Assets and Property, Plant and Equipment in our Consolidated Balance Sheets, and are amortized on a straight-line basis over the term of the land use rights. Upon the adoption of ASC 842 on January 1, 2019, land use rights acquired are assessed in accordance with ASC 842 and recognized in ROU assets if they meet the definition of lease.

See Note 11 for further discussions on our leases.

Goodwill and Intangible Assets. From time to time, the Company acquires restaurants from our existing franchisees or acquires another business, including restaurants business of unconsolidated affiliates that operate our concepts. Goodwill from these acquisitions represents the excess of the cost of a business acquired over the net of the amounts assigned to assets acquired, including identifiable intangible assets and liabilities assumed. Goodwill is not amortized and has been assigned to reporting units for purposes of impairment testing. Our reporting units are our individual operating segments.

We evaluate goodwill for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairment might exist. We have selected the beginning of our fourth quarter as the date on which to perform our ongoing annual impairment test for goodwill. We may elect to perform a qualitative assessment for our reporting units to determine whether it is more likely than not that the fair value of the reporting unit is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of a reporting unit exceeds its carrying value, then the reporting unit’s fair value is compared to its carrying value. Fair value is the price a willing buyer would pay for a reporting unit, and is generally estimated using discounted expected future after-tax cash flows from the business operation of the reporting unit. The discount rate is our estimate of the required rate-of-return that a third-party buyer would expect to receive when purchasing a business from us that constitutes a reporting unit. We believe the discount rate is commensurate with the risks and uncertainty inherent in the forecasted cash flows. If the carrying value of a reporting unit exceeds its fair value, we will record an impairment charge based on that difference. The impairment charge will be limited to the amount of goodwill allocated to that reporting unit.

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

We determine the useful life of intangible assets with consideration of factors including the expected use of the asset, the expected useful life of another asset or a group of assets to which the useful life of the intangible asset may relate, any legal, regulatory or contractual provisions that may limit the useful life, our historical experience in renewing or extending similar arrangements, the effects of obsolescence, demand, competition and other economic factors, and the level of maintenance expenditures required to obtain the expected future cash flows from the assets. We evaluate the remaining useful life of an intangible asset that is not being amortized each reporting period to determine whether events and circumstances continue to support an indefinite useful life. If an intangible asset that is not being amortized is subsequently determined to have a finite useful life, we amortize the intangible asset prospectively over its estimated remaining useful life. The Company’s indefinite-lived intangible asset represents Little Sheep and Huang Ji Huang trademarks as we consider their useful life to be indefinite since we intend to use Little Sheep and Huang Ji Huang trademarks indefinitely and there are no legal, regulatory or contractual provisions that may limit the useful life of the trademarks. Intangible assets that are deemed to have a finite life are generally amortized over their estimated useful lives on a straight-line basis to their residual value as follows:


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

The useful life of reacquired franchise rights was determined based on the contractual term whereas both the contractual term and historical pattern of renewing franchise agreements were considered in assessing the useful life of Huang Ji Huang franchise related assets. Customer-related assets primarily represent the customer relationship and user base acquired and the estimate of the useful life was based on the historical pattern of extending similar arrangements and attrition rate of users. Others primarily represent Little Sheep’s secret recipe. The useful life of the Daojia platform and Little Sheep’s secret recipe was assessed based on our estimate of periods generating cash flows from utilizing such assets.

We evaluate our indefinite-lived intangible assets for impairment on an annual basis or more often if an event occurs or circumstances change that indicate impairments might exist. We perform our annual test for impairment of our indefinite-lived intangible assets at the beginning of our fourth quarter. We may elect to perform a qualitative assessment to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is greater than its carrying value. If a qualitative assessment is not performed, or if as a result of a qualitative assessment it is not more likely than not that the fair value of an indefinite-lived intangible asset exceeds its carrying value, then the asset’s fair value is compared to its carrying value. Fair value is an estimate of the price a willing buyer would pay for the intangible asset and is generally estimated by discounting the expected future after-tax cash flows associated with the intangible asset.

Our finite-lived intangible assets that are not allocated to an individual restaurant are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable. An intangible asset that is deemed not recoverable based on forecasted undiscounted future cash flow is written down to its estimated fair value, which is our estimate of the price a willing buyer would pay for the intangible asset based on discounted expected future after-tax cash flows. For purposes of our impairment analysis, we update the cash flows that were initially used to value the finite-lived intangible asset to reflect our current estimates and assumptions over the asset’s future remaining life.

Equity Investments. The Company’s equity investments include investments in equity method investees and investments in equity securities with readily determinable fair value.

