Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 26, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36787 | |
Entity Registrant Name | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-1206431 | |
Entity Address, Address Line One | 130 King Street West, Suite 300 | |
Entity Address, Postal Zip Code | M5X 1E1 | |
Entity Address, City or Town | Toronto, | |
Entity Address, State or Province | ON | |
City Area Code | 905 | |
Local Phone Number | 339-6011 | |
Title of 12(g) Security | Class B exchangeable limited partnership units | |
Trading Symbol | QSP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001618755 | |
Current Fiscal Year End Date | --12-31 | |
Partnership exchangeable units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 143,460,786 | |
Class A common units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 202,006,067 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 895 | $ 1,087 | $ 1,563 | $ 1,560 |
Accounts and notes receivable, net of allowance of $27 and $18, respectively | 593 | 547 | ||
Inventories, net | 108 | 96 | ||
Prepaids and other current assets | 90 | 86 | ||
Total current assets | 1,686 | 1,816 | ||
Property and equipment, net of accumulated depreciation and amortization of $1,014 and $979, respectively | 2,023 | 2,035 | ||
Operating lease assets, net | 1,137 | 1,130 | ||
Intangible assets, net | 11,451 | 11,417 | ||
Goodwill | 6,050 | 6,006 | ||
Net investment in property leased to franchisees | 82 | 80 | ||
Other assets, net | 743 | 762 | ||
Total assets | 23,172 | 23,246 | ||
Current liabilities: | ||||
Accounts and drafts payable | 637 | 614 | ||
Other accrued liabilities | 917 | 947 | ||
Gift card liability | 169 | 221 | ||
Current portion of long-term debt and finance leases | 105 | 96 | ||
Total current liabilities | 1,828 | 1,878 | ||
Long-term debt, net of current portion | 12,903 | 12,916 | ||
Finance leases, net of current portion | 337 | 333 | ||
Operating lease liabilities, net of current portion | 1,074 | 1,070 | ||
Other liabilities, net | 1,689 | 1,822 | ||
Deferred income taxes, net | 1,380 | 1,374 | ||
Total liabilities | 19,211 | 19,393 | ||
Partners’ capital: | ||||
Accumulated other comprehensive income (loss) | (819) | (1,024) | ||
Total Partners’ capital | 3,958 | 3,850 | ||
Noncontrolling interests | 3 | 3 | ||
Total equity | 3,961 | 3,853 | $ 4,002 | $ 3,721 |
Total liabilities and equity | 23,172 | 23,246 | ||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units; 202,006,067 issued and outstanding at March 31, 2022 and December 31, 2021 | 8,400 | 8,421 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units; 143,467,558 issued and outstanding at March 31, 2022; 144,993,458 issued and outstanding at December 31, 2021 | $ (3,623) | $ (3,547) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing receivable, allowance for credit loss, current | $ 27 | $ 18 |
Accumulated depreciation and amortization, property, plant, and equipment | $ 1,014 | $ 979 |
Class A common units | ||
Class A common units, issued (in shares) | 202,006,067 | 202,006,067 |
Class A common units, outstanding (in shares) | 202,006,067 | 202,006,067 |
Partnership exchangeable units | ||
Partnership exchangeable units, issued (in shares) | 143,467,558 | 144,993,458 |
Partnership exchangeable units, outstanding (in shares) | 143,467,558 | 144,993,458 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 1,451 | $ 1,260 |
Operating costs and expenses: | ||
Cost of sales | 494 | 401 |
Franchise and property expenses | 130 | 116 |
Advertising expenses and other services | 247 | 237 |
General and administrative expenses | 133 | 104 |
(Income) loss from equity method investments | 13 | 2 |
Other operating expenses (income), net | (16) | (42) |
Total operating costs and expenses | 1,001 | 818 |
Income from operations | 450 | 442 |
Interest expense, net | 127 | 124 |
Income before income taxes | 323 | 318 |
Income tax expense | 53 | 47 |
Net income | 270 | 271 |
Net income attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 269 | 270 |
Class A common units | ||
Operating costs and expenses: | ||
Net income attributable to common unitholders | $ 183 | $ 179 |
Earnings per unit - basic and diluted | ||
Earnings per unit, basic (in usd per share) | $ 0.91 | $ 0.89 |
Earnings per unit, diluted (in usd per share) | $ 0.91 | $ 0.89 |
Weighted average units outstanding - basic and diluted (in millions): | ||
Weighted average number of unit outstanding, basic (in shares) | 202 | 202 |
Weighted average number of units outstanding, diluted (in shares) | 202 | 202 |
Partnership exchangeable units | ||
Operating costs and expenses: | ||
Net income attributable to common unitholders | $ 86 | $ 91 |
Earnings per unit - basic and diluted | ||
Earnings per unit, basic (in usd per share) | $ 0.59 | $ 0.59 |
Earnings per unit, diluted (in usd per share) | $ 0.59 | $ 0.59 |
Weighted average units outstanding - basic and diluted (in millions): | ||
Weighted average number of unit outstanding, basic (in shares) | 145 | 155 |
Weighted average number of units outstanding, diluted (in shares) | 145 | 155 |
Sales | ||
Revenues: | ||
Total revenues | $ 609 | $ 507 |
Franchise and property revenues | ||
Revenues: | ||
Total revenues | 615 | 548 |
Advertising revenues and other services | ||
Revenues: | ||
Total revenues | $ 227 | $ 205 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 270 | $ 271 |
Foreign currency translation adjustment | 57 | 54 |
Net change in fair value of net investment hedges, net of tax of $25 and $20 | (35) | 29 |
Net change in fair value of cash flow hedges, net of tax of $(60) and $(33) | 161 | 95 |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(7) and $(8) | 21 | 24 |
Gain (loss) recognized on other, net of tax of $0 and $0 | 1 | 1 |
Other comprehensive income (loss) | 205 | 203 |
Comprehensive income (loss) | 475 | 474 |
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 |
Comprehensive income (loss) attributable to common unitholders | $ 474 | $ 473 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in fair value of net investment hedges, tax | $ 25 | $ 20 |
Net change in fair value of cash flow hedges, tax | (60) | (33) |
Amounts reclassified to earnings of cash flow hedges, tax | (7) | (8) |
Gain (loss) recognized on other, tax | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A common units | Class A common unitsCommon Stock | Partnership exchangeable units | Partnership exchangeable unitsPartnership Exchangeable Units |
Beginning balance Class A (in shares) at Dec. 31, 2020 | 202,006,067 | ||||||
Beginning balances at Dec. 31, 2020 | $ 3,721 | $ (1,275) | $ 4 | $ 7,994 | $ (3,002) | ||
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2020 | 155,113,338 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on Class A common units | (163) | (163) | |||||
Distributions declared on partnership exchangeable units | (82) | $ (82) | |||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 5 | $ (5) | ||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (72,761) | ||||||
Capital contribution from RBI | 51 | 51 | |||||
Restaurant VIE contributions (distributions) | 1 | 1 | |||||
Net income | 271 | 1 | $ 179 | $ 91 | |||
Other comprehensive income (loss) | 203 | 203 | |||||
Ending balance Class A (in shares) at Mar. 31, 2021 | 202,006,067 | ||||||
Ending balances at Mar. 31, 2021 | 4,002 | (1,072) | 6 | $ 8,066 | $ (2,998) | ||
Ending balance partnership exchangeable units (in shares) at Mar. 31, 2021 | 155,040,577 | ||||||
Beginning balance Class A (in shares) at Dec. 31, 2021 | 202,006,067 | 202,006,067 | |||||
Beginning balances at Dec. 31, 2021 | 3,853 | (1,024) | 3 | $ 8,421 | $ (3,547) | ||
Beginning balance partnership exchangeable unit (in shares) at Dec. 31, 2021 | 144,993,458 | 144,993,458 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on Class A common units | (167) | (167) | |||||
Distributions declared on partnership exchangeable units | (78) | $ (78) | |||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 84 | $ (84) | ||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (1,525,900) | (1,525,900) | |||||
Distribution to RBI for repurchase of RBI common shares | (161) | ||||||
Capital contribution from RBI | 40 | 40 | |||||
Restaurant VIE contributions (distributions) | (1) | (1) | |||||
Net income | 270 | 1 | $ 183 | $ 86 | |||
Other comprehensive income (loss) | 205 | 205 | |||||
Ending balance Class A (in shares) at Mar. 31, 2022 | 202,006,067 | 202,006,067 | |||||
Ending balances at Mar. 31, 2022 | $ 3,961 | $ (819) | $ 3 | $ 8,400 | $ (3,623) | ||
Ending balance partnership exchangeable units (in shares) at Mar. 31, 2022 | 143,467,558 | 143,467,558 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Class A common units | ||
Cash dividend declared (in usd per share) | $ 0.83 | $ 0.81 |
Partnership exchangeable units | ||
Cash dividend declared (in usd per share) | $ 0.54 | $ 0.53 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 270 | $ 271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49 | 49 |
Amortization of deferred financing costs and debt issuance discount | 7 | 7 |
(Income) loss from equity method investments | 13 | 2 |
(Gain) loss on remeasurement of foreign denominated transactions | (21) | (43) |
Net (gains) losses on derivatives | 18 | 20 |
Share-based compensation and non-cash incentive compensation expense | 27 | 26 |
Deferred income taxes | (16) | 14 |
Other | 9 | (8) |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (46) | 24 |
Inventories and prepaids and other current assets | (22) | (4) |
Accounts and drafts payable | 18 | 19 |
Other accrued liabilities and gift card liability | (91) | (117) |
Tenant inducements paid to franchisees | (2) | 0 |
Other long-term assets and liabilities | 21 | 6 |
Net cash provided by operating activities | 234 | 266 |
Cash flows from investing activities: | ||
Payments for property and equipment | (10) | (15) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 4 | 11 |
Settlement/sale of derivatives, net | 3 | 2 |
Other investing activities, net | 4 | (5) |
Net cash (used for) provided by investing activities | 1 | (7) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1 | 0 |
Repayments of long-term debt and finance leases | (21) | (27) |
Distributions on Class A common and Partnership exchangeable units | (241) | (239) |
Distribution to RBI for repurchase of RBI common shares | (161) | 0 |
Capital contribution from RBI | 3 | 20 |
(Payments) proceeds from derivatives | (6) | (16) |
Other financing activities, net | (1) | 1 |
Net cash (used for) provided by financing activities | (426) | (261) |
Effect of exchange rates on cash and cash equivalents | (1) | 5 |
Increase (decrease) in cash and cash equivalents | (192) | 3 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 |
Cash and cash equivalents at end of period | 895 | 1,563 |
Supplemental cash flow disclosures: | ||
Interest paid | 75 | 72 |
Income taxes paid | $ 42 | $ 96 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “our”) is a Canadian limited partnership. We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons ® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King ® brand (“Burger King” or “BK”), chicken under the Popeyes ® brand (“Popeyes” or “PLK”) and sandwiches under the Firehouse Subs ® brand (“Firehouse” or “FHS”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of March 31, 2022, we franchised or owned 5,320 Tim Hortons restaurants, 19,266 Burger King restaurants, 3,771 Popeyes restaurants and 1,219 Firehouse Subs restaurants, for a total of 29,576 restaurants, and operate in more than 100 countries. Approximately 100% of current system-wide restaurants are franchised. We are a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner, and as such, RBI has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership in accordance with the partnership agreement of Partnership (“partnership agreement”) and applicable laws. All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 23, 2022. The Financial Statements include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation. We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable. As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant, but Tim Hortons owns the restaurant’s assets. We perform an analysis to determine if the legal entity in which operations are conducted is a VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). As of March 31, 2022 and December 31, 2021, we determined that we are the primary beneficiary of 45 and 46 Restaurant VIEs, respectively, and accordingly, have consolidated the results of operations, assets and liabilities, and cash flows of these Restaurant VIEs in our Financial Statements. Material intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships. |
Firehouse Acquisition
