Yum! Brands (YUM) 10-Q 19 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 11, 2016	Jul. 12, 2016	Jun. 13, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	YUM BRANDS INC
Entity Central Index Key	1,041,061
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 39,200,000,000
Entity Common Stock, Shares Outstanding		389,887,084
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 11, 2016

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Revenues
Company sales	$ 2,554	$ 2,659	$ 4,719	$ 4,838
Franchise and license fees and income	454	446	908	889
Total Revenues	3,008	3,105	5,627	5,727
Costs and Expenses, Net
Food and paper	764	841	1,413	1,529
Payroll and employee benefits	603	602	1,089	1,095
Occupancy and other operating expenses	779	805	1,376	1,421
Company restaurant expenses	2,146	2,248	3,878	4,045
General and administrative expenses	365	353	651	648
Franchise and license expenses	50	47	98	81
Closures and impairment (income) expenses	37	24	40	27
Refranchising (gain) loss	(53)	68	(60)	58
Other (income) expense	(28)	(6)	(35)	(9)
Total costs and expenses, net	2,517	2,734	4,572	4,850
Operating Profit	491	371	1,055	877
Interest expense, net	40	33	77	67
Income Before Income Taxes	451	338	978	810
Income tax provision	116	102	248	213
Net Income – including noncontrolling interests	335	236	730	597
Net Income (loss) - noncontrolling interests	(4)	1	0	0
Net Income - YUM! Brands, Inc.	$ 339	$ 235	$ 730	$ 597
Basic Earnings Per Common Share	$ 0.82	$ 0.54	$ 1.77	$ 1.36
Diluted Earnings Per Common Share	0.81	0.53	1.74	1.34
Dividends Declared Per Common Share	$ 0.46	$ 0.82	$ 0.92	$ 0.82

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Net Income - including noncontrolling interests	$ 335	$ 236	$ 730	$ 597
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature
Adjustments and gains (losses) arising during the period	35	39	(36)	(52)
Reclassification of adjustments and (gains) losses into Net Income	0	68	0	68
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, before tax	35	107	(36)	16
Tax (expense) benefit	1	(2)	4	0
Translation adjustments and gains (losses) from intra-entity transactions of a long-term investment nature, net of tax	36	105	(32)	16
Changes in pension and post-retirement benefits
Unrealized gains (losses) arising during the period	(1)	2	0	2
Reclassification of (gains) losses into Net Income	3	12	6	23
Changes in pension and post-retirement benefits, before tax	2	14	6	25
Tax (expense) benefit	(1)	(5)	(2)	(9)
Changes in pension and post-retirement benefits, net of tax	1	9	4	16
Changes in derivative instruments
Unrealized gains (losses) arising during the period	(26)	(1)	(31)	12
Reclassification of (gains) losses into Net Income	23	1	33	(12)
Changes in derivative instruments, before tax	(3)	0	2	0
Tax (expense) benefit	1	0	0	0
Changes in derivative instruments, net of tax	(2)	0	2	0
Other comprehensive income (loss), net of tax	35	114	(26)	32
Comprehensive Income - including noncontrolling interests	370	350	704	629
Comprehensive Income (loss) - noncontrolling interests	(3)	1	1	(1)
Comprehensive Income - YUM! Brands, Inc.	$ 373	$ 349	$ 703	$ 630

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015
Cash Flows - Operating Activities
Net Income - including noncontrolling interests	$ 730	$ 597
Depreciation and amortization	314	326
Closures and impairment (income) expenses	40	27
Refranchising (gain) loss	(60)	58
Contributions to defined benefit pension plans	(3)	(78)
Deferred income taxes	(43)	(77)
Equity income from investments in unconsolidated affiliates	(26)	(16)
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital	13	4
Excess tax benefits from share-based compensation	(26)	(40)
Share-based compensation expense	27	28
Changes in accounts and notes receivable	32	16
Changes in inventories	(29)	21
Changes in prepaid expenses and other current assets	3	(27)
Changes in accounts payable and other current liabilities	(44)	17
Changes in income taxes payable	84	91
Changes in restricted cash	(81)	(6)
Other, net	(35)	6
Net Cash Provided by Operating Activities	896	947
Cash Flows - Investing Activities
Capital spending	(343)	(404)
Changes in short-term investments, net	(51)	(16)
Proceeds from refranchising of restaurants	98	29
Other, net	8	39
Net Cash Used in Investing Activities	(288)	(352)
Cash Flows - Financing Activities
Proceeds from long-term debt	2,300	0
Repayments of long-term debt	(304)	(7)
Short-term borrowings by original maturity
More than three months - proceeds	1,400	0
More than three months - payments	(2,000)	0
Three months or less, net	0	0
Revolving credit facilities, three months or less, net	37	65
Repurchase shares of Common Stock	(1,559)	(287)
Excess tax benefits from share-based compensation	26	40
Employee stock option proceeds	2	11
Dividends paid on Common Stock	(379)	(355)
Other, net	(61)	(43)
Net Cash Used in Financing Activities	(538)	(576)
Effect of Exchange Rates on Cash and Cash Equivalents	(12)	39
Net Increase in Cash and Cash Equivalents	58	58
Cash and Cash Equivalents - Beginning of Period	737	578
Cash and Cash Equivalents - End of Period	$ 795	$ 636

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Jun. 11, 2016	Dec. 26, 2015
Current Assets
Cash and cash equivalents	$ 795	$ 737
Accounts and notes receivable, net	395	377
Inventories	255	229
Prepaid expenses and other current assets	332	241
Advertising cooperative assets, restricted	102	103
Total Current Assets	1,879	1,687
Property, plant and equipment, net	4,096	4,189
Goodwill	649	656
Intangible assets, net	264	271
Investments in unconsolidated affiliates	46	61
Other assets	528	521
Deferred income taxes	722	676
Total Assets	8,184	8,061
Current Liabilities
Accounts payable and other current liabilities	2,016	1,985
Income taxes payable	122	77
Short-term borrowings	39	922
Advertising cooperative liabilities	102	103
Total Current Liabilities	2,279	3,087
Long-term debt	5,324	3,041
Other liabilities and deferred credits	912	958
Total Liabilities	8,515	7,086
Redeemable noncontrolling interest	0	6
Shareholders' Equity
Common Stock, no par value, 750 shares authorized; 399 and 420 shares issued in 2016 and 2015, respectively	0	0
Retained earnings	(123)	1,150
Accumulated other comprehensive income (loss)	(266)	(239)
Total Shareholders' Equity - YUM! Brands, Inc.	(389)	911
Noncontrolling interests	58	58
Total Shareholders' Equity	(331)	969
Total Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity	$ 8,184	$ 8,061

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEET (Parenthetical) - $ / shares shares in Millions	Jun. 11, 2016	Dec. 26, 2015
Statement of Financial Position [Abstract]
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	750	750
Common Stock, Shares, Issued	399	420

Financial Statement Presentatio

Financial Statement Presentation	6 Months Ended
	Jun. 11, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Financial Statement Presentation	Financial Statement Presentation We have prepared our accompanying unaudited Condensed Consolidated Financial Statements (“Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by Generally Accepted Accounting Principles in the United States (“GAAP”) for complete financial statements. Therefore, we suggest that the accompanying Financial Statements be read in conjunction with the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended December 26, 2015 (“ 2015 Form 10-K”). YUM! Brands, Inc. and Subsidiaries (collectively referred to herein as “YUM” or the “Company”) comprise primarily the worldwide operations of KFC, Pizza Hut and Taco Bell (collectively the “Concepts”). References to YUM throughout these Notes to our Financial Statements are made using the first person notations of “we,” “us” or “our.” YUM currently consists of four reporting segments: • YUM China (“China” or “China Division”) which includes all operations in mainland China • The KFC Division which includes all operations of the KFC concept outside of China Division • The Pizza Hut Division which includes all operations of the Pizza Hut concept outside of China Division • The Taco Bell Division which includes all operations of the Taco Bell concept Effective January 2016 our India business was segmented by brand, integrated into the global KFC, Pizza Hut and Taco Bell Divisions, and is no longer a separate operating segment. While our consolidated results were not impacted, we have restated our historical segment information for consistent presentation. Integrating India into our Brand Divisions increased Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $32 million , $2 million and $1 million , respectively, and decreased Operating Profit by $3 million , less than $1 million and less than $1 million , respectively, for the quarter ended June 13, 2015 . Integrating India into our Brand Divisions increased Total revenues for the KFC, Pizza Hut and Taco Bell Divisions by $52 million , $3 million and $2 million respectively, and decreased Operating Profit by $6 million , less than $1 million and $1 million , respectively, for the year to date ended June 13, 2015 . In October 2015 we announced our intent to separate YUM’s China business from YUM into an independent, publicly-traded company. This transaction, which is expected to be a tax-free spin-off of our China business, will create two powerful, independent, focused growth companies with distinct strategies, financial profiles and investment characteristics. Completion of the spin-off, which currently has a targeted completion date around October 31, 2016, will be subject to certain conditions, including, among others, receiving final approval from the YUM Board of Directors, receipt of various regulatory approvals, receipt of an opinion of counsel with respect to certain tax matters, the effectiveness of filings related to public listing and applicable securities laws, and other terms and conditions as may be determined by the Board of Directors. YUM’s fiscal year ends on the last Saturday in December. The first three quarters of each fiscal year consist of 12 weeks and the fourth quarter consists of 16 weeks. Our subsidiaries operate on similar fiscal calendars except that China and certain other international subsidiaries operate on a monthly calendar with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter. The current fiscal year of 2016 will have a 53 rd week for YUM and our subsidiaries that do not operate on a monthly calendar, which will be included in our fourth quarter results. Our international subsidiaries that operate on a monthly calendar, including China, are not impacted by the addition of a 53 rd week. Our international subsidiaries within our KFC, Pizza Hut and Taco Bell divisions generally close approximately one month earlier to facilitate consolidated reporting. Our preparation of the accompanying Financial Statements in conformity with GAAP requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the Financial Statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying Financial Statements include all normal and recurring adjustments considered necessary to present fairly, when read in conjunction with our 2015 Form 10-K, our financial position as of June 11, 2016 , and the results of our operations and comprehensive income for the quarters and years to date ended June 11, 2016 and June 13, 2015 and cash flows for the years to date ended June 11, 2016 and June 13, 2015 . Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. Our significant interim accounting policies include the recognition of certain advertising and marketing costs, generally in proportion to revenue, and the recognition of income taxes using an estimated annual effective tax rate. In April 2015 the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03, “Interest - Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs” (ASU 2015-03). ASU 2015-03 amended the then-current presentation guidance by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. ASU 2015-03 was effective for the Company beginning with the quarter ended March 19, 2016. The adoption of this standard required restatement of our consolidated balance sheet as of December 26, 2015. As a result, Other assets and Long-term debt each decreased by $13 million and Prepaid expenses and other current assets and Short-term borrowings each decreased by $1 million versus amounts previously reported. We have reclassified certain items in the Financial Statements for the prior periods to be comparable with the classification for the quarter and year to date ended June 11, 2016 . These reclassifications had no effect on previously reported Net Income - YUM! Brands, Inc.

