Yum! Brands
30 named things its latest annual report says its results depend on, each in the company's own words. 18 of them are also named by other companies we've read.
Customers
Franchisees
earns from · 97%named as a riskThe vast majority (97%) of our restaurants are operated by our Concepts’ franchisees.Risk factors (Item 1A)
Yum China Holdings, Inc.
earns from · continuing fee of 3% on system salesnamed as a riskAs our largest master franchisee, Yum China, pays the Company a continuing fee of 3% on system sales of our Concepts in mainland China.Business (Item 1)
Suppliers
McLane Foodservice, Inc.
depends onnamed as a riskRSCS manages our relationship with McLane Foodservice, Inc. (“McLane”) which serves as the largest distributor for the Company’s KFC, Taco Bell and Pizza Hut Concepts in the U.S.Risk factors (Item 1A)
Restaurant Supply Chain Solutions, LLC (RSCS)
depends onnamed as a riskRSCS and McLane both have certain contractual rights to terminate the relevant distribution contract upon a specified notice period.Risk factors (Item 1A)
Partners and platforms
Third-party delivery aggregators
depends onnamed as a riskIf the third-party aggregators that we utilize for delivery, cease or curtail their operations, fail to maintain sufficient labor force to satisfy demand, provide poor customer service, materially change fees, access or visibility to our products, or give greater priority or promotions to our competitors, our business may be negatively impacted.Risk factors (Item 1A)
Also named by CMG
Alipay, WeChat Pay and Union Pay
depends onnamed as a riskYum China, our largest franchisee, utilizes third-party mobile payment apps such as Alipay, WeChat Pay and Union Pay as a means through which to generate sales and process payments.Risk factors (Item 1A)
Other companies
Pizza Hut strategic options review
named as a riskWe have initiated a process to explore strategic options for our Pizza Hut brand to maximize long-term value creation.Risk factors (Item 1A)
Places
China
concentrated in · over 17,000 units in mainland Chinanamed as a riskA meaningful portion of our total business, particularly with respect to our KFC Concept, is conducted in mainland China through our largest franchisee, Yum China.Risk factors (Item 1A)
Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more
India
subject tonamed as a riskFor example, we have been subject to a regulatory enforcement action in India alleging violation of foreign exchange laws for failure to satisfy conditions of certain operating approvals, such as minimum investment and store build requirements as well as limitations on the remittance of fees outside of the country (see Note 20).Risk factors (Item 1A)
Also named by A, AAPL, ACN, AJG, AKAM, AMZN, AOS, AVGO and 54 more
Middle East
operates innamed as a riskWe have been adversely affected in the past, and may in the future be adversely affected, by events such as increasing anti-American sentiment and instability and conflicts in the Middle East.Risk factors (Item 1A)
Also named by BKR, CAG, CINF, CPB, CTAS, FLS, GAIN, J and 10 more
Hazards
January 2023 ransomware attack
fewer than 300 restaurantsnamed as a riskSeveral separate putative class actions have been filed in U.S. federal and state court by current and/or former employees alleging violations of privacy and other rights in connection with the ransomware incident.Cybersecurity (Item 1C)
PFAS
named as a riskIn addition, the health and environmental risks of certain ubiquitous substances (including per-and polyfluoroalkyl substances (PFAS)) commonly found in packaging have been the subject of increased regulatory scrutiny and lawsuits against us and other restaurant companies.Risk factors (Item 1A)
Also named by ACHR, APG, CAG, CAVA, CTVA, DD, ES, FDX and 12 more
Avian flu
named as a riskPublic concern over avian flu may cause fear about the consumption of chicken, eggs and other poultry products derived from poultry, which could adversely affect us given that poultry is widely offered at our Concepts’ restaurants.Risk factors (Item 1A)
Commodities and inputs
Foreign currencies (Asia-Pacific, Europe, Americas)
exposed to its price · approximately $150 millionnamed as a riskFor the fiscal year ended December 31, 2025, Operating Profit would have decreased approximately $150 million if all foreign currencies had uniformly weakened 10% relative to the U.S. dollar.Market risk (Item 7A)
Also named by ADSK, BR, ENTG, EXPE, MGNI, MRNA, ON, SYK and 1 more
Chinese Renminbi
exposed to its pricenamed as a riskAny significant fluctuation in the value of currencies of countries in which we or our Concepts’ franchisees operate, particularly the RMB in China, could materially impact the U.S. dollar value of royalty payments made to us, which could result in lower revenues, could lead to increased costs and lower profitability to us or our Concepts’ franchisees and/or could cause us or our Concepts’ franchisees to increase prices to customers, which could negatively impact sales in these markets and harm our financial results.Risk factors (Item 1A)
Also named by AAOI, ALB, AOS, APD, BBW, BWA, CGNX, COHR and 15 more
Beef
