XML 34 R14.htm IDEA: XBRL DOCUMENT v3.25.0.1
Revenue Recognition
 12 Months Ended
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 DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
U.S.
Company sales$75 $1,154 $8 $588 $1,825 
Franchise revenues194 899 289 7 1,389 
Property revenues14 39 4 2 59 
Franchise contributions for advertising and other services45 697 315 3 1,060 
China
Franchise revenues259 1 67 — 327 
Other
Company sales726 1 — — 727 
Franchise revenues1,172 58 261 — 1,491 
Property revenues46 — 1 — 47 
Franchise contributions for advertising and other services568 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 DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
U.S.
Company sales$67 $1,069 $14 $575 $1,725 
Franchise revenues205 822 284 7 1,318 
Property revenues14 42 4 2 62 
Franchise contributions for advertising and other services36 645 318 2 1,001 
China
Franchise revenues250 — 66 — 316 
Other
Company sales417 — — — 417 
Franchise revenues1,178 54 266 — 1,498 
Property revenues51 — 2 — 53 
Franchise contributions for advertising and other services612 9 65 — 686 
$2,830 $2,641 $1,019 $586 $7,076 
2022
KFC DivisionTaco Bell DivisionPizza Hut DivisionHabit Burger & Grill DivisionTotal
U.S.
Company sales$67 $1,002 $21 $558 $1,648 
Franchise revenues202 745 280 6 1,233 
Property revenues14 44 5 1 64 
Franchise contributions for advertising and other services29 591 312 2 934 
China
Franchise revenues219 — 57 — 276 
Other
Company sales424 — — — 424 
Franchise revenues1,152 48 263 — 1,463 
Property revenues58 — 2 — 60 
Franchise contributions for advertising and other services669 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 period101 
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 period85 
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 years66 
2 - 3 years59 
3 - 4 years51 
4 - 5 years44 
Thereafter145 
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.