The Company applies the equity method to account for the investments in equity method investees over which it has significant influence but does not control. Our share of earnings or losses and share of changes in other comprehensive income or losses of equity method investees is included in net income and other comprehensive income or losses, respectively. We record impairment charges related to an investment in equity method investees whenever events or circumstances indicate that a decrease in the fair value of an investment has occurred which is other than temporary. Management's assessment as to the nature of a decline in fair value is based on, among other things, the length of time and the extent to which the market value has been less than our cost basis; the financial condition and near-term prospects of the equity method investees; and our intent and ability to retain the investment for a period of time sufficient to allow for any anticipated recovery in market value.

For our investments in equity securities with readily determinable fair value, over which the Company has neither significant influence nor control, they are measured at fair value with subsequent changes recognized in net income.

See Note 3 and Note 7 for further discussions on our equity investments.

Short-term Borrowings. Borrowings are recognized initially at fair value, net of debt discounts or premiums and debt issuance costs, if applicable. Debt discounts or premiums and debt issuance costs are recorded as an adjustment to the principal amount and the related accretion is amortized into interest expense in the Consolidated Statements of Income over the term of the borrowings using the effective interest method. Borrowings are subsequently measured at amortized cost. Interest expense is recognized over the term of the borrowing and recorded in the Consolidated Statements of Income. See Note 9 for additional information.

Financial Instruments. We account for derivative instruments as either assets or liabilities in the Consolidated Balance Sheets. The financial instruments are recorded at their respective fair value as determined on the day of issuance and subsequently adjusted to the fair value at each reporting date. Changes in the fair value of financial instruments are recognized periodically in the Consolidated Statements of Income. The estimated fair values of derivative instruments are determined at discrete points in time using standard valuation techniques.

Noncontrolling Interests. We report Net income attributable to noncontrolling interests separately on the face of our Consolidated Statements of Income. The portion of equity attributable to noncontrolling interests is reported within equity, separately from the Company’s stockholders’ equity on the Consolidated Balance Sheets.

When the noncontrolling interest is redeemable at the option of the noncontrolling shareholder, or contingently redeemable upon the occurrence of a conditional event that is not solely within the control of the Company, the noncontrolling interest is separately classified as mezzanine equity. In connection with the acquisition of Huang Ji Huang and Daojia, redeemable noncontrolling interests were initially recognized at fair value and classified outside of permanent equity on our Consolidated Balance Sheets due to redemption rights being held by noncontrolling shareholders. Subsequent changes in the redemption value of redeemable noncontrolling interests are immediately recognized as they occur and adjusted to the carrying amount of redeemable noncontrolling interests.

Guarantees. We account for guarantees in accordance with ASC Topic 460 (“ASC 460”), Guarantees. Accordingly, the Company evaluates its guarantees to determine whether (a) the guarantee is specifically excluded from the scope of ASC 460, (b) the guarantee is subject to ASC 460 disclosure requirements only, but not subject to the initial recognition and measurement provisions, or (c) the guarantee is required to be recorded in the financial statements at fair value. The Company provides: (i) indemnifications to certain investors and other parties for certain losses suffered or incurred by the indemnified party in connection with third-party claims; and (ii) indemnifications of officers and directors against third-party claims arising from the services they provide to the Company. To date, the Company has not incurred costs as a result of these obligations and does not expect to incur material costs in the future. Accordingly, the Company has not accrued any liabilities on the Consolidated Balance Sheets related to these indemnifications.

Asset Retirement Obligations. We recognize an asset and a liability for the fair value of a required asset retirement obligation (“ARO”) when such an obligation is incurred. The Company’s AROs are primarily associated with leasehold improvements which, at the end of the lease, the Company is contractually obligated to remove in order to comply with the lease agreement. As such, we amortize the asset on a straight-line basis over the lease term and accrete the liability to its nominal value using the effective interest method over the lease term.

Contingencies. The Company records accruals for certain of its outstanding legal proceedings or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, on a quarterly basis, developments in legal proceedings or claims that could affect the amount of any accrual, as well as any developments that would make a loss contingency both probable and reasonably estimable. The Company discloses the amount of the accrual if it is material.

Retirement Plans. Certain of the Company’s employees participate in noncontributory defined benefit plans and post-retirement medical plans sponsored by YUM prior to October 31, 2016. Subsequent to the separation, employees participating in YUM’s plans were enrolled in the Yum China Holdings, Inc. Leadership Retirement Plan (“YCHLRP”), an unfunded, unsecured account-based retirement plan which allocates a percentage of pay to an account payable to the executive following the executive’s separation of employment from the Company or attainment of age 55.

The Company also offers other defined contribution plans to employees. The total contribution for such employee benefits was expensed as incurred. The Company has no additional legal obligation or liabilities for the benefits beyond the paid and accrued amounts. See Note 13 for additional information.

PRC Value-Added Tax (“VAT”). The Company has been subject to VAT within the normal course of its restaurant business nationwide since May 1, 2016.

