Yum China (YUMC) 10-Q 7 Jul 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	5 Months Ended
	May 31, 2017	Jun. 29, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	Yum China Holdings, Inc.
Entity Central Index Key	1,673,358
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Document Type	10-Q
Trading Symbol	YUMC
Amendment Flag	false
Document Period End Date	May 31, 2017
Entity Common Stock Shares Outstanding		383,336,203

Condensed Consolidated and Comb

Condensed Consolidated and Combined Statements of Income (Unaudited) - USD ($) $ in Millions		3 Months Ended		5 Months Ended
		May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Revenues
Company sales		$ 1,563	$ 1,558	$ 2,820	$ 2,836
Franchise fees and income		31	30	58	55
Total revenues		1,594	1,588	2,878	2,891
Costs and Expenses, Net
Food and paper		453	462	798	847
Payroll and employee benefits		358	342	615	587
Occupancy and other operating expenses		513	558	879	960
Company restaurant expenses		1,324	1,362	2,292	2,394
General and administrative expenses		107	104	174	170
Franchise expenses		15	17	28	31
Closures and impairment expenses, net		17	31	17	31
Refranchising gain, net		(1)	(1)	(2)	(4)
Other income, net		(11)	(12)	(28)	(27)
Total costs and expenses, net		1,451	1,501	2,481	2,595
Operating Profit		143	87	397	296
Interest income, net	[1]	5	2	7	4
Income Before Income Taxes		148	89	404	300
Income tax provision		(35)	(16)	(111)	(78)
Net income – including noncontrolling interests		113	73	293	222
Net income (loss) – noncontrolling interests		6	(4)	11
Net Income – Yum China Holdings, Inc.		$ 107	$ 77	$ 282	$ 222
Basic Earnings Per Common Share		$ 0.28	$ 0.21	$ 0.73	$ 0.61
Diluted Earnings Per Common Share		$ 0.27	$ 0.21	$ 0.71	$ 0.61
[1]	Amounts have not been allocated to any segment for performance reporting purposes.

Condensed Consolidated and Com3

Condensed Consolidated and Combined Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Statement Of Income And Comprehensive Income [Abstract]
Net income - including noncontrolling interests	$ 113	$ 73	$ 293	$ 222
Other comprehensive income, net of tax of nil:
Foreign currency gains (losses) arising during the period	13	(7)	35	(29)
Comprehensive income - including noncontrolling interests	126	66	328	193
Comprehensive income (loss) - noncontrolling interests	6	(3)	12	1
Comprehensive Income - Yum China Holdings, Inc.	$ 120	$ 69	$ 316	$ 192

Condensed Consolidated and Com4

Condensed Consolidated and Combined Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	5 Months Ended
	May 31, 2017	May 31, 2016
Cash Flows – Operating Activities
Net income - including noncontrolling interests	$ 293	$ 222
Depreciation and amortization	160	171
Closures and impairment expenses	17	31
Refranchising gain	(2)	(4)
Deferred income taxes	(1)	(29)
Equity income from investments in unconsolidated affiliates	(30)	(26)
Distributions of income received from unconsolidated affiliates	26	13
Share-based compensation expense	10	5
Changes in accounts receivable	3	(8)
Changes in inventories	7	(30)
Changes in prepaid expenses and other current assets	5
Changes in accounts payable and other current liabilities	7	35
Changes in income taxes payable	3	25
Other, net	(25)	18
Net Cash Provided by Operating Activities	473	423
Cash Flows – Investing Activities
Capital spending	(177)	(172)
Purchases of short-term investments	(229)	(54)
Proceeds from refranchising of restaurants	3	13
Acquisition of business, net of cash acquired	(25)
Other, net	(4)	(1)
Net Cash Used in Investing Activities	(432)	(214)
Cash Flows – Financing Activities
Net transfers to Parent		(118)
Payment of capital lease obligation	(1)	(1)
Repurchase of shares of common stock	(30)
Proceeds from exercise of stock options	4
Other, net	(16)
Net Cash Used in Financing Activities	(43)	(119)
Effect of Exchange Rates on Cash and Cash Equivalents	9	(7)
Net Increase in Cash and Cash Equivalents	7	83
Cash and Cash Equivalents - Beginning of Period	885	425
Cash and Cash Equivalents - End of Period	892	508
Supplemental Cash Flow Data
Cash paid for income tax	$ 115	$ 84

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 892	$ 885
Short-term investments	310	79
Accounts receivable, net	74	74
Inventories, net	266	268
Prepaid expenses and other current assets	150	120
Total Current Assets	1,692	1,426
Property, plant and equipment, net	1,617	1,647
Goodwill	103	79
Intangible assets, net	105	88
Investments in unconsolidated affiliates	51	71
Other assets	287	254
Deferred income taxes	166	162
Total Assets	4,021	3,727
Current Liabilities
Accounts payable and other current liabilities	966	971
Income taxes payable	36	33
Total Current Liabilities	1,002	1,004
Capital lease obligations	27	28
Other liabilities and deferred credits	260	252
Total Liabilities	1,289	1,284
Redeemable Noncontrolling Interest	5
Equity
Common stock, $0.01 par value; 1,000,000,000 shares authorized; 386,617,759.42 shares and 383,344,835.42 shares issued at May 31, 2017 and December 31, 2016, respectively; 384,760,471 shares and 383,344,835.42 shares outstanding at May 31, 2017 and December 31, 2016, respectively	4	4
Treasury stock	(59)	(20)
Additional paid-in capital	2,367	2,352
Retained earnings	322	40
Accumulated other comprehensive income	35	1
Total Equity – Yum China Holdings, Inc.	2,669	2,377
Noncontrolling interests	58	66
Total Equity	2,727	2,443
Total Liabilities, Redeemable Noncontrolling Interest and Equity	$ 4,021	$ 3,727

Condensed Consolidated Balance6

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	May 31, 2017	Dec. 31, 2016
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common stock, shares issued	386,617,759.42	383,344,835.42
Common stock, shares outstanding	384,760,471	383,344,835.42

Description of the Business

Description of the Business	5 Months Ended
	May 31, 2017
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Description of the Business	Note 1 – Description of the Business Yum China Holdings, Inc. (“Yum China” and, together with its subsidiaries, the “Company,” “we,” “us” and “our”) was incorporated in Delaware on April 1, 2016. The Company separated from Yum! Brands, Inc. (“YUM” or the “Parent”) on October 31, 2016 (the “separation”), becoming an independent publicly traded company as a result of a pro rata distribution (the “distribution”) of all outstanding shares of Yum China common stock to shareholders of YUM. On October 31, 2016, YUM’s shareholders of record as of 5:00 p.m. Eastern Time on October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. Yum China’s common stock began trading “regular way” under the ticker symbol “YUMC” on the New York Stock Exchange on November 1, 2016. The Company owns, franchises or has an ownership in entities that own and operate restaurants under the KFC, Pizza Hut Casual Dining, Pizza Hut Home Service, East Dawning, Little Sheep and Taco Bell concepts (collectively, the “Concepts”). In connection with the separation of the Company from YUM, Yum! Restaurants Asia Pte. Ltd., a wholly-owned indirect subsidiary of YUM, and Yum Restaurants Consulting (Shanghai) Company Limited (“YCCL”), a wholly-owned indirect subsidiary of Yum China, entered into a 50-year master license agreement with automatic renewals for additional consecutive renewal terms of 50 years each, subject only to YCCL being in “good standing” and unless YCCL gives notice of its intent not to renew, for the exclusive right to use and sub-license the use of intellectual property owned by YUM and its subsidiaries for the development and operation of the KFC, Pizza Hut and, subject to achieving certain agreed-upon milestones, Taco Bell brands and their related marks and other intellectual property rights for restaurant services in the People’s Republic of China excluding Hong Kong, Taiwan and Macau (the “PRC” or “China”). In exchange, we pay a license fee to YUM equal to 3% of net system sales from both our Company and franchise restaurants. We own the East Dawning and Little Sheep intellectual property and pay no license fee related to these concepts. During the quarter ended May 31, 2017, the Company completed the acquisition of a controlling interest in the holding company of DAOJIA.com.cn (“Daojia”), an established online food delivery service provider. The Company agreed to pay cash consideration of $36.7 million to the sellers and made a concurrent capital contribution of $25.0 million to Daojia. As of the completion of the acquisition, the Company held 90% of Daojia’s outstanding shares of common stock, or 80% of its equity interests on a fully-diluted basis. Daojia became an operating segment of the Company. The acquisition was considered immaterial. The operations of each Concept also represent an operating segment of the Company. In connection with the previously-announced plans to integrate the businesses of Pizza Hut Casual Dining and Pizza Hut Home Service, beginning with the quarter ended May 31, 2017, the two businesses were combined and reported together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. Our remaining operating segments, including the operations of East Dawning, Little Sheep, Taco Bell and Daojia, are combined and referred to as All Other Segments, as those operating segments are insignificant both individually and in the aggregate. Segment financial information for prior periods has been recast to align with this change in segment reporting. There was no impact to the consolidated and combined financial statements of the Company as a result of this change.