Earnings Per Common Share ("EPS

Earnings Per Common Share ("EPS")	6 Months Ended
	Jun. 11, 2016
Earnings Per Share [Abstract]
Earnings Per Common Share (EPS)	Earnings Per Common Share (“EPS”) Quarter ended Year to date 2016 2015 2016 2015 Net Income – YUM! Brands, Inc. $ 339 $ 235 $ 730 $ 597 Weighted-average common shares outstanding (for basic calculation) 410 437 413 437 Effect of dilutive share-based employee compensation 7 8 7 9 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 417 445 420 446 Basic EPS $ 0.82 $ 0.54 $ 1.77 $ 1.36 Diluted EPS $ 0.81 $ 0.53 $ 1.74 $ 1.34 Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (a) 6.6 4.3 6.8 5.3 (a) These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.

Shareholders' Equity

Shareholders' Equity	6 Months Ended
	Jun. 11, 2016
Stockholders' Equity Note [Abstract]
Shareholders' Equity	Shareholders’ Equity Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date as indicated below. All amounts exclude applicable transaction fees. Shares Repurchased (thousands) Dollar Value of Shares Repurchased Remaining Dollar Value of Shares that may be Repurchased Authorization Date 2016 2015 2016 2015 2016 November 2013 — 1,779 $ — $ 133 $ — November 2014 — 1,901 — 162 — December 2015 13,369 — 933 — — March 2016 2,823 — 228 — — May 2016 6,102 — 503 — 3,697 Total 22,294 (a) 3,680 (b) $ 1,664 (a) $ 295 (b) $ 3,697 (a) Includes the effect of $105 million in share repurchases ( 1.3 million shares) with trade dates prior to June 11, 2016 but cash settlement dates subsequent to June 11, 2016. (b) Includes the effect of $8 million in share repurchases ( 0.1 million shares) with trade dates prior to June 13, 2015 but cash settlement dates subsequent to June 13, 2015. On May 20, 2016 our Board of Directors authorized additional share repurchases through December 2016 of up to $4.2 billion (excluding applicable transaction fees) of our outstanding Common Stock. This authorization superseded all previous unutilized authorizations. Changes in accumulated other comprehensive income (loss) ("OCI") are presented below. Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature Pension and Post-Retirement Benefits Derivative Instruments Total Balance at December 26, 2015, net of tax $ (109 ) $ (113 ) $ (17 ) $ (239 ) Gains (losses) arising during the year classified into accumulated OCI, net of tax (33 ) — (31 ) (64 ) (Gains) losses reclassified from accumulated OCI, net of tax — 4 33 37 OCI, net of tax (33 ) 4 2 (27 ) Balance at June 11, 2016, net of tax $ (142 ) $ (109 ) $ (15 ) $ (266 )

Items Affecting Comparability o

Items Affecting Comparability of Net Income and Cash Flows	6 Months Ended
	Jun. 11, 2016
Items Affecting Comparability of Net Income and Cash Flows [Abstract]
Comparability of Prior Year Financial Data	Items Affecting Comparability of Net Income and Cash Flows Refranchising (Gain) Loss The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. During the quarter ended June 11, 2016 we refranchised 93 restaurants, primarily Pizza Hut restaurants in the U.S. We received $89 million in proceeds and recorded $53 million of net refranchising gains related to these transactions. These gains were not allocated to any segment for performance reporting. Quarter ended Year to date 2016 2015 2016 2015 China $ (1 ) $ (2 ) $ (4 ) $ (4 ) KFC Division (a) 2 35 1 32 Pizza Hut Division (a) (54 ) 36 (56 ) 37 Taco Bell Division — (1 ) (1 ) (7 ) Worldwide $ (53 ) $ 68 $ (60 ) $ 58 (a) In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned real estate related to these restaurants, we did not sell the real estate, but instead leased it to the franchisee. During the quarter ended June 13, 2015 we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. The sales price we expected to receive for this real estate exceeded its book value. However, the sale of the real estate represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our held for sale impairment evaluations. As such, we recorded a $68 million non-cash charge to Refranchising loss, consisting of losses of $36 million and $32 million related to KFC and Pizza Hut, respectively. The loss was not allocated to any segment for performance reporting. This loss represents the excess of the sum of the book value of the real estate and related assets, an insignificant amount of goodwill and our accumulated translation losses over the expected sales price. We subsequently sold this real estate in 2015. Additionally, during the quarter ended June 13, 2015, we recognized a charge within Refranchising (gain) loss of $5 million associated with the planned refranchising of our Company-owned Pizza Hut restaurants in Korea. KFC U.S. Acceleration Agreement During the first quarter of 2015, we reached an agreement with our KFC U.S. franchisees that gave us brand marketing control as well as an accelerated path to expanded menu offerings, improved assets and enhanced customer experience. In connection with this agreement we anticipate investing approximately $125 million from 2015 through 2017 primarily to fund new back-of-house equipment for franchisees and to provide incentives to accelerate franchisee store remodels. We recorded pre-tax charges of $8 million for both the quarters ended June 11, 2016 and June 13, 2015 for these investments. We recorded pre-tax charges of $17 million and $10 million for the years to date ended June 11, 2016 and June 13, 2015, respectively, for these investments. These amounts were recorded primarily as Franchise and license expenses. We recorded total pre-tax charges of $72 million during the year ended December 26, 2015 and we currently expect a total pre-tax charge of approximately $30 million in 2016 for these investments. These charges are not being allocated to the KFC Division segment operating results. In addition to the investments above we agreed to fund $60 million of incremental system advertising from 2015 through 2017. During the quarters ended June 11, 2016 and June 13, 2015, we incurred $5 million and $3 million in incremental system advertising expense, respectively. During the years to date ended June 11, 2016 and June 13, 2015, we incurred $9 million and $3 million in incremental system advertising expense, respectively. We funded approximately $10 million of such advertising during the year ended December 26, 2015. These amounts were recorded primarily in Franchise and license expenses and are included in the KFC Division segment operating results. We currently expect to fund approximately $20 million of such advertising in 2016 and $30 million in 2017. Costs Associated with the Planned Spin-off of the China Business and YUM Recapitalization In connection with our planned separation of the YUM China business into an independent, publicly-traded company and the related recapitalization of YUM, we incurred $10 million and $19 million of costs in the quarter and year to date ended June 11, 2016, respectively, which were recorded in General and administrative ("G&A") expenses. Cumulative project costs since the announcement of the planned separation total $28 million and we currently expect to incur additional cash costs of approximately $30 million to complete the spin-off transaction. Additionally, we expect to incur a non-cash charge related to certain share-based awards that will be modified in connection with the spin-off. The amount of the non-cash charge will be based on the intrinsic values of the modified awards at the date of the spin-off. These costs are not being allocated to any of our segment operating results. See Note 10 for details on YUM's recapitalization.

Other (Income) Expense

Other (Income) Expense	6 Months Ended
	Jun. 11, 2016
Other Income and Expenses [Abstract]
Other (Income) Expense	Other (Income) Expense Quarter ended Year to date 2016 2015 2016 2015 Equity (income) loss from investments in unconsolidated affiliates $ (10 ) $ (7 ) $ (26 ) $ (16 ) Foreign exchange net (gain) loss and other (18 ) 1 (9 ) 7 Other (income) expense $ (28 ) $ (6 ) $ (35 ) $ (9 )

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	6 Months Ended
	Jun. 11, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]
Supplemental Balance Sheet Information	Supplemental Balance Sheet Information Accounts and Notes Receivable, net The Company’s receivables are primarily generated as a result of ongoing business relationships with our franchisees and licensees as a result of franchise and lease agreements. Trade receivables consisting of royalties from franchisees and licensees are generally due within 30 days of the period in which the corresponding sales occur and are classified as Accounts and notes receivable on our Condensed Consolidated Balance Sheets. 6/11/2016 12/26/2015 Accounts and notes receivable, gross $ 413 $ 393 Allowance for doubtful accounts (18 ) (16 ) Accounts and notes receivable, net $ 395 $ 377 Property, Plant and Equipment, net 6/11/2016 12/26/2015 Property, plant and equipment, gross $ 7,795 $ 7,832 Accumulated depreciation and amortization (3,699 ) (3,643 ) Property, plant and equipment, net $ 4,096 $ 4,189 Assets held for sale at June 11, 2016 and December 26, 2015 total $35 million and $28 million , respectively, and are included in Prepaid expenses and other current assets on our Condensed Consolidated Balance Sheets. Noncontrolling Interests Noncontrolling interests represent the ownership interests of minority shareholders of the entities that operate KFC restaurants in Beijing and Shanghai, China. At December 26, 2015 the Redeemable noncontrolling interest comprised the 7% ownership interest in Little Sheep held by the Little Sheep founding shareholders, and was classified outside of permanent equity on our Condensed Consolidated Balance Sheets due to redemption rights held by the Little Sheep founding shareholders. During the quarter ended June 11, 2016, the Little Sheep founding shareholders sold their remaining 7% Little Sheep ownership interest to YUM pursuant to their redemption rights. The difference between the purchase price of less than $1 million , which was determined using a non-fair value based formula pursuant to the agreement governing the redemption rights, and the carrying value of their redeemable noncontrolling interest was recorded as an $8 million loss attributable to noncontrolling interests. Consistent with our 2012 gain on the acquisition of Little Sheep and subsequent impairments of Little Sheep goodwill and intangibles in 2013 and 2014, this loss attributable to noncontrolling interests is not being allocated to any segment operating results. A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows: Noncontrolling Interests Redeemable Noncontrolling Interest Balance at December 26, 2015 $ 58 $ 6 Net Income (loss) – noncontrolling interests 7 1 Noncontrolling interest loss upon redemption — (8 ) Dividends declared (7 ) — Currency translation adjustments and other — 1 Balance at June 11, 2016 $ 58 $ —