Firehouse Acquisition | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Firehouse Acquisition | Firehouse Acquisition On December 15, 2021, we completed the acquisition of Firehouse Subs (the “Firehouse Acquisition”) which complements RBI's existing portfolio. Like RBI's other brands, the Firehouse Subs brand is managed independently, while benefiting from the global scale and resources of RBI. The Firehouse Acquisition was accounted for as a business combination using the acquisition method of accounting. Total consideration in connection with the Firehouse Acquisition was $1,018 million, subject to potential further post-closing adjustments. The consideration was funded through cash on hand and $533 million of incremental borrowings under our senior secured term loan facility. Fees and expenses related to the Firehouse Acquisition and related financings (“FHS Transaction costs”) totaled $1 million during the three months ended March 31, 2022, consisting of professional fees, compensation related expenses and integration costs which are classified as general and administrative expenses in the accompanying condensed consolidated statements of operations. During the three months ended March 31, 2022, we adjusted our preliminary estimate of the fair value of net assets acquired. The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 768 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 754 Goodwill 264 Total consideration $ 1,018 The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding increase in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price (in millions): Increase (Decrease) in Goodwill Change in: Operating lease assets $ (9) Total liabilities 35 Total consideration (15) Total increase in goodwill $ 11 The purchase price allocation reflects preliminary fair value estimates based on management's analysis, including preliminary work performed by third-party valuation specialists. We will continue to obtain information to assist in determining the fair value of net assets acquired during the measurement period. The Firehouse Subs brand has been assigned an indefinite life and, therefore, will not be amortized, but rather tested annually for impairment. Goodwill attributable to the Firehouse Acquisition will be amortized and deductible for tax purposes. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company. We have not yet allocated goodwill related to the Firehouse Acquisition to reporting units for goodwill impairment testing purposes. Goodwill will be allocated to reporting units when the purchase price allocation is finalized during the measurement period. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2022 2021 Lease income - operating leases Minimum lease payments $ 113 $ 113 Variable lease payments 73 66 Amortization of favorable and unfavorable income lease contracts, net — 1 Subtotal - lease income from operating leases 186 180 Earned income on direct financing and sales-type leases 2 2 Total property revenues $ 188 $ 182 |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2022 2021 Lease income - operating leases Minimum lease payments $ 113 $ 113 Variable lease payments 73 66 Amortization of favorable and unfavorable income lease contracts, net — 1 Subtotal - lease income from operating leases 186 180 Earned income on direct financing and sales-type leases 2 2 Total property revenues $ 188 $ 182 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2022 | |
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 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 between December 31, 2021 and March 31, 2022 (in millions): Contract Liabilities TH BK PLK FHS Consolidated Balance at December 31, 2021 $ 65 $ 410 $ 56 $ — $ 531 Effect of business combination — — — 8 8 Recognized during period and included in the contract liability balance at the beginning of the year (2) (11) (2) — (15) Increase, excluding amounts recognized as revenue during the period 3 9 3 — 15 Impact of foreign currency translation — (4) — — (4) Balance at March 31, 2022 $ 66 $ 404 $ 57 $ 8 $ 535 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 (in millions): Contract liabilities expected to be recognized in TH BK PLK FHS Consolidated Remainder of 2022 $ 8 $ 26 $ 3 $ 1 $ 38 2023 10 33 4 2 49 2024 9 32 4 1 46 2025 8 32 4 1 45 2026 7 31 3 1 42 Thereafter 24 250 39 2 315 Total $ 66 $ 404 $ 57 $ 8 $ 535 Disaggregation of Total Revenues Total revenues consist of the following (in millions): Three Months Ended 2022 2021 Sales $ 609 $ 507 Royalties 403 346 Property revenues 188 182 Franchise fees and other revenue 24 20 Advertising revenues and other services 227 205 Total revenues $ 1,451 $ 1,260 |
Earnings per Unit
Earnings per Unit | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Unit | Earnings per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unit holders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as RBI equity awards will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended March 31, 2022 2021 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 183 $ 179 Net income allocated to Partnership exchangeable unitholders 86 91 Net income attributable to common unitholders $ 269 $ 270 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 Weighted average Partnership exchangeable units 145 155 Earnings per unit - basic and diluted: Class A common units (a) $ 0.91 $ 0.89 Partnership exchangeable units (a) $ 0.59 $ 0.59 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 718 $ (295) $ 423 $ 722 $ (290) $ 432 Favorable leases 101 (62) 39 104 (63) 41 Subtotal 819 (357) 462 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,757 $ — $ 6,757 $ 6,695 $ — $ 6,695 Burger King brand 2,109 — 2,109 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 768 — 768 768 — 768 Subtotal 10,989 — 10,989 10,944 — 10,944 Intangible assets, net $ 11,451 $ 11,417 Goodwill Tim Hortons segment $ 4,344 $ 4,306 Burger King segment 596 601 Popeyes segment 846 846 Firehouse Subs segment 264 253 Total $ 6,050 $ 6,006 Amortization expense on intangible assets totaled $10 million for the three months ended March 31, 2022 and 2021. The change in the brands and goodwill balances during the three months ended March 31, 2022 was due to the impact of foreign currency translation and the impact of adjustments to the preliminary allocation of consideration to the net tangible and intangible assets acquired in the Firehouse Acquisition. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amount of our equity method investments was $181 million and $194 million as of March 31, 2022 and December 31, 2021, respectively, and is included as a component of Other assets, net in our accompanying condensed consolidated balance sheets. Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 15.5% equity interest in Carrols Restaurant Group, Inc. based on the quoted market price on March 31, 2022 was approximately $21 million. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on March 31, 2022 was approximately $41 million. We have evaluated recent declines in the market value of these equity method investments and concluded they are not other than temporary and as such no impairments have been recognized at March 31, 2022. We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended March 31, 2022 2021 Revenues from affiliates: Royalties $ 88 $ 65 Advertising revenues and other services 16 13 Property revenues 7 8 Franchise fees and other revenue 4 4 Total $ 115 $ 90 At March 31, 2022 and December 31, 2021, we had $50 million and $48 million, respectively, of accounts receivable, net from our equity method investments which were recorded in Accounts and notes receivable, net in our condensed consolidated balance sheets. With respect to our TH business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $3 million during the three months ended March 31, 2022 and 2021. We recognized $4 million of rent expense associated with the TIMWEN Partnership during the three months ended March 31, 2022 and 2021. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities, net | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities, net | Other Accrued Liabilities and Other Liabilities, net Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, Current: Distribution payable $ 244 $ 241 Interest payable 89 63 Accrued compensation and benefits 46 99 Taxes payable 127 106 Deferred income 45 48 Accrued advertising expenses 37 43 Restructuring and other provisions 91 90 Current portion of operating lease liabilities 144 140 Other 94 117 Other accrued liabilities $ 917 $ 947 Noncurrent: Taxes payable $ 543 $ 533 Contract liabilities 535 531 Derivatives liabilities 422 575 Unfavorable leases 62 65 Accrued pension 48 47 Deferred income 47 37 Other 32 34 Other liabilities, net $ 1,689 $ 1,822 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan B $ 5,230 $ 5,243 Term Loan A 1,250 1,250 3.875% First Lien Senior Notes due 2028 1,550 1,550 3.50% First Lien Senior Notes due 2029 750 750 5.75% First Lien Senior Notes due 2025 500 500 4.375% Second Lien Senior Notes due 2028 750 750 4.00% Second Lien Senior Notes due 2030 2,900 2,900 TH Facility and other 175 173 Less: unamortized deferred financing costs and deferred issue discount (131) (138) Total debt, net 12,974 12,978 Less: current maturities of debt (71) (62) Total long-term debt $ 12,903 $ 12,916 Revolving Credit Facility As of March 31, 2022, we had no amounts outstanding under our senior secured revolving credit facility (the “Revolving Credit Facility”), had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $998 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or RBI share repurchases or repurchases of Class B exchangeable limited partnership units, fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. TH Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of March 31, 2022, we had outstanding C$214 million under the TH Facility with a weighted average interest rate of 2.33%. RE Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of $50 million with a maturity date of October 12, 2028 (the “RE Facility”). The interest rate applicable to the RE Facility is, at our option, either (i) a base rate, subject to a floor of 0.50%, plus an applicable margin of 0.50% or (ii) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a margin based on duration), subject to a floor of 0.00%, plus an applicable margin of 1.50%. Obligations under the RE Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the RE Facility are secured by certain parcels of real estate. As of March 31, 2022, we had approximately $1 million outstanding under the RE Facility with a weighted average interest rate of 1.77%. Restrictions and Covenants As of March 31, 2022, we were in compliance with all applicable financial debt covenants under our senior secured term loan facilities and Revolving Credit Facility (together the "Credit Facilities"), the TH Facility, the RE Facility, and the indentures governing our Senior Notes. Fair Value Measurement The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of March 31, December 31, Fair value of our variable term debt and senior notes $ 12,370 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,930 12,943 Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2022 2021 Debt (a) $ 115 $ 113 Finance lease obligations 5 5 Amortization of deferred financing costs and debt issuance discount 7 7 Interest income — (1) Interest expense, net $ 127 $ 124 (a) Amount includes $11 million and $12 million benefit during the three months ended March 31, 2022 and 2021, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 14, Derivatives . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective tax rate was 16.6% for the three months ended March 31, 2022. The effective tax rate during this period reflects the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements and favorable structural changes. Our effective tax rate was 14.7% for the three months ended March 31, 2021. The effective tax rate during this period reflects the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements and the excess tax benefits from equity-based compensation. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Equity | Equity During the three months ended March 31, 2022, Partnership exchanged 1,525,900 Partnership exchangeable units pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of newly issued RBI common shares. The issuances of shares were accounted for as capital contributions by RBI to Partnership. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partners’ capital in our consolidated balance sheet in an amount equal to the market value of the newly issued RBI common shares and a reduction to the Partnership exchangeable units balance within partners’ capital of our consolidated balance sheet in an amount equal to the cash paid by Partnership, if any, and the market value of the newly issued RBI common shares. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit is automatically deemed cancelled concurrently with the exchange. Distribution to RBI to Repurchase RBI Common Shares During the three months ended March 31, 2022, Partnership distributed to RBI $161 million to repurchase RBI common shares. Accumulated Other Comprehensive Income (Loss) The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) Foreign currency translation adjustment — — 57 57 Net change in fair value of derivatives, net of tax 126 — — 126 Amounts reclassified to earnings of cash flow hedges, net of tax 21 — — 21 Gain (loss) recognized on other, net of tax — 1 — 1 Balance at March 31, 2022 $ 343 $ (29) $ (1,133) $ (819) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Disclosures about Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges, derivatives designated as net investment hedges and those utilized as economic hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps At March 31, 2022, we had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $3,500 million to hedge the variability in the interest payments on a portion of our senior secured term loan facilities (the “Term Loan Facilities”), including any subsequent refinancing or replacement of the Term Loan Facilities, beginning August 31, 2021 through the termination date of October 31, 2028. Additionally, at March 31, 2022, we also had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities effective September 30, 2019 through the termination date of September 30, 2026. At inception, all of these interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in AOCI and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. During 2021, we extended the maturity of our $3,500 million receive-variable, pay-fixed interest rate swaps. The extension of the term resulted in a de-designation and re-designation of the interest rate swaps and the swaps continue to be accounted for as a cash flow hedge for hedge accounting. In connection with the de-designation, we recognized a net unrealized loss of $143 million in AOCI and this amount gets reclassified into Interest expense, net as the original forecasted transaction affects earnings. The amount of pre-tax losses in connection with this net unrealized loss in AOCI as of March 31, 2022 that we expect to be reclassified into interest expense within the next 12 months is $28 million. We had previously extended the term of our $3,500 million receive-variable, pay-fixed interest rate swaps in 2019. The extension of the term resulted in a de-designation and re-designation of the interest rate swaps and the swaps continue to be accounted for as a cash flow hedge for hedge accounting. In connection with the de-designation, we recognized a net unrealized loss of $213 million in AOCI and this amount gets reclassified into Interest expense, net as the original forecasted transaction affects earnings. The amount of pre-tax losses in connection with this net unrealized loss in AOCI as of March 31, 2022 that we expect to be reclassified into interest expense within the next 12 months is $50 million. Cross-Currency Rate Swaps To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At March 31, 2022, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At March 31, 2022, we had outstanding fixed-to-fixed cross-currency rate swaps to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as net investment hedges. These swaps are contracts to exchange quarterly fixed-rate interest payments we make on the Canadian dollar notional amount of C$6,754 million for quarterly fixed-rate interest payments we receive on the U.S. dollar notional amount of $5,000 million through the maturity date of June 30, 2023. At March 31, 2022, we had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest payments on the Euro notional value of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $1,200 million. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. During 2018, we extended the term of the swaps from March 31, 2021 to the maturity date of February 17, 2024. The extension of the term resulted in a re-designation of the hedge and the swaps continue to be accounted for as a net investment hedge. Additionally, at March 31, 2022, we also had outstanding cross-currency rate swaps in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $400 million, entered during 2018, and $500 million, entered during 2019, through the maturity date of February 17, 2024 and $150 million, entered during 2021, through the maturity date of October 31, 2028. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. The fixed-to-fixed cross-currency rate swaps hedging Canadian dollar and Euro net investments utilized the forward method of effectiveness assessment prior to March 15, 2018. On March 15, 2018, we de-designated and subsequently re-designated the outstanding fixed to fixed cross-currency rate swaps to prospectively use the spot method of hedge effectiveness assessment. Additionally, as a result of adopting new hedge accounting guidance during 2018, we elected to exclude the interest component (the “Excluded Component”) from the accounting hedge without affecting net investment hedge accounting and elected to amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component is recognized in Interest expense, net in the condensed consolidated statement of operations. The change in fair value that is not related to the Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. Foreign Currency Exchange Contracts We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and payments, such as coffee purchases made by our Canadian Tim Hortons operations. At March 31, 2022, we had outstanding forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $203 million with maturities to May 2023. We have designated these instruments as cash flow hedges, and as such, the unrealized changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Credit Risk By entering into derivative contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty. Credit-Risk Related Contingent Features Our derivative instruments do not contain any credit-risk related contingent features. Quantitative Disclosures about Derivative Instruments and Fair Value Measurements The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, 2022 2021 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 223 $ 129 Forward-currency contracts $ (2) $ (1) Derivatives designated as net investment hedges Cross-currency rate swaps $ (60) $ 9 (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended March 31, 2022 2021 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (29) $ (30) Forward-currency contracts Cost of sales $ 1 $ (2) Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended March 31, 2022 2021 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 12 Fair Value as of March 31, December 31, 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 20 $ — Other assets, net Foreign currency 1 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 27 23 Other assets, net Total assets at fair value $ 48 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ 4 $ 220 Other liabilities, net Foreign currency 2 — Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 418 355 Other liabilities, net Total liabilities at fair value $ 424 $ 575 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Other Operating Expenses (Income), net Other operating expenses (income), net consist of the following (in millions): Three Months Ended March 31, 2022 2021 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2 $ (2) Litigation settlements (gains) and reserves, net 1 2 Net losses (gains) on foreign exchange (21) (43) Other, net 2 1 Other operating expenses (income), net $ (16) $ (42) Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods. Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property. On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King Corporation (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of all others similarly situated. On October 18, 2018, a second class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On November 2, 2018, a fourth class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Sandra Muster, individually and on behalf of all others similarly situated. These complaints have been consolidated and allege that the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages for himself or herself and other members of the class. On March 24, 2020, the Court granted BKC’s motion to dismiss for failure to state a claim and on April 20, 2020 the plaintiffs filed a motion for leave to amend their complaint. On April 27, 2020, BKC filed a motion opposing the motion for leave to amend. The court denied the plaintiffs motion for leave to amend their complaint in August 2020 and the plaintiffs appealed this ruling. Oral arguments for the appeal were heard in September 2021 and the parties await a ruling on the appeal. While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. On June 30, 2020, a class action complaint was filed against Restaurant Brands International Inc., Restaurant Brands International Limited Partnership and The TDL Group Corp. in the Quebec Superior Court by Steve Holcman, individually and on behalf of all Quebec residents who downloaded the Tim Hortons mobile application. On July 2, 2020, a Notice of Action related to a second class action complaint was filed against Restaurant Brands International Inc., in the Ontario Superior Court by Ashley Sitko and Ashley Cadeau, individually and on behalf of all Canadian residents who downloaded the Tim Hortons mobile application. On August 31, 2020, a notice of claim was filed against Restaurant Brands International Inc. in the Supreme Court of British Columbia by Wai Lam Jacky Law on behalf of all persons in Canada who downloaded the Tim Hortons mobile application or the Burger King mobile application. On September 30, 2020, a notice of action was filed against Restaurant Brands International Inc., Restaurant Brands International Limited Partnership, The TDL Group Corp., Burger King Worldwide, Inc. and Popeyes Louisiana Kitchen, Inc. in the Ontario Superior Court of Justice by William Jung on behalf of a to be determined class. All of the complaints allege that the defendants violated the plaintiff’s privacy rights, the Personal Information Protection and Electronic Documents Act, consumer protection and competition laws or app-based undertakings to users, in each case in connection with the collection of geolocation data through the Tim Hortons mobile application, and in certain cases, the Burger King and Popeyes mobile applications. Each plaintiff seeks injunctive relief and monetary damages for himself or herself and other members of the class. These cases are in preliminary stages and we intend to vigorously defend against these lawsuits, but we are unable to predict the ultimate outcome of any of these cases or estimate the range of possible loss, if any. On October 26, 2020, City of Warwick Municipal Employees Pension Fund, a purported stockholder of Restaurant Brands International Inc., individually and putatively on behalf of all other stockholders similarly situated, filed a lawsuit in the Supreme Court of the State of New York County of New York naming RBI and certain of its officers, directors and shareholders as defendants alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, in connection with certain offerings of securities by an affiliate in August and September 2019. The complaint alleges that the shelf registration statement used in connection with such offering contained certain false and/or misleading statements or omissions. The complaint seeks, among other relief, class certification of the lawsuit, unspecified compensatory damages, rescission, pre-judgement and post-judgement interest, costs and expenses. On December 18, 2020 the plaintiffs filed an amended complaint and on February 16, 2021 RBI filed a motion to dismiss the complaint. The plaintiffs filed a brief in opposition to the motion on April 19, 2021 and RBI filed a reply in May 2021. The motion to dismiss was heard in April 2022 and the motion to dismiss was denied in May 2022. We intend to vigorously defend. While we believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. In April 2022, Burger King Corporation was served with two separate purported class action complaints relating to per- and polyfluoralkly (“PFAS”) in packaging. Hussain vs. Burger King Corporation was filed on April 13, 2022 in the U.S. District Court for the Northern District of California, and Cooper v. Burger King Corporation was filed on April 14, 2022 in the U.S. District Court for the Southern District of Florida. Both complaints allege that certain food products sold by Burger King Corporation are not safe for human consumption due to the packaging containing allegedly unsafe PFAS and that consumers were misled by the labelling, marketing and packaging claims asserted by Burger King Corporation regarding the safety and sustainability of the packaging and are seeking compensatory, statutory and punitive damages, injunctive relief, corrective action, and attorneys’ fees. While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of these cases or estimate the range of possible loss, if any. Other Disputes |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As stated in Note 1, Description of Business and Organization , we manage four brands. Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, we operate in the chicken category of the quick service segment of the restaurant industry. Under the Firehouse Subs brand, we operate in the specialty subs category of the quick service segment of the restaurant industry. Our business generates revenue from the following sources: (i) franchise and advertising revenues and other services, consisting primarily of royalties and advertising fund contributions based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (ii) property revenues from properties we lease or sublease to franchisees; and (iii) sales at restaurants owned by us (“Company restaurants”). In addition, our TH business generates revenue from sales to franchisees related to our supply chain operations, including manufacturing, procurement, warehousing and distribution, as well as sales to retailers. We manage each of our brands as an operating segment and each operating segment represents a reportable segment. The following tables present revenues, by segment and by country (in millions): Three Months Ended 2022 2021 Revenues by operating segment: TH $ 829 $ 710 BK 443 407 PLK 148 143 FHS 31 — Total revenues $ 1,451 $ 1,260 Three Months Ended 2022 2021 Revenues by country (a): Canada $ 747 $ 638 United States 521 478 Other 183 144 Total revenues $ 1,451 $ 1,260 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. Our measure of segment income is Adjusted EBITDA. Adjusted EBITDA represents earnings (net income or loss) before interest expense, net, loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization, adjusted to exclude (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) income/expenses from non-recurring projects and non-operating activities. For the periods referenced, income/expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expense incurred in connection with the Firehouse Acquisition consisting of professional fees, compensation related expenses and integration costs (“FHS Transaction costs”); and (ii) costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements, including services related to significant tax reform legislation, regulations and related restructuring initiatives (“Corporate restructuring and tax advisory fees”). Adjusted EBITDA is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of segment income to net income consists of the following (in millions): Three Months Ended 2022 2021 Segment income: TH $ 231 $ 207 BK 229 217 PLK 56 56 FHS 14 — Adjusted EBITDA 530 480 Share-based compensation and non-cash incentive compensation expense 27 26 FHS Transaction costs 1 — Corporate restructuring and tax advisory fees 3 1 Impact of equity method