Basis of Presentation

Basis of Presentation	5 Months Ended
	May 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Note 2 – Basis of Presentation In connection with our separation from YUM, the direct and indirect equity interests of all of our operating subsidiaries and intermediate holding companies were transferred from YUM to Yum China, when Yum China was still one of YUM’s subsidiaries, through a series of transactions, which were completed in August 2016. The Company separated from YUM on October 31, 2016, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM. The financial statements presented herein represent (i) for periods prior to October 31, 2016, the combined financial statements of YUM’s China businesses and operations when Yum China was a wholly-owned subsidiary of YUM (referred to as “Condensed Combined Financial Statements”) and (ii) for periods subsequent to October 31, 2016, the consolidated financial statements of the Company as a separate publicly traded company following its separation from YUM (referred to as “Condensed Consolidated Financial Statements” and, together with the Condensed Combined Financial Statements, referred to as the “Condensed Consolidated and Combined Financial Statements”). Our preparation of the accompanying Condensed Consolidated and Combined Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying Condensed Combined Financial Statements have been prepared on a standalone basis and are derived from YUM’s consolidated financial statements and underlying accounting records. Transactions between the Company and YUM that were not cash settled were considered to be effectively settled at the time the transactions were recorded. The Condensed Combined Financial Statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The Condensed Combined Statements of Income include allocations for certain of YUM’s Corporate functions that provided a direct benefit to the Company. These costs have been allocated based on Company system sales relative to YUM’s global system sales. System sales includes the sales results of all restaurants regardless of ownership. All allocated costs have been deemed to have been paid to YUM in the period in which the costs were recorded. The Company considers the cost allocation methodology and results for the periods prior to October 31, 2016 to be reasonable. However, the allocations may not be indicative of the actual expense that would have been incurred had the Company operated as an independent publicly traded company for the periods prior to October 31, 2016. Upon the separation, Parent Company Investment was adjusted as a result of settlement of certain assets and liabilities with YUM and formed the Company’s common stock and additional paid-in capital. See Note 3 for further discussion. We have prepared the Condensed Consolidated and Combined Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated and Combined Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of May 31, 2017, and the results of our operations and comprehensive income for the quarters and years to date ended May 31, 2017 and 2016, and cash flows for the years to date ended May 31, 2017 and 2016. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Consolidated and Combined Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 8, 2017. Through the acquisition of Daojia, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb substantially all of the profits and all of the expected losses of the VIE. Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2015-11, Inventory (Topic 330) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. • The Company elected to continue to estimate the number of awards expected to be forfeited and adjust the estimate when appropriate, as is currently required. This adoption did not have a material impact on the Company’s consolidated results of operations, financial condition or cash flows. • The Company recorded an excess tax benefit of $5.9 million and $6.8 million within provision for income taxes for the quarter and year to date ended May 31, 2017, respectively, related to excess tax benefits on awards, on a prospective basis. Prior to adoption, the tax effect of share-based awards would have been recognized in additional paid-in capital. • Under ASU 2016-09, excess tax benefits from share-based arrangements are classified within cash flow from operating activities, rather than within cash flow from financing activities. The Company applied this provision on a retrospective basis and the prior period statement of cash flows was adjusted. This adoption did not have a material impact on the Company’s cash flows. • There was no material impact on the computation of weighted-average diluted shares outstanding. Certain comparative items in the Condensed Consolidated and Combined Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison. Our fiscal year ends on December 31. The Company operates on a fiscal monthly calendar, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.

Transactions with YUM

Transactions with YUM	5 Months Ended
	May 31, 2017
Related Party Transactions [Abstract]
Transactions with YUM	Note 3 – Transactions with YUM Prior to the separation, there existed a parent-subsidiary relationship between YUM and the Company. We had the following transactions with YUM for the quarter and year to date ended May 31, 2016: Allocation of Corporate Expenses Prior to October 31, 2016, YUM historically performed centralized corporate functions on our behalf. Accordingly, certain YUM costs have been allocated to the Company and reflected as expenses in the Condensed Combined Financial Statements. Management considers the allocation methodologies used to be reasonable and appropriate reflections of the historical expenses attributable to the Company. The expenses reflected in the Condensed Combined Financial Statements may not be indicative of the actual expenses that would have been incurred during the periods presented if we had operated as a separate, standalone entity. Corporate expense allocations primarily relate to centralized corporate functions, including finance, accounting, treasury, tax, legal, internal audit and risk management functions. In addition, corporate expense allocations include, among other costs, IT maintenance, professional fees for legal services and expenses related to litigation, investigations or similar matters. Corporate allocations of $3 million and $6 million were allocated to the Company during the quarter and year to date ended May 31, 2016, respectively, and have been included in general and administrative (“G&A”) expenses in the Condensed Combined Statements of Income. All of the corporate allocations of costs are deemed to have been incurred and settled through Parent Company Investment in the Condensed Combined Balance Sheets in the period where the costs were recorded. Following the separation from YUM, we perform these functions using our own resources or purchased services. License Fee The Condensed Combined Statements of Income include license fees that were historically paid to YUM comprised of initial fees and continuing fees equal to 3% of our Company and franchise sales prior to October 31, 2016. Total license fees paid during the quarter and year to date ended May 31, 2016 are reflected in the table below: Quarter ended Year to date ended 5/31/2016 5/31/2016 Initial fees - Company $ 2 $ 4 Initial fees - Franchise 1 1 Continuing Fees - Company 44 82 Continuing Fees - Franchise 12 22 Total $ 59 $ 109 Cash Management and Treasury The Company funds its operations through cash generated from the operation of its Company-owned stores, franchise operations and dividend payments from unconsolidated affiliates. Prior to October 31, 2016, excess cash was historically repatriated to YUM through intercompany loans or dividends. Transfers of cash both to and from YUM are included within Parent Company Investment in the Condensed Combined Balance Sheets. YUM has issued debt for general corporate purposes but in no case has any such debt been guaranteed or assumed by the Company or otherwise secured by the assets of the Company. As YUM’s debt and related interest is not directly attributable to the Company, no such amounts have been allocated to the Condensed Combined Financial Statements.