Income Taxes

Income Taxes	6 Months Ended
	Jun. 11, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Quarter ended Year to date 2016 2015 2016 2015 Income tax provision $ 116 $ 102 $ 248 $ 213 Effective tax rate 25.8 % 30.4 % 25.4 % 26.3 % Our effective tax rate was lower than the U.S. federal statutory rate of 35% primarily due to the majority of our income being earned outside the U.S. where tax rates are generally lower than the U.S. rate. Our quarterly and year to date effective tax rates were lower than the prior year primarily due to lapping the unfavorable impact of the $68 million non-cash refranchising loss (See Note 4) with no associated tax benefit related to the decision to dispose of our real estate in Mexico, lapping the unfavorable impact of resolution of uncertain tax positions in certain jurisdictions, and the benefit associated with a prior year income tax return amendment, partially offset by the increased cost of repatriating current year foreign earnings.

Reportable Operating Segments

Reportable Operating Segments	6 Months Ended
	Jun. 11, 2016
Segment Reporting [Abstract]
Reportable Operating Segments	Reportable Operating Segments We identify our operating segments based on management responsibility. As described in Note 1, effective January 1, 2016 our India business was segmented by brand and integrated into the global KFC, Pizza Hut and Taco Bell Divisions. Segment information for previous periods has been restated to reflect this reporting change. The following tables summarize Revenues and Operating Profit for each of our reportable operating segments: Quarter ended Year to date Revenues 2016 2015 2016 2015 China $ 1,588 $ 1,636 $ 2,891 $ 2,892 KFC Division 712 726 1,337 1,388 Pizza Hut Division 246 266 511 538 Taco Bell Division 463 477 889 909 Unallocated (1 ) — (1 ) — $ 3,008 $ 3,105 $ 5,627 $ 5,727 Quarter ended Year to date Operating Profit 2016 2015 2016 2015 China (a) $ 147 $ 144 $ 403 $ 334 KFC Division 149 149 309 315 Pizza Hut Division 64 60 151 141 Taco Bell Division 139 140 258 254 Unallocated and Corporate General and administrative expenses (b) (76 ) (54 ) (133 ) (100 ) Unallocated Other income (expense) 15 — 7 (9 ) Unallocated Refranchising gain (loss) (c) 53 (68 ) 60 (58 ) Operating Profit $ 491 $ 371 $ 1,055 $ 877 Interest expense, net (40 ) (33 ) (77 ) (67 ) Income Before Income Taxes $ 451 $ 338 $ 978 $ 810 (a) Includes equity income from investments in unconsolidated affiliates of $10 million and $7 million for the quarters ended June 11, 2016 and June 13, 2015 , respectively. Includes equity income from investments in unconsolidated affiliates of $26 million and $16 million for the years to date ended June 11, 2016 and June 13, 2015 , respectively. (b) Primarily Corporate G&A expenses for the quarters ended June 11, 2016 and June 13, 2015. Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $8 million for both the quarters ended June 11, 2016 and June 13, 2015, respectively, and $17 million and $10 million for the years to date ended June 11, 2016 and June 13, 2015, respectively. Also included are $10 million and $19 million for the quarter and year to date ended June 11, 2016, respectively, related to the planned spin-off of the China business and YUM recapitalization. See Note 4. (c) See the Refranchising (Gain) Loss section of Note 4.

Pension Benefits

Pension Benefits	6 Months Ended
	Jun. 11, 2016
Compensation and Retirement Disclosure [Abstract]
Pension Benefits	Pension Benefits We sponsor qualified and supplemental (non-qualified) noncontributory defined benefit pension plans covering certain full-time salaried and hourly U.S. employees. The most significant of these plans, the YUM Retirement Plan, is funded. We fund our other U.S. plans as benefits are paid. The YUM Retirement Plan and our most significant non-qualified plan in the U.S. are closed to new salaried participants. The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows: Quarter ended Year to date 2016 2015 2016 2015 Service cost $ 4 $ 4 $ 8 $ 8 Interest cost 12 12 25 25 Expected return on plan assets (15 ) (14 ) (30 ) (28 ) Amortization of net loss 2 11 3 21 Amortization of prior service cost 1 — 2 — Net periodic benefit cost $ 4 $ 13 $ 8 $ 26

