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Revenue Recognition | 12 Months Ended
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Dec. 31, 2024
Revenue Recognition and Deferred Revenue [Abstract] |
Revenue from Contract with Customer | Revenue Recognition Disaggregation of Total Revenues The following tables disaggregate revenue by Concept, for our two most significant markets based on Operating Profit and for all other markets. We believe this disaggregation best reflects the extent to which the nature, amount, timing and uncertainty of our revenues and cash flows are impacted by economic factors.
|  | 2024
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 75 |  |  | $ | 1,154 |  |  | $ | 8 |  |  | $ | 588 |  |  | $ | 1,825 |
Franchise revenues |  | 194 |  |  | 899 |  |  | 289 |  |  | 7 |  |  | 1,389 |
Property revenues |  | 14 |  |  | 39 |  |  | 4 |  |  | 2 |  |  | 59 |
Franchise contributions for advertising and other services |  | 45 |  |  | 697 |  |  | 315 |  |  | 3 |  |  | 1,060 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 259 |  |  | 1 |  |  | 67 |  |  | — |  |  | 327 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 726 |  |  | 1 |  |  | — |  |  | — |  |  | 727 |
Franchise revenues |  | 1,172 |  |  | 58 |  |  | 261 |  |  | — |  |  | 1,491 |
Property revenues |  | 46 |  |  | — |  |  | 1 |  |  | — |  |  | 47 |
Franchise contributions for advertising and other services |  | 568 |  |  | 11 |  |  | 63 |  |  | — |  |  | 642 |
|  | $ | 3,099 |  |  | $ | 2,860 |  |  | $ | 1,008 |  |  | $ | 600 |  |  | $ | 7,567 |
Additionally, we recorded charges of $18 million to Unallocated Franchise revenues associated with the Turkey termination during the year ended December 31, 2024. See Note 5.
| 2023
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 67 |  |  | $ | 1,069 |  |  | $ | 14 |  |  | $ | 575 |  |  | $ | 1,725 |
Franchise revenues |  | 205 |  |  | 822 |  |  | 284 |  |  | 7 |  |  | 1,318 |
Property revenues |  | 14 |  |  | 42 |  |  | 4 |  |  | 2 |  |  | 62 |
Franchise contributions for advertising and other services |  | 36 |  |  | 645 |  |  | 318 |  |  | 2 |  |  | 1,001 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 250 |  |  | — |  |  | 66 |  |  | — |  |  | 316 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 417 |  |  | — |  |  | — |  |  | — |  |  | 417 |
Franchise revenues |  | 1,178 |  |  | 54 |  |  | 266 |  |  | — |  |  | 1,498 |
Property revenues |  | 51 |  |  | — |  |  | 2 |  |  | — |  |  | 53 |
Franchise contributions for advertising and other services |  | 612 |  |  | 9 |  |  | 65 |  |  | — |  |  | 686 |
|  | $ | 2,830 |  |  | $ | 2,641 |  |  | $ | 1,019 |  |  | $ | 586 |  |  | $ | 7,076 |
| 2022
|  | KFC Division |  | Taco Bell Division |  | Pizza Hut Division |  | Habit Burger & Grill Division |  | Total
U.S. |  |  |  |  |  |  |  |  |  |
Company sales |  | $ | 67 |  |  | $ | 1,002 |  |  | $ | 21 |  |  | $ | 558 |  |  | $ | 1,648 |
Franchise revenues |  | 202 |  |  | 745 |  |  | 280 |  |  | 6 |  |  | 1,233 |
Property revenues |  | 14 |  |  | 44 |  |  | 5 |  |  | 1 |  |  | 64 |
Franchise contributions for advertising and other services |  | 29 |  |  | 591 |  |  | 312 |  |  | 2 |  |  | 934 |
China |  |  |  |  |  |  |  |  |  |
Franchise revenues |  | 219 |  |  | — |  |  | 57 |  |  | — |  |  | 276 |
Other |  |  |  |  |  |  |  |  |  |
Company sales |  | 424 |  |  | — |  |  | — |  |  | — |  |  | 424 |
Franchise revenues |  | 1,152 |  |  | 48 |  |  | 263 |  |  | — |  |  | 1,463 |
Property revenues |  | 58 |  |  | — |  |  | 2 |  |  | — |  |  | 60 |
Franchise contributions for advertising and other services |  | 669 |  |  | 7 |  |  | 64 |  |  | — |  |  | 740 |
|  | $ | 2,834 |  |  | $ | 2,437 |  |  | $ | 1,004 |  |  | $ | 567 |  |  | $ | 6,842 |
Contract Liabilities Our contract liabilities are comprised of unamortized upfront fees received from franchisees and are presented within Accounts payable and other current liabilities and Other liabilities and deferred credits on our Consolidated Balance Sheet. A summary of significant changes to the contract liability balance during 2024 and 2023 is presented below.
|  | Deferred Franchise Fees
Balance at December 31, 2022 |  | $ | 434 |
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period |  | (81) |
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period |  | 101 |
Other(a) |  | (10) |
Balance at December 31, 2023 |  | $ | 444 |
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period |  | (82) |
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period |  | 85 |
Other(b) |  | (9) |
Balance at December 31, 2024 |  | $ | 438 |
(a) Includes impact of foreign currency translation and the recognition of deferred franchise fees into Refranchising (gain) loss upon the termination of existing franchise agreements when entering into master franchise agreements. (b) Primarily includes the settlement of a preexisting contractual relationship related to the KFC U.K. and Ireland restaurant acquisition (see Note 3) and the impact of foreign currency translation. We expect to recognize contract liabilities as revenue over the remaining term of the associated franchise agreement as follows:
Less than 1 year | $ | 73 |  |
1 - 2 years | 66 |  |
2 - 3 years | 59 |  |
3 - 4 years | 51 |  |
4 - 5 years | 44 |  |
Thereafter | 145 |  |
Total | $ | 438 |  |
We have applied the optional exemption, as provided for under Topic 606, which allows us to not disclose the transaction price allocated to unsatisfied performance obligations when the transaction price is a sales-based royalty.

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