v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 30, 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 June 30, 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(31)
Increase, excluding amounts recognized as revenue during the period15 
Impact of foreign currency translation(5)
Balance at June 30, 2026$496 
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 June 30, 2026 (in millions):
Remainder of 2026$27 
202751 
202848 
202946 
203043 
Thereafter281 
Total$496 
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 June 30, 2026
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$788 $— $— $— $— $— $— $788 
Company restaurant sales11 44 46 12 — 505 — 617 
Royalties90 135 73 20 241 — (23)537 
Property revenues165 61 4 — — — (8)222 
Franchise fees and other revenue8 2 4 9 11 — — 34 
Advertising revenues and other services76 155 72 21 22 — (24)322 
Total revenues$1,137 $397 $199 $62 $274 $506 $(55)$2,520 
(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.
Six Months Ended June 30, 2026
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$1,474 $— $— $— $— $— $— $1,474 
Company restaurant sales20 90 90 23 — 953 — 1,176 
Royalties167 255 142 40 464 — (43)1,025 
Property revenues311 117 7 — 1 — (15)420 
Franchise fees and other revenue17 5 7 18 24 — — 70 
Advertising revenues and other services145 295 143 40 40 — (45)619 
Total revenues$2,134 $762 $389 $121 $528 $953 $(103)$4,784 

Three Months Ended June 30, 2025
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$732 $— $— $— $— $— $— $732 
Company restaurant sales12 61 46 11 — 469 — 600 
Royalties89 124 76 19 213 — (21)500 
Property revenues166 55 4 — — — (6)219 
Franchise fees and other revenue7 3 7 9 15 — — 41 
Advertising revenues and other services78 144 77 20 21 — (22)318 
Total revenues$1,083 $388 $210 $59 $250 $469 $(49)$2,410 

Six Months Ended June 30, 2025
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$1,343 $— $— $— $— $— $— $1,343 
Company restaurant sales22 121 93 22 — 901 — 1,158 
Royalties162 238 148 37 400 — (40)945 
Property revenues303 107 7 — 1 — (15)404 
Franchise fees and other revenue15 5 9 17 27 — — 74 
Advertising revenues and other services142 273 147 36 40 — (42)595 
Total revenues$1,987 $744 $404 $113 $468 $901 $(97)$4,519