Short-term Borrowings and Long-

Short-term Borrowings and Long-term Debt	6 Months Ended
	Jun. 11, 2016
Debt Disclosure [Abstract]
Short-term Borrowings and Long-term Debt	Short-term Borrowings and Long-term Debt Short-term Borrowings 6/11/2016 12/26/2015 Current maturities of long-term debt $ 30 $ 313 Unsecured Short-term Loan Credit Facility (the "Bridge Facility") — 600 Other 9 9 $ 39 $ 922 Long-term Debt Existing Senior Unsecured Notes $ 2,200 $ 2,500 Existing Unsecured Revolving Credit Facility 738 701 Securitization Notes 2,300 — Capital lease obligations 162 169 5,400 3,370 Less debt issuance costs and discounts (46 ) (16 ) Less current maturities of long-term debt (30 ) (313 ) Long-term debt $ 5,324 $ 3,041 During the quarter ended June 11, 2016 we issued $2.3 billion in Securitization Notes, details of which are below. Also during the quarter we repaid $300 million in Existing Senior Unsecured Notes and we repaid and terminated the Bridge Facility, which had $600 million of outstanding borrowings as of December 26, 2015 . Details of our short-term borrowings and long-term debt as of December 26, 2015 can be found within our 2015 Form 10-K. Securitization Notes Issuance On May 11, 2016 Taco Bell Funding, LLC (the “Issuer”), a newly formed, special purpose limited liability company and a direct, wholly-owned subsidiary of Taco Bell Corp., (“TBC”) which is a direct wholly-owned subsidiary of the Company, completed a securitization transaction and issued $800 million of its Series 2016-1 3.832% Fixed Rate Senior Secured Notes, Class A-2-I (the “Class A-2-I Notes”), $500 million of its Series 2016-1 4.377% Fixed Rate Senior Secured Notes, Class A-2-II (the “Class A-2-II Notes”) and $1.0 billion of its Series 2016-1 4.970% Fixed Rate Senior Secured Notes, Class A-2-III (the “Class A-2-III Notes” and, together with the Class A-2-I Notes and the Class A-2-II Notes, the “Class A-2 Notes”). In connection with the issuance of the Class A-2 Notes, the Issuer also entered into a revolving financing facility of Series 2016-1 Senior Notes, Class A-1 (the “Variable Funding Notes”), which allows for the borrowing of up to $100 million and the issuance of up to $50 million in letters of credit. The Class A-2 Notes and the Variable Funding Notes are referred to collectively as the “Securitization Notes”. The Class A-2 Notes were issued under a Base Indenture, dated as of May 11, 2016 (the “Base Indenture”), and the related Series 2016-1 Supplement thereto, dated as of May 11, 2016 (the “Series 2016-1 Supplement”). The Base Indenture and the Series 2016-1 Supplement (collectively, the “Indenture”) will allow the Issuer to issue additional series of notes. The Securitization Notes were issued in a transaction pursuant to which certain of TBC’s domestic assets, consisting principally of franchise-related agreements, and domestic intellectual property, were contributed to the Issuer and the Issuer’s special purpose, wholly-owned subsidiaries (the “Guarantors”, and collectively with the Issuer, the "Securitization Entities") to secure the Notes. The Securitization Notes are secured by substantially all of these same assets, and include a lien on all existing and future U.S. Taco Bell franchise and license agreements and the royalties payable thereunder, existing and future U.S. Taco Bell intellectual property, certain transaction accounts and a pledge of the equity interests in asset-owning Securitization Entities. The remaining U.S. Taco Bell assets that were excluded from the transfers to the Securitization Entities continue to be held by Taco Bell of America, LLC, a limited liability company (“TBA”), and TBC. The Securitization Notes are not guaranteed by the remaining U.S. Taco Bell assets, the Company, or any other subsidiary of the Company. Payments of interest and principal on the Securitization Notes are made from the royalty fees paid pursuant to the franchise and license agreements with all U.S. Taco Bell restaurants, including both company and franchise operated restaurants. Interest on and principal payments of the Class A-2 Notes are due on a quarterly basis. In general, no amortization of principal of the Class A-2 Notes is required prior to their anticipated repayment dates unless as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the Indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes is required . The legal final maturity date of the Notes is in May 2046 , but the anticipated repayment dates of the Class A-2-I Notes, the Class A-2-II Notes and the Class A-2-III Notes will be 4 , 7 and 10 years, respectively (the “Anticipated Repayment Dates”) from the date of issuance. If the Issuer has not repaid or refinanced a series of Class A-2 Notes prior to its respective Anticipated Repayment Dates, rapid amortization of principal on all Securitization Notes will occur and additional interest will accrue on the Class A-2 Notes, as stated in the Indenture. Interest on the Variable Funding Notes will be based on (i) the prime rate, (ii) the overnight federal funds rates, (iii) the London interbank offered rate (“LIBOR”) for U.S. Dollars or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, plus any applicable margin, in each case as more fully set forth in the Variable Funding Note Purchase Agreement. It is anticipated that the principal of and interest on the Variable Funding Notes will be repaid in full on or prior to May 2021 , subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent. Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year . As of June 11, 2016 , $15 million of letters of credit were outstanding against the Variable Funding Notes, which relate primarily to interest reserves required under the Indenture. The Variable Funding Notes were undrawn at June 11, 2016. During the year to date ended June 11, 2016 , the Company incurred debt issuance costs of $31 million in connection with the issuance of the Securitization Notes. The debt issuance costs are being amortized to Interest expense through the Anticipated Repayment Dates of the Securitization Notes utilizing the effective interest rate method and are classified as a reduction of our Long-term debt in our Condensed Consolidated Balance Sheet. As of June 11, 2016 , the effective interest rates, including the amortization of debt issuance costs, were 4.18% , 4.59% , and 5.14% for the Class A-2-I Notes, Class A-2-II Notes and Class A-2-III Notes, respectively. The Securitization Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Issuer maintains specified reserve accounts to be available to make required interest payments in respect of the Securitization Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Class A-2 Notes under certain circumstances, (iii) certain indemnification payments relating to taxes, enforcement costs and other customary items and (iv) covenants relating to recordkeeping, access to information and similar matters. The Securitization Notes are also subject to rapid amortization events provided for in the Indenture, including events tied to failure to maintain a stated debt service coverage ratio of at least 1.1:1 , gross domestic sales for branded restaurants being below certain levels on certain measurement dates, a manager termination event, an event of default and the failure to repay or refinance the Class A-2 Notes on the Anticipated Repayment Date (subject to limited cure rights). The Securitization Notes are also subject to certain customary events of default, including events relating to non-payment of required interest or principal due on the Securitization Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, certain judgments and failure of the Securitization Entities to maintain a stated debt service coverage ratio. We were in compliance with all of our debt covenant requirements at June 11, 2016 . In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee for the benefit of the trustee and the note holders, and are restricted in their use. The Indenture requires a certain amount of securitization cash flow collections to be allocated on a weekly basis and maintained in a cash trap reserve account in the event that as of any quarterly measurement date the Securitization Entities fail to maintain a debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1 . The amount of weekly cash flow that exceeds the required weekly allocations is generally remitted to the Company. However, once the required obligations are satisfied, there are no further restrictions, including payment of dividends, on the cash flows of the Securitization Entities. As of June 11, 2016 the Company had restricted cash of $51 million related to interest and commitment fee reserves held by the trustee. Such restricted cash is included in Prepaid expenses and other current assets on the condensed consolidated balance sheet as of June 11, 2016 . Changes in restricted cash have been presented as a component of cash flows from operating activities in the Condensed Consolidated Statement of Cash Flows since the cash is restricted to the payment of interest. We used certain of the proceeds from the issuance of the Class A-2 Notes to repay $2.0 billion borrowed under the Company’s December 8, 2015 Bridge Facility, as amended, at which time the Bridge Facility was terminated. The remaining proceeds were used for costs associated with the securitization transaction, to return capital to shareholders through repurchases and for general corporate purposes. Debt Issuances Subsequent to Quarter End Subsequent to the end of the second quarter, on June 16, 2016 , KFC Holding Co., Pizza Hut Holdings, LLC, a limited liability company, and TBA, as co-issuers (collectively, the “Issuers”), each of which is a wholly-owned subsidiary of the Company, issued $1.05 billion aggregate principal amount of 5.00% Senior Unsecured Notes due 2024 and $1.05 billion aggregate principal amount of 5.25% Senior Unsecured Notes due 2026 (together, the “Subsidiary Senior Unsecured Notes”). Interest on each series of Subsidiary Senior Unsecured Notes is payable semi-annually in arrears on June 1 and December 1, beginning on December 1, 2016. The Subsidiary Senior Unsecured Notes are guaranteed on a senior unsecured basis by (i) the Company, (ii) Restaurant Services Group, LLC, Restaurant Concepts LLC and TBC, each of which is also a direct subsidiary of the Company (together, the “Specified Guarantors”) and (iii) by each of the Issuer’s and the Specified Guarantors’ domestic subsidiaries that guarantees the Issuers’ obligations under the credit agreement entered into on June 16, 2016 (the “Credit Agreement”). None of the Company’s foreign subsidiaries or the Securitization Entities guarantee the Subsidiary Senior Unsecured Notes. The indenture governing the Subsidiary Senior Unsecured Notes contains covenants and events of default that are customary for debt securities of this type. Additionally, on June 16, 2016 , each of the Issuers, as co-borrowers (the “Borrowers”) entered into the Credit Agreement providing for senior secured credit facilities consisting of a $2.0 billion Term Loan B facility (the “Term Loan B Facility”), a $500 million Term Loan A facility (the “Term Loan A Facility"), and a $1.0 billion revolving facility (undrawn at close) (the “Revolving Facility”), each of which may be increased subject to certain conditions. The term loan facilities are subject to quarterly amortization over the respective terms of the facilities. Interest on any outstanding borrowings under the Credit Agreement is payable at least quarterly . The Term Loan A Facility is subject to quarterly amortization payments beginning one full fiscal quarter after the first anniversary of the closing date , in an amount equal to 1.25% of the initial principal amount of the facility, in each of the second and third years of the facility; in an amount equal to 1.875% of the initial principal amount of the facility, in the fourth year of the facility; and in an amount equal to 3.75% of the initial principal amount of the facility, in the fifth year of the facility, with the balance payable at maturity on the fifth anniversary of the closing date. The Term Loan B Facility is subject to quarterly amortization payments in an amount equal to 0.25% of the initial principal amount of the facility, with the balance payable at maturity on the seventh anniversary of the closing date. The interest rate for the Term Loan A Facility and for borrowings under the Revolving Facility ranges from 2.00% to 2.50% plus LIBOR or from 1.00% to 1.50% plus the Base Rate (as defined in the Credit Agreement), at the Borrowers’ election, based upon the total net leverage ratio of the Borrowers, the Specified Guarantors and their restricted subsidiaries, excluding the Taco Bell Securitization Entities (collectively, the “Restricted Group”), with an initial margin of LIBOR plus 2.25% or the Base Rate plus 1.25% . The interest rate for the Term Loan B Facility is either LIBOR plus 2.75% or the Base Rate plus 1.75% , at the Borrowers’ election. Interest on any outstanding borrowings under the Credit Agreement is payable at least quarterly . The Term Loan B Facility matures in June 2023 and the Term Loan A Facility and the Revolving Facility mature in June 2021 . The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights . The Credit Agreement includes two financial maintenance covenants which will require the Borrowers to maintain a total leverage ratio of 5.0:1 or less and a fixed charge coverage ratio (defined as the ratio of earnings before interest, taxes, depreciation, amortization and rental expense minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1 , each as of the last day of each fiscal quarter. The Credit Agreement includes other affirmative and negative covenants and events of default that are customary for facilities of this type. The Credit Agreement contains financial covenants relating to maintenance of leverage and fixed charge coverage ratios and, among other things, limitations on certain additional indebtedness and liens, and certain other transactions specified in the agreement. The Subsidiary Senior Unsecured Notes and the Credit Agreement are unconditionally guaranteed by the Company and certain of the Issuers’ principal domestic subsidiaries, none of which are the Securitization Entities. The Credit Agreement is also secured by first priority liens on substantially all assets of the Issuers and each subsidiary guarantor, excluding the stock of certain subsidiaries and certain real property, and subject to other customary exceptions. We used certain of the net proceeds from the issuances of the Subsidiary Senior Unsecured Notes and the Credit Agreement to repay all outstanding amounts on our existing senior unsecured revolving credit facility (the “Existing Unsecured Revolving Credit Facility”), which had outstanding borrowings of $738 million as of June 11, 2016 . Concurrent with this repayment the Existing Unsecured Revolving Credit Facility was terminated. The remaining proceeds will be used by the Company to return capital to shareholders through share repurchases and/or a special dividend and for general corporate purposes.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 11, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements As of June 11, 2016 the carrying values of cash and cash equivalents, short-term investments, accounts receivable and accounts payable approximated their fair values because of the short-term nature of these instruments. The fair values of notes receivable net of allowances and lease guarantees less subsequent amortization approximates their carrying values. The Company’s Existing Senior Unsecured Notes were estimated to have a fair value of $2.2 billion (Level 2), compared to their carrying value of $2.2 billion as of June 11, 2016 . We estimated the fair value of this debt using market quotes and calculations based on market rates. No significant events have impacted the fair value of the Securitization Notes since their issuance on May 11, 2016. The Company has foreign currency forwards and swaps accounted for as cash flow hedges and other investments, all of which are required to be measured at fair value on a recurring basis. Foreign currency forwards and swaps are used to reduce our exposure to cash flow volatility arising from foreign currency fluctuations associated with certain foreign currency denominated intercompany receivables and payables. The fair values of these forwards, swaps and other investments were not material as of June 11, 2016 . In addition, certain of the Company's assets such as property, plant and equipment, goodwill and intangible assets, are measured at fair value on a non-recurring basis if determined to be impaired. During the quarter and year to date ended June 11, 2016, we recorded restaurant-level impairment (Level 3) of $35 million and $36 million , respectively. During the quarter and year to date ended June 13, 2015 , we recorded restaurant-level impairment (Level 3) of $17 million and $18 million , respectively. The remaining net book value of the assets measured at fair value as of June 11, 2016 , subsequent to these impairments, was not significant.