investments (a) 16 4 Other operating expenses (income), net (16) (42) EBITDA 499 491 Depreciation and amortization 49 49 Income from operations 450 442 Interest expense, net 127 124 Income tax expense 53 47 Net income $ 270 $ 271 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into an amended credit agreement, as amended from time to time, that provides for obligations under the Credit Facilities. The Issuers entered into the 3.875% First Lien Senior Notes Indenture with respect to the 3.875% First Lien Senior Notes due 2028. The Issuers entered into the 5.750% First Lien Senior Notes Indenture with respect to the 5.750% First Lien Senior Notes due 2025. The Issuers entered into the 3.500% First Lien Senior Notes Indenture with respect to the 3.500% First Lien Senior Notes due 2029. The Issuers entered into the 4.375% Second Lien Senior Notes Indenture with respect to the 4.375% Second Lien Senior Notes due 2028. The Issuers entered into the 4.000% Second Lien Senior Notes Indenture with respect to the 4.000% Second Lien Senior Notes due 2030. The agreement governing our Credit Facilities, the 3.875% First Lien Senior Notes Indenture, the 3.500% First Lien Senior Notes Indenture, the 5.750% First Lien Senior Notes Indenture, the 4.375% Second Lien Senior Notes Indenture and the 4.000% Second Lien Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis. The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 895 $ — $ — $ 895 Accounts and notes receivable, net 593 — — 593 Inventories, net 108 — — 108 Prepaids and other current assets 90 — — 90 Total current assets 1,686 — — 1,686 Property and equipment, net 2,023 — — 2,023 Operating lease assets, net 1,137 — — 1,137 Intangible assets, net 11,451 — — 11,451 Goodwill 6,050 — — 6,050 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 244 (244) — Investment in subsidiaries — 3,961 (3,961) — Other assets, net 743 — — 743 Total assets $ 23,172 $ 4,205 $ (4,205) $ 23,172 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 637 $ — $ — $ 637 Other accrued liabilities 673 244 — 917 Gift card liability 169 — — 169 Current portion of long-term debt and finance leases 105 — — 105 Total current liabilities 1,584 244 — 1,828 Long-term debt, net of current portion 12,903 — — 12,903 Finance leases, net of current portion 337 — — 337 Operating lease liabilities, net of current portion 1,074 — — 1,074 Other liabilities, net 1,689 — — 1,689 Payables to affiliates 244 — (244) — Deferred income taxes, net 1,380 — — 1,380 Total liabilities 19,211 244 (244) 19,211 Partners’ capital: Class A common units — 8,400 — 8,400 Partnership exchangeable units — (3,623) — (3,623) Common shares 2,514 — (2,514) — Retained earnings 2,263 — (2,263) — Accumulated other comprehensive income (loss) (819) (819) 819 (819) Total Partners' capital/shareholders' equity 3,958 3,958 (3,958) 3,958 Noncontrolling interests 3 3 (3) 3 Total equity 3,961 3,961 (3,961) 3,961 Total liabilities and equity $ 23,172 $ 4,205 $ (4,205) $ 23,172 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets. net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long-term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Long-term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners' capital/shareholders' equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 609 $ — $ — $ 609 Franchise and property revenues 615 — — 615 Advertising revenues and other services 227 — — 227 Total revenues 1,451 — — 1,451 Operating costs and expenses: Cost of sales 494 — — 494 Franchise and property expenses 130 — — 130 Advertising expenses and other services 247 — — 247 General and administrative expenses 133 — — 133 (Income) loss from equity method investments 13 — — 13 Other operating expenses (income), net (16) — — (16) Total operating costs and expenses 1,001 — — 1,001 Income from operations 450 — — 450 Interest expense, net 127 — — 127 Income before income taxes 323 — — 323 Income tax expense 53 — — 53 Net income 270 — — 270 Equity in earnings of consolidated subsidiaries — 270 (270) — Net income (loss) 270 270 (270) 270 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 269 $ 269 $ (269) $ 269 Comprehensive income (loss) $ 475 $ 475 $ (475) $ 475 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 507 $ — $ — $ 507 Franchise and property revenues 548 — — 548 Advertising revenues and other services 205 — — 205 Total revenues 1,260 — — 1,260 Operating costs and expenses: Cost of sales 401 — — 401 Franchise and property expenses 116 — — 116 Advertising expenses and other services 237 — — 237 General and administrative expenses 104 — — 104 (Income) loss from equity method investments 2 — — 2 Other operating expenses (income), net (42) — — (42) Total operating costs and expenses 818 — — 818 Income from operations 442 — — 442 Interest expense, net 124 — — 124 Income before income taxes 318 — — 318 Income tax expense 47 — — 47 Net income 271 — — 271 Equity in earnings of consolidated subsidiaries — 271 (271) — Net income (loss) 271 271 (271) 271 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 270 $ 270 $ (270) $ 270 Comprehensive income (loss) $ 474 $ 474 $ (474) $ 474 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three months ended March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 270 $ 270 $ (270) $ 270 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (270) 270 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 13 — — 13 (Gain) loss on remeasurement of foreign denominated transactions (21) — — (21) Net (gains) losses on derivatives 18 — — 18 Share-based compensation and non-cash incentive compensation expense 27 — — 27 Deferred income taxes (16) — — (16) Other 9 — — 9 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (46) — — (46) Inventories and prepaids and other current assets (22) — — (22) Accounts and drafts payable 18 — — 18 Other accrued liabilities and gift card liability (91) — — (91) Tenant inducements paid to franchisees (2) — — (2) Other long-term assets and liabilities 21 — — 21 Net cash provided by operating activities 234 — — 234 Cash flows from investing activities: Payments for property and equipment (10) — — (10) Net proceeds from disposal of assets, restaurant closures, and refranchisings 4 — — 4 Settlement/sale of derivatives, net 3 — — 3 Other investing activities, net 4 — — 4 Net cash (used for) provided by investing activities 1 — — 1 Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1 — — 1 Repayments of long-term debt and finance leases (21) — — (21) Distributions on Class A common and Partnership exchangeable units — (241) — (241) Distribution to RBI for repurchase of RBI common shares — (161) — (161) Capital contribution from RBI 3 — — 3 Distributions from subsidiaries (402) 402 — — (Payments) proceeds from derivatives (6) — — (6) Other financing activities, net (1) — — (1) Net cash (used for) provided by financing activities (426) — — (426) Effect of exchange rates on cash and cash equivalents (1) — — (1) Increase (decrease) in cash and cash equivalents (192) — — (192) Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 895 $ — $ — $ 895 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 271 $ 271 $ (271) $ 271 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (271) 271 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 2 — — 2 (Gain) loss on remeasurement of foreign denominated transactions (43) — — (43) Net (gains) losses on derivatives 20 — — 20 Share-based compensation and non-cash incentive compensation expense 26 — — 26 Deferred income taxes 14 — — 14 Other (8) — — (8) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 24 — — 24 Inventories and prepaids and other current assets (4) — — (4) Accounts and drafts payable 19 — — 19 Other accrued liabilities and gift card liability (117) — — (117) Other long-term assets and liabilities 6 — — 6 Net cash provided by operating activities 266 — — 266 Cash flows from investing activities: Payments for property and equipment (15) — — (15) Net proceeds from disposal of assets, restaurant closures, and refranchisings 11 — — 11 Settlement/sale of derivatives, net 2 — — 2 Other investing activities, net (5) — — (5) Net cash (used for) provided by investing activities (7) — — (7) Cash flows from financing activities: Repayments of revolving line of credit, long-term debt and finance leases (27) — — (27) Distributions on Class A common and Partnership exchangeable units — (239) — (239) Capital contribution from RBI 20 — — 20 Distributions from subsidiaries (239) 239 — — (Payments) proceeds from derivatives (16) — — (16) Other financing activities, net 1 — — 1 Net cash (used for) provided by financing activities (261) — — (261) Effect of exchange rates on cash and cash equivalents 5 — — 5 Increase (decrease) in cash and cash equivalents 3 — — 3 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,563 $ — $ — $ 1,563 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Distributions/Dividends On April 6, 2022, RBI paid a cash dividend of $0.54 per RBI common share to common shareholders of record on March 23, 2022. Partnership made a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares and also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.54 per exchangeable unit to holders of record on March 23, 2022. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 23, 2022. |
Consolidation, Variable Interest Entity | We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable. As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such entity that might be a VIE. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. |
New Accounting Pronouncements | New Accounting Pronouncements Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2022. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022, except for hedging relationships existing as of December 31, 2022, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. During the third quarter of 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships. |
Contract Liabilities | Contract LiabilitiesContract 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 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. |
Earnings Per Unit | Earnings per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unit holders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as RBI equity awards will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. |
Firehouse Acquisition (Tables)
Firehouse Acquisition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): December 15, 2021 Total current assets $ 21 Property and equipment 4 Firehouse Subs brand 768 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 754 Goodwill 264 Total consideration $ 1,018 |
Schedule of Business Acquisitions, by Acquisition | The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding increase in estimated goodwill due to the following changes to preliminary estimates of fair values and allocation of purchase price (in millions): Increase (Decrease) in Goodwill Change in: Operating lease assets $ (9) Total liabilities 35 Total consideration (15) Total increase in goodwill $ 11 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Schedule of Property Revenues | Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2022 2021 Lease income - operating leases Minimum lease payments $ 113 $ 113 Variable lease payments 73 66 Amortization of favorable and unfavorable income lease contracts, net — 1 Subtotal - lease income from operating leases 186 180 Earned income on direct financing and sales-type leases 2 2 Total property revenues $ 188 $ 182 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Change in Contract Liabilities | The following table reflects the change in contract liabilities between December 31, 2021 and March 31, 2022 (in millions): Contract Liabilities TH BK PLK FHS Consolidated Balance at December 31, 2021 $ 65 $ 410 $ 56 $ — $ 531 Effect of business combination — — — 8 8 Recognized during period and included in the contract liability balance at the beginning of the year (2) (11) (2) — (15) Increase, excluding amounts recognized as revenue during the period 3 9 3 — 15 Impact of foreign currency translation — (4) — — (4) Balance at March 31, 2022 $ 66 $ 404 $ 57 $ 8 $ 535 |
Schedule of Estimated Revenues Expected to be Recognized | The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 31, 2022 (in millions): Contract liabilities expected to be recognized in TH BK PLK FHS Consolidated Remainder of 2022 $ 8 $ 26 $ 3 $ 1 $ 38 2023 10 33 4 2 49 2024 9 32 4 1 46 2025 8 32 4 1 45 2026 7 31 3 1 42 Thereafter 24 250 39 2 315 Total $ 66 $ 404 $ 57 $ 8 $ 535 |
Disaggregation of Total Revenues | Total revenues consist of the following (in millions): Three Months Ended 2022 2021 Sales $ 609 $ 507 Royalties 403 346 Property revenues 188 182 Franchise fees and other revenue 24 20 Advertising revenues and other services 227 205 Total revenues $ 1,451 $ 1,260 |
Earnings per Unit (Tables)
