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Revenue Recognition Accounting Policy
 6 Months Ended
Jun. 30, 2025
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue Recognition 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.
Quarter ended 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$24 $285 $7 $130 $446 
Franchise revenues43 225 63 2 332 
Property revenues3 8 1 1 13 
Franchise contributions for advertising and other services11 173 67 1 252 
China
Franchise revenues65 — 17 — 82 
Other
Company sales222 2 — — 224 
Franchise revenues315 15 67 — 397 
Property revenues11 — — — 11 
Franchise contributions for advertising and other services156 3 17 — 177 
$849 $711 $239 $134 $1,933 


Quarter ended 6/30/2024
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$14 $268 $2 $139 $423 
Franchise revenues47 209 66 2 324 
Property revenues3 10 1 — 14 
Franchise contributions for advertising and other services10 161 73 — 244 
China
Franchise revenues62 — 17 — 79 
Other
Company sales149 — — — 149 
Franchise revenues282 15 63 — 360 
Property revenues11 — 1 — 12 
Franchise contributions for advertising and other services139 3 16 — 158 
$717 $666 $239 $141 $1,763 
Year to date 6/30/2025
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$47 $546 $10 $255 $858 
Franchise revenues85 436 126 4 650 
Property revenues6 17 2 2 27 
Franchise contributions for advertising and other services20 330 136 1 488 
China
Franchise revenues134 — 34 — 168 
Other
Company sales415 4 — — 419 
Franchise revenues598 29 128 — 755 
Property revenues21 — 1 — 22 
Franchise contributions for advertising and other services296 6 33 — 335 
$1,622 $1,368 $470 $262 $3,721 
(a)

(a)    Does not include a charge of $1 million to Unallocated Franchise revenues during the year to date ended June 30, 2025.

Year to date 6/30/2024
KFC DivisionTaco Bell DivisionPizza Hut Division
Habit Burger & Grill Division
Total
U.S.
Company sales$28 $508 $4 $266 $806 
Franchise revenues90 397 134 3 624 
Property revenues6 19 2 1 28 
Franchise contributions for advertising and other services20 307 146 1 474 
China
Franchise revenues130 — 34 — 164 
Other
Company sales240 — — — 240 
Franchise revenues554 28 125 — 707 
Property revenues22 — 1 — 23 
Franchise contributions for advertising and other services259 5 31 — 295 
$1,349 $1,264 $477 $271 $3,361 
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 in our Condensed Consolidated Balance Sheets. A summary of significant changes to the contract liability balance during 2025 is presented below.
Deferred Franchise Fees
Balance at December 31, 2024
$438 
Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period(43)
Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period33 
Other(a)
6 
Balance at June 30, 2025
$435 

(a)    Primarily includes 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 years65 
2 - 3 years59 
3 - 4 years51 
4 - 5 years44 
Thereafter143 
Total$435