Entities that are VAT general taxpayers are permitted to offset qualified input VAT paid to suppliers against their output VAT upon receipt of appropriate supplier VAT invoices on an entity-by-entity basis. When the output VAT exceeds the input VAT, the difference is remitted to tax authorities, usually on a monthly basis; whereas when the input VAT exceeds the output VAT, the difference is treated as a VAT asset which can be carried forward indefinitely to offset future net VAT payables. VAT related to purchases and sales which have not been settled at the balance sheet date is disclosed separately as an asset and liability, respectively, on the Consolidated Balance Sheets. VAT assets are classified as Prepaid expenses and other current assets if they are expected to be used within one year. At each balance sheet date, the Company reviews the outstanding balance of VAT assets for recoverability assessment.

Pursuant to the tax policy issued by relevant government authorities, general VAT taxpayers in certain industries that meet certain criteria are allowed to claim an additional 10% or 15% input VAT, which will be used to offset their VAT payables. This VAT policy was further extended to December 31, 2023 but the additional deduction was reduced to 5% or 10% respectively. Accordingly, the Company recognized such VAT deductions of $44 million and $16 million in 2023 and 2022, respectively. The VAT deductions were recorded as a reduction to the related expense item, primarily in Company restaurant expenses included in the Consolidated Statements of Income.

Earnings Per Share. Basic earnings per share represent net earnings to common stockholders divided by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common shares were exercised or converted into common shares. See Note 5 for further information.

Common Stock Repurchases. We may repurchase shares of Yum China common stock under a program authorized by our Board of Directors from time to time in open market or, subject to applicable regulatory requirements, through privately negotiated transactions, block trades, accelerated share repurchase transactions and the use of Rule 10b5-1 trading plans. Shares repurchased are included in treasury stock in the financial statements until they are retired. When repurchased shares are retired, the Company's accounting policy is to allocate the excess of the repurchase price over the par value of shares acquired between Additional paid-in capital and Retained earnings. The amount allocated to Additional paid-in capital is based on the value of Additional paid-in capital per share outstanding at the time of retirement and the number of shares to be retired. Any remaining amount is allocated to Retained earnings. In connection with the Primary Conversion, all shares repurchased and included in the treasury stock were immediately retired. See Note 15 for further information.

Recently Adopted Accounting Pronouncements

In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2021-08 Business Combinations (Topic 805) — Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). It requires issuers to apply ASC 606 Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities from contracts with customers acquired in a business combination. We adopted this standard on January 1, 2023, and such adoption did not have a material impact on our financial statements.

In March 2022, the FASB issued ASU 2022-01 Fair Value Hedging—Portfolio Layer Method (“ASU 2022-01”), which allows entities to expand their use of the portfolio layer method for fair value hedges of interest rate risk. Under the guidance, entities can hedge all financial assets under the portfolio layer method and designate multiple hedged layers within a single closed portfolio. The guidance also clarifies the accounting for fair value hedge basis adjustments in portfolio layer hedges and how these adjustments should be disclosed. We adopted this standard on January 1, 2023, and such adoption did not have a material impact on our financial statements.

In March 2022, the FASB issued ASU 2022-02 Financial Instrument—Credit Losses (“ASU 2022-02”), amending ASC 310 to eliminate the recognition and measurement guidance for a troubled debt restructuring for creditors that have adopted ASC 326 and requiring them to make enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. The guidance also requires entities to present gross write-offs by year of origination in their vintage disclosures. We adopted this standard on January 1, 2023, and such adoption did not have a material impact on our financial statements.

In June 2022, the FASB issued ASU 2022-03 Fair Value Measurement—Fair Value Measurement of Equity Securities Subject to Contractual Sale Restriction (“ASU 2022-03”), clarifying that a contractual restriction on sales of an equity security is not considered part of the unit of account of the equity security, and therefore, is not considered when measuring fair value. The guidance also clarifies that a contractual sales restriction should not be recognized as a separate unit of account. We adopted this standard on January 1, 2023, and such adoption did not have a material impact on our financial statements.

In September 2022, the FASB issued ASU 2022-04 Liabilities—Disclosure of Supplier Finance Program Obligations (“ASU 2022-04”), requiring entities that use supplier finance programs in connection with the purchase of goods and services to disclose the key terms of the programs and information about their obligations outstanding at the end of the reporting period. We adopted this standard on January 1, 2023, and such adoption did not have a material impact on our financial statements.