Earnings Per Common Share ("EPS

Earnings Per Common Share ("EPS")	5 Months Ended
	May 31, 2017
Earnings Per Share [Abstract]
Earning Per Common Share (EPS)	Note 4 – Earnings Per Common Share (“EPS”) On October 31, 2016, YUM’s shareholders of record as of October 19, 2016 received one share of Yum China common stock for every one share of YUM common stock held as of the record date. For periods ended October 31, 2016 and prior, basic and diluted earnings per share were computed using the number of shares of Yum China common stock outstanding as of October 31, 2016, the date on which Yum China common stock was distributed to YUM’s shareholders. The same number of shares was used to calculate basic and diluted earnings per share for the quarter and year to date ended May 31, 2016 since there were no dilutive securities until after the separation. The following table summarizes the components of basic and diluted earnings per share: Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Net Income – Yum China Holdings, Inc. $ 107 $ 77 $ 282 $ 222 Weighted-average common shares outstanding (for basic calculation) (a) 387,901,955 363,758,219 387,754,681 363,758,219 Effect of dilutive share-based employee compensation (a) 9,424,278 — 8,925,022 — Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 397,326,233 363,758,219 396,679,703 363,758,219 Basic Earnings Per Share $ 0.28 $ 0.21 $ 0.73 $ 0.61 Diluted Earnings Per Share $ 0.27 $ 0.21 $ 0.71 $ 0.61 Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation (b) 19,131,358 — 18,625,451 — (a) As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. (b) These unexercised employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity

Equity	5 Months Ended
	May 31, 2017
Stockholders Equity Note [Abstract]
Equity	Note 5 – Equity Changes in Equity and Redeemable Noncontrolling Interest Yum China Holdings, Inc. Accumulated Common Additional Other Redeemable Stock Paid-in Retained Comprehensive Treasury Stock Noncontrolling Total Noncontrolling Shares Amount Capital Earnings Income Shares Amount Interests Equity Interest Balance at December 31, 2016 383,344,835.42 $ 4 $ 2,352 $ 40 $ 1 (784,686.42 ) $ (20 ) $ 66 $ 2,443 $ — Net Income 282 11 293 Foreign currency translation gains 34 1 35 Comprehensive income 328 — Dividends declared (22 ) (22 ) Acquisition of Daojia 2 2 5 Repurchase of shares of common stock (1,072,602.00 ) (39 ) (39 ) Exercise and vesting of share-based awards 3,272,924.00 — 5 5 Share-based compensation 10 10 Balance at May 31, 2017 386,617,759.42 $ 4 $ 2,367 $ 322 $ 35 (1,857,288.42 ) $ (59 ) $ 58 $ 2,727 $ 5 Share Repurchase Program On February 7, 2017, we announced that our Board of Directors authorized a $300 million share repurchase program. Under this authorization, we repurchased shares of Yum China common stock during the year to date ended May 31, 2017 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 1,072,602 (a) $ 39 $ 261 (a) Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

Items Affecting Comparability o

Items Affecting Comparability of Net Income and Cash Flows	5 Months Ended
	May 31, 2017
Items Affecting Comparability Of Net Income And Cash Flows [Abstract]
Comparability of Prior Year Financial Data	Note 6 – Items Affecting Comparability of Net Income and Cash Flows Refranchising Gain, net The Refranchising gain, net by reportable segment and All Other Segments is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC $ — $ 1 $ 1 $ 4 Pizza Hut — — — — All Other Segments 1 — 1 — Total Company $ 1 $ 1 $ 2 $ 4 Store Closure and Impairment Activity Store closure income and Store impairment charges by reportable segment and All Other Segments are presented below: Quarter ended Year to date ended 5/31/2017 5/31/2017 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 3 $ 2 $ 1 $ — $ 5 $ 3 $ 2 $ — Store impairment charges (20 ) (10 ) (10 ) — (22 ) (12 ) (10 ) — Closure and impairment expenses $ (17 ) $ (8 ) $ (9 ) $ — $ (17 ) $ (9 ) $ (8 ) $ — Quarter ended Year to date ended 5/31/2016 5/31/2016 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 4 $ 2 $ 1 $ 1 $ 6 $ 4 $ 1 $ 1 Store impairment charges (35 ) (23 ) (11 ) (1 ) (37 ) (25 ) (11 ) (1 ) Closure and impairment expenses $ (31 ) $ (21 ) $ (10 ) $ — $ (31 ) $ (21 ) $ (10 ) $ — (a) Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at May 31, 2017 or December 31, 2016.

Other Income, Net

Other Income, Net	5 Months Ended
	May 31, 2017
Other Income And Expenses [Abstract]
Other Income, Net	Note 7 – Other Income, net Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Equity income from investments in unconsolidated affiliates $ 13 $ 10 $ 30 $ 26 Foreign exchange net (loss) gain and other (2 ) 2 (2 ) 1 Other income, net $ 11 $ 12 $ 28 $ 27

Supplemental Balance Sheet Info

Supplemental Balance Sheet Information	5 Months Ended
	May 31, 2017
Supplemental Balance Sheet Information Disclosure [Abstract]
Supplemental Balance Sheet Information	Note 8 – Supplemental Balance Sheet Information Accounts Receivable, net 5/31/2017 12/31/2016 Accounts receivable, gross $ 75 $ 76 Allowance for doubtful accounts (1 ) (2 ) Accounts receivable, net $ 74 $ 74 Prepaid Expenses and Other Current Assets 5/31/2017 12/31/2016 Prepaid rent $ 38 $ 39 Other prepaid expenses and current assets (a) 112 81 Prepaid expenses and other current assets $ 150 $ 120 (a) Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively. Property, Plant and Equipment 5/31/2017 12/31/2016 Buildings and improvements $ 2,100 $ 2,029 Capital leases, primarily buildings 29 29 Machinery and equipment 1,078 1,081 Property, plant and equipment, gross 3,207 3,139 Accumulated depreciation and amortization (1,590 ) (1,492 ) Property, plant and equipment, net $ 1,617 $ 1,647 Accounts Payable and Other Current Liabilities 5/31/2017 12/31/2016 Accounts payable $ 492 480 Accrued capital expenditures 89 132 Accrued compensation and benefits 168 191 Accrued taxes, other than income taxes 14 14 Dividends payable 5 — Other current liabilities 198 154 Accounts payable and other current liabilities $ 966 $ 971 Other Liabilities and Deferred Credits 5/31/2017 12/31/2016 Deferred escalating minimum rent $ 156 $ 153 Other noncurrent liabilities and deferred credits 104 99 Other liabilities and deferred credits $ 260 $ 252

Goodwill and Intangible Assets

Goodwill and Intangible Assets	5 Months Ended
	May 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 9 – Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: Total Company KFC Pizza Hut All Other Segments (a) Balance as of December 31, 2016 Goodwill, gross $ 461 $ 70 $ 9 $ 382 Accumulated impairment losses (382 ) — — (382 ) Goodwill, net 79 70 9 — Goodwill acquired and allocated 23 5 9 9 Effect of currency translation adjustment 1 1 — — Balance as of May 31, 2017 Goodwill, gross 485 76 18 391 Accumulated impairment losses (382 ) — — (382 ) Goodwill, net $ 103 $ 76 $ 18 $ 9 ( a ) Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment. Intangible assets, net as of May 31, 2017 and December 31, 2016 are as follows: 5/31/2017 12/31/2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights $ 95 $ (76 ) $ 19 $ 93 $ (71 ) $ 22 Daojia platform 16 — 16 — — — Customer-related assets 12 (4 ) 8 7 (4 ) 3 Other 19 (10 ) 9 19 (9 ) 10 $ 142 $ (90 ) $ 52 $ 119 $ (84 ) $ 35 Indefinite-lived intangible assets Little Sheep trademark $ 53 $ — $ 53 $ 53 $ — $ 53 Total intangible assets $ 195 $ (90 ) $ 105 $ 172 $ (84 ) $ 88 Amortization expense of definite-lived intangible assets was $3 million and $3 million for the quarters ended May 31, 2017 and 2016, respectively, and $5 million and $5 million for the years to date ended May 31, 2017 and 2016, respectively. As of May 31, 2017, expected amortization expense for the unamortized definite-lived intangible assets is approximately $9 million for the remainder of 2017, $16 million in 2018, $8 million in 2019, $4 million in 2020 and $4 million in 2021.