exposed to its pricenamed as a riskWe have recently experienced an increase in the price of various raw materials (including beef) and other operating costs and expect to continue to experience an increase in the price of certain raw materials and operating costs, which has adversely affected, and may continue to adversely affect our results of operations.Risk factors (Item 1A)
Cheese
exposed to its pricenamed as a riskThe principal items purchased include chicken, cheese, beef and pork products, paper and packaging materials.Business (Item 1)
Chicken/poultry
exposed to its pricenamed as a riskAvian flu outbreaks could also adversely affect the price and availability of poultry, which could negatively impact our business.Risk factors (Item 1A)
Regulators
Federal Trade Commission (FTC)
subject tonamed as a riskThe FTC may seek enforcement action for violation of consumer protection laws including unfair or deceptive practices relating to privacy policies, consumer data collection and processing consent, and digital advertising practices.Risk factors (Item 1A)
Also named by AMZN, AN, AVGO, BJ, CART, CELH, CHD, CHE and 56 more
Internal Revenue Service (IRS)
subject tonamed as a riskWhile we disagree with the position of the IRS and are contesting it vigorously, an unfavorable resolution of this matter could have a material, adverse impact on our Consolidated Financial Statements in future periods.Risk factors (Item 1A)
Also named by AAPL, ABNB, ADI, AJG, AMGN, BBSI, BMNR, BRO and 39 more
National Labor Relations Board (NLRB)
subject tonamed as a riskIn this regard, while the joint employer rule issued by the National Labor Relations Board (“NLRB”) under the prior administration, which would have provided for more expansive joint employer standards, is no longer in effect after having been vacated in federal court in 2024, in the event that the NLRB or other governmental authority were to implement a similar joint employer standard in the future that was determined to be applicable to franchise relationships, this could cause us or our Concepts to be held responsible for unfair labor practices and other violations and could require us to engage in collective bargaining with representatives of the employees of our Concepts’ franchisees.Risk factors (Item 1A)
Also named by AZO, BBW, BBY, DKS, FDX, FDXF, ODFL, QSR and 3 more
Laws and programs
China Bulletin 7 indirect transfer tax
subject to · 10%named as a riskAs a result, our position could be challenged by the Chinese tax authorities resulting in a tax at a rate of 10% assessed on the difference between the fair market value and the tax basis of Yum China at the date of the spin-off.Risk factors (Item 1A)
U.S. tariffs
subject tonamed as a riskMoreover, while recent increases in tariffs by the U.S. and retaliatory measures by global trading partners have not had a significant impact on our aggregate supply costs, such trade developments have increased, and may continue to increase, the cost of certain products that we and our franchisors source, and may otherwise disrupt our supply chain.Risk factors (Item 1A)
Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more
EU Corporate Sustainability Reporting Directive
subject tonamed as a riskFurther, we and our Concepts’ franchisees are and may become subject to new or changing rules and regulations promulgated by governmental and self-regulatory organizations with respect to ESG matters, including reporting requirements under the EU’s Corporate Sustainability Reporting Directive which will be applicable to us.Risk factors (Item 1A)
Also named by AMAT, AVY, CBRE, FFIV, GNRC, HLT, IEX, INGR and 19 more
Payment Card Industry Data Security Standards
subject tonamed as a riskIf we or our Concepts’ franchisees fail to comply with the global Payment Card Industry Data Security Standards or fail to adequately control fraudulent credit card and debit card transactions, we or our Concepts’ franchisees may face civil liability, reputational damage, fines and assessments from the card brands, and significantly higher credit card and debit card related costs, any of which could adversely affect us.Risk factors (Item 1A)
Also named by BBY, CAVA, DG, DLTR, FND, HD, JKHY, KR and 2 more
Yum China Master License Agreement
earns fromnamed as a riskOur relationship with Yum China is governed primarily by the MLA, as amended from time to time, which may be terminated upon the occurrence of certain events, such as the insolvency or bankruptcy of Yum China.Risk factors (Item 1A)
California AB 1228
subject tonamed as a riskAB 1228 has increased, and is expected to continue to increase the operating costs for our Concepts’ restaurants in California, and may otherwise adversely impact and disrupt our operations in California.Risk factors (Item 1A)
U.S. Internal Revenue Code Sections 355 and 361
subject tonamed as a riskBecause the opinions are not binding on the IRS or the courts, there can be no assurance that the IRS or the courts will not prevail in any such challenge.Risk factors (Item 1A)
Technology
Byte by Yum!
depends on · approaching both $40 billion and 60% of overall system salesnamed as a riskIn 2025, our system restaurants generated digital sales approaching both $40 billion and 60% of overall system sales.Business (Item 1)