Segment Reporting

12 Months Ended

Dec. 31, 2023

Segment Reporting [Abstract]

Segment Reporting

Note 17 – Segment Reporting


	2023
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	8,240	$	2,246	$	199	$	293	$	10,978	$	—		$	10,978
Inter-segment revenue		—		—		580		—		580		(580	)		—
Total	$	8,240	$	2,246	$	779	$	293	$	11,558	$	(580	)	$	10,978


	2022
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,219	$	1,960	$	155	$	235	$	9,569	$	—		$	9,569
Inter-segment revenue		—		—		516		18		534		(534	)		—
Total	$	7,219	$	1,960	$	671	$	253	$	10,103	$	(534	)	$	9,569


	2021
	KFC		Pizza Hut		All Other Segments		Corporate and Unallocated(a)		Combined		Elimination			Consolidated
Revenues
Revenue from external customers	$	7,003	$	2,109	$	227	$	514	$	9,853	$	—		$	9,853
Inter-segment revenue		—		—		246		6		252		(252	)		—
Total	$	7,003	$	2,109	$	473	$	520	$	10,105	$	(252	)	$	9,853


Operating Profit (Loss)	2023			2022			2021
KFC(b)	$	1,202		$	787		$	827
Pizza Hut		142			70			111
All Other Segments		(31	)		(50	)		(29	)
Unallocated revenues from transactions with franchisees(c)		249			211			500
Unallocated Other revenues		44			42			20
Unallocated expenses for transactions with franchisees(c)		(246	)		(211	)		(497	)
Unallocated Other operating costs and expenses		(42	)		(39	)		(17	)
Unallocated and corporate G&A expenses		(214	)		(184	)		(171	)
Unallocated Other income(d)		2			3			642
Operating Profit	$	1,106		$	629		$	1,386
Interest income, net(a)		169			84			60
Investment loss(a)		(49	)		(26	)		(54	)
Income Before Income Taxes and Equity in Net Earnings (Losses) from Equity Method Investments	$	1,226		$	687		$	1,392


	Depreciation and Amortization
	2023		2022		2021
KFC	$	319	$	460	$	378
Pizza Hut		93		108		111
All Other Segments		9		10		9
Corporate and Unallocated		32		24		18
	$	453	$	602	$	516


	Impairment Charges
	2023		2022		2021
KFC(e)	$	18	$	31	$	30
Pizza Hut(e)		10		9		13
All Other Segments(e)		9		11		5
	$	37	$	51	$	48


	Capital Spending
	2023		2022		2021
KFC	$	358	$	327	$	398
Pizza Hut		113		116		98
All Other Segments		18		16		16
Corporate and Unallocated		221		220		177
	$	710	$	679	$	689


	Total Assets
	2023		2022
KFC	$	5,371	$	5,296
Pizza Hut		904		880
All Other Segments		347		381
Corporate and Unallocated(f)		5,409		5,269
	$	12,031	$	11,826

(a)

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

(b)

Includes equity income of $50 million from our investment in Hangzhou KFC in the year ended 2021 before we consolidated its results upon completion of the acquisition. See Note 3 for details.

(c)

(d)

(e)

Primarily includes store closure impairment charges and restaurant-level impairment charges resulting from our semi-annual impairment evaluation. See Note 12 for more information.

(f)

As substantially all of the Company's revenue is derived from the PRC and substantially all of the Company's long-lived assets are located in the PRC, no geographical information is presented. In addition, revenue derived from and long-lived assets located in the U.S., the Company’s country of domicile, are immaterial.

- Definition

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.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 22
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-22

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-15

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 31
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-31

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 42
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-42

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 40
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-40

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org//280/tableOfContent

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 26
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-26

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 34
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-34

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 41
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-41

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 21
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-21

Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 32
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482810/280-10-50-32

+ Details

Leases - Summary of Supplemental Balance Sheet (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Schedule Of Lease Assets And Liabilities [Abstract]
Operating lease right-of-use assets	$ 2,217	$ 2,219
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Operating lease right-of-use assets	Operating lease right-of-use assets
Finance lease right-of-use assets	$ 41	$ 38
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property, plant and equipment, net	Property, plant and equipment, net
Total leased assets	$ 2,258	$ 2,257
Operating lease liabilities	426	448
Finance lease liabilities, Current	$ 5	$ 5
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	$ 1,899	$ 1,906
Non-current finance lease liabilities	44	42
Total lease liabilities	$ 2,374	$ 2,401

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Supplemental Balance Sheet Information Disclosure [Abstract]
Amortization expense related to land use right	$ 4	$ 5	$ 5

Summary of Significant Accounting Policies - Schedule of Government Subsidies in Form of Cash Recognized as Reduction in Expense Line Items in Consolidated Statements of Income (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Summary Of Significant Accounting Policies [Line Items]
General and administrative expenses	$ 638	$ 594	$ 564
Total costs and expenses, net	9,872	8,940	8,467
Government Subsidies [Member]
Summary Of Significant Accounting Policies [Line Items]
General and administrative expenses	22	26	28
Total costs and expenses, net	30	44	45
Company Restaurant Expenses [Member] \| Government Subsidies [Member]
Summary Of Significant Accounting Policies [Line Items]
Payroll and employee benefits	7	15	14
Occupancy and other operating expenses	1	3	3
Company restaurants expenses	$ 8	$ 18	$ 17

Subsequent Events

12 Months Ended

Dec. 31, 2023

Subsequent Events [Abstract]

Subsequent Events

Note 19 – Subsequent Events

Cash Dividend

On February 6, 2024, the Company announced that the Board of Directors declared a cash dividend of $0.16 per share on Yum China’s common stock, payable on March 26, 2024, to stockholders of record as of the close of business on March 5, 2024. Total estimated cash dividend payable is approximately $64 million.

