On January 8, 2025, the company terminated its franchise agreement with IS Gida A.S. in Turkey. The company said 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey were closed during Q1, and net units declined by 460.

10-QQuarterly reportFiled May 7, 2025Period of report Mar 31, 2025Summary published (UTC) Oct 10, 2026

Key points

AI summary

On January 8, 2025, the company terminated its franchise agreement with IS Gida A.S. in Turkey. The company said 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey were closed during Q1, and net units declined by 460.
Net cash provided by operating activities was $404 million in Q1 2025 versus $363 million in 2024. The company said investing activities generated $2 million and financing activities used $443 million, citing higher share repurchases as a factor in the financing activity change.
The company said it recorded $17 million in general and administrative expenses related to its resource optimization program in Q1 2025 (compared with $21 million in Q1 2024) and approximately $7 million associated with designating 2 U.S. brand headquarters, both reflected as Special Items.
As of March 31, 2025, the company said approximately 82% of its total debt of $11.0 billion, excluding the Revolving Facility, finance leases and debt issuance costs and discounts, is fixed, and the consolidated net leverage ratio at quarter end was 3.9x EBITDA. After quarter end, the company entered into interest rate swaps for $1.5 billion, bringing the fixed-rate portion to 96%.

Key figures

Quarter ended March 31, 2025

Revenue: $1.8B
Operating income: $548M
Net income: $253M
EPS: $0.90
Operating cash flow: $404M

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

Turkey Franchise Agreement Termination and Net Unit Decline

On January 8, 2025, the company terminated its franchise agreement with IS Gida A.S. in Turkey. The company said 283 KFC restaurants and 254 Pizza Hut restaurants in Turkey were closed during Q1, and net units declined by 460.

Source · Based on the MD&A text of the filing

Q1 Operating, Investing and Financing Cash Flows

Net cash provided by operating activities was $404 million in Q1 2025 versus $363 million in 2024. The company said investing activities generated $2 million and financing activities used $443 million, citing higher share repurchases as a factor in the financing activity change.

Source · Based on the MD&A text of the filing

Special Items: Resource Optimization and Brand Headquarters Consolidation Charges

The company said it recorded $17 million in general and administrative expenses related to its resource optimization program in Q1 2025 (compared with $21 million in Q1 2024) and approximately $7 million associated with designating 2 U.S. brand headquarters, both reflected as Special Items.

Source · Based on the MD&A text of the filing

Debt and Consolidated Net Leverage Ratio

As of March 31, 2025, the company said approximately 82% of its total debt of $11.0 billion, excluding the Revolving Facility, finance leases and debt issuance costs and discounts, is fixed, and the consolidated net leverage ratio at quarter end was 3.9x EBITDA. After quarter end, the company entered into interest rate swaps for $1.5 billion, bringing the fixed-rate portion to 96%.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

The filing as submitted to SEC EDGAR. You can check the figures and statements of this summary against it.

View the original filing on SEC EDGAR ↗

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