Fair Value Measurements

Fair Value Measurements	5 Months Ended
	May 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 10 – Fair Value Measurements As of May 31, 2017, 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. 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 May 31, 2017, we recorded restaurant-level impairment (Level 3) of $16 million and $18 million, respectively. During the quarter and year to date ended May 31, 2016, we recorded restaurant-level impairment (Level 3) of $33 million and $33 million, respectively. The remaining net book value of the assets measured at fair value as of May 31, 2017, subsequent to these impairments, was not significant.

Income Taxes

Income Taxes	5 Months Ended
	May 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 11 – Income Taxes Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Income tax provision $ 35 $ 16 $ 111 $ 78 Effective tax rate 22.9 % 18.6 % 27.4 % 26.2 % Our effective tax rate is generally lower than the U.S. federal statutory rate of 35% due to the majority of our income being earned in China where the tax rate is lower than the U.S. rate. Our quarter and year to date effective tax rates for the period ended May 31, 2017 were higher than the prior year primarily due to higher costs of repatriating current year foreign earnings.

Reportable Operating Segments

Reportable Operating Segments	5 Months Ended
	May 31, 2017
Segment Reporting [Abstract]
Reportable Operating Segments	Note 12 – Reportable Operating Segments During the second quarter of 2017, we integrated the businesses of Pizza Hut Casual Dining and Pizza Hut Home Service and began reporting them together as the Pizza Hut reportable segment. As a result, the Company has two reportable segments: KFC, which remains unchanged, and Pizza Hut. Our remaining operating segments, including the operations of East Dawning, Little Sheep, Taco Bell and Daojia, are combined and referred to as All Other Segments, as these operating segments are insignificant both individually and in the aggregate. Segment financial information for prior periods has been recast to align with this change in segment reporting. See Note 1. Quarter ended Year to date ended Revenues 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC $ 1,116 $ 1,107 $ 2,012 $ 2,028 Pizza Hut 468 466 847 833 All Other Segments 10 15 19 30 Total $ 1,594 $ 1,588 $ 2,878 $ 2,891 Quarter ended Year to date ended Operating Profit 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC (a) $ 154 $ 109 $ 361 $ 300 Pizza Hut 30 12 97 50 All Other Segments (2 ) (2 ) — (1 ) Unallocated and corporate expenses (b) (40 ) (37 ) (63 ) (61 ) Unallocated Other income (b) — 4 — 4 Unallocated Refranchising gain (b) 1 1 2 4 Operating Profit $ 143 $ 87 $ 397 $ 296 Interest income, net (b) 5 2 7 4 Income Before Income Taxes $ 148 $ 89 $ 404 $ 300 Identifiable Assets 5/31/2017 12/31/2016 KFC (c) $ 1,424 $ 1,411 Pizza Hut 667 628 All Other Segments 140 160 Corporate (d) 1,790 1,528 $ 4,021 $ 3,727 Long-Lived Assets (e) 5/31/2017 12/31/2016 KFC $ 1,093 $ 1,099 Pizza Hut 586 553 All Other Segments 112 129 Corporate 34 33 $ 1,825 $ 1,814 (a) Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively. (b) Amounts have not been allocated to any segment for performance reporting purposes. ( c ) Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively. ( d ) Primarily includes cash and inventories that are centrally managed. ( e ) Includes property, plant and equipment, net, goodwill, and intangible assets, net.

Contingencies

Contingencies	5 Months Ended
	May 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Contingencies	Note 13 – Contingencies Indemnification of China Tax on Indirect Transfers of Assets In February 2015, the Chinese State Administration of Taxation (“SAT”) issued Bulletin 7 on Income arising from Indirect Transfers of Assets by Non-Resident Enterprises. Pursuant to Bulletin 7, an “indirect transfer” of Chinese taxable assets, including equity interests in a Chinese resident enterprise, by a non-resident enterprise, may be recharacterized and treated as a direct transfer of Chinese taxable assets, if such arrangement does not have reasonable commercial purpose and the transferor has avoided payment of Chinese enterprise income tax. As a result, gains derived from such an indirect transfer may be subject to Chinese enterprise income tax at a rate of 10%. YUM concluded and we concurred that it is more likely than not that YUM will not be subject to this tax with respect to the distribution. However, given how recently Bulletin 7 was promulgated, there are significant uncertainties regarding what constitutes a reasonable commercial purpose, how the safe harbor provisions for group restructurings are to be interpreted and how the taxing authorities will ultimately view the distribution. As a result, YUM’s position could be challenged by Chinese tax authorities resulting in a 10% tax assessed on the difference between the fair market value and the tax basis of the separated China business. As YUM’s tax basis in the China business is minimal, the amount of such tax could be significant. Any tax liability arising from the application of Bulletin 7 to the distribution is expected to be settled in accordance with the tax matters agreement between the Company and YUM. Pursuant to the tax matters agreement, to the extent any Chinese indirect transfer tax pursuant to Bulletin 7 is imposed, such tax and related losses will be allocated between YUM and the Company in proportion to their respective share of the combined market capitalization of YUM and the Company during the thirty trading days after the separation. Such a settlement could be significant and have a material adverse effect on our results of operations and our financial condition. At the inception of the tax indemnity being provided to YUM, the fair value of the non-contingent obligation to stand ready to perform was insignificant and the liability for the contingent obligation to make payment was not probable or estimable. Guarantees From time to time we have guaranteed certain lines of credit and loans of franchisees and unconsolidated affiliates. As of May 31, 2017, we have provided guarantees of approximately $2 million on behalf of franchisees and no guarantees were outstanding for unconsolidated affiliates. The maximum guarantee exposure is approximately $2 million. Legal Proceedings From time to time, the Company is subject to various lawsuits covering a variety of allegations. The Company believes that the ultimate liability, if any, in excess of amounts already provided for these matters in the Condensed Consolidated and Combined Financial Statements, is not likely to have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Matters faced by the Company from time to time include, but are not limited to, claims from landlords, employees, customers and others related to operational, contractual or employment issues.