Earnings per Unit (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Unit | The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended March 31, 2022 2021 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 183 $ 179 Net income allocated to Partnership exchangeable unitholders 86 91 Net income attributable to common unitholders $ 269 $ 270 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 Weighted average Partnership exchangeable units 145 155 Earnings per unit - basic and diluted: Class A common units (a) $ 0.91 $ 0.89 Partnership exchangeable units (a) $ 0.59 $ 0.59 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net and Goodwill | Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 718 $ (295) $ 423 $ 722 $ (290) $ 432 Favorable leases 101 (62) 39 104 (63) 41 Subtotal 819 (357) 462 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,757 $ — $ 6,757 $ 6,695 $ — $ 6,695 Burger King brand 2,109 — 2,109 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 768 — 768 768 — 768 Subtotal 10,989 — 10,989 10,944 — 10,944 Intangible assets, net $ 11,451 $ 11,417 Goodwill Tim Hortons segment $ 4,344 $ 4,306 Burger King segment 596 601 Popeyes segment 846 846 Firehouse Subs segment 264 253 Total $ 6,050 $ 6,006 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Franchise and Property Revenues | We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended March 31, 2022 2021 Revenues from affiliates: Royalties $ 88 $ 65 Advertising revenues and other services 16 13 Property revenues 7 8 Franchise fees and other revenue 4 4 Total $ 115 $ 90 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities, net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net | Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, Current: Distribution payable $ 244 $ 241 Interest payable 89 63 Accrued compensation and benefits 46 99 Taxes payable 127 106 Deferred income 45 48 Accrued advertising expenses 37 43 Restructuring and other provisions 91 90 Current portion of operating lease liabilities 144 140 Other 94 117 Other accrued liabilities $ 917 $ 947 Noncurrent: Taxes payable $ 543 $ 533 Contract liabilities 535 531 Derivatives liabilities 422 575 Unfavorable leases 62 65 Accrued pension 48 47 Deferred income 47 37 Other 32 34 Other liabilities, net $ 1,689 $ 1,822 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan B $ 5,230 $ 5,243 Term Loan A 1,250 1,250 3.875% First Lien Senior Notes due 2028 1,550 1,550 3.50% First Lien Senior Notes due 2029 750 750 5.75% First Lien Senior Notes due 2025 500 500 4.375% Second Lien Senior Notes due 2028 750 750 4.00% Second Lien Senior Notes due 2030 2,900 2,900 TH Facility and other 175 173 Less: unamortized deferred financing costs and deferred issue discount (131) (138) Total debt, net 12,974 12,978 Less: current maturities of debt (71) (62) Total long-term debt $ 12,903 $ 12,916 |
Summary of Fair Value Measurement | The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of March 31, December 31, Fair value of our variable term debt and senior notes $ 12,370 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,930 12,943 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2022 2021 Debt (a) $ 115 $ 113 Finance lease obligations 5 5 Amortization of deferred financing costs and debt issuance discount 7 7 Interest income — (1) Interest expense, net $ 127 $ 124 (a) Amount includes $11 million and $12 million benefit during the three months ended March 31, 2022 and 2021, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 14, Derivatives . |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) | The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2021 $ 196 $ (30) $ (1,190) $ (1,024) Foreign currency translation adjustment — — 57 57 Net change in fair value of derivatives, net of tax 126 — — 126 Amounts reclassified to earnings of cash flow hedges, net of tax 21 — — 21 Gain (loss) recognized on other, net of tax — 1 — 1 Balance at March 31, 2022 $ 343 $ (29) $ (1,133) $ (819) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values | The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, 2022 2021 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 223 $ 129 Forward-currency contracts $ (2) $ (1) Derivatives designated as net investment hedges Cross-currency rate swaps $ (60) $ 9 (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended March 31, 2022 2021 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (29) $ (30) Forward-currency contracts Cost of sales $ 1 $ (2) Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended March 31, 2022 2021 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 12 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of March 31, December 31, 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 20 $ — Other assets, net Foreign currency 1 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 27 23 Other assets, net Total assets at fair value $ 48 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ 4 $ 220 Other liabilities, net Foreign currency 2 — Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 418 355 Other liabilities, net Total liabilities at fair value $ 424 $ 575 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), Net | Other operating expenses (income), net consist of the following (in millions): Three Months Ended March 31, 2022 2021 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2 $ (2) Litigation settlements (gains) and reserves, net 1 2 Net losses (gains) on foreign exchange (21) (43) Other, net 2 1 Other operating expenses (income), net $ (16) $ (42) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Segment | The following tables present revenues, by segment and by country (in millions): Three Months Ended 2022 2021 Revenues by operating segment: TH $ 829 $ 710 BK 443 407 PLK 148 143 FHS 31 — Total revenues $ 1,451 $ 1,260 Three Months Ended 2022 2021 Revenues by country (a): Canada $ 747 $ 638 United States 521 478 Other 183 144 Total revenues $ 1,451 $ 1,260 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. |
Reconciliation of Segment Income to Net Income (Loss) | A reconciliation of segment income to net income consists of the following (in millions): Three Months Ended 2022 2021 Segment income: TH $ 231 $ 207 BK 229 217 PLK 56 56 FHS 14 — Adjusted EBITDA 530 480 Share-based compensation and non-cash incentive compensation expense 27 26 FHS Transaction costs 1 — Corporate restructuring and tax advisory fees 3 1 Impact of equity method investments (a) 16 4 Other operating expenses (income), net (16) (42) EBITDA 499 491 Depreciation and amortization 49 49 Income from operations 450 442 Interest expense, net 127 124 Income tax expense 53 47 Net income $ 270 $ 271 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 895 $ — $ — $ 895 Accounts and notes receivable, net 593 — — 593 Inventories, net 108 — — 108 Prepaids and other current assets 90 — — 90 Total current assets 1,686 — — 1,686 Property and equipment, net 2,023 — — 2,023 Operating lease assets, net 1,137 — — 1,137 Intangible assets, net 11,451 — — 11,451 Goodwill 6,050 — — 6,050 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 244 (244) — Investment in subsidiaries — 3,961 (3,961) — Other assets, net 743 — — 743 Total assets $ 23,172 $ 4,205 $ (4,205) $ 23,172 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 637 $ — $ — $ 637 Other accrued liabilities 673 244 — 917 Gift card liability 169 — — 169 Current portion of long-term debt and finance leases 105 — — 105 Total current liabilities 1,584 244 — 1,828 Long-term debt, net of current portion 12,903 — — 12,903 Finance leases, net of current portion 337 — — 337 Operating lease liabilities, net of current portion 1,074 — — 1,074 Other liabilities, net 1,689 — — 1,689 Payables to affiliates 244 — (244) — Deferred income taxes, net 1,380 — — 1,380 Total liabilities 19,211 244 (244) 19,211 Partners’ capital: Class A common units — 8,400 — 8,400 Partnership exchangeable units — (3,623) — (3,623) Common shares 2,514 — (2,514) — Retained earnings 2,263 — (2,263) — Accumulated other comprehensive income (loss) (819) (819) 819 (819) Total Partners' capital/shareholders' equity 3,958 3,958 (3,958) 3,958 Noncontrolling interests 3 3 (3) 3 Total equity 3,961 3,961 (3,961) 3,961 Total liabilities and equity $ 23,172 $ 4,205 $ (4,205) $ 23,172 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,087 $ — $ — $ 1,087 Accounts and notes receivable, net 547 — — 547 Inventories, net 96 — — 96 Prepaids and other current assets 86 — — 86 Total current assets 1,816 — — 1,816 Property and equipment, net 2,035 — — 2,035 Operating lease assets. net 1,130 — — 1,130 Intangible assets, net 11,417 — — 11,417 Goodwill 6,006 — — 6,006 Net investment in property leased to franchisees 80 — — 80 Intercompany receivable — 241 (241) — Investment in subsidiaries — 3,853 (3,853) — Other assets, net 762 — — 762 Total assets $ 23,246 $ 4,094 $ (4,094) $ 23,246 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 614 $ — $ — $ 614 Other accrued liabilities 706 241 — 947 Gift card liability 221 — — 221 Current portion of long-term debt and finance leases 96 — — 96 Total current liabilities 1,637 241 — 1,878 Long-term debt, net of current portion 12,916 — — 12,916 Finance leases, net of current portion 333 — — 333 Operating lease liabilities, net of current portion 1,070 — — 1,070 Other liabilities, net 1,822 — — 1,822 Payables to affiliates 241 — (241) — Deferred income taxes, net 1,374 — — 1,374 Total liabilities 19,393 241 (241) 19,393 Partners’ capital: Class A common units — 8,421 — 8,421 Partnership exchangeable units — (3,547) — (3,547) Common shares 2,635 — (2,635) — Retained earnings 2,239 — (2,239) — Accumulated other comprehensive income (loss) (1,024) (1,024) 1,024 (1,024) Total Partners' capital/shareholders' equity 3,850 3,850 (3,850) 3,850 Noncontrolling interests 3 3 (3) 3 Total equity 3,853 3,853 (3,853) 3,853 Total liabilities and equity $ 23,246 $ 4,094 $ (4,094) $ 23,246 |
Condensed Income Statement | Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 609 $ — $ — $ 609 Franchise and property revenues 615 — — 615 Advertising revenues and other services 227 — — 227 Total revenues 1,451 — — 1,451 Operating costs and expenses: Cost of sales 494 — — 494 Franchise and property expenses 130 — — 130 Advertising expenses and other services 247 — — 247 General and administrative expenses 133 — — 133 (Income) loss from equity method investments 13 — — 13 Other operating expenses (income), net (16) — — (16) Total operating costs and expenses 1,001 — — 1,001 Income from operations 450 — — 450 Interest expense, net 127 — — 127 Income before income taxes 323 — — 323 Income tax expense 53 — — 53 Net income 270 — — 270 Equity in earnings of consolidated subsidiaries — 270 (270) — Net income (loss) 270 270 (270) 270 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 269 $ 269 $ (269) $ 269 Comprehensive income (loss) $ 475 $ 475 $ (475) $ 475 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 507 $ — $ — $ 507 Franchise and property revenues 548 — — 548 Advertising revenues and other services 205 — — 205 Total revenues 1,260 — — 1,260 Operating costs and expenses: Cost of sales 401 — — 401 Franchise and property expenses 116 — — 116 Advertising expenses and other services 237 — — 237 General and administrative expenses 104 — — 104 (Income) loss from equity method investments 2 — — 2 Other operating expenses (income), net (42) — — (42) Total operating costs and expenses 818 — — 818 Income from operations 442 — — 442 Interest expense, net 124 — — 124 Income before income taxes 318 — — 318 Income tax expense 47 — — 47 Net income 271 — — 271 Equity in earnings of consolidated subsidiaries — 271 (271) — Net income (loss) 271 271 (271) 271 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 270 $ 270 $ (270) $ 270 Comprehensive income (loss) $ 474 $ 474 $ (474) $ 474 |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three months ended March 31, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 270 $ 270 $ (270) $ 270 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (270) 270 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 13 — — 13 (Gain) loss on remeasurement of foreign denominated transactions (21) — — (21) Net (gains) losses on derivatives 18 — — 18 Share-based compensation and non-cash incentive compensation expense 27 — — 27 Deferred income taxes (16) — — (16) Other 9 — — 9 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (46) — — (46) Inventories and prepaids and other current assets (22) — — (22) Accounts and drafts payable 18 — — 18 Other accrued liabilities and gift card liability (91) — — (91) Tenant inducements paid to franchisees (2) — — (2) Other long-term assets and liabilities 21 — — 21 Net cash provided by operating activities 234 — — 234 Cash flows from investing activities: Payments for property and equipment (10) — — (10) Net proceeds from disposal of assets, restaurant closures, and refranchisings 4 — — 4 Settlement/sale of derivatives, net 3 — — 3 Other investing activities, net 4 — — 4 Net cash (used for) provided by investing activities 1 — — 1 Cash flows from financing activities: Proceeds from revolving line of credit and long-term debt 1 — — 1 Repayments of long-term debt and finance leases (21) — — (21) Distributions on Class A common and Partnership exchangeable units — (241) — (241) Distribution to RBI for repurchase of RBI common shares — (161) — (161) Capital contribution from RBI 3 — — 3 Distributions from subsidiaries (402) 402 — — (Payments) proceeds from derivatives (6) — — (6) Other financing activities, net (1) — — (1) Net cash (used for) provided by financing activities (426) — — (426) Effect of exchange rates on cash and cash equivalents (1) — — (1) Increase (decrease) in cash and cash equivalents (192) — — (192) Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 895 $ — $ — $ 895 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 271 $ 271 $ (271) $ 271 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (271) 271 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 2 — — 2 (Gain) loss on remeasurement of foreign denominated transactions (43) — — (43) Net (gains) losses on derivatives 20 — — 20 Share-based compensation and non-cash incentive compensation expense 26 — — 26 Deferred income taxes 14 — — 14 Other (8) — — (8) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 24 — — 24 Inventories and prepaids and other current assets (4) — — (4) Accounts and drafts payable 19 — — 19 Other accrued liabilities and gift card liability (117) — — (117) Other long-term assets and liabilities 6 — — 6 Net cash provided by operating activities 266 — — 266 Cash flows from investing activities: Payments for property and equipment (15) — — (15) Net proceeds from disposal of assets, restaurant closures, and refranchisings 11 — — 11 Settlement/sale of derivatives, net 2 — — 2 Other investing activities, net (5) — — (5) Net cash (used for) provided by investing activities (7) — — (7) Cash flows from financing activities: Repayments of revolving line of credit, long-term debt and finance leases (27) — — (27) Distributions on Class A common and Partnership exchangeable units — (239) — (239) Capital contribution from RBI 20 — — 20 Distributions from subsidiaries (239) 239 — — (Payments) proceeds from derivatives (16) — — (16) Other financing activities, net 1 — — 1 Net cash (used for) provided by financing activities (261) — — (261) Effect of exchange rates on cash and cash equivalents 5 — — 5 Increase (decrease) in cash and cash equivalents 3 — — 3 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,563 $ — $ — $ 1,563 |
