YUM BRANDS INCYUM
YUM BRANDS INC Revenue Disclosure
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.
2025 | |||||||||||||||||||||||||||||||||||
| KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | |||||||||||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||||||||||||||
| Company sales | $ | 106 | $ | 1,272 | $ | 33 | $ | 555 | $ | 1,966 | |||||||||||||||||||||||||
| Franchise revenues | 189 | 960 | 263 | 8 | 1,421 | ||||||||||||||||||||||||||||||
| Property revenues | 13 | 36 | 4 | 3 | 56 | ||||||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 47 | 740 | 292 | 3 | 1,082 | ||||||||||||||||||||||||||||||
| China | |||||||||||||||||||||||||||||||||||
| Franchise revenues | 274 | — | 69 | — | 343 | ||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||
| Company sales | 951 | 8 | 19 | — | 978 | ||||||||||||||||||||||||||||||
| Franchise revenues | 1,285 | 63 | 265 | — | 1,613 | ||||||||||||||||||||||||||||||
| Property revenues | 45 | — | 1 | — | 47 | ||||||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 632 | 14 | 68 | — | 714 | ||||||||||||||||||||||||||||||
| $ | 3,542 | $ | 3,095 | $ | 1,013 | $ | 570 | $ | 8,220 | (a) | |||||||||||||||||||||||||
(a) Does not include charges of $7 million to Unallocated franchise and property revenues primarily associated with our Pizza Hut Strategic Options Review during the year ended December 31, 2025. See Note 5.
2024 | |||||||||||||||||||||||||||||||||||
| KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | |||||||||||||||||||||||||||||||
| U.S. | |||||||||||||||||||||||||||||||||||
| Company sales | $ | 75 | $ | 1,154 | $ | 8 | $ | 588 | $ | 1,825 | |||||||||||||||||||||||||
| Franchise revenues | 194 | 899 | 289 | 7 | 1,389 | ||||||||||||||||||||||||||||||
| Property revenues | 14 | 39 | 4 | 2 | 59 | ||||||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 45 | 697 | 315 | 3 | 1,060 | ||||||||||||||||||||||||||||||
| China | |||||||||||||||||||||||||||||||||||
| Franchise revenues | 259 | 1 | 67 | — | 327 | ||||||||||||||||||||||||||||||
| Other | |||||||||||||||||||||||||||||||||||
| Company sales | 726 | 1 | — | — | 727 | ||||||||||||||||||||||||||||||
| Franchise revenues | 1,172 | 58 | 261 | — | 1,491 | ||||||||||||||||||||||||||||||
| Property revenues | 46 | — | 1 | — | 47 | ||||||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 568 | 11 | 63 | — | 642 | ||||||||||||||||||||||||||||||
| $ | 3,099 | $ | 2,860 | $ | 1,008 | $ | 600 | $ | 7,567 | (b) | |||||||||||||||||||||||||
(b) Does not include charges of $18 million to Unallocated franchise and property revenues associated with the Turkey termination during the year ended December 31, 2024. See Note 5.
2023 | ||||||||||||||||||||||||||||||||
| KFC Division | Taco Bell Division | Pizza Hut Division | Habit Burger & Grill Division | Total | ||||||||||||||||||||||||||||
| U.S. | ||||||||||||||||||||||||||||||||
| Company sales | $ | 67 | $ | 1,069 | $ | 14 | $ | 575 | $ | 1,725 | ||||||||||||||||||||||
| Franchise revenues | 205 | 822 | 284 | 7 | 1,318 | |||||||||||||||||||||||||||
| Property revenues | 14 | 42 | 4 | 2 | 62 | |||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 36 | 645 | 318 | 2 | 1,001 | |||||||||||||||||||||||||||
| China | ||||||||||||||||||||||||||||||||
| Franchise revenues | 250 | — | 66 | — | 316 | |||||||||||||||||||||||||||
| Other | ||||||||||||||||||||||||||||||||
| Company sales | 417 | — | — | — | 417 | |||||||||||||||||||||||||||
| Franchise revenues | 1,178 | 54 | 266 | — | 1,498 | |||||||||||||||||||||||||||
| Property revenues | 51 | — | 2 | — | 53 | |||||||||||||||||||||||||||
| Franchise contributions for advertising and other services | 612 | 9 | 65 | — | 686 | |||||||||||||||||||||||||||
| $ | 2,830 | $ | 2,641 | $ | 1,019 | $ | 586 | $ | 7,076 | |||||||||||||||||||||||
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 2025 and 2024 is presented below.
| Deferred Franchise Fees | ||||||||
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 period | 85 | |||||||
Other(a) | (9) | |||||||
Balance at December 31, 2024 | $ | 438 | ||||||
| Revenue recognized that was included in unamortized upfront fees received from franchisees at the beginning of the period | (86) | |||||||
| Increase for upfront fees associated with contracts that became effective during the period, net of amounts recognized as revenue during the period | 85 | |||||||
Other(b) | 6 | |||||||
Balance at December 31, 2025 | $ | 443 | ||||||
(a) 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.
(b) 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 | $ | 76 | ||||||
| 1 - 2 years | 68 | |||||||
| 2 - 3 years | 60 | |||||||
| 3 - 4 years | 52 | |||||||
| 4 - 5 years | 45 | |||||||
| Thereafter | 142 | |||||||
| Total | $ | 443 | ||||||
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.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 19, 2025 | |
| 2023 | Feb 20, 2024 | |
| 2022 | Feb 27, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 22, 2021 | |
| 2019 | Feb 20, 2020 | |
| 2018 | Feb 21, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 22, 2017 | |
| 2015 | Feb 16, 2016 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.