v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Restaurant Information by Ownership Type
The following table presents restaurant information by ownership type:
Restaurants at December 31,202520242023
Conventional franchised22,570 22,077 21,818 
Developmental licensed9,675 9,247 8,684 
Foreign affiliated11,072 10,108 9,178 
    Total Franchised43,317 41,432 39,680 
    Company-owned and operated2,039 2,045 2,142 
        Total Systemwide restaurants45,356 43,477 41,822 
Activity in Goodwill by Segment
The following table presents the 2025 activity in goodwill:
In millionsU.S.International
Operated Markets		International Developmental
Licensed Markets &
Corporate		Consolidated
Balance at December 31, 2024$1,851 $1,132 $162 $3,145 
Net restaurant purchases (sales)(1)70 — 69 
Currency translation— 117 23 140 
Balance at December 31, 2025$1,850 $1,319 $185 $3,354 
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis
The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance:
December 31, 2025
In millions
Level 1 (1)
Level 2Total Carrying
Value
Investments$247 $247 
Derivative assets$— $131 $131 
Derivative liabilities$(145)$(145)
December 31, 2024
In millions
Level 1 (1)
Level 2 Total Carrying
Value
Investments$226 $226 
Derivative assets$135 $199 $334 
Derivative liabilities$(41)$(41)
(1)    Level 1 is comprised of derivatives and investments that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans.
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet
The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2025 and 2024:
  Derivative AssetsDerivative Liabilities
In millionsBalance Sheet Classification20252024Balance Sheet Classification20252024
Derivatives designated as hedging instruments
Foreign currency
Prepaid expenses and other current assets
$3 $125 
Accrued payroll and other liabilities
$(117)$(1)
Interest rate
Prepaid expenses and other current assets
— 34 
Accrued payroll and other liabilities
— (6)
Foreign currencyMiscellaneous other assets24 40 Other long-term liabilities(12)— 
Interest rateMiscellaneous other assets
— — Other long-term liabilities(16)(34)
Total derivatives designated as hedging instruments$27 $199  $(145)$(41)
Derivatives not designated as hedging instruments
EquityPrepaid expenses and other current assets$— $135 

EquityMiscellaneous other assets104 — 
Total derivatives not designated as hedging instruments$104 $135  $— $— 
Total derivatives$131 $334  $(145)$(41)
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income
The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 2025 and 2024, respectively:
Location of gain or loss
recognized in income on
derivative		Gain (loss)
recognized in
AOCI		Gain (loss) reclassified
into income from AOCI		Gain (loss) recognized in
income on derivative
In millions202520242025202420252024
Foreign currencyNonoperating income/expense$(165)$126 $(39)$(1)
Interest rateInterest expense(10)38 2 1 
Cash flow hedges$(175)$164 $(37)$— 
Foreign currency denominated debtNonoperating income/expense$(1,599)$891 
Foreign currency derivativesNonoperating income/expense(194)114 
Foreign currency derivatives(1)
Interest expense$59 $45 
Net investment hedges$(1,793)$1,005 $59 $45 
Foreign currencyNonoperating income/expense$(12)$(3)
EquitySelling, general & administrative expenses11 (9)
Undesignated derivatives$(1)$(12)
(1)The amount of gain (loss) recognized in income related to components excluded from effectiveness testing.