Description of Business and O_2
Description of Business and Organization - Additional Information (Details) | Mar. 31, 2022brandrestaurantcountry |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 29,576 |
Number of countries in which company and franchise restaurants operated (more than) | country | 100 |
Percentage of franchised restaurants | 100.00% |
Tim Hortons brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 5,320 |
Burger King brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 19,266 |
Popeyes brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 3,771 |
FHS | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | brand | 1,219 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation - Additional Information (Details) - restaurant | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Restaurant VIEs | ||
Summary Of Accounting Policies [Line Items] | ||
Number of VIE consolidated restaurants | 45 | 46 |
Firehouse Acquisition - Narrati
Firehouse Acquisition - Narrative (Details) - USD ($) $ in Millions | Dec. 15, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Business Acquisition [Line Items] | |||
Proceeds from long-term debt | $ 1 | $ 0 | |
Firehouse Subs brand | |||
Business Acquisition [Line Items] | |||
Business combination, consideration transferred | $ 1,018 | ||
Firehouse Subs brand | Unallocated Management G&A | |||
Business Acquisition [Line Items] | |||
FHS Transaction costs | $ 1 | $ 0 | |
Firehouse Subs brand | Secured Debt | |||
Business Acquisition [Line Items] | |||
Proceeds from long-term debt | $ 533 |
Firehouse Acquisition - Schedul
Firehouse Acquisition - Schedule of Preliminary Allocation of Consideration to Net Tangible and Intangible Assets Acquired (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Dec. 15, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 6,050 | $ 6,006 | |
Firehouse Subs brand | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 21 | ||
Property and equipment | 4 | ||
Operating lease assets | 9 | ||
Total liabilities | (48) | ||
Total identifiable net assets | 754 | ||
Goodwill | 264 | ||
Total consideration | 1,018 | ||
Firehouse Subs brand | Trade names | |||
Business Acquisition [Line Items] | |||
Firehouse Subs brand | $ 768 |
Firehouse Acquisition - Sched_2
Firehouse Acquisition - Schedule of Adjustments to Net Assets (Details) - Firehouse Subs brand $ in Millions | 4 Months Ended |
Mar. 31, 2022USD ($) | |
Business Acquisition [Line Items] | |
Operating lease assets | $ (9) |
Total liabilities | 35 |
Total consideration | (15) |
Total increase in goodwill | $ 11 |
Leases - Property revenues (Det
Leases - Property revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Lease income - operating leases | ||
Minimum lease payments | $ 113 | $ 113 |
Variable lease payments | 73 | 66 |
Amortization of favorable and unfavorable income lease contracts, net | 0 | 1 |
Subtotal - lease income from operating leases | 186 | 180 |
Earned income on direct financing and sales-type leases | 2 | 2 |
Total property revenues | $ 188 | $ 182 |
Revenue Recognition - Change In
Revenue Recognition - Change In Contract Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | $ 531 |
Effect of business combination | 8 |
Recognized during period and included in the contract liability balance at the beginning of the year | (15) |
Increase, excluding amounts recognized as revenue during the period | 15 |
Impact of foreign currency translation | (4) |
Ending balance | 535 |
TH | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 65 |
Effect of business combination | 0 |
Recognized during period and included in the contract liability balance at the beginning of the year | (2) |
Increase, excluding amounts recognized as revenue during the period | 3 |
Impact of foreign currency translation | 0 |
Ending balance | 66 |
BK | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 410 |
Effect of business combination | 0 |
Recognized during period and included in the contract liability balance at the beginning of the year | (11) |
Increase, excluding amounts recognized as revenue during the period | 9 |
Impact of foreign currency translation | (4) |
Ending balance | 404 |
PLK | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 56 |
Effect of business combination | 0 |
Recognized during period and included in the contract liability balance at the beginning of the year | (2) |
Increase, excluding amounts recognized as revenue during the period | 3 |
Impact of foreign currency translation | 0 |
Ending balance | 57 |
FHS | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | 0 |
Effect of business combination | 8 |
Recognized during period and included in the contract liability balance at the beginning of the year | 0 |
Increase, excluding amounts recognized as revenue during the period | 0 |
Impact of foreign currency translation | 0 |
Ending balance | $ 8 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated revenue recognition (Details) $ in Millions | Mar. 31, 2022USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 535 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 38 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 49 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 46 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 45 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 42 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 315 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
TH | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 66 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 8 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 10 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 9 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 8 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 7 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 24 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
BK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 404 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 26 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 33 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 32 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 32 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 31 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 250 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
PLK | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 57 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 3 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 4 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 3 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 39 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
FHS | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 8 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 1 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 2 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 1 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 1 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | 1 |
FHS | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 2 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of total revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | $ 188 | $ 182 |
Total revenues | 1,451 | 1,260 |
Sales | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Revenues | 609 | 507 |
Total revenues | 609 | 507 |
Royalties | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Revenues | 403 | 346 |
Franchise fees and other revenue | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Revenues | 24 | 20 |
Advertising revenues and other services | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Revenues | 227 | 205 |
Total revenues | $ 227 | $ 205 |
Earnings per Unit - Basic and D
Earnings per Unit - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 269 | $ 270 |
Class A common units | ||
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 183 | $ 179 |
Denominator - basic and diluted partnership units: | ||
Weighted average number of unit outstanding, basic (in shares) | 202 | 202 |
Weighted average number of units outstanding, diluted (in shares) | 202 | 202 |
Earnings per unit - basic and diluted: | ||
Earnings per unit, basic (in usd per share) | $ 0.91 | $ 0.89 |
Earnings per unit, diluted (in usd per share) | $ 0.91 | $ 0.89 |
Partnership exchangeable units | ||
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 86 | $ 91 |
Denominator - basic and diluted partnership units: | ||
Weighted average number of unit outstanding, basic (in shares) | 145 | 155 |
Weighted average number of units outstanding, diluted (in shares) | 145 | 155 |
Earnings per unit - basic and diluted: | ||
Earnings per unit, basic (in usd per share) | $ 0.59 | $ 0.59 |
Earnings per unit, diluted (in usd per share) | $ 0.59 | $ 0.59 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, net and Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 819 | $ 826 |
Accumulated Amortization | (357) | (353) |
Net | 462 | 473 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 11,451 | 11,417 |
Goodwill [Line Items] | ||
Goodwill | 6,050 | 6,006 |
Tim Hortons brand | ||
Goodwill [Line Items] | ||
Goodwill | 4,344 | 4,306 |
Burger King brand | ||
Goodwill [Line Items] | ||
Goodwill | 596 | 601 |
Popeyes brand | ||
Goodwill [Line Items] | ||
Goodwill | 846 | 846 |
Firehouse Subs brand | ||
Goodwill [Line Items] | ||
Goodwill | 264 | 253 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 10,989 | 10,944 |
Trade names | Tim Hortons brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 6,757 | 6,695 |
Trade names | Burger King brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 2,109 | 2,126 |
Trade names | Popeyes brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,355 | 1,355 |
Trade names | Firehouse Subs brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 768 | 768 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 718 | 722 |
Accumulated Amortization | (295) | (290) |
Net | 423 | 432 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 101 | 104 |
Accumulated Amortization | (62) | (63) |
Net | $ 39 | $ 41 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $ 10 | $ 10 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 0 | $ 0 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable from equity method investments | 50 | 48 | |
Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | $ 21 | ||
BK Brasil | |||
Schedule of Equity Method Investments [Line Items] | |||
Joint-venture interest | 9.40% | ||
Quoted market price | $ 41 | ||
Wendy's Company TIMWEN Partnership | Tim Hortons brand | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash distributions | 3 | $ 3 | |
Rent expense | $ 4 | $ 4 | |
United States | Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Joint-venture interest | 15.50% | ||
Canada | Wendy's Company TIMWEN Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Joint-venture interest | 50.00% | ||
Other assets | |||
Schedule of Equity Method Investments [Line Items] | |||
Investment in subsidiaries | $ 181 | $ 194 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Franchise and Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues from affiliates: | ||
Property revenues | $ 188 | $ 182 |
Total revenues | 1,451 | 1,260 |
Affiliates | ||
Revenues from affiliates: | ||
Total revenues | 115 | 90 |
Royalties | ||
Revenues from affiliates: | ||
Revenues | 403 | 346 |
Royalties | Affiliates | ||
Revenues from affiliates: | ||
Revenues | 88 | 65 |
Advertising revenues and other services | ||
Revenues from affiliates: | ||
Revenues | 227 | 205 |
Total revenues | 227 | 205 |
Advertising revenues and other services | Affiliates | ||
Revenues from affiliates: | ||
Revenues | 16 | 13 |
Property revenues | Affiliates | ||
Revenues from affiliates: | ||
Property revenues | 7 | 8 |
Franchise fees and other revenue | ||
Revenues from affiliates: | ||
Revenues | 24 | 20 |
Franchise fees and other revenue | Affiliates | ||
Revenues from affiliates: | ||
Revenues | $ 4 | $ 4 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities, net - Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current: | ||
Distribution payable | $ 244 | $ 241 |
Interest payable | 89 | 63 |
Accrued compensation and benefits | 46 | 99 |
Taxes payable | 127 | 106 |
Deferred income | 45 | 48 |
Accrued advertising expenses | 37 | 43 |
Restructuring and other provisions | 91 | 90 |
Current portion of operating lease liabilities | 144 | 140 |
Other | 94 | 117 |
Other accrued liabilities | 917 | 947 |
Noncurrent: | ||
Taxes payable | 543 | 533 |
Contract liabilities | 535 | 531 |
Derivatives liabilities | 422 | 575 |
Unfavorable leases | 62 | 65 |
Accrued pension | 48 | 47 |
Deferred income | 47 | 37 |
Other | 32 | 34 |
Other liabilities, net | $ 1,689 | $ 1,822 |
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
TH Facility and other | $ 175 | $ 173 |
Less: unamortized deferred financing costs and deferred issue discount | (131) | (138) |
Total debt, net | 12,974 | 12,978 |
Less: current maturities of debt | (71) | (62) |
Total long-term debt | 12,903 | 12,916 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Term loan facility | 5,230 | 5,243 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Term loan facility | $ 1,250 | 1,250 |
3.875% First Lien Senior Notes due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.875% | |