Guarantees, Commitments and Con

Guarantees, Commitments and Contingencies	6 Months Ended
	Jun. 11, 2016
Commitments and Contingencies Disclosure [Abstract]
Guarantees, Commitments and Contingencies	Guarantees, Commitments and Contingencies Lease Guarantees As a result of having assigned our interest in obligations under real estate leases as a condition to the refranchising of certain Company restaurants and guaranteeing certain other leases, we are frequently contingently liable on lease agreements. These leases have varying terms, the latest of which expires in 2065 . As of June 11, 2016 the potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessees was approximately $550 million . The present value of these potential payments discounted at our pre-tax cost of debt at June 11, 2016 was approximately $475 million . Our franchisees are the primary lessees under the vast majority of these leases. We generally have cross-default provisions with these franchisees that would put them in default of their franchise agreements in the event of non-payment under the leases. We believe these cross-default provisions significantly reduce the risk that we will be required to make payments under these leases. Accordingly, the liability recorded for our probable exposure under such leases as of June 11, 2016 was not material. Other Franchise Guarantees We have provided guarantees of $19 million on behalf of franchisees for several financing programs related to specific initiatives. The total loans outstanding under these financing programs were $53 million as of June 11, 2016 . Legal Proceedings We are subject to various claims and contingencies related to lawsuits, real estate, environmental and other matters arising in the normal course of business. An accrual is recorded with respect to claims or contingencies for which a loss is determined to be probable and reasonably estimable. The Company and Taco Bell were named as defendants in a number of putative class action suits filed in 2007, 2008, 2009 and 2010 alleging violations of California labor laws including unpaid overtime, failure to timely pay wages on termination, failure to pay accrued vacation wages, failure to pay minimum wage, denial of meal and rest breaks, improper wage statements, unpaid business expenses, wrongful termination, discrimination, conversion and unfair or unlawful business practices in violation of California Business & Professions Code §17200. Some plaintiffs also sought penalties for alleged violations of California’s Labor Code under California’s Private Attorneys General Act (“PAGA”) as well as statutory “waiting time” penalties and alleged violations of California’s Unfair Business Practices Act. Plaintiffs sought to represent a California state-wide class of hourly employees. These matters were consolidated, and the consolidated case is styled In Re Taco Bell Wage and Hour Actions . The In Re Taco Bell Wage and Hour Actions plaintiffs filed a consolidated complaint in June 2009, and in March 2010 the court approved the parties’ stipulation to dismiss the Company from the action, leaving Taco Bell as the sole defendant. Plaintiffs filed their motion for class certification on the vacation and final pay claims in December 2010, and on September 26, 2011 the court issued its order denying the certification of the vacation and final pay claims. Plaintiffs then sought to certify four separate meal and rest break classes. On January 2, 2013, the court rejected three of the proposed classes but granted certification with respect to the late meal break class. The parties thereafter agreed on a list of putative class members, and the class notice and opt out forms were mailed on January 21, 2014. Per order of the court, plaintiffs filed a second amended complaint to clarify the class claims. Plaintiffs also filed a motion for partial summary judgment. Taco Bell filed motions to strike and to dismiss, as well as a motion to alter or amend the second amended complaint. On August 29, 2014, the court denied plaintiffs’ motion for partial summary judgment. On that same date, the court granted Taco Bell’s motion to dismiss all but one of the PAGA claims. On October 29, 2014, plaintiffs filed a motion to amend the operative complaint and a motion to amend the class certification order. On December 16, 2014, the court partially granted both motions, rejecting plaintiffs’ proposed on-duty meal period class but certifying a limited rest break class and certifying an underpaid meal premium class, and allowing the plaintiffs to amend the complaint to reflect those certifications. On December 30, 2014, plaintiffs filed the third amended complaint. On February 26, 2015, the court denied a motion by Taco Bell to dismiss or strike the underpaid meal premium class. Beginning on February 22, 2016, the late meal period class claim, the limited rest break class claim, the underpaid meal premium class claim, and the associated statutory “waiting time” penalty claim was tried to a jury. On March 9, 2016, the jury returned verdicts in favor of Taco Bell on the late meal period claim, the limited rest break claim, and the statutory “waiting time” penalty claim. The jury found for the plaintiffs on the underpaid meal premium class claim, awarding approximately $0.5 million . A bench trial was subsequently conducted with respect to the PAGA claims and plaintiffs’ Business & Professions Code §17200 claim. On April 8, 2016, the court returned a verdict in favor of Taco Bell on the PAGA claims and the §17200 claim. In a separate ruling issued the same day, the court also ruled that plaintiffs were entitled to prejudgment interest on the underpaid meal premium class claim, awarding approximately $0.3 million . Taco Bell denies liability as to the underpaid meal premium class claim and has filed a post-trial motion to overturn the verdict. Plaintiffs’ have also filed various post-trial motions and have indicated an intention to appeal the jury and court verdicts. We have provided for a reasonable estimate of the possible loss relating to this lawsuit. However, in view of the inherent uncertainties of litigation, there can be no assurance that this lawsuit will not result in losses in excess of those currently provided for in our Condensed Consolidated Financial Statements. On May 16, 2013, a putative class action styled Bernardina Rodriguez v. Taco Bell Corp. was filed in California Superior Court. The plaintiff sought to represent a class of current and former California hourly restaurant employees alleging various violations of California labor laws including failure to provide meal and rest periods, failure to pay hourly wages, failure to provide accurate written wage statements, failure to timely pay all final wages, and unfair or unlawful business practices in violation of California Business & Professions Code §17200. This case appears to be duplicative of the In Re Taco Bell Wage and Hour Actions case described above. Taco Bell removed the case to federal court and, on June 25, 2013, plaintiff filed a first amended complaint to include a claim seeking penalties for alleged violations of PAGA. Taco Bell’s motion to dismiss or stay the action in light of the In Re Taco Bell Wage and Hour Actions case was denied on October 30, 2013. In April 2014 the parties stipulated to address the sufficiency of plaintiff’s legal theory as to her discount meal break claim before conducting full discovery. A hearing on the parties’ cross-summary judgment motions was held on October 22, 2014, and on October 23, 2014, the court granted Taco Bell’s motion for summary judgment on the discount meal break claim and denied plaintiff’s motion. Trial was set for mid-April 2016. Plaintiff ceased to actively pursue this matter and failed to timely file the required pre-trial statement. Subsequently, plaintiff filed a request to dismiss with prejudice all of her remaining claims, which the court approved on March 2, 2016. Plaintiff then filed a notice of appeal concerning the court’s summary judgment ruling. The Ninth Circuit has set a briefing schedule, with plaintiff’s brief currently due on July 27, 2016, and Taco Bell’s answering brief due August 26, 2016. Taco Bell denies liability and intends to vigorously defend against all claims in this lawsuit. A reasonable estimate of the amount of any possible loss or range of loss cannot be made at this time. We are engaged in various other legal proceedings and have certain unresolved claims pending, the ultimate liability for which, if any, cannot be determined at this time. However, based upon consultation with legal counsel, we are of the opinion that such proceedings and claims are not expected to have a material adverse effect, individually or in the aggregate, on our Condensed Consolidated Financial Statements.

Earnings Per Common Share ("E19

Earnings Per Common Share ("EPS") (Tables)	6 Months Ended
	Jun. 11, 2016
Earnings Per Share [Abstract]
Earnings Per Common Share Table	Quarter ended Year to date 2016 2015 2016 2015 Net Income – YUM! Brands, Inc. $ 339 $ 235 $ 730 $ 597 Weighted-average common shares outstanding (for basic calculation) 410 437 413 437 Effect of dilutive share-based employee compensation 7 8 7 9 Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 417 445 420 446 Basic EPS $ 0.82 $ 0.54 $ 1.77 $ 1.36 Diluted EPS $ 0.81 $ 0.53 $ 1.74 $ 1.34 Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation (a) 6.6 4.3 6.8 5.3 (a) These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	6 Months Ended
	Jun. 11, 2016
Stockholders' Equity Note [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Changes in accumulated other comprehensive income (loss) ("OCI") are presented below. Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature Pension and Post-Retirement Benefits Derivative Instruments Total Balance at December 26, 2015, net of tax $ (109 ) $ (113 ) $ (17 ) $ (239 ) Gains (losses) arising during the year classified into accumulated OCI, net of tax (33 ) — (31 ) (64 ) (Gains) losses reclassified from accumulated OCI, net of tax — 4 33 37 OCI, net of tax (33 ) 4 2 (27 ) Balance at June 11, 2016, net of tax $ (142 ) $ (109 ) $ (15 ) $ (266 )
Repurchase Of Shares Of Common Stock	Under the authority of our Board of Directors, we repurchased shares of our Common Stock during the years to date as indicated below. All amounts exclude applicable transaction fees. Shares Repurchased (thousands) Dollar Value of Shares Repurchased Remaining Dollar Value of Shares that may be Repurchased Authorization Date 2016 2015 2016 2015 2016 November 2013 — 1,779 $ — $ 133 $ — November 2014 — 1,901 — 162 — December 2015 13,369 — 933 — — March 2016 2,823 — 228 — — May 2016 6,102 — 503 — 3,697 Total 22,294 (a) 3,680 (b) $ 1,664 (a) $ 295 (b) $ 3,697 (a) Includes the effect of $105 million in share repurchases ( 1.3 million shares) with trade dates prior to June 11, 2016 but cash settlement dates subsequent to June 11, 2016. (b) Includes the effect of $8 million in share repurchases ( 0.1 million shares) with trade dates prior to June 13, 2015 but cash settlement dates subsequent to June 13, 2015.

Items Affecting Comparability21

Items Affecting Comparability of Net Income and Cash Flows (Tables)	6 Months Ended
	Jun. 11, 2016
Items Affecting Comparability of Net Income and Cash Flows [Abstract]
Facility Actions	Refranchising (Gain) Loss The Refranchising (gain) loss by reportable segment is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. During the quarter ended June 11, 2016 we refranchised 93 restaurants, primarily Pizza Hut restaurants in the U.S. We received $89 million in proceeds and recorded $53 million of net refranchising gains related to these transactions. These gains were not allocated to any segment for performance reporting. Quarter ended Year to date 2016 2015 2016 2015 China $ (1 ) $ (2 ) $ (4 ) $ (4 ) KFC Division (a) 2 35 1 32 Pizza Hut Division (a) (54 ) 36 (56 ) 37 Taco Bell Division — (1 ) (1 ) (7 ) Worldwide $ (53 ) $ 68 $ (60 ) $ 58 (a) In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned real estate related to these restaurants, we did not sell the real estate, but instead leased it to the franchisee. During the quarter ended June 13, 2015 we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. The sales price we expected to receive for this real estate exceeded its book value. However, the sale of the real estate represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our held for sale impairment evaluations. As such, we recorded a $68 million non-cash charge to Refranchising loss, consisting of losses of $36 million and $32 million related to KFC and Pizza Hut, respectively. The loss was not allocated to any segment for performance reporting. This loss represents the excess of the sum of the book value of the real estate and related assets, an insignificant amount of goodwill and our accumulated translation losses over the expected sales price. We subsequently sold this real estate in 2015. Additionally, during the quarter ended June 13, 2015, we recognized a charge within Refranchising (gain) loss of $5 million associated with the planned refranchising of our Company-owned Pizza Hut restaurants in Korea.

