Gross unit openings for the quarter were 751 units. However, net units declined by 460, primarily driven by unit closures in Turkey following the termination of franchise agreements with IS Gida A.S.

System sales growth, excluding FX, was positive across all divisions except Pizza Hut, which declined by 3%. Taco Bell and KFC divisions showed the strongest growth at 11% and 5%, respectively.

The company recorded charges of approximately $7 million to General and administrative expenses associated with our decision to designate two brand headquarters in the U.S., located in Plano, Texas and Irvine, California, to foster greater collaboration among brands and employees.

The company recorded charges of $17 million related to a resource optimization program. This program aims to reallocate resources to accelerate digital, technology, and innovation capabilities and improve unit economics.

The company terminated franchise agreements with IS Gida A.S. in Turkey due to the franchisee's failure to meet standards, resulting in the closure of 537 restaurants. This demonstrates management's commitment to maintaining brand standards.

Subsequent to the end of the first quarter, the company entered into interest rate swaps to fix the interest rate on $1.5 billion of borrowings, primarily under our Term Loan B Facility, which increased the fixed percentage of total debt outstanding to 96%.

The IRS is asserting an underpayment of tax of $2.1 billion plus $418 million in penalties for the 2014 fiscal year, related to a series of reorganizations. The company intends to contest this position vigorously.

Yum! Restaurants India Private Limited is subject to a regulatory enforcement action in India, with a potential penalty of approximately $130 million. The company is contesting the action and does not consider the risk of significant loss to be probable.

The SEC issued a final rule on climate-related disclosures, but it has been stayed pending judicial review. The company is analyzing the impact of the rule on its disclosures should the stay be lifted.

Same-store sales growth varied significantly by division, with Taco Bell showing strong growth of 9% and Pizza Hut declining by 2%. This indicates varying competitive dynamics across different brands.

Company restaurant margin also varied by division, with Pizza Hut showing a negative margin of (6.1)%. This indicates varying competitive dynamics across different brands.

The KFC U.K. and Ireland restaurant acquisition has impacted the KFC Division's company sales and company restaurant margin. The quarterly increase in Company sales, excluding the impacts of foreign currency translation, was driven by the KFC U.K. and Ireland restaurant acquisition.

The quarterly increase in G&A, excluding the impacts of foreign currency translation, was driven by decreased legal costs and lower headcount and salaries partially offset by higher digital and technology expenses.

The resource optimization program continues to be a focus, with charges of $17 million recorded. This program aims to reallocate resources to accelerate digital, technology, and innovation capabilities and improve unit economics.

The company recorded charges of approximately $7 million to General and administrative expenses associated with our decision to designate two brand headquarters in the U.S., located in Plano, Texas and Irvine, California, to foster greater collaboration among brands and employees.

The resource optimization program is aimed at reallocating resources to accelerate digital, technology, and innovation capabilities, indicating a strategic focus on these areas.

The quarterly increase in G&A, excluding the impacts of foreign currency translation, was driven by decreased legal costs and lower headcount and salaries partially offset by higher digital and technology expenses.

While the resource optimization program aims to improve digital and technology capabilities, the filing lacks specific details on ongoing or planned technology initiatives.

The company repurchased shares of Common Stock during the quarter, and as of March 31, 2025, has remaining capacity to repurchase up to $1.4 billion under the May 2024 authorization.

Net cash provided by investing activities was $2 million in 2025 versus $45 million in 2024. The change was primarily driven by higher current year capital spending.

The company ended the quarter with a consolidated net leverage ratio of 3.9x EBITDA and targets a capital structure that provides an attractive balance between optimized interest rates, duration and flexibility with diversified sources of liquidity and maturities spread over multiple years.

The 10-Q filing provides limited information on specific ESG initiatives or progress. The MD&A mentions a commitment to social responsibility, risk management, and sustainable stewardship of people, food, and planet.

The SEC issued a final rule on climate-related disclosures, but it has been stayed pending judicial review. The company is analyzing the impact of the rule on its disclosures should the stay be lifted.

The filing does not include specific ESG targets or metrics, making it difficult to assess the company's progress in these areas.

Foreign currency translation unfavorably impacted Divisional Operating Profit by $11 million and negatively impacted diluted EPS, excluding Special Items, by approximately $0.03.

The quarterly restaurant margin percentage decrease was driven by lower margins associated with new builds outside the U.S., commodity inflation and higher labor and other restaurant operating costs partially offset by same-store sales growth.

Net units declined by 460 for the quarter, primarily driven by unit closures in Turkey following the termination of franchise agreements with IS Gida A.S.