Senior notes | $ 1,550 | 1,550 |
3.50% First Lien Senior Notes due 2029 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.50% | |
Senior notes | $ 750 | 750 |
5.75% First Lien Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.75% | |
5.75% First Lien Senior Notes due 2025 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.75% | |
Senior notes | $ 500 | 500 |
4.375% Second Lien Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.375% | |
4.375% Second Lien Senior Notes due 2028 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.375% | |
Senior notes | $ 750 | 750 |
4.00% Second Lien Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.00% | |
4.00% Second Lien Senior Notes due 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.00% | |
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Amount outstanding under credit facility | $ 12,974,000,000 | $ 12,978,000,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Amount outstanding under credit facility | 0 | |
Letters of credit issued against credit facility | 2,000,000 | |
Remaining borrowing capacity | 998,000,000 | |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - TH facility (D
Long-Term Debt - TH facility (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)subsidiary | Mar. 31, 2022CAD ($)subsidiary | Dec. 31, 2021USD ($) | |
Line of Credit Facility [Line Items] | |||
Amount outstanding under credit facility | $ 12,974 | $ 12,978 | |
TH Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount outstanding | $ 225,000,000 | ||
Amount outstanding under credit facility | $ 214,000,000 | ||
Interest rate | 2.33% | 2.33% | |
TH Facility | Canadian Bankers' Acceptance Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
TH Facility | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.40% | ||
TH Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Number of guaranteed subsidiaries | subsidiary | 4 | 4 |
Long-Term Debt - RE Facility (D
Long-Term Debt - RE Facility (Details) | 3 Months Ended | |
Mar. 31, 2022USD ($)subsidiary | Dec. 31, 2021USD ($) | |
Debt Instrument [Line Items] | ||
Amount outstanding under credit facility | $ 12,974,000,000 | $ 12,978,000,000 |
R E Facility | Line of Credit | ||
Debt Instrument [Line Items] | ||
Number of subsidiaries | subsidiary | 1 | |
Aggregate principal amount outstanding | $ 50,000,000 | |
Number of guaranteed subsidiaries | subsidiary | 4 | |
Amount outstanding under credit facility | $ 1,000,000 | |
Interest rate | 1.77% | |
R E Facility | Line of Credit | Base Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
R E Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% | |
Interest rate, base rate floor (as a percent) | 0.00% |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value Measurement (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Fair value of our variable term debt and senior notes | $ 12,370 | $ 12,851 |
Principal carrying amount of our variable term debt and senior notes | $ 12,930 | $ 12,943 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Debt | $ 115 | $ 113 |
Finance lease obligations | 5 | 5 |
Amortization of deferred financing costs and debt issuance discount | 7 | 7 |
Interest income | 0 | (1) |
Interest expense, net | 127 | 124 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | Interest expense, net | ||
Debt Instrument [Line Items] | ||
Gain (loss) reclassified to earnings, net investment hedge | $ 11 | $ 12 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 16.60% | 14.70% |
Equity - Additional Information
Equity - Additional Information (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($)shares | |
Stockholders Equity [Line Items] | |
Repurchase of common shares | $ | $ 161 |
Partnership exchangeable units | |
Stockholders Equity [Line Items] | |
BKW reorganization into Partnership (in shares) | shares | 1,525,900 |
Equity - Summary of Changes in
Equity - Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balances | $ 3,853 | $ 3,721 |
Foreign currency translation adjustment | 57 | 54 |
Net change in fair value of derivatives, net of tax | 126 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 21 | 24 |
Gain (loss) recognized on other, net of tax | 1 | 1 |
Ending balances | 3,961 | 4,002 |
Derivatives | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balances | 196 | |
Net change in fair value of derivatives, net of tax | 126 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | 21 | |
Ending balances | 343 | |
Pensions | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balances | (30) | |
Gain (loss) recognized on other, net of tax | 1 | |
Ending balances | (29) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balances | (1,190) | |
Foreign currency translation adjustment | 57 | |
Ending balances | (1,133) | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) | ||
Beginning balances | (1,024) | (1,275) |
Ending balances | $ (819) | $ (1,072) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions, $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022CAD ($) | Mar. 31, 2022EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Net unrealized loss recognized in AOCI | $ (161,000,000) | $ (95,000,000) | |||||
Interest Rate Swaps - Period One | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 3,500,000,000 | ||||||
Interest Rate Swaps - Period Two | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 500,000,000 | ||||||
Interest Rate Swap One | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 3,500,000,000 | ||||||
Interest Rate Swap One | Interest expense, net | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Net unrealized loss recognized in AOCI | 143,000,000 | ||||||
Loss reclassified from OACI to Income | 28,000,000 | ||||||
Interest Rate Swap Two | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 3,500,000,000 | ||||||
Interest Rate Swap Two | Interest expense, net | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Net unrealized loss recognized in AOCI | 213,000,000 | ||||||
Loss reclassified from OACI to Income | 50,000,000 | ||||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 5,000,000,000 | $ 6,754 | |||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | Derivatives designated as net investment hedges | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 150,000,000 | $ 500,000,000 | $ 400,000,000 | ||||
Cross Currency Interest Rate Contract | Fixed Income Interest Rate | Hedge Funds | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | 1,200,000,000 | € 1,108 | |||||
Foreign Exchange Contract | |||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||||
Notional amount | $ 203,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Interest rate swaps | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ 223 | $ 129 |
Interest rate swaps | Interest expense, net | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Reclassified from AOCI into Earnings | (29) | (30) |
Forward-currency contracts | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | (2) | (1) |
Forward-currency contracts | Cost of sales | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Reclassified from AOCI into Earnings | 1 | (2) |
Cross-currency rate swaps | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | (60) | 9 |
Cross-currency rate swaps | Interest expense, net | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 11 | $ 12 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 48 | $ 25 |
Derivatives liabilities | 424 | 575 |
Derivatives designated as cash flow hedges | Foreign currency | Prepaids and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 1 | 2 |
Derivatives designated as cash flow hedges | Foreign currency | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 2 | 0 |
Derivatives designated as cash flow hedges | Interest rate | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 20 | 0 |
Derivatives designated as cash flow hedges | Interest rate | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 4 | 220 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 27 | 23 |
Derivatives designated as net investment hedges | Foreign currency | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | $ 418 | $ 355 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ 2 | $ (2) |
Litigation settlements (gains) and reserves, net | 1 | 2 |
Net losses (gains) on foreign exchange | (21) | (43) |
Other, net | 2 | 1 |
Other operating expenses (income), net | $ (16) | $ (42) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | ||
Apr. 30, 2022case | Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | |
Hussain vs. Burger King Corporation | Pending Litigation | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Number of new claims filed | case | 2 | ||
Burger King And Popeyes | CHINA | |||
Loss Contingencies [Line Items] | |||
Expected cost | $ 100 | ||
Litigation settlement and reserves | $ 72 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2022brand | |
Segment Reporting [Abstract] | |
Number of brands | 4 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Operating Segment and Country (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 1,451 | $ 1,260 |
Canada | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 747 | $ 638 |
Canada | Revenue Benchmark | Geographic Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 521 | $ 478 |
United States | Revenue Benchmark | Geographic Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Concentration risk, percentage | 10.00% | 10.00% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 183 | $ 144 |
TH | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 829 | 710 |
BK | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 443 | 407 |
PLK | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 148 | 143 |
FHS | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 31 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted EBITDA | $ 530 | $ 480 |
Impact of equity method investments | 13 | 2 |
Other operating expenses (income), net | (16) | (42) |
EBITDA | 499 | 491 |
Depreciation and amortization | 49 | 49 |
Income from operations | 450 | 442 |
Interest expense, net | 127 | 124 |
Income tax expense | 53 | 47 |
Net income | 270 | 271 |
Unallocated Management G&A | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Share-based compensation and non-cash incentive compensation expense | 27 | 26 |
Corporate restructuring and tax advisory fees | 3 | 1 |
Impact of equity method investments | 16 | 4 |
Other operating expenses (income), net | (16) | (42) |
Unallocated Management G&A | Firehouse Subs brand | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
FHS Transaction costs | 1 | 0 |
TH | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted EBITDA | 231 | 207 |
BK | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted EBITDA | 229 | 217 |
PLK | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted EBITDA | 56 | 56 |
FHS | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted EBITDA | $ 14 | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Narrative (Details) | Mar. 31, 2022 |
3.875% First Lien Senior Notes due 2028 | Senior Notes | |
Stated interest rate (as a percent) | 3.875% |
5.75% First Lien Senior Notes due 2025 | |
Stated interest rate (as a percent) | 5.75% |
5.75% First Lien Senior Notes due 2025 | Senior Notes | |
Stated interest rate (as a percent) | 5.75% |
3.50% First Lien Senior Notes due 2029 | |
Stated interest rate (as a percent) | 3.50% |
4.375% Second Lien Senior Notes due 2028 | |
Stated interest rate (as a percent) | 4.375% |
4.375% Second Lien Senior Notes due 2028 | Senior Notes | |
Stated interest rate (as a percent) | 4.375% |
4.00% Second Lien Senior Notes due 2030 | |
Stated interest rate (as a percent) | 4.00% |
4.00% Second Lien Senior Notes due 2030 | Senior Notes | |
Stated interest rate (as a percent) | 4.00% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||
Cash and cash equivalents | $ 895 | $ 1,087 | $ 1,563 | $ 1,560 |
Accounts and notes receivable, net | 593 | 547 | ||
Inventories, net | 108 | 96 | ||
Prepaids and other current assets | 90 | 86 | ||
Total current assets | 1,686 | 1,816 | ||
Property and equipment, net | 2,023 | 2,035 | ||
Operating lease assets, net | 1,137 | 1,130 | ||
Intangible assets, net | 11,451 | 11,417 | ||
Goodwill | 6,050 | 6,006 | ||
Net investment in property leased to franchisees | 82 | 80 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 743 | 762 | ||
Total assets | 23,172 | 23,246 | ||
Current liabilities: | ||||
Accounts and drafts payable | 637 | 614 | ||
Other accrued liabilities | 917 | 947 | ||
Gift card liability | 169 | 221 | ||
Current portion of long-term debt and finance leases | 105 | 96 | ||
Total current liabilities | 1,828 | 1,878 | ||
Long-term debt, net of current portion | 12,903 | 12,916 | ||
Finance leases, net of current portion | 337 | 333 | ||
Operating lease liabilities, net of current portion | 1,074 | 1,070 | ||
Other liabilities, net | 1,689 | 1,822 | ||
Payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 1,380 | 1,374 | ||
Total liabilities | 19,211 | 19,393 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (819) | (1,024) | ||
Total Partners’ capital | 3,958 | 3,850 | ||
Noncontrolling interests | 3 | 3 | ||
Total equity | 3,961 | 3,853 | 4,002 | 3,721 |
Total liabilities and equity | 23,172 | 23,246 | ||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,400 | 8,421 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | (3,623) | (3,547) | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Net investment in property leased to franchisees | 0 | 0 | ||
Intercompany receivable | (244) | (241) | ||
Investment in subsidiaries | (3,961) | (3,853) | ||
Other assets, net | 0 | 0 | ||
Total assets | (4,205) | (4,094) | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Finance leases, net of current portion | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | 0 | ||
Payables to affiliates | (244) | (241) | ||
Deferred income taxes, net | 0 | 0 | ||