Other (Income) Expense (Tables)

Other (Income) Expense (Tables)	6 Months Ended
	Jun. 11, 2016
Other Income and Expenses [Abstract]
Other (Income) Expense Table	Quarter ended Year to date 2016 2015 2016 2015 Equity (income) loss from investments in unconsolidated affiliates $ (10 ) $ (7 ) $ (26 ) $ (16 ) Foreign exchange net (gain) loss and other (18 ) 1 (9 ) 7 Other (income) expense $ (28 ) $ (6 ) $ (35 ) $ (9 )

Supplemental Balance Sheet In23

Supplemental Balance Sheet Information (Tables)	6 Months Ended
	Jun. 11, 2016
Supplemental Balance Sheet Information Disclosure [Abstract]
Accounts and Notes Receivable	6/11/2016 12/26/2015 Accounts and notes receivable, gross $ 413 $ 393 Allowance for doubtful accounts (18 ) (16 ) Accounts and notes receivable, net $ 395 $ 377
Property, Plant and Equipment	6/11/2016 12/26/2015 Property, plant and equipment, gross $ 7,795 $ 7,832 Accumulated depreciation and amortization (3,699 ) (3,643 ) Property, plant and equipment, net $ 4,096 $ 4,189
Equity attributable to noncontrolling interests, rollforward	A reconciliation of the beginning and ending carrying amount of the equity attributable to noncontrolling interests is as follows: Noncontrolling Interests Redeemable Noncontrolling Interest Balance at December 26, 2015 $ 58 $ 6 Net Income (loss) – noncontrolling interests 7 1 Noncontrolling interest loss upon redemption — (8 ) Dividends declared (7 ) — Currency translation adjustments and other — 1 Balance at June 11, 2016 $ 58 $ —

Income Taxes (Tables)

Income Taxes (Tables)	6 Months Ended
	Jun. 11, 2016
Income Tax Disclosure [Abstract]
Income Tax And Effective Tax Rate	Quarter ended Year to date 2016 2015 2016 2015 Income tax provision $ 116 $ 102 $ 248 $ 213 Effective tax rate 25.8 % 30.4 % 25.4 % 26.3 %

Reportable Operating Segments (

Reportable Operating Segments (Tables)	6 Months Ended
	Jun. 11, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables summarize Revenues and Operating Profit for each of our reportable operating segments: Quarter ended Year to date Revenues 2016 2015 2016 2015 China $ 1,588 $ 1,636 $ 2,891 $ 2,892 KFC Division 712 726 1,337 1,388 Pizza Hut Division 246 266 511 538 Taco Bell Division 463 477 889 909 Unallocated (1 ) — (1 ) — $ 3,008 $ 3,105 $ 5,627 $ 5,727 Quarter ended Year to date Operating Profit 2016 2015 2016 2015 China (a) $ 147 $ 144 $ 403 $ 334 KFC Division 149 149 309 315 Pizza Hut Division 64 60 151 141 Taco Bell Division 139 140 258 254 Unallocated and Corporate General and administrative expenses (b) (76 ) (54 ) (133 ) (100 ) Unallocated Other income (expense) 15 — 7 (9 ) Unallocated Refranchising gain (loss) (c) 53 (68 ) 60 (58 ) Operating Profit $ 491 $ 371 $ 1,055 $ 877 Interest expense, net (40 ) (33 ) (77 ) (67 ) Income Before Income Taxes $ 451 $ 338 $ 978 $ 810 (a) Includes equity income from investments in unconsolidated affiliates of $10 million and $7 million for the quarters ended June 11, 2016 and June 13, 2015 , respectively. Includes equity income from investments in unconsolidated affiliates of $26 million and $16 million for the years to date ended June 11, 2016 and June 13, 2015 , respectively. (b) Primarily Corporate G&A expenses for the quarters ended June 11, 2016 and June 13, 2015. Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $8 million for both the quarters ended June 11, 2016 and June 13, 2015, respectively, and $17 million and $10 million for the years to date ended June 11, 2016 and June 13, 2015, respectively. Also included are $10 million and $19 million for the quarter and year to date ended June 11, 2016, respectively, related to the planned spin-off of the China business and YUM recapitalization. See Note 4. (c) See the Refranchising (Gain) Loss section of Note 4.

Pension Benefits (Tables)

Pension Benefits (Tables)	6 Months Ended
	Jun. 11, 2016
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost	The components of net periodic benefit cost associated with our significant U.S. pension plans are as follows: Quarter ended Year to date 2016 2015 2016 2015 Service cost $ 4 $ 4 $ 8 $ 8 Interest cost 12 12 25 25 Expected return on plan assets (15 ) (14 ) (30 ) (28 ) Amortization of net loss 2 11 3 21 Amortization of prior service cost 1 — 2 — Net periodic benefit cost $ 4 $ 13 $ 8 $ 26

Short-term Borrowings and Lon27

Short-term Borrowings and Long-term Debt (Tables)	6 Months Ended
	Jun. 11, 2016
Debt Disclosure [Abstract]
Schedule of Short-term Borrowings and Long-term Debt	Short-term Borrowings 6/11/2016 12/26/2015 Current maturities of long-term debt $ 30 $ 313 Unsecured Short-term Loan Credit Facility (the "Bridge Facility") — 600 Other 9 9 $ 39 $ 922 Long-term Debt Existing Senior Unsecured Notes $ 2,200 $ 2,500 Existing Unsecured Revolving Credit Facility 738 701 Securitization Notes 2,300 — Capital lease obligations 162 169 5,400 3,370 Less debt issuance costs and discounts (46 ) (16 ) Less current maturities of long-term debt (30 ) (313 ) Long-term debt $ 5,324 $ 3,041

Financial Statement Presentat28

Financial Statement Presentation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Total Revenues	$ 3,008	$ 3,105	$ 5,627	$ 5,727
Operating Profit	491	371	1,055	877
KFC Global Division [Member]
Total Revenues	712	726	1,337	1,388
Operating Profit	149	149	309	315
KFC Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	32		52
Operating Profit	(3)		(6)
Pizza Hut Global Division [Member]
Total Revenues	246	266	511	538
Operating Profit	64	60	151	141
Pizza Hut Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	2		3
Operating Profit	(1)		(1)
Taco Bell Global Division [Member]
Total Revenues	463	477	889	909
Operating Profit	139	$ 140	258	$ 254
Taco Bell Global Division [Member] | Impact of India Integration into Other Brand Divisions [Member]
Total Revenues	1		2
Operating Profit	$ (1)		$ (1)

Financial Statement Presentat29

Financial Statement Presentation (Details 2)	6 Months Ended
	Jun. 11, 2016Monthsoperating_segmentsweeks
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Fiscal Period Weeks Standard | weeks	12
Number of periods or months in advance that certain of our international businesses close their books	1
Fiscal Period Weeks Standard Fourth Quarter | weeks	16
Number of Reportable Segments | operating_segments	4
Fiscal period months standard first quarter	2
Fiscal period months standard second and third quarters	3
Fiscal period months standard fourth quarter	4

Financial Statement Presentat30

Financial Statement Presentation (Details 3) - Accounting Standards Update 2015-03 [Member] $ in Millions	Dec. 26, 2015USD ($)
Decrease to Other Assets and Long-Term Debt from Restatement due to ASU 2015-03 [Member]
Debt Issuance Costs, Noncurrent, Net	$ 13
Decrease to Prepaid Expense & Other Current Assets and Short-Term Borrowings from Restatement due to ASU 2015-03 [Member]
Debt Issuance Costs, Current, Net	$ 1

Earnings Per Common Share ("E31

Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions		3 Months Ended		6 Months Ended
		Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Earnings Per Share [Abstract]
Net Income - YUM! Brands, Inc.		$ 339	$ 235	$ 730	$ 597
Weighted-average common shares outstanding (for basic calculation)		410	437	413	437
Effect of dilutive share-based employee compensation		7	8	7	9
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		417	445	420	446
Basic EPS		$ 0.82	$ 0.54	$ 1.77	$ 1.36
Diluted EPS		$ 0.81	$ 0.53	$ 1.74	$ 1.34
Unexercised employee stock options and stock appreciation rights (in millions) excluded from the diluted EPS computation	[1]	6.6	4.3	6.8	5.3
[1]	These unexercised employee stock options and stock appreciation rights were not included in the computation of diluted EPS because to do so would have been antidilutive for the periods presented.

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($) shares in Thousands, $ in Millions	6 Months Ended
	Jun. 11, 2016		Jun. 13, 2015
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	22,294	[1]	3,680	[2]
Dollar Value of Shares Repurchased	$ 1,664	[1]	$ 295	[2]
Remaining Dollar Value of Shares that may be Repurchased	3,697
Value of share repurchases with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.	$ 105		$ 8
Number of shares repurchased with trade dates prior to current reporting date but with settlement dates subsequent to the current reporting date.	1,300		100
November 2013 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	0		1,779
Dollar Value of Shares Repurchased	$ 0		$ 133
Remaining Dollar Value of Shares that may be Repurchased	$ 0
November 2014 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	0		1,901
Dollar Value of Shares Repurchased	$ 0		$ 162
Remaining Dollar Value of Shares that may be Repurchased	$ 0
December 2015 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	13,369		0
Dollar Value of Shares Repurchased	$ 933		$ 0
Remaining Dollar Value of Shares that may be Repurchased	$ 0
March 2016 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	2,823		0
Dollar Value of Shares Repurchased	$ 228		$ 0
Remaining Dollar Value of Shares that may be Repurchased	$ 0
May 2016 [Member]
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased	6,102		0
Dollar Value of Shares Repurchased	$ 503		$ 0
Remaining Dollar Value of Shares that may be Repurchased	3,697
Stock Repurchase Program, Authorized Amount	$ 4,200
[1]	Includes the effect of $105 million in share repurchases (1.3 million shares) with trade dates prior to June 11, 2016 but cash settlement dates subsequent to June 11, 2016.
[2]	Includes the effect of $8 million in share repurchases (0.1 million shares) with trade dates prior to June 13, 2015 but cash settlement dates subsequent to June 13, 2015.