Basis of Presentation (Policies

Basis of Presentation (Policies)	5 Months Ended
	May 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation In connection with our separation from YUM, the direct and indirect equity interests of all of our operating subsidiaries and intermediate holding companies were transferred from YUM to Yum China, when Yum China was still one of YUM’s subsidiaries, through a series of transactions, which were completed in August 2016. The Company separated from YUM on October 31, 2016, becoming an independent publicly traded company as a result of a pro rata distribution of all outstanding shares of Yum China common stock to shareholders of YUM. The financial statements presented herein represent (i) for periods prior to October 31, 2016, the combined financial statements of YUM’s China businesses and operations when Yum China was a wholly-owned subsidiary of YUM (referred to as “Condensed Combined Financial Statements”) and (ii) for periods subsequent to October 31, 2016, the consolidated financial statements of the Company as a separate publicly traded company following its separation from YUM (referred to as “Condensed Consolidated Financial Statements” and, together with the Condensed Combined Financial Statements, referred to as the “Condensed Consolidated and Combined Financial Statements”). Our preparation of the accompanying Condensed Consolidated and Combined Financial Statements in conformity with Generally Accepted Accounting Principles in the United States of America (“GAAP”) requires us to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. The accompanying Condensed Combined Financial Statements have been prepared on a standalone basis and are derived from YUM’s consolidated financial statements and underlying accounting records. Transactions between the Company and YUM that were not cash settled were considered to be effectively settled at the time the transactions were recorded. The Condensed Combined Financial Statements include all revenues, costs, assets and liabilities directly attributable to the Company either through specific identification or allocation. The Condensed Combined Statements of Income include allocations for certain of YUM’s Corporate functions that provided a direct benefit to the Company. These costs have been allocated based on Company system sales relative to YUM’s global system sales. System sales includes the sales results of all restaurants regardless of ownership. All allocated costs have been deemed to have been paid to YUM in the period in which the costs were recorded. The Company considers the cost allocation methodology and results for the periods prior to October 31, 2016 to be reasonable. However, the allocations may not be indicative of the actual expense that would have been incurred had the Company operated as an independent publicly traded company for the periods prior to October 31, 2016. Upon the separation, Parent Company Investment was adjusted as a result of settlement of certain assets and liabilities with YUM and formed the Company’s common stock and additional paid-in capital. See Note 3 for further discussion. We have prepared the Condensed Consolidated and Combined Financial Statements in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The Condensed Consolidated and Combined Financial Statements include all normal and recurring adjustments considered necessary to present fairly our financial position as of May 31, 2017, and the results of our operations and comprehensive income for the quarters and years to date ended May 31, 2017 and 2016, and cash flows for the years to date ended May 31, 2017 and 2016. Our results of operations, comprehensive income and cash flows for these interim periods are not necessarily indicative of the results to be expected for the full year. These statements should be read in conjunction with the Consolidated and Combined Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K as filed with the SEC on March 8, 2017. Through the acquisition of Daojia, the Company also acquired a variable interest entity (“VIE”) and subsidiaries of the VIE effectively controlled by Daojia. There exists a parent-subsidiary relationship between Daojia and its VIE as a result of certain exclusive agreements that require Daojia to consolidate its VIE and subsidiaries of the VIE because Daojia is the primary beneficiary that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb substantially all of the profits and all of the expected losses of the VIE.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2015-11, Inventory (Topic 330) In March 2016, the FASB issued ASU No. 2016-09, Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. • The Company elected to continue to estimate the number of awards expected to be forfeited and adjust the estimate when appropriate, as is currently required. This adoption did not have a material impact on the Company’s consolidated results of operations, financial condition or cash flows. • The Company recorded an excess tax benefit of $5.9 million and $6.8 million within provision for income taxes for the quarter and year to date ended May 31, 2017, respectively, related to excess tax benefits on awards, on a prospective basis. Prior to adoption, the tax effect of share-based awards would have been recognized in additional paid-in capital. • Under ASU 2016-09, excess tax benefits from share-based arrangements are classified within cash flow from operating activities, rather than within cash flow from financing activities. The Company applied this provision on a retrospective basis and the prior period statement of cash flows was adjusted. This adoption did not have a material impact on the Company’s cash flows. • There was no material impact on the computation of weighted-average diluted shares outstanding. Certain comparative items in the Condensed Consolidated and Combined Financial Statements have been reclassified to conform to the current period’s presentation to facilitate comparison. Our fiscal year ends on December 31. The Company operates on a fiscal monthly calendar, with two months in the first quarter, three months in the second and third quarters and four months in the fourth quarter.

Transactions with YUM (Tables)

Transactions with YUM (Tables)	5 Months Ended
	May 31, 2017
Related Party Transactions [Abstract]
Schedule of License Fees Paid	Total license fees paid during the quarter and year to date ended May 31, 2016 are reflected in the table below: Quarter ended Year to date ended 5/31/2016 5/31/2016 Initial fees - Company $ 2 $ 4 Initial fees - Franchise 1 1 Continuing Fees - Company 44 82 Continuing Fees - Franchise 12 22 Total $ 59 $ 109

Earnings Per Common Share ("E22

Earnings Per Common Share ("EPS") (Tables)	5 Months Ended
	May 31, 2017
Earnings Per Share [Abstract]
Earnings Per Common Share	The following table summarizes the components of basic and diluted earnings per share: Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Net Income – Yum China Holdings, Inc. $ 107 $ 77 $ 282 $ 222 Weighted-average common shares outstanding (for basic calculation) (a) 387,901,955 363,758,219 387,754,681 363,758,219 Effect of dilutive share-based employee compensation (a) 9,424,278 — 8,925,022 — Weighted-average common and dilutive potential common shares outstanding (for diluted calculation) 397,326,233 363,758,219 396,679,703 363,758,219 Basic Earnings Per Share $ 0.28 $ 0.21 $ 0.73 $ 0.61 Diluted Earnings Per Share $ 0.27 $ 0.21 $ 0.71 $ 0.61 Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation (b) 19,131,358 — 18,625,451 — (a) As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect. (b) These unexercised employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity (Tables)

Equity (Tables)	5 Months Ended
	May 31, 2017
Stockholders Equity Note [Abstract]
Changes in Equity and Redeemable Noncontrolling Interest	Yum China Holdings, Inc. Accumulated Common Additional Other Redeemable Stock Paid-in Retained Comprehensive Treasury Stock Noncontrolling Total Noncontrolling Shares Amount Capital Earnings Income Shares Amount Interests Equity Interest Balance at December 31, 2016 383,344,835.42 $ 4 $ 2,352 $ 40 $ 1 (784,686.42 ) $ (20 ) $ 66 $ 2,443 $ — Net Income 282 11 293 Foreign currency translation gains 34 1 35 Comprehensive income 328 — Dividends declared (22 ) (22 ) Acquisition of Daojia 2 2 5 Repurchase of shares of common stock (1,072,602.00 ) (39 ) (39 ) Exercise and vesting of share-based awards 3,272,924.00 — 5 5 Share-based compensation 10 10 Balance at May 31, 2017 386,617,759.42 $ 4 $ 2,367 $ 322 $ 35 (1,857,288.42 ) $ (59 ) $ 58 $ 2,727 $ 5
Repurchase Of Shares Of Common Stock	Under this authorization, we repurchased shares of Yum China common stock during the year to date ended May 31, 2017 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 1,072,602 (a) $ 39 $ 261 (a) Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

Items Affecting Comparability24

Items Affecting Comparability of Net Income and Cash Flows (Tables)	5 Months Ended
	May 31, 2017
Refranchising Gain, Net [Member]
Facility Actions [Line Items]
Facility Actions	Refranchising Gain, net The Refranchising gain, net by reportable segment and All Other Segments is presented below. We do not allocate such gains and losses to our segments for performance reporting purposes. Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC $ — $ 1 $ 1 $ 4 Pizza Hut — — — — All Other Segments 1 — 1 — Total Company $ 1 $ 1 $ 2 $ 4
Closures and Impairment (Income) Expenses [Member]
Facility Actions [Line Items]
Facility Actions	Store Closure and Impairment Activity Store closure income and Store impairment charges by reportable segment and All Other Segments are presented below: Quarter ended Year to date ended 5/31/2017 5/31/2017 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 3 $ 2 $ 1 $ — $ 5 $ 3 $ 2 $ — Store impairment charges (20 ) (10 ) (10 ) — (22 ) (12 ) (10 ) — Closure and impairment expenses $ (17 ) $ (8 ) $ (9 ) $ — $ (17 ) $ (9 ) $ (8 ) $ — Quarter ended Year to date ended 5/31/2016 5/31/2016 Total Company KFC Pizza Hut All Other Segments Total Company KFC Pizza Hut All Other Segments Store closure income (a) $ 4 $ 2 $ 1 $ 1 $ 6 $ 4 $ 1 $ 1 Store impairment charges (35 ) (23 ) (11 ) (1 ) (37 ) (25 ) (11 ) (1 ) Closure and impairment expenses $ (31 ) $ (21 ) $ (10 ) $ — $ (31 ) $ (21 ) $ (10 ) $ — (a) Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at May 31, 2017 or December 31, 2016.

