v3.26.3
Revenue Recognition
 9 Months Ended
Sep. 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 September 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(45)
Increase, excluding amounts recognized as revenue during the period29 
Impact of foreign currency translation(7)
Balance at September 30, 2026$494 
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 September 30, 2026 (in millions):
Remainder of 2026$14 
202752 
202849 
202946 
203044 
Thereafter289 
Total$494 

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 September 30, 2026
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$780 $— $— $— $— $— $— $780 
Company restaurant sales11 43 55 12 — 487 — 608 
Royalties92 135 71 20 253 — (22)549 
Property revenues167 62 4 — — — (8)225 
Franchise fees and other revenue7 2 7 12 13 — — 40 
Advertising revenues and other services79 154 68 21 23 — (22)323 
Total revenues$1,136 $396 $204 $65 $289 $487 $(52)$2,525 
(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.
Nine Months Ended September 30, 2026
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$2,254 $— $— $— $— $— $— $2,254 
Company restaurant sales31 133 145 35 — 1,440 — 1,784 
Royalties259 390 213 60 717 — (64)1,574 
Property revenues478 178 11 — 1 — (23)645 
Franchise fees and other revenue24 7 14 29 36 — — 110 
Advertising revenues and other services224 450 211 61 63 — (67)942 
Total revenues$3,270 $1,157 $593 $186 $817 $1,441 $(155)$7,309 
Three Months Ended September 30, 2025
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$769 $— $— $— $— $— $— $769 
Company restaurant sales12 62 44 11 — 459 — 588 
Royalties90 124 74 19 233 — (21)520 
Property revenues166 54 4 — — — (8)217 
Franchise fees and other revenue7 8 3 11 12 — — 41 
Advertising revenues and other services80 138 76 18 22 — (21)314 
Total revenues$1,125 $387 $201 $60 $268 $459 $(49)$2,449 
Nine Months Ended September 30, 2025
THBKPLKFHSINTLRHELIM (a)Total
Supply chain sales$2,111 $— $— $— $— $— $— $2,112 
Company restaurant sales34 183 136 33 — 1,360 — 1,746 
Royalties253 362 222 56 633 — (61)1,465 
Property revenues470 162 11 — 1 — (22)621 
Franchise fees and other revenue22 13 12 28 39 — — 115 
Advertising revenues and other services222 411 223 55 62 — (63)909 
Total revenues$3,112 $1,131 $605 $172 $735 $1,360 $(146)$6,968