Shareholders' Equity (Details 2

Shareholders' Equity (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			$ (239)
Other comprehensive income (loss), net of tax	$ 35	$ 114	(26)	$ 32
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(266)		(266)
Translation Adjustments and Gains (Losses) From Intra-Entity Transactions of a Long-Term Nature
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(109)
Gains (losses) arising during the year classified into accumulated OCI, net of tax	(33)
(Gains) losses reclassified from accumulated OCI, net of tax	0
Other comprehensive income (loss), net of tax	(33)
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(142)		(142)
Pension and Post-Retirement Benefits
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(113)
Gains (losses) arising during the year classified into accumulated OCI, net of tax	0
(Gains) losses reclassified from accumulated OCI, net of tax	4
Other comprehensive income (loss), net of tax	4
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(109)		(109)
Derivative Instruments
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(17)
Gains (losses) arising during the year classified into accumulated OCI, net of tax	(31)
(Gains) losses reclassified from accumulated OCI, net of tax	33
Other comprehensive income (loss), net of tax	2
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	(15)		(15)
Total
Schedule of changes in accumulated comprehensive income [Line Items]
Beginning Accumulated Other Comprehensive Income (Loss), Net of Tax			(239)
Gains (losses) arising during the year classified into accumulated OCI, net of tax	(64)
(Gains) losses reclassified from accumulated OCI, net of tax	37
Other comprehensive income (loss), net of tax	(27)
Ending Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (266)		$ (266)

Items Affecting Comparability34

Items Affecting Comparability of Net Income and Cash Flows (Details) $ in Millions	3 Months Ended			6 Months Ended
	Jun. 11, 2016USD ($)restaurants	Jun. 13, 2015USD ($)		Jun. 11, 2016USD ($)restaurants	Jun. 13, 2015USD ($)
Proceeds from refranchising of restaurants				$ 98	$ 29
Refranchising (gain) loss	$ (53)	$ 68		(60)	58
China Division [Member]
Refranchising (gain) loss	(1)	(2)		(4)	(4)
KFC Global Division [Member]
Refranchising (gain) loss	2	35	[1]	1	32	[1]
Pizza Hut Global Division [Member]
Refranchising (gain) loss	(54)	36	[1]	(56)	37	[1]
Taco Bell Global Division [Member]
Refranchising (gain) loss	0	(1)		$ (1)	(7)
MEXICO
Disposal Group, Including Discontinued Operation, Foreign Currency Translation (Gains) Losses					68
MEXICO | KFC Global Division [Member]
Disposal Group, Including Discontinued Operation, Foreign Currency Translation (Gains) Losses					(36)
MEXICO | Pizza Hut Global Division [Member]
Disposal Group, Including Discontinued Operation, Foreign Currency Translation (Gains) Losses					$ (32)
UNITED STATES
Proceeds from refranchising of restaurants	89
Refranchising (gain) loss	$ (53)
Refranchising (gain) loss | UNITED STATES
Number of Restaurants | restaurants	93			93
KOREA, REPUBLIC OF
Refranchising (gain) loss		$ 5
[1]	In 2010 we refranchised our then-remaining Company-operated restaurants in Mexico. To the extent we owned real estate related to these restaurants, we did not sell the real estate, but instead leased it to the franchisee. During the quarter ended June 13, 2015 we initiated plans to sell this real estate and determined it was held for sale in accordance with GAAP. The sales price we expected to receive for this real estate exceeded its book value. However, the sale of the real estate represented a substantial liquidation of our Mexican operations under GAAP. Accordingly, we were required to include accumulated translation losses associated with our Mexican business within our held for sale impairment evaluations. As such, we recorded a $68 million non-cash charge to Refranchising loss, consisting of losses of $36 million and $32 million related to KFC and Pizza Hut, respectively. The loss was not allocated to any segment for performance reporting. This loss represents the excess of the sum of the book value of the real estate and related assets, an insignificant amount of goodwill and our accumulated translation losses over the expected sales price. We subsequently sold this real estate in 2015.Additionally, during the quarter ended June 13, 2015, we recognized a charge within Refranchising (gain) loss of $5 million associated with the planned refranchising of our Company-owned Pizza Hut restaurants in Korea.

Items Affecting Comparability35

Items Affecting Comparability of Net Income and Cash Flows (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015	Dec. 26, 2015
Franchise and license expenses [Member] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement	$ 8	$ 8	$ 17	$ 10	$ 72
Franchise and license expenses [Member] | 2015 to 2017 [Domain] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement	125
Franchise and license expenses [Member] | 2016 [Domain] | Unallocated and General and administrative expenses [Domain]
Costs associated with KFC U.S. Acceleration Agreement			30
Incremental Advertising [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement	5	$ 3	9	$ 3	$ 10
Advertising [Domain] | 2015 to 2017 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement	$ 60
Advertising [Domain] | 2016 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement			20
Advertising [Domain] | 2017 [Domain] | KFC Global Division [Member]
Costs associated with KFC U.S. Acceleration Agreement			$ 30

Items Affecting Comparability36

Items Affecting Comparability of Net Income and Cash Flows (Details 3) - China Division [Member] $ in Millions	3 Months Ended	6 Months Ended	9 Months Ended
	Jun. 11, 2016USD ($)	Jun. 11, 2016USD ($)	Jun. 11, 2016USD ($)
Expected Costs Remaining Associated with Planned Spin-Off of China Business	$ 30	$ 30	$ 30
General and Administrative Expense [Member]
Costs Associated with Planned Spin-Off of China Business	$ 10	$ 19	$ 28

Other (Income) Expense (Details

Other (Income) Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Other Income and Expenses [Line Items]
Equity income from investments in unconsolidated affiliates	$ (10)	$ (7)	$ (26)	$ (16)
Foreign exchange net (gain) loss and other	(18)	1	(9)	7
Other (income) expense	$ (28)	$ (6)	$ (35)	$ (9)

Supplemental Balance Sheet In38

Supplemental Balance Sheet Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016USD ($)	Jun. 13, 2015USD ($)	Jun. 11, 2016USD ($)days	Jun. 13, 2015USD ($)	Dec. 26, 2015USD ($)
Accounts and Notes Receivable [Abstract]
Number of days from the period in which the corresponding sales occur that trade receivables are generally due | days			30
Accounts and notes receivable, gross	$ 413		$ 413		$ 393
Allowance for doubtful accounts	(18)		(18)		(16)
Accounts and notes receivable, net	395		395		$ 377
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance			58
Net Income (loss) - noncontrolling interests	(4)	$ 1	0	$ 0
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	58		58
Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Stockholders' Equity Attributable to Noncontrolling Interest, Beginning Balance			58
Net Income (loss) - noncontrolling interests			7
Noncontrolling interest loss upon redemption	0
Dividends declared			(7)
Currency translation adjustments and other			0
Stockholders' Equity Attributable to Noncontrolling Interest, Ending Balance	58		58
Redeemable Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Beginning Balance			6
Net Income (loss) - noncontrolling interests			1
Dividends declared			0
Currency translation adjustments and other			1
Redeemable Noncontrolling Interest, Equity, Common, Carrying Amount, Ending Balance	0		$ 0
Little Sheep | Redeemable Noncontrolling Interest [Member]
Noncontrolling Interest [Line Items]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners					7.00%
Payments for Repurchase of Redeemable Noncontrolling Interest	1
Noncontrolling interest loss upon redemption	$ (8)

Supplemental Balance Sheet In39

Supplemental Balance Sheet Information (Details 2) - USD ($) $ in Millions	Jun. 11, 2016	Dec. 26, 2015
Property, plant and equipment, gross	$ 7,795	$ 7,832
Accumulated depreciation and amortization	(3,699)	(3,643)
Property, plant and equipment, net	4,096	4,189
Prepaid expenses and other current assets [Member]
Disposal Group, Including Discontinued Operation, Assets, Current	$ 35	$ 28

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Effective Income Tax Rate - Federal Statutory Income Tax Rate, Percent	35.00%	35.00%	35.00%	35.00%
Income Tax And Effective Tax Rate [Abstract]
Income tax provision	$ 116	$ 102	$ 248	$ 213
Effective tax rate	25.80%	30.40%	25.40%	26.30%
MEXICO
Income Tax And Effective Tax Rate [Abstract]
Disposal Group, Including Discontinued Operation, Foreign Currency Translation (Gains) Losses				$ 68

Reportable Operating Segments41

Reportable Operating Segments (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended		9 Months Ended	12 Months Ended
		Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Dec. 26, 2015
Segment Reporting Information [Line Items]
Total Revenues		$ 3,008	$ 3,105	$ 5,627	$ 5,727
Operating Profit		491	371	1,055	877
Interest expense, net		(40)	(33)	(77)	(67)
Income Before Income Taxes		451	338	978	810
Equity income from investments in unconsolidated affiliates		10	7	26	16
China Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		1,588	1,636	2,891	2,892
Operating Profit	[1]	147	144	403	334
Equity income from investments in unconsolidated affiliates		10	7	26	16
KFC Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		712	726	1,337	1,388
Operating Profit		149	149	309	315
Pizza Hut Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		246	266	511	538
Operating Profit		64	60	151	141
Taco Bell Global Division [Member]
Segment Reporting Information [Line Items]
Total Revenues		463	477	889	909
Operating Profit		139	140	258	254
Unallocated and Corporate General and administrative expenses [Domain]
Segment Reporting Information [Line Items]
Operating Profit	[2]	(76)	(54)	(133)	(100)
Unallocated Other income (expense)
Segment Reporting Information [Line Items]
Operating Profit		15	0	7	(9)
Unallocated Refranchising gain (loss)
Segment Reporting Information [Line Items]
Operating Profit	[3]	53	(68)	60	(58)
Unallocated [Member]
Segment Reporting Information [Line Items]
Total Revenues		(1)	0	(1)	0
Franchise and license expenses [Member] | Unallocated and Corporate General and administrative expenses [Domain]
Segment Reporting Information [Line Items]
Costs associated with KFC U.S. Acceleration Agreement		8	$ 8	17	$ 10		$ 72
General and Administrative Expense [Member] | China Division [Member]
Segment Reporting Information [Line Items]
Costs Associated with Planned Spin-Off of China Business		$ 10		$ 19		$ 28
[1]	Includes equity income from investments in unconsolidated affiliates of $10 million and $7 million for the quarters ended June 11, 2016 and June 13, 2015, respectively. Includes equity income from investments in unconsolidated affiliates of $26 million and $16 million for the years to date ended June 11, 2016 and June 13, 2015, respectively.
[2]	Primarily Corporate G&A expenses for the quarters ended June 11, 2016 and June 13, 2015. Amounts also include costs associated with the KFC U.S. Acceleration Agreement of $8 million for both the quarters ended June 11, 2016 and June 13, 2015, respectively, and $17 million and $10 million for the years to date ended June 11, 2016 and June 13, 2015, respectively. Also included are $10 million and $19 million for the quarter and year to date ended June 11, 2016, respectively, related to the planned spin-off of the China business and YUM recapitalization. See Note 4.
[3]	See the Refranchising (Gain) Loss section of Note 4.