Other Income, Net (Tables)

Other Income, Net (Tables)	5 Months Ended
	May 31, 2017
Other Income And Expenses [Abstract]
Other Income, Net Table	Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Equity income from investments in unconsolidated affiliates $ 13 $ 10 $ 30 $ 26 Foreign exchange net (loss) gain and other (2 ) 2 (2 ) 1 Other income, net $ 11 $ 12 $ 28 $ 27

Supplemental Balance Sheet In26

Supplemental Balance Sheet Information (Tables)	5 Months Ended
	May 31, 2017
Supplemental Balance Sheet Information Disclosure [Abstract]
Accounts Receivable, Net	Accounts Receivable, net 5/31/2017 12/31/2016 Accounts receivable, gross $ 75 $ 76 Allowance for doubtful accounts (1 ) (2 ) Accounts receivable, net $ 74 $ 74
Prepaid Expenses and Other Current Assets	Prepaid Expenses and Other Current Assets 5/31/2017 12/31/2016 Prepaid rent $ 38 $ 39 Other prepaid expenses and current assets (a) 112 81 Prepaid expenses and other current assets $ 150 $ 120 (a) Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively.
Property, Plant and Equipment	Property, Plant and Equipment 5/31/2017 12/31/2016 Buildings and improvements $ 2,100 $ 2,029 Capital leases, primarily buildings 29 29 Machinery and equipment 1,078 1,081 Property, plant and equipment, gross 3,207 3,139 Accumulated depreciation and amortization (1,590 ) (1,492 ) Property, plant and equipment, net $ 1,617 $ 1,647
Accounts Payable and Other Current Liabilities	Accounts Payable and Other Current Liabilities 5/31/2017 12/31/2016 Accounts payable $ 492 480 Accrued capital expenditures 89 132 Accrued compensation and benefits 168 191 Accrued taxes, other than income taxes 14 14 Dividends payable 5 — Other current liabilities 198 154 Accounts payable and other current liabilities $ 966 $ 971
Other Liabilities and Deferred Credits	Other Liabilities and Deferred Credits 5/31/2017 12/31/2016 Deferred escalating minimum rent $ 156 $ 153 Other noncurrent liabilities and deferred credits 104 99 Other liabilities and deferred credits $ 260 $ 252

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	5 Months Ended
	May 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
Changes in the Carrying Amount of Goodwill	The changes in the carrying amount of goodwill are as follows: Total Company KFC Pizza Hut All Other Segments (a) Balance as of December 31, 2016 Goodwill, gross $ 461 $ 70 $ 9 $ 382 Accumulated impairment losses (382 ) — — (382 ) Goodwill, net 79 70 9 — Goodwill acquired and allocated 23 5 9 9 Effect of currency translation adjustment 1 1 — — Balance as of May 31, 2017 Goodwill, gross 485 76 18 391 Accumulated impairment losses (382 ) — — (382 ) Goodwill, net $ 103 $ 76 $ 18 $ 9 ( a ) Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment.
Schedule of Finite and Indefinite Lived Intangible Assets by Major Class	Intangible assets, net as of May 31, 2017 and December 31, 2016 are as follows: 5/31/2017 12/31/2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Definite-lived intangible assets Reacquired franchise rights $ 95 $ (76 ) $ 19 $ 93 $ (71 ) $ 22 Daojia platform 16 — 16 — — — Customer-related assets 12 (4 ) 8 7 (4 ) 3 Other 19 (10 ) 9 19 (9 ) 10 $ 142 $ (90 ) $ 52 $ 119 $ (84 ) $ 35 Indefinite-lived intangible assets Little Sheep trademark $ 53 $ — $ 53 $ 53 $ — $ 53 Total intangible assets $ 195 $ (90 ) $ 105 $ 172 $ (84 ) $ 88

Income Taxes (Tables)

Income Taxes (Tables)	5 Months Ended
	May 31, 2017
Income Tax Disclosure [Abstract]
Income Tax And Effective Tax Rate	Quarter ended Year to date ended 5/31/2017 5/31/2016 5/31/2017 5/31/2016 Income tax provision $ 35 $ 16 $ 111 $ 78 Effective tax rate 22.9 % 18.6 % 27.4 % 26.2 %

Reportable Operating Segments (

Reportable Operating Segments (Tables)	5 Months Ended
	May 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Quarter ended Year to date ended Revenues 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC $ 1,116 $ 1,107 $ 2,012 $ 2,028 Pizza Hut 468 466 847 833 All Other Segments 10 15 19 30 Total $ 1,594 $ 1,588 $ 2,878 $ 2,891 Quarter ended Year to date ended Operating Profit 5/31/2017 5/31/2016 5/31/2017 5/31/2016 KFC (a) $ 154 $ 109 $ 361 $ 300 Pizza Hut 30 12 97 50 All Other Segments (2 ) (2 ) — (1 ) Unallocated and corporate expenses (b) (40 ) (37 ) (63 ) (61 ) Unallocated Other income (b) — 4 — 4 Unallocated Refranchising gain (b) 1 1 2 4 Operating Profit $ 143 $ 87 $ 397 $ 296 Interest income, net (b) 5 2 7 4 Income Before Income Taxes $ 148 $ 89 $ 404 $ 300 Identifiable Assets 5/31/2017 12/31/2016 KFC (c) $ 1,424 $ 1,411 Pizza Hut 667 628 All Other Segments 140 160 Corporate (d) 1,790 1,528 $ 4,021 $ 3,727 Long-Lived Assets (e) 5/31/2017 12/31/2016 KFC $ 1,093 $ 1,099 Pizza Hut 586 553 All Other Segments 112 129 Corporate 34 33 $ 1,825 $ 1,814 (a) Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively. (b) Amounts have not been allocated to any segment for performance reporting purposes. ( c ) Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively. ( d ) Primarily includes cash and inventories that are centrally managed. ( e ) Includes property, plant and equipment, net, goodwill, and intangible assets, net.

Description of the Business - N

Description of the Business - Narrative (Details) $ in Millions	Oct. 31, 2016	May 31, 2017USD ($)Segment	May 31, 2017USD ($)Segment
Segment Reporting Information [Line Items]
Entity, date of incorporation			Apr. 1, 2016
Entity incorporation, state name			Delaware
Expiration term of master license agreement			50 years
Additional consecutive renewal terms of license agreement			50 years
Percentage of license fees on net sales			3.00%
Number of reportable segments | Segment		2	2
Daojia [Member]
Segment Reporting Information [Line Items]
Amount of cash consideration paid for the acquisition		$ 36.7
Percentage of outstanding shares of common stock acquired		90.00%	90.00%
Percentage of equity interest acquired on a fully-diluted basis		80.00%	80.00%
Additional capital		$ 25	$ 25
Yum Brands, Inc. [Member]
Segment Reporting Information [Line Items]
Exchange ratio of shares	1

Basis of Presentation - Narrati

Basis of Presentation - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended
	May 31, 2017	May 31, 2017
Accounting Policies [Abstract]
Excess tax benefit within provision for income taxes	$ 5.9	$ 6.8

Transactions With YUM (Details)

Transactions With YUM (Details) - USD ($) $ in Millions	3 Months Ended	5 Months Ended	10 Months Ended
	May 31, 2016	May 31, 2016	Oct. 31, 2016
Related Party Transaction [Line Items]
Percentage of initial fees and continuing fees to company and franchise sales			3.00%
General and administrative expenses [Member]
Related Party Transaction [Line Items]
Corporate expense allocations	$ 3	$ 6

Transactions With YUM (Details

Transactions With YUM (Details 2) - USD ($) $ in Millions	3 Months Ended	5 Months Ended
	May 31, 2016	May 31, 2016
Transactions With Parent [Abstract]
Initial fees - Company	$ 2	$ 4
Initial fees - Franchise	1	1
Continuing Fees - Company	44	82
Continuing Fees - Franchise	12	22
Total	$ 59	$ 109

Earnings Per Common Share ("E34

Earnings Per Common Share ("EPS") - Narrative (Details)	Oct. 31, 2016
Yum Brands, Inc. [Member]
Earnings Per Share [Line Items]
Exchange ratio of shares	1

