v3.26.1
Revenue Recognition
 3 Months Ended
Mar. 31, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Liabilities
Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized franchise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2025 and March 31, 2026 (in millions):
Balance at December 31, 2025$517 
Recognized during period and included in the contract liability balance at the beginning of the year(16)
Increase, excluding amounts recognized as revenue during the period5 
Impact of foreign currency translation(3)
Balance at March 31, 2026$503 
The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of March 31, 2026 (in millions):
Remainder of 2026$40 
202751 
202848 
202945 
203043 
Thereafter276 
Total$503 

Disaggregation of Total Revenues
The following tables disaggregate revenue by segment (in millions). Totals in the following tables may not calculate exactly due to rounding.
Three Months Ended March 31, 2026
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$686 $— $— $— $— $— $— $686 
Company restaurant sales10 46 44 12 — 448 — 559 
Royalties78 120 68 20 222 — (20)488 
Property revenues146 56 3 — — — (7)198 
Franchise fees and other revenue9 2 3 9 12 — — 36 
Advertising revenues and other services69 140 72 20 18 — (21)297 
Total revenues$997 $365 $190 $60 $254 $448 $(48)$2,264 
(a)Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK and INTL from intersegment transactions with RH.
Three Months Ended March 31, 2025
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$611 $— $— $— $— $— $— $611 
Company restaurant sales10 59 46 11 — 432 — 558 
Royalties73 114 72 18 187 — (19)445 
Property revenues137 52 4 — 1 — (9)185 
Franchise fees and other revenue8 2 3 8 12 — — 33 
Advertising revenues and other services64 129 69 17 18 — (20)277 
Total revenues$903 $356 $194 $54 $218 $432 $(48)$2,109