Investment Agreements with Strategic Investors

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Investment Agreements with Strategic Investors

Note 10 – Investment Agreements with Strategic Investors

On September 1, 2016, YUM and the Company entered into investment agreements (the “Investment Agreements”) with each of Pollos Investment L.P., an affiliate of Primavera Capital Group (“Primavera”), and API (Hong Kong) Investment Limited, an affiliate of Ant Group Co., Ltd (previously known as Zhejiang Ant Small and Micro Financial Services Group Co., Ltd., “Ant Financial”). Pursuant to the Investment Agreements, on November 1, 2016 (“Closing Date”), Primavera and Ant Financial invested $410 million and $50 million, respectively, for a collective $460 million investment (the “Investment”) in the Company in exchange for: (i) over 18 million shares of Yum China common stock and (ii) two tranches of warrants (the “Warrants”). Upon exercise, the first tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase 7,309,057 and 891,348 shares of Yum China common stock, respectively, at an initial exercise price of $31.40 per share. The second tranche of Warrants initially provided Primavera and Ant Financial with the right to purchase the same number of shares of Yum China common stock under the first tranche of Warrants, at an initial exercise price of $39.25 per share. The Warrants were exercisable at any time through October 31, 2021 and contain customary anti-dilution protections, which were equity-classified and recorded in Additional paid in capital in the Consolidated balance sheet presented since December 2016, when the number of Warrants to be issued became fixed.

As of December 31, 2020, Primavera and Ant Financial had separately entered into pre-paid forward sale transactions with respect to all of their Warrants with several financial institutions, pursuant to which Primavera and Ant Financial would deliver their respective Warrants on the applicable settlement date.

In 2021, 7,534,316 shares of Yum China common stock were issued as a result of the cashless exercise of all Warrants, representing approximately 1.8% of Yum China common stock issued and outstanding as of December 31, 2021.

Business Acquisitions and Equity Investments - Narrative (Details)
shares in Millions, $ in Millions

3 Months Ended

12 Months Ended

Dec. 31, 2021

USD ($)

Sep. 30, 2021

USD ($)

Mar. 31, 2021

USD ($)

Sep. 30, 2020

USD ($)

Dec. 31, 2023

USD ($)

Restaurant

Dec. 31, 2022

USD ($)

Dec. 31, 2021

USD ($)

Dec. 31, 2020

USD ($)

Jun. 30, 2020

Apr. 30, 2020

Sep. 30, 2018

USD ($)

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

^[1]

$ 628

Number of restaurants | Restaurant

12,500

Equity income

$ 4

$ (2)

Due to related parties, current

140

150

Acquisition of noncontrolling interest

562

Fujian Sunner Development Co., Ltd. [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

5.00%

Equity income

Total consideration paid to acquire interest

$ 261

Unrealized investment gain (loss)

(22)

Purchase of inventories

507

433

318

Investment carrying amount

225

227

Market value

151

214

Investment in net assets excess of carrying amount

$ 152

157

Finite-lived intangible asset, useful life

20 years

Fujian Sunner Development Co., Ltd. [Member] | Finite-Lived Intangible Assets [Member]

Business Acquisitions And Equity Investments [Line Items]

Investment in net assets excess of carrying amount

$ 16

Meituan Dianping [Member]

Business Acquisitions And Equity Investments [Line Items]

Unrealized investment gain (loss)

(50)

(27)

$ (38)

Number of ordinary shares subscribed | shares

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 | shares

4.2

Joint Venture [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

65.00%

Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

$ 618

Lavazza Group [Member]

Business Acquisitions And Equity Investments [Line Items]

Gain from re-measurement of previously held equity interest

$ 10

Lavazza Group [Member] | Joint Venture [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

35.00%

Business Acquisitions And Equity Investments [Line Items]

Due to related parties, current

$ 51

Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest previously held by company

47.00%

Percentage of equity interest by company

60.00%

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

Business Acquisitions And Equity Investments [Line Items]

Purchase price allocated to intangible assets

$ 66

Remaining franchise contract period

1 year

Hangzhou Catering [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of additional equity interest acquired

28.00%

Cash consideration paid to acquire interest

$ 255

Number of restaurants | Restaurant

Purchase of inventories

$ 6

Investment carrying amount

Investment in net assets excess of carrying amount

$ 24

$ 26

Finite-lived intangible asset, useful life

20 years

Hangzhou Catering [Member] | Unconsolidated Affiliates [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

28.00%

Hangzhou Catering [Member] | Hangzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of equity interest acquired