Total liabilities | (244) | (241) | ||
Partners’ capital: | ||||
Common shares | (2,514) | (2,635) | ||
Retained earnings | (2,263) | (2,239) | ||
Accumulated other comprehensive income (loss) | 819 | 1,024 | ||
Total Partners’ capital | (3,958) | (3,850) | ||
Noncontrolling interests | (3) | (3) | ||
Total equity | (3,961) | (3,853) | ||
Total liabilities and equity | (4,205) | (4,094) | ||
Eliminations | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Eliminations | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 895 | 1,087 | 1,563 | 1,560 |
Accounts and notes receivable, net | 593 | 547 | ||
Inventories, net | 108 | 96 | ||
Prepaids and other current assets | 90 | 86 | ||
Total current assets | 1,686 | 1,816 | ||
Property and equipment, net | 2,023 | 2,035 | ||
Operating lease assets, net | 1,137 | 1,130 | ||
Intangible assets, net | 11,451 | 11,417 | ||
Goodwill | 6,050 | 6,006 | ||
Net investment in property leased to franchisees | 82 | 80 | ||
Intercompany receivable | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 743 | 762 | ||
Total assets | 23,172 | 23,246 | ||
Current liabilities: | ||||
Accounts and drafts payable | 637 | 614 | ||
Other accrued liabilities | 673 | 706 | ||
Gift card liability | 169 | 221 | ||
Current portion of long-term debt and finance leases | 105 | 96 | ||
Total current liabilities | 1,584 | 1,637 | ||
Long-term debt, net of current portion | 12,903 | 12,916 | ||
Finance leases, net of current portion | 337 | 333 | ||
Operating lease liabilities, net of current portion | 1,074 | 1,070 | ||
Other liabilities, net | 1,689 | 1,822 | ||
Payables to affiliates | 244 | 241 | ||
Deferred income taxes, net | 1,380 | 1,374 | ||
Total liabilities | 19,211 | 19,393 | ||
Partners’ capital: | ||||
Common shares | 2,514 | 2,635 | ||
Retained earnings | 2,263 | 2,239 | ||
Accumulated other comprehensive income (loss) | (819) | (1,024) | ||
Total Partners’ capital | 3,958 | 3,850 | ||
Noncontrolling interests | 3 | 3 | ||
Total equity | 3,961 | 3,853 | ||
Total liabilities and equity | 23,172 | 23,246 | ||
Consolidated Borrowers | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
RBILP | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Net investment in property leased to franchisees | 0 | 0 | ||
Intercompany receivable | 244 | 241 | ||
Investment in subsidiaries | 3,961 | 3,853 | ||
Other assets, net | 0 | 0 | ||
Total assets | 4,205 | 4,094 | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 244 | 241 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 244 | 241 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Finance leases, net of current portion | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | 0 | ||
Payables to affiliates | 0 | 0 | ||
Deferred income taxes, net | 0 | 0 | ||
Total liabilities | 244 | 241 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (819) | (1,024) | ||
Total Partners’ capital | 3,958 | 3,850 | ||
Noncontrolling interests | 3 | 3 | ||
Total equity | 3,961 | 3,853 | ||
Total liabilities and equity | 4,205 | 4,094 | ||
RBILP | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 8,400 | 8,421 | ||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | $ (3,623) | $ (3,547) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Total revenues | $ 1,451 | $ 1,260 |
Operating costs and expenses: | ||
Cost of sales | 494 | 401 |
Franchise and property expenses | 130 | 116 |
Advertising expenses and other services | 247 | 237 |
General and administrative expenses | 133 | 104 |
(Income) loss from equity method investments | 13 | 2 |
Other operating expenses (income), net | (16) | (42) |
Total operating costs and expenses | 1,001 | 818 |
Income from operations | 450 | 442 |
Interest expense, net | 127 | 124 |
Income before income taxes | 323 | 318 |
Income tax expense | 53 | 47 |
Net income | 270 | 271 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Net income | 270 | 271 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 269 | 270 |
Comprehensive income (loss) | 475 | 474 |
Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Operating costs and expenses: | ||
Cost of sales | 0 | 0 |
Franchise and property expenses | 0 | 0 |
Advertising expenses and other services | 0 | 0 |
General and administrative expenses | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
Other operating expenses (income), net | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (270) | (271) |
Net income | (270) | (271) |
Net income (loss) attributable to noncontrolling interests | (1) | (1) |
Net income attributable to common unitholders | (269) | (270) |
Comprehensive income (loss) | (475) | (474) |
Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 1,451 | 1,260 |
Operating costs and expenses: | ||
Cost of sales | 494 | 401 |
Franchise and property expenses | 130 | 116 |
Advertising expenses and other services | 247 | 237 |
General and administrative expenses | 133 | 104 |
(Income) loss from equity method investments | 13 | 2 |
Other operating expenses (income), net | (16) | (42) |
Total operating costs and expenses | 1,001 | 818 |
Income from operations | 450 | 442 |
Interest expense, net | 127 | 124 |
Income before income taxes | 323 | 318 |
Income tax expense | 53 | 47 |
Net income | 270 | 271 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Net income | 270 | 271 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 269 | 270 |
Comprehensive income (loss) | 475 | 474 |
RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Operating costs and expenses: | ||
Cost of sales | 0 | 0 |
Franchise and property expenses | 0 | 0 |
Advertising expenses and other services | 0 | 0 |
General and administrative expenses | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
Other operating expenses (income), net | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Equity in earnings of consolidated subsidiaries | 270 | 271 |
Net income | 270 | 271 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 269 | 270 |
Comprehensive income (loss) | 475 | 474 |
Sales | ||
Revenues: | ||
Total revenues | 609 | 507 |
Sales | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Sales | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 609 | 507 |
Sales | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Franchise and property revenues | ||
Revenues: | ||
Total revenues | 615 | 548 |
Franchise and property revenues | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 615 | 548 |
Franchise and property revenues | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Advertising revenues and other services | ||
Revenues: | ||
Total revenues | 227 | 205 |
Advertising revenues and other services | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Advertising revenues and other services | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 227 | 205 |
Advertising revenues and other services | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 270 | $ 271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 |
Depreciation and amortization | 49 | 49 |
Amortization of deferred financing costs and debt issuance discount | 7 | 7 |
(Income) loss from equity method investments | 13 | 2 |
(Gain) loss on remeasurement of foreign denominated transactions | (21) | (43) |
Net (gains) losses on derivatives | 18 | 20 |
Share-based compensation and non-cash incentive compensation expense | 27 | 26 |
Deferred income taxes | (16) | 14 |
Other | 9 | (8) |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (46) | 24 |
Inventories and prepaids and other current assets | (22) | (4) |
Accounts and drafts payable | 18 | 19 |
Other accrued liabilities and gift card liability | (91) | (117) |
Tenant inducements paid to franchisees | (2) | 0 |
Other long-term assets and liabilities | 21 | 6 |
Net cash provided by operating activities | 234 | 266 |
Cash flows from investing activities: | ||
Payments for property and equipment | (10) | (15) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 4 | 11 |
Settlement/sale of derivatives, net | 3 | 2 |
Other investing activities, net | 4 | (5) |
Net cash (used for) provided by investing activities | 1 | (7) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1 | 0 |
Repayments of long-term debt and finance leases | (21) | (27) |
Distributions on Class A common and Partnership exchangeable units | (241) | (239) |
Distribution to RBI for repurchase of RBI common shares | (161) | 0 |
Capital contribution from RBI | 3 | 20 |
Distributions from subsidiaries | 0 | 0 |
(Payments) proceeds from derivatives | (6) | (16) |
Other financing activities, net | (1) | 1 |
Net cash (used for) provided by financing activities | (426) | (261) |
Effect of exchange rates on cash and cash equivalents | (1) | 5 |
Increase (decrease) in cash and cash equivalents | (192) | 3 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 |
Cash and cash equivalents at end of period | 895 | 1,563 |
Eliminations | ||
Cash flows from operating activities: | ||
Net income | (270) | (271) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 270 | 271 |
Depreciation and amortization | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 |
Accounts and drafts payable | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 |
Tenant inducements paid to franchisees | 0 | |
Other long-term assets and liabilities | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Payments for property and equipment | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 |
Settlement/sale of derivatives, net | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash (used for) provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | |
Repayments of long-term debt and finance leases | 0 | 0 |
Distributions on Class A common and Partnership exchangeable units | 0 | 0 |
Distribution to RBI for repurchase of RBI common shares | 0 | |
Capital contribution from RBI | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
(Payments) proceeds from derivatives | 0 | 0 |
Other financing activities, net | 0 | 0 |
Net cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Consolidated Borrowers | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income | 270 | 271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 |
Depreciation and amortization | 49 | 49 |
Amortization of deferred financing costs and debt issuance discount | 7 | 7 |
(Income) loss from equity method investments | 13 | 2 |
(Gain) loss on remeasurement of foreign denominated transactions | (21) | (43) |
Net (gains) losses on derivatives | 18 | 20 |
Share-based compensation and non-cash incentive compensation expense | 27 | 26 |
Deferred income taxes | (16) | 14 |
Other | 9 | (8) |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (46) | 24 |
Inventories and prepaids and other current assets | (22) | (4) |
Accounts and drafts payable | 18 | 19 |
Other accrued liabilities and gift card liability | (91) | (117) |
Tenant inducements paid to franchisees | (2) | |
Other long-term assets and liabilities | 21 | 6 |
Net cash provided by operating activities | 234 | 266 |
Cash flows from investing activities: | ||
Payments for property and equipment | (10) | (15) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 4 | 11 |
Settlement/sale of derivatives, net | 3 | 2 |
Other investing activities, net | 4 | (5) |
Net cash (used for) provided by investing activities | 1 | (7) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1 | |
Repayments of long-term debt and finance leases | (21) | (27) |
Distributions on Class A common and Partnership exchangeable units | 0 | 0 |
Distribution to RBI for repurchase of RBI common shares | 0 | |
Capital contribution from RBI | 3 | 20 |
Distributions from subsidiaries | (402) | (239) |
(Payments) proceeds from derivatives | (6) | (16) |
Other financing activities, net | (1) | 1 |
Net cash (used for) provided by financing activities | (426) | (261) |
Effect of exchange rates on cash and cash equivalents | (1) | 5 |
Increase (decrease) in cash and cash equivalents | (192) | 3 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 |
Cash and cash equivalents at end of period | 895 | 1,563 |
RBILP | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income | 270 | 271 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | (270) | (271) |
Depreciation and amortization | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 |
Accounts and drafts payable | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 |
Tenant inducements paid to franchisees | 0 | |
Other long-term assets and liabilities | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Payments for property and equipment | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 |
Settlement/sale of derivatives, net | 0 | 0 |
Other investing activities, net | 0 | 0 |
Net cash (used for) provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 0 | |
Repayments of long-term debt and finance leases | 0 | 0 |
Distributions on Class A common and Partnership exchangeable units | (241) | (239) |
Distribution to RBI for repurchase of RBI common shares | (161) | |
Capital contribution from RBI | 0 | 0 |
Distributions from subsidiaries | 402 | 239 |
(Payments) proceeds from derivatives | 0 | 0 |
Other financing activities, net | 0 | 0 |
Net cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | Jul. 05, 2022 | Apr. 06, 2022 | May 03, 2022 | Mar. 31, 2022 | Mar. 31, 2021 |
Forecast | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends paid (in usd per share) | $ 0.54 | ||||
Partnership exchangeable units | |||||
Subsequent Event [Line Items] | |||||
Cash dividend declared (in usd per share) | $ 0.54 | $ 0.53 | |||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock dividends paid (in usd per share) | $ 0.54 | ||||
Cash dividend declared (in usd per share) | $ 0.54 | ||||
Subsequent Event | Partnership exchangeable units | Restaurant Brands International Limited Partnership | |||||
Subsequent Event [Line Items] | |||||
Cash dividend paid per exchangeable unit (in usd per share) | $ 0.54 | $ 0.54 |