Earnings Per Common Share ("E35

Earnings Per Common Share ("EPS") (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended		5 Months Ended
		May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Earnings Per Share [Abstract]
Net Income – Yum China Holdings, Inc.		$ 107	$ 77	$ 282	$ 222
Weighted-average common shares outstanding (for basic calculation)	[1]	387,901,955	363,758,219	387,754,681	363,758,219
Effect of dilutive share-based employee compensation	[1]	9,424,278		8,925,022
Weighted-average common and dilutive potential common shares outstanding (for diluted calculation)		397,326,233	363,758,219	396,679,703	363,758,219
Basic Earnings Per Share		$ 0.28	$ 0.21	$ 0.73	$ 0.61
Diluted Earnings Per Share		$ 0.27	$ 0.21	$ 0.71	$ 0.61
Employee stock options, stock appreciation rights and warrants excluded from the diluted EPS computation	[2]	19,131,358		18,625,451
[1]	As a result of the separation, shares of Yum China common stock were distributed to YUM’s shareholders of record as of October 19, 2016 and included in the calculated weighted-average common shares outstanding. Holders of outstanding YUM equity awards generally received both adjusted YUM awards and Yum China awards, or adjusted awards on shares of common stock of either YUM or Yum China in their entirety. Any subsequent exercise of these awards, whether held by the Company’s employees or YUM’s employees, would increase the number of common shares outstanding. The outstanding equity awards are included in the computation of diluted EPS, if there is dilutive effect.
[2]	These unexercised employee stock options, stock appreciation rights and warrants were not included in the computation of diluted EPS because to do so would have been antidilutive for the quarters and years to date presented.

Equity (Details)

Equity (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 2,443
Net Income	$ 113	$ 73	293	$ 222
Foreign currency translation gains	13	(7)	35	(29)
Comprehensive income	126	$ 66	328	$ 193
Balance at May 31, 2017	2,727		2,727
Common Stock [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 4
Balance (in shares) at Dec. 31, 2016			383,344,835.42
Exercise and vesting of share-based awards, shares			3,272,924
Balance at May 31, 2017	$ 4		$ 4
Balance (in shares) at May 31, 2017	386,617,759.42		386,617,759.42
Additional Paid-in Capital [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 2,352
Exercise and vesting of share-based awards			5
Share-based compensation			10
Balance at May 31, 2017	$ 2,367		2,367
Retained Earnings [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			40
Net Income			282
Balance at May 31, 2017	322		322
Accumulated Other Comprehensive Income [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			1
Foreign currency translation gains			34
Balance at May 31, 2017	35		35
Treasury Stock [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ (20)
Balance (in shares) at Dec. 31, 2016			(784,686.42)
Repurchase of shares of common stock			$ (39)
Repurchase of shares of common stock, shares			(1,072,602)
Balance at May 31, 2017	$ (59)		$ (59)
Balance (in shares) at May 31, 2017	(1,857,288.42)		(1,857,288.42)
Noncontrolling Interests [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			$ 66
Net Income			11
Foreign currency translation gains			1
Dividends declared			(22)
Acquisition of Daojia			2
Balance at May 31, 2017	$ 58		58
Total equity Including Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Balance at Dec. 31, 2016			2,443
Net Income			293
Foreign currency translation gains			35
Comprehensive income			328
Dividends declared			(22)
Acquisition of Daojia			2
Repurchase of shares of common stock			(39)
Exercise and vesting of share-based awards			5
Share-based compensation			10
Balance at May 31, 2017	2,727		2,727
Redeemable Noncontrolling Interest [Member]
Class Of Stock [Line Items]
Acquisition of Daojia			5
Balance at May 31, 2017	$ 5		$ 5

Equity - Narrative (Details)

Equity - Narrative (Details)	Feb. 07, 2017USD ($)
Equity [Abstract]
Stock repurchase program, authorized amount	$ 300,000,000

Equity (Details 1)

Equity (Details 1) - 2/7/2017 [Member] shares in Thousands, $ in Millions	5 Months Ended
	May 31, 2017USD ($)shares
Repurchase Of Shares Of Common Stock [Line Items]
Shares Repurchased | shares	1,072,602	[1]
Dollar Value of Shares Repurchased	$ 39
Remaining Dollar Value of Shares that may be Repurchased	$ 261
[1]	Includes 0.2 million shares repurchased for $9 million with trade dates prior to May 31, 2017 but cash settlement dates subsequent to May 31, 2017.

Equity (Parenthetical) (Details

Equity (Parenthetical) (Details 1) shares in Millions, $ in Millions	5 Months Ended
	May 31, 2017USD ($)shares
Stockholders Equity Note [Abstract]
Value of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter | $	$ 9
Number of shares repurchased with trade dates prior to the current reporting quarter, but settlement dates in the current quarter | shares	0.2

Items Affecting Comparability40

Items Affecting Comparability of Net Income and Cash Flows (Details 1) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Refranchising gain, net	$ 1	$ 1	$ 2	$ 4
KFC [Member]
Refranchising gain, net		$ 1	1	$ 4
All Other Segments [Member]
Refranchising gain, net	$ 1		$ 1

Items Affecting Comparability41

Items Affecting Comparability of Net Income and Cash Flows (Details 2) - USD ($) $ in Millions		3 Months Ended		5 Months Ended
		May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Facility Actions [Line Items]
Store closure income	[1]	$ 3	$ 4	$ 5	$ 6
Store impairment charges		(20)	(35)	(22)	(37)
Closure and impairment expenses		(17)	(31)	(17)	(31)
KFC [Member]
Facility Actions [Line Items]
Store closure income	[1]	2	2	3	4
Store impairment charges		(10)	(23)	(12)	(25)
Closure and impairment expenses		(8)	(21)	(9)	(21)
Pizza Hut [Member]
Facility Actions [Line Items]
Store closure income	[1]	1	1	2	1
Store impairment charges		(10)	(11)	(10)	(11)
Closure and impairment expenses		$ (9)	(10)	$ (8)	(10)
All Other Segments [Member]
Facility Actions [Line Items]
Store closure income	[1]		1		1
Store impairment charges			$ (1)		$ (1)
[1]	Store closure income include proceeds from forced store closures, lease reserves established when we cease using a property under an operating lease and subsequent adjustments to those reserves and other facility-related expenses from previously closed stores. Remaining lease obligations for closed stores were not material at May 31, 2017 or December 31, 2016.

Other Income, Net (Details)

Other Income, Net (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Other Income And Expenses [Abstract]
Equity income from investments in unconsolidated affiliates	$ 13	$ 10	$ 30	$ 26
Foreign exchange net (loss) gain and other	(2)	2	(2)	1
Other income, net	$ 11	$ 12	$ 28	$ 27

Supplemental Balance Sheet In43

Supplemental Balance Sheet Information (Details) - USD ($)		May 31, 2017	Dec. 31, 2016
Accounts Receivable, net
Accounts receivable, gross		$ 75,000,000	$ 76,000,000
Allowance for doubtful accounts		(1,000,000)	(2,000,000)
Accounts receivable, net		74,000,000	74,000,000
Prepaid Expenses and Other Current Assets
Prepaid rent		38,000,000	39,000,000
Other prepaid expenses and current assets	[1]	112,000,000	81,000,000
Prepaid expenses and other current assets		150,000,000	120,000,000
Accounts Payable and Other Current Liabilities
Accounts payable		492,000,000	480,000,000
Accrued capital expenditures		89,000,000	132,000,000
Accrued compensation and benefits		168,000,000	191,000,000
Accrued taxes, other than income taxes		14,000,000	14,000,000
Dividends payable		5,000,000
Other current liabilities		198,000,000	154,000,000
Accounts payable and other current liabilities		966,000,000	971,000,000
Other Liabilities and Deferred Credits
Deferred escalating minimum rent		156,000,000	153,000,000
Other noncurrent liabilities and deferred credits		104,000,000	99,000,000
Other liabilities and deferred credits		$ 260,000,000	$ 252,000,000
[1]	Includes receivables of $10 million and $16 million due from payment processors or aggregators as of May 31, 2017 and December 31, 2016, respectively.