45.00%

Suzhou KFC [Member]

Business Acquisitions And Equity Investments [Line Items]

Percentage of additional equity interest acquired

25.00%

20.00%

Cash consideration paid to acquire interest

$ 149

$ 115

Equity interest in acquiree, including subsequent acquisition, percentage

72.00%

92.00%

Suzhou KFC [Member] | Additional Paid-in Capital [Member]

Business Acquisitions And Equity Investments [Line Items]

Acquisition of noncontrolling interest

$ 15

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

Business Acquisitions And Equity Investments [Line Items]

Purchase price allocated to intangible assets

$ 61

Remaining franchise contract period

2 years 4 months 24 days

[1]

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

12 Months Ended

Dec. 31, 2023

Dec. 31, 2022

Dec. 31, 2021

Disaggregation Of Revenue [Line Items]

Total revenues

$ 10,978

$ 9,569

$ 9,853

Combined [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

11,558

10,103

10,105

Elimination [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

(580)

(534)

(252)

Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

8,240

7,219

7,003

Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

2,246

1,960

2,109

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

Disaggregation Of Revenue [Line Items]

Total revenues

779

671

473

Operating Segments [Member] | Corporate And Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Total revenues

^[1]

293

253

520

Company Sales [Member]

Disaggregation Of Revenue [Line Items]

Revenues

10,391

9,110

8,961

Company Sales [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

10,391

9,110

8,961

Company Sales [Member] | Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

8,116

7,120

6,816

Company Sales [Member] | Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

2,214

1,939

2,092

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

Disaggregation Of Revenue [Line Items]

Revenues

Franchise [Member]

Disaggregation Of Revenue [Line Items]

Revenues

153

Franchise [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

153

Franchise [Member] | Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

120

Franchise [Member] | Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

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

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees [Member]

Disaggregation Of Revenue [Line Items]

Revenues

372

287

663

Transactions With Franchisees [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

372

287

663

Transactions With Franchisees [Member] | Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees [Member] | Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees [Member] | Operating Segments [Member] | All Other Segments [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Transactions With Franchisees [Member] | Operating Segments [Member] | Corporate And Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Revenues

249

211

500

Other Revenues [Member]

Disaggregation Of Revenue [Line Items]

Revenues

126

Other Revenues [Member] | Combined [Member]

Disaggregation Of Revenue [Line Items]

Revenues

706

625

328

Other Revenues [Member] | Elimination [Member]

Disaggregation Of Revenue [Line Items]

Revenues

(580)

(534)

(252)

Other Revenues [Member] | Operating Segments [Member] | KFC [Member]

Disaggregation Of Revenue [Line Items]

Revenues

Other Revenues [Member] | Operating Segments [Member] | Pizza Hut [Member]

Disaggregation Of Revenue [Line Items]

Revenues

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

Disaggregation Of Revenue [Line Items]

Revenues

624

563

297

Other Revenues [Member] | Operating Segments [Member] | Corporate And Unallocated [Member]

Disaggregation Of Revenue [Line Items]

Revenues

$ 44

$ 42

$ 20

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

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Basis of Preparation and Principles of Consolidation

Comparative Information

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

Fiscal Calendar

Fiscal Calendar. Our fiscal year ends on December 31, with each quarter comprised of three months.

Foreign Currency

Franchise and License Operations

Revenue Recognition

Revenue Recognition. The Company’s revenues include Company sales, Franchise fees and income, Revenues from transactions with franchisees, and Other revenues.

Company Sales

Franchise Fees and Income

Revenues from Transactions with Franchisees

Other Revenues

Loyalty Programs

Direct Marketing Costs

Research and Development Expenses

Share-Based Compensation

Impairment or Disposal of Long-Lived Assets

Government Subsidies

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2023		2022		2021
Company restaurant
Payroll and employee benefits(a)	$	7	$	15	$	14
Occupancy and other operating expenses		1		3		3
Company restaurant expenses		8		18		17
General and administrative expenses		22		26		28
Total	$	30	$	44	$	45

(a)

Income Taxes

We have investments in our foreign subsidiaries where the carrying values for financial reporting exceed the tax basis. Except for the planned but yet to be distributed earnings, we have not provided deferred tax on the portion of the excess that we believe is indefinitely reinvested, as we have the ability and intent to indefinitely postpone the basis differences from reversing with a tax consequence. The Company’s separation from YUM was intended to qualify as a tax-free reorganization for U.S. income tax purposes resulting in the excess of financial reporting basis over tax basis in our investment in the China business continuing to be indefinitely reinvested. The excess of financial reporting basis over tax basis as of December 31, 2017 was subject to the one-time transition tax under the Tax Cuts and Jobs Act (“Tax Act”) as a deemed repatriation of accumulated undistributed earnings from the foreign subsidiaries. However, we continue to believe that the portion of the excess of financial reporting basis over tax basis (including earnings and profits subject to the one-time transition tax) is indefinitely reinvested in our foreign subsidiaries for foreign withholding tax purposes.