Pension Benefits (Details)

Pension Benefits (Details) - U.S. Pension Plans - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 4	$ 4	$ 8	$ 8
Interest cost	12	12	25	25
Expected return on plan assets	(15)	(14)	(30)	(28)
Amortization of net loss	2	11	3	21
Amortization of prior service cost	1	0	2	0
Net periodic benefit cost	$ 4	$ 13	$ 8	$ 26

Short-term Borrowings and Lon43

Short-term Borrowings and Long-term Debt (Details) $ in Millions	3 Months Ended
	Sep. 03, 2016USD ($)Rate	Jun. 11, 2016USD ($)YearsRate	Dec. 26, 2015USD ($)
Short-term Borrowings and Long-term Debt [Line Items]
Capital lease obligations		$ 162	$ 169
Long-term debt and capital less obligations, including current maturities and debt issuance costs		5,400	3,370
Less debt issuance costs		(46)	(16)
Less current maturities of long-term debt		(30)	(313)
Long-term debt		5,324	3,041
Other		9	9
Short-term borrowings		39	922
Prepaid expenses and other current assets [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Restricted Cash and Cash Equivalents, Current		51
Bridge Facility [Member] | Line of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Unsecured Short-Term Loan Credit Facility		0	600
Repayments of Lines of Credit		2,000
Variable Funding Notes [Member] | Line of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Revolving Credit Facility		0
Line of Credit Facility, Maximum Borrowing Capacity		$ 100
Long-term Debt, Contingent Payment of Principal or Interest		Following the anticipated repayment date and any extensions thereof, additional interest will accrue on the Variable Funding Notes equal to 5.00% per year
Long-term Debt, Maturities, Repayment Terms		subject to two additional one-year extensions at the option of the Issuer and further extensions as agreed between the Issuer and the Administrative Agent.
Line of Credit Facility, Expiration Date		May 1, 2021
Variable Funding Notes [Member] | Letter of Credit [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity		$ 50
Letters of Credit Outstanding, Amount		15
Unsecured Debt [Member] | Existing [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Senior Notes		2,200	2,500
Revolving Credit Facility		738	701
Repayments of Debt		300
Secured Debt [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Senior Notes		2,300	$ 0
Secured Debt [Member] | Class A-2 Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 2,300
Debt Instrument, Issuance Date		May 11, 2016
Debt Instrument, Payment Terms		no amortization of principal of the Class A-2 Notes is required prior to their anticipated repayment dates
Debt Instrument, Maturity Date		May 1, 2046
Debt Instrument, Frequency of Periodic Payment		quarterly
Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Long-term Debt, Contingent Payment of Principal or Interest		as of any quarterly measurement date the consolidated leverage ratio (the ratio of total debt to Net Cash Flow (as defined in the Indenture)) for the preceding four fiscal quarters of either the Company and its subsidiaries or the Issuer and its subsidiaries exceeds 5.0:1, in which case amortization payments of 1% per year of the outstanding principal as of the closing of the Securitization Notes is required
Debt Issuance Costs, Gross		$ 31
Debt Instrument, Covenant Compliance		We were in compliance with all of our debt covenant requirements at June 11, 2016
Secured Debt [Member] | Class A-2-I Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 800
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		3.832%
Long-term Debt, Anticipated Repayment Date | Years		4
Debt Instrument, Interest Rate, Effective Percentage | Rate		4.18%
Secured Debt [Member] | Class A-2-II Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 500
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		4.377%
Long-term Debt, Anticipated Repayment Date | Years		7
Debt Instrument, Interest Rate, Effective Percentage | Rate		4.59%
Secured Debt [Member] | Class A-2-III Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt		$ 1,000
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate		4.97%
Long-term Debt, Anticipated Repayment Date | Years		10
Debt Instrument, Interest Rate, Effective Percentage | Rate		5.14%
Subsequent Event [Member] | Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Issuance Date	Jun. 16, 2016
Debt Instrument, Frequency of Periodic Payment	semi-annually
Subsequent Event [Member] | Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes due 2024 [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 1,050
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate	5.00%
Debt Instrument, Maturity Date	Jun. 1, 2024
Subsequent Event [Member] | Unsecured Debt [Member] | Subsidiary Senior Unsecured Notes due 2026 [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Proceeds from Issuance of Debt	$ 1,050
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | Rate	5.25%
Debt Instrument, Maturity Date	Jun. 1, 2026
Subsequent Event [Member] | Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Issuance Date	Jun. 16, 2016
Debt Instrument, Payment Terms	The Credit Agreement is subject to certain mandatory prepayments, including an amount equal to 50% of excess cash flow (as defined in the Credit Agreement) on an annual basis and the proceeds of certain asset sales, casualty events and issuances of indebtedness, subject to customary exceptions and reinvestment rights
Debt Instrument, Frequency of Periodic Payment	quarterly
Subsequent Event [Member] | Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 2,000
Debt Instrument, Frequency of Periodic Payment	quarterly
Term Loan B, Repayment of Principal | Rate	0.25%
Line of Credit Facility, Expiration Date	Jun. 1, 2023
Subsequent Event [Member] | Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 500
Debt Instrument, Payment Terms	amortization payments beginning one full fiscal quarter after the first anniversary of the closing date
Debt Instrument, Frequency of Periodic Payment	quarterly
Term Loan A Facility, Repayments of Principal in Year Two and Three | Rate	1.25%
Term Loan A Facility, Repayments of Principal in Year Four | Rate	1.875%
Term Loan A, Repayments of Principal in Year Five | Rate	3.75%
Line of Credit Facility, Expiration Date	Jun. 1, 2021
Subsequent Event [Member] | Secured Debt [Member] | Revolving Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 1,000
Debt Service Coverage Ratio - Rapid Amortization Events [Member] | Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description		debt service coverage ratio of at least 1.1:1
Debt Service Coverage Ratio - Cash Trap Reserve Account [Member] | Secured Debt [Member] | Securitization Notes [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description		debt service coverage ratio (or the ratio of Net Cash Flow to all debt service payments for the preceding four fiscal quarters) of at least 1.75:1
Fixed Charge Coverage Ratio [Member] | Subsequent Event [Member] | Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description	fixed charge coverage ratio (defined as the ratio of earnings before interest, taxes, depreciation, amortization and rental expense minus capital expenditures to fixed charges (inclusive of rental expense and scheduled amortization)) of at least 1.5:1
Total Leverage Ratio [Member] | Subsequent Event [Member] | Secured Debt [Member] | the Credit Agreement [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Covenant Description	will require the Borrowers to maintain a total leverage ratio of 5.0:1 or less
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.75%
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Secured Debt [Member] | Term A Loan Facility Restricted Group [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.25%
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Minimum [Member] | Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.00%
London Interbank Offered Rate (LIBOR) [Member] | Subsequent Event [Member] | Maximum [Member] | Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	2.50%
Base Rate [Member] | Subsequent Event [Member] | Secured Debt [Member] | Term Loan B Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.75%
Base Rate [Member] | Subsequent Event [Member] | Secured Debt [Member] | Term A Loan Facility Restricted Group [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.25%
Base Rate [Member] | Subsequent Event [Member] | Minimum [Member] | Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.00%
Base Rate [Member] | Subsequent Event [Member] | Maximum [Member] | Secured Debt [Member] | Term Loan A Facility [Member]
Short-term Borrowings and Long-term Debt [Line Items]
Debt Instrument, Basis Spread on Variable Rate | Rate	1.50%

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 11, 2016	Jun. 13, 2015	Jun. 11, 2016	Jun. 13, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, carrying amount	$ 2,200		$ 2,200
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt obligations, excluding capital leases, estimate of fair value	2,200		2,200
Closures and impairment (income) expenses [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of Long-Lived Assets Held-for-use	$ 35	$ 17	$ 36	$ 18

Guarantees, Commitments and C45

Guarantees, Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 11, 2016USD ($)
Franchise lending program guarantee
Guarantor Obligations [Line Items]
Loss contingency, amount of guarantee	$ 19
Total loans outstanding	$ 53
Property Lease Guarantee [Member]
Guarantor Obligations [Line Items]
Year longest lease expires	2,065
Potential amount of undiscounted payments we could be required to make in the event of non-payment by the primary lessee	$ 550
Present value of potential payments we could be required to make in the event of non-payment by the primary lessee	$ 475

Guarantees, Commitments and C46

Guarantees, Commitments and Contingencies (Details 2) $ in Millions	6 Months Ended
	Jun. 11, 2016USD ($)claimsClasses
Loss Contingencies [Line Items]
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell for which plaintiffs sought certification | Classes	4
Taco Bell Wage and Hour Actions - Number of proposed classes concerning meals and rest breaks at Taco Bell which were rejected by the District Court | Classes	3
Taco Bell Wage and Hour Actions - Number of California Private Attorney General Act claims not dismissed | claims	1
Taco Bell Wage and Hour Actions - Amount awarded to plaintiffs for the underpaid meal premium class | $	$ 0.5
Taco Bell Wage and Hour Actions - Amount of prejudgement interest awarded to plaintiffs for the underpaid meal premium class | $	$ 0.3