Supplemental Balance Sheet In44

Supplemental Balance Sheet Information (Parenthetical) (Details) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Payment Processors or Aggregators [Member]
Supplemental Balance Sheet Information [Line Items]
Receivables due from third parties	$ 10	$ 16

Supplemental Balance Sheet In45

Supplemental Balance Sheet Information (Details 1) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 3,207	$ 3,139
Accumulated depreciation and amortization	(1,590)	(1,492)
Property, plant and equipment, net	1,617	1,647
Buildings and Improvements [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	2,100	2,029
Capital Leases, Primarily Buildings [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	29	29
Machinery and Equipment [Member]
Property Plant And Equipment [Line Items]
Property, plant and equipment, gross	$ 1,078	$ 1,081

Goodwill and Intangible Asset46

Goodwill and Intangible Assets (Details) - USD ($) $ in Millions		5 Months Ended
		May 31, 2017	Dec. 31, 2016
Goodwill [Line Items]
Goodwill, gross		$ 485	$ 461
Accumulated impairment losses		(382)	(382)
Goodwill, net		103	79
Goodwill acquired and allocated		23
Effect of currency translation adjustment		1
KFC [Member]
Goodwill [Line Items]
Goodwill, gross		76	70
Goodwill, net		76	70
Goodwill acquired and allocated		5
Effect of currency translation adjustment		1
Pizza Hut [Member]
Goodwill [Line Items]
Goodwill, gross		18	9
Goodwill, net		18	9
Goodwill acquired and allocated		9
All Other Segments [Member]
Goodwill [Line Items]
Goodwill, gross	[1]	391	382
Accumulated impairment losses	[1]	(382)	$ (382)
Goodwill, net	[1]	9
Goodwill acquired and allocated	[1]	$ 9
[1]	Goodwill, gross and Accumulated impairment losses as of December 31, 2016 represent Little Sheep goodwill and related impairment.

Goodwill and Intangible Asset47

Goodwill and Intangible Assets (Details 1) - USD ($) $ in Millions	May 31, 2017	Dec. 31, 2016
Definite-lived intangible assets
Gross Carrying Amount	$ 142	$ 119
Accumulated Amortization	(90)	(84)
Net Carrying Amount	52	35
Total intangible assets
Gross Carrying Amount	195	172
Intangible assets, net	105	88
Little Sheep trademark [Member]
Indefinite-lived intangible assets
Net Carrying Amount	53	53
Reacquired franchise rights [Member]
Definite-lived intangible assets
Gross Carrying Amount	95	93
Accumulated Amortization	(76)	(71)
Net Carrying Amount	19	22
Daojia platform [Member]
Definite-lived intangible assets
Gross Carrying Amount	16
Net Carrying Amount	16
Customer-related assets
Definite-lived intangible assets
Gross Carrying Amount	12	7
Accumulated Amortization	(4)	(4)
Net Carrying Amount	8	3
Other [Member]
Definite-lived intangible assets
Gross Carrying Amount	19	19
Accumulated Amortization	(10)	(9)
Net Carrying Amount	$ 9	$ 10

Goodwill and Intangible Asset48

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Definite-lived intangible assets
Definite-lived intangible assets, amortization expense	$ 3	$ 3	$ 5	$ 5
Expected amortization expense for the unamortized definite-lived intangible assets - remainder of 2017	9		9
Expected amortization expense for the unamortized definite-lived intangible assets - 2018	16		16
Expected amortization expense for the unamortized definite-lived intangible assets - 2019	8		8
Expected amortization expense for the unamortized definite-lived intangible assets - 2020	4		4
Expected amortization expense for the unamortized definite-lived intangible assets - 2021	$ 4		$ 4

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
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	$ 16	$ 33	$ 18	$ 33

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016
Income Tax Disclosure [Abstract]
Income tax provision	$ 35	$ 16	$ 111	$ 78
Effective tax rate	22.90%	18.60%	27.40%	26.20%
Effective Income Tax Rate - Federal Statutory Income Tax Rate, Percent			35.00%

Reportable Operating Segments -

Reportable Operating Segments - Narrative (Details) - Segment	3 Months Ended	5 Months Ended
	May 31, 2017	May 31, 2017
Segment Reporting [Abstract]
Number of reportable segments	2	2

Reportable Operating Segments52

Reportable Operating Segments (Details) - USD ($) $ in Millions		3 Months Ended		5 Months Ended
		May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Revenues		$ 1,594	$ 1,588	$ 2,878	$ 2,891
Operating Profit		143	87	397	296
Unallocated and corporate expenses	[1]	(40)	(37)	(63)	(61)
Unallocated Other income	[1]		4		4
Unallocated Refranchising gain	[1]	1	1	2	4
Interest income, net	[1]	5	2	7	4
Income Before Income Taxes		148	89	404	300
Identifiable Assets		4,021		4,021		$ 3,727
Long-Lived Assets	[2]	1,825		1,825		1,814
KFC [Member]
Segment Reporting Information [Line Items]
Revenues		1,116	1,107	2,012	2,028
Operating Profit	[3]	154	109	361	300
Identifiable Assets	[4]	1,424		1,424		1,411
Long-Lived Assets	[2]	1,093		1,093		1,099
Pizza Hut [Member]
Segment Reporting Information [Line Items]
Revenues		468	466	847	833
Operating Profit		30	12	97	50
Identifiable Assets		667		667		628
Long-Lived Assets	[2]	586		586		553
All Other Segments [Member]
Segment Reporting Information [Line Items]
Revenues		10	15	19	30
Operating Profit		(2)	$ (2)		$ (1)
Identifiable Assets		140		140		160
Long-Lived Assets	[2]	112		112		129
Corporate [Member]
Segment Reporting Information [Line Items]
Identifiable Assets	[5]	1,790		1,790		1,528
Long-Lived Assets	[2]	$ 34		$ 34		$ 33
[1]	Amounts have not been allocated to any segment for performance reporting purposes.
[2]	Includes property, plant and equipment, net, goodwill, and intangible assets, net.
[3]	Includes equity income from investments in unconsolidated affiliates of $13 million and $10 million for the quarters ended May 31, 2017 and 2016, respectively, and $30 million and $26 million for the years to date ended May 31, 2017 and 2016, respectively.
[4]	Includes investments in three unconsolidated affiliates totaling $51 million and $71 million for the quarter ended May 31, 2017 and the year ended December 31, 2016, respectively.
[5]	Primarily includes cash and inventories that are centrally managed.

Reportable Operating Segments53

Reportable Operating Segments (Parenthetical) (Details) - USD ($) $ in Millions	3 Months Ended		5 Months Ended
	May 31, 2017	May 31, 2016	May 31, 2017	May 31, 2016	Dec. 31, 2016
Segment Reporting [Abstract]
Equity income from investments in unconsolidated affiliates	$ 13	$ 10	$ 30	$ 26
Investments in unconsolidated affiliates	$ 51		$ 51		$ 71

Contingencies - Narrative (Deta

Contingencies - Narrative (Details) - USD ($)	1 Months Ended
	Feb. 28, 2015	May 31, 2017
Commitments And Contingencies Disclosure [Abstract]
Income tax rate on gains derived from indirect transfer of assets	10.00%
Percentage of tax assessed on difference between fair market value and tax basis	10.00%
Guaranteed line of credit and loans of franchisees		$ 2,000,000
Guarantees outstanding of unconsolidated affiliates		0
Maximum guarantee exposure		$ 2,000,000