See Note 16 for a further discussion of our income taxes.

Fair Value Measurements


Level 1		Inputs based upon quoted prices in active markets for identical assets.

Level 2		Inputs other than quoted prices included within Level 1 that are observable for the asset, either directly or indirectly.

Level 3		Inputs that are unobservable for the asset.

Cash and Cash Equivalents

Short-term Investments

Long-term Bank Deposits and Notes

Accounts Receivable

Receivables from Payment Processors or Aggregators

Inventories

Inventories. We value our inventories at the lower of cost (computed on the first-in, first-out method) or net realizable value.

Property, Plant and Equipment

Leases

See Note 11 for further discussions on our leases.

Goodwill and Intangible Assets


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

Equity Investments

Equity Investments. The Company’s equity investments include investments in equity method investees and investments in equity securities with readily determinable fair value.

See Note 3 and Note 7 for further discussions on our equity investments.

Short-term Borrowings

Financial Instruments

Noncontrolling Interests

Guarantees

Asset Retirement Obligations

Contingencies

Retirement Plans

PRC Value-Added Tax ("VAT")

PRC Value-Added Tax (“VAT”). The Company has been subject to VAT within the normal course of its restaurant business nationwide since May 1, 2016.

Earnings Per Share

Common Stock Repurchases

Recently Adopted Accounting Pronouncements

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Income (Loss) Before Income Taxes

U.S. and foreign income (loss) before taxes are set forth below:


	2023		2022			2021
U.S.	$	42	$	7		$	(1	)
Mainland China		1,165		686			1,424
Other Foreign		19		(6	)		(31	)
	$	1,226	$	687		$	1,392

Details of Income Tax Provision

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


		2023			2022			2021
Current:	Federal	$	14		$	5		$	—
	Foreign		325			222			209
		$	339		$	227		$	209

Deferred:	Federal	$	(11	)	$	(6	)	$	(8	)
	Foreign		1			(14	)		168
		$	(10	)	$	(20	)	$	160
		$	329		$	207		$	369

Effective Income Tax and Tax Rate Reconciliation

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


	2023					2022					2021
U.S. federal statutory rate	$	257		21.0	%	$	144		21.0	%	$	292		21.0	%
Statutory rate differential attributable to foreign operations		49		4.0			31		4.5			50		3.6
Withholding tax on distributable earnings		36		2.9			28		4.1			25		1.8
Effect of preferential tax benefit		(15	)	(1.2	)		(5	)	(0.7	)		(2	)	(0.2	)
Adjustments to reserves and prior years		(3	)	(0.3	)		(3	)	(0.6	)		(4	)	(0.3	)
Change in valuation allowances		4		0.3			9		1.3			9		0.7
Other, net		1		0.2			3		0.5			(1	)	(0.1	)
Effective income tax rate	$	329		26.9	%	$	207		30.1	%	$	369		26.5	%

Details of Deferred Tax Assets (Liabilities)

The details of 2023 and 2022 deferred tax assets (liabilities) are set forth below:


	2023									2022
	Assets			Liabilities			Total			Assets			Liabilities			Total
Operating losses and tax credit carryforwards	$	42		$	—		$	42		$	47		$	—		$	47
Tax benefit from Little Sheep restructuring		14			—			14			15			—			15
Employee compensation and benefits		12			—			12			12			—			12
Deferred income and other		112			—			112			94			—			94
Lease		600			(556	)		44			605			(556	)		49
Property, plant and equipment		—			(144	)		(144	)		—			(136	)		(136	)
Intangible assets		—			(38	)		(38	)		—			(40	)		(40	)
Gain from re-measurement of equity interest upon acquisition		—			(219	)		(219	)		—			(226	)		(226	)
Withholding tax on distributable earnings		—			(33	)		(33	)		—			(34	)		(34	)
Unrealized gains from equity securities		—			(1	)		(1	)		—			(12	)		(12	)
Others		8			—			8			11			—			11
Valuation Allowance		(58	)		—			(58	)		(57	)		—			(57	)
Net deferred tax assets (liabilities)	$	730			(991	)	$	(261	)	$	727			(1,004	)	$	(277	)

Unrecognized Tax Benefits Reconciliation

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2023			2022
Beginning of Year	$	21		$	20
Additions on tax positions		5			6
Reductions due to statute expiration		(6	)		(5	)
End of Year	$	20		$	21

Summary of Income Tax Examinations


	2023		2022
Accrued interest and penalties	$	4	$	4

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Accounting Policies [Abstract]

Summary of Estimated Useful Lives of Intangible Assets

Intangible assets that are deemed to have a finite life are generally amortized over their estimated useful lives on a straight-line basis to their residual value as follows:


Reacquired franchise rights		1 to 10 years
Huang Ji Huang franchise related assets		19 years
Daojia platform		8 years
Customer-related assets		2 to 15 years
Others		up to 20 years

Schedule of Government Subsidies in Form of Cash Recognized as Reduction in Expense Line Items in Consolidated Statements of Income

Government subsidies in the form of cash were recognized as reduction in following expense line items in our Consolidated Statements of Income as follows:


Costs and Expenses, Net	2023		2022		2021
Company restaurant
Payroll and employee benefits(a)	$	7	$	15	$	14
Occupancy and other operating expenses		1		3		3
Company restaurant expenses		8		18		17
General and administrative expenses		22		26		28
Total	$	30	$	44	$	45

(a)

Business Acquisitions and Equity Investments - Summary of Pre-tax Gains or Losses in Investment in Equity Securities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2021
Meituan Dianping [Member]
Schedule Of Trading Securities And Other Trading Assets [Line Items]
Unrealized losses recorded on equity securities still held as of the end of the year	$ (50)	$ (27)	$ (38)

Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Summary of award activity


	Shares (in thousands)				Weighted-average Exercise Price		Weighted-average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of 2023		9,605				34.71
Granted		345				62.14
Exercised		(1,367	)			24.98
Forfeited or expired		(112	)			52.81
Outstanding at the end of 2023		8,471		(a)		37.16		4.52		73
Exercisable at the end of 2023		6,766				33.09		3.71		73

(a)

Summary of RSUs

RSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2023		875			54.13
Granted		503			61.17
Vested		(154	)		51.31
Forfeited or expired		(57	)		56.06
Unvested at the end of 2023		1,167			57.44

Summary of PSUs

PSUs


	Shares (in thousands)			Weighted- Average Grant Date Fair Value
Unvested at the beginning of 2023		1,076			44.04
Granted		189			71.01
Vested		(963	)		42.23
Forfeited or expired		(34	)		47.91
Unvested at the end of 2023		268			69.05

Stock Options and Stock Appreciation Rights [Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Assumptions Used in the BS and MCS Model

The Company estimated the fair value of each stock option and SAR award granted to the Company’s employees as of the date of grant, using the BS model with the following assumptions:


	2023			2022			2021
Risk-free interest rate		3.9	%		1.6	%		0.4	%
Expected term (years)		6.50			6.25			6.25
Expected volatility		36.3	%		32.4	%		33.9	%
Expected dividend yield		0.8	%		1.0	%		0.8	%

Partner PSU Awards[Member]

Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]

Assumptions Used in the BS and MCS Model

The fair value of PSU awards was determined based on the closing price of the Company's stock on the date of the grant and the outcome of the MCS model with the following assumptions:



	2023			2022			2021
Risk-free interest rate		4.2	%		1.8	%		0.2	%
Expected volatility		39.3	%		30.8	%		35.7	%

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 1D
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-1D

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 35
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480483/718-10-35-3

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(1)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(2)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)(3)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(i)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(ii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iii)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(01)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(02)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480429/718-10-50-2

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Topic 718
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)(1)(iv)(03)
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+ Details

Segment Reporting - Narrative (Details)	12 Months Ended
Segment Reporting - Narrative (Details)	Dec. 31, 2023 Segment
Segment Reporting [Abstract]
Number of reportable segments	2

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

Dec. 31, 2023

Dec. 31, 2022

Finite-lived intangible assets

Gross Carrying Amount

^[1]

$ 326

$ 335

Accumulated Amortization

^[1]

(289)

(292)

Accumulated Impairment Losses

^[2]

(14)

Net Carrying Amount

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

127

130

Total intangible assets

Gross Carrying Amount

^[1]

453

465

Intangible assets, net

150

159

Reacquired franchise rights [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

268

276

Accumulated Amortization

^[1]

(265)

(271)

Net Carrying Amount

Daojia platform [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(4)

Accumulated Impairment Losses

^[2]

(12)

Customer-related assets [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(10)

(9)

Accumulated Impairment Losses

^[2]

(2)

Net Carrying Amount

Other [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(6)

(5)

Net Carrying Amount

Huang Ji Huang Group [Member]

Finite-lived intangible assets

Gross Carrying Amount

^[1]

Accumulated Amortization

^[1]

(4)

(3)

Net Carrying Amount

Trademark [Member] | Little Sheep [Member]

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

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

Indefinite-lived intangible assets

Net Carrying Amount

^[1]

$ 76

$ 78

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

Leases - Schedule of Lease Term and Discount Rate (Details)	Dec. 31, 2023	Dec. 31, 2022
Weighted-average remaining lease term (years)
Operating leases	7 years 1 month 6 days	7 years 1 month 6 days
Finance leases	10 years 10 months 24 days	11 years 2 months 12 days
Weighted-average discount rate
Operating leases	4.90%	5.10%
Finance leases	5.00%	5.10%