Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 29, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | Q2 | |
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) | 143,316,404 | |
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 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||||
Cash and cash equivalents | $ 838 | $ 1,087 | $ 1,762 | $ 1,560 | ||
Accounts and notes receivable, net of allowance of $21 and $18, respectively | 551 | 547 | ||||
Inventories, net | 114 | 96 | ||||
Prepaids and other current assets | 65 | 86 | ||||
Total current assets | 1,568 | 1,816 | ||||
Property and equipment, net of accumulated depreciation and amortization of $1,027 and $979, respectively | 1,984 | 2,035 | ||||
Operating lease assets, net | 1,113 | 1,130 | ||||
Intangible assets, net | 11,296 | 11,417 | ||||
Goodwill | 5,866 | 6,006 | ||||
Net investment in property leased to franchisees | 82 | 80 | ||||
Other assets, net | 845 | 762 | ||||
Total assets | 22,754 | 23,246 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 705 | 614 | ||||
Other accrued liabilities | 783 | 947 | ||||
Gift card liability | 163 | 221 | ||||
Current portion of long-term debt and finance leases | 112 | 96 | ||||
Total current liabilities | 1,763 | 1,878 | ||||
Long-term debt, net of current portion | 12,881 | 12,916 | ||||
Finance leases, net of current portion | 326 | 333 | ||||
Operating lease liabilities, net of current portion | 1,053 | 1,070 | ||||
Other liabilities, net | 1,477 | 1,822 | ||||
Deferred income taxes, net | 1,345 | 1,374 | ||||
Total liabilities | 18,845 | 19,393 | ||||
Partners’ capital: | ||||||
Accumulated other comprehensive income (loss) | (838) | (1,024) | ||||
Total Partners’ capital | 3,906 | 3,850 | ||||
Noncontrolling interests | 3 | 3 | ||||
Total equity | 3,909 | $ 3,961 | 3,853 | $ 4,259 | $ 4,002 | $ 3,721 |
Total liabilities and equity | 22,754 | 23,246 | ||||
Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units; 202,006,067 issued and outstanding at June 30, 2022 and December 31, 2021 | 8,343 | 8,421 | ||||
Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units; 143,316,404 issued and outstanding at June 30, 2022; 144,993,458 issued and outstanding at December 31, 2021 | $ (3,599) | $ (3,547) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Financing receivable, allowance for credit loss, current | $ 21 | $ 18 |
Accumulated depreciation and amortization, property, plant, and equipment | $ 1,027 | $ 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) | 143,316,404 | 144,993,458 |
Partnership exchangeable units, outstanding (in shares) | 143,316,404 | 144,993,458 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||||
Total revenues | $ 1,639 | $ 1,438 | $ 3,090 | $ 2,698 | ||
Operating costs and expenses: | ||||||
Cost of sales | 584 | 467 | 1,078 | 868 | ||
Franchise and property expenses | 125 | 121 | 255 | 237 | ||
Advertising expenses and other services | 259 | 243 | 506 | 480 | ||
General and administrative expenses | 146 | 108 | 279 | 212 | ||
(Income) loss from equity method investments | 9 | 3 | 22 | 5 | ||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | ||
Total operating costs and expenses | 1,098 | 950 | 2,099 | 1,768 | ||
Income from operations | 541 | 488 | 991 | 930 | ||
Interest expense, net | 129 | 126 | 256 | 250 | ||
Income before income taxes | 412 | 362 | 735 | 680 | ||
Income tax expense (benefit) | 66 | (29) | 119 | 18 | ||
Net income | 346 | $ 270 | 391 | $ 271 | 616 | 662 |
Net income attributable to noncontrolling interests | 1 | 1 | 2 | 2 | ||
Net income attributable to common unitholders | 345 | 390 | 614 | 660 | ||
Class A common units | ||||||
Operating costs and expenses: | ||||||
Net income attributable to common unitholders | $ 236 | $ 259 | $ 419 | $ 438 | ||
Earnings per unit - basic and diluted | ||||||
Earnings per unit, basic (in usd per share) | $ 1.17 | $ 1.28 | $ 2.07 | $ 2.17 | ||
Earnings per unit, diluted (in usd per share) | $ 1.17 | $ 1.28 | $ 2.07 | $ 2.17 | ||
Weighted average units outstanding - basic and diluted (in millions): | ||||||
Weighted average number of unit outstanding, basic (in shares) | 202 | 202 | 202 | 202 | ||
Weighted average number of units outstanding, diluted (in shares) | 202 | 202 | 202 | 202 | ||
Partnership exchangeable units | ||||||
Operating costs and expenses: | ||||||
Net income attributable to common unitholders | $ 109 | $ 131 | $ 195 | $ 222 | ||
Earnings per unit - basic and diluted | ||||||
Earnings per unit, basic (in usd per share) | $ 0.77 | $ 0.84 | $ 1.36 | $ 1.43 | ||
Earnings per unit, diluted (in usd per share) | $ 0.77 | $ 0.84 | $ 1.36 | $ 1.43 | ||
Weighted average units outstanding - basic and diluted (in millions): | ||||||
Weighted average number of unit outstanding, basic (in shares) | 143 | 155 | 144 | 155 | ||
Weighted average number of units outstanding, diluted (in shares) | 143 | 155 | 144 | 155 | ||
Sales | ||||||
Revenues: | ||||||
Total revenues | $ 708 | $ 590 | $ 1,317 | $ 1,097 | ||
Franchise and property revenues | ||||||
Revenues: | ||||||
Total revenues | 676 | 612 | 1,291 | 1,160 | ||
Advertising revenues and other services | ||||||
Revenues: | ||||||
Total revenues | $ 255 | $ 236 | $ 482 | $ 441 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 346 | $ 391 | $ 616 | $ 662 |
Foreign currency translation adjustment | (345) | 141 | (288) | 195 |
Net change in fair value of net investment hedges, net of tax of $(38), $21, $(13) and $41 | 226 | (71) | 191 | (42) |
Net change in fair value of cash flow hedges, net of tax of $(30), $5, $(90) and $(28) | 83 | (40) | 244 | 55 |
Amounts reclassified to earnings of cash flow hedges, net of tax of $(6), $(4), $(13) and $(12) | 16 | 29 | 37 | 53 |
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 1 | 1 | 2 | 2 |
Other comprehensive income (loss) | (19) | 60 | 186 | 263 |
Comprehensive income (loss) | 327 | 451 | 802 | 925 |
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 2 |
Comprehensive income (loss) attributable to common unitholders | $ 326 | $ 450 | $ 800 | $ 923 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in fair value of net investment hedges, tax | $ (38) | $ 21 | $ (13) | $ 41 |
Net change in fair value of cash flow hedges, tax | (30) | 5 | (90) | (28) |
Amounts reclassified to earnings of cash flow hedges, tax | (6) | (4) | (13) | (12) |
Gain (loss) recognized on other, tax | $ 0 | $ 0 | $ 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 units Common Stock | Partnership exchangeable units | Partnership exchangeable units Partnership 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) | (72,671) | ||||||
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 | 155,040,667 | ||||||
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] | |||||||
Net income | 662 | ||||||
Other comprehensive income (loss) | 263 | ||||||
Ending balance Class A (in shares) at Jun. 30, 2021 | 202,006,067 | ||||||
Ending balances at Jun. 30, 2021 | 4,259 | (1,012) | 4 | $ 8,222 | $ (2,955) | ||
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2021 | 154,952,900 | ||||||
Beginning balance Class A (in shares) at Mar. 31, 2021 | 202,006,067 | ||||||
Beginning balances at Mar. 31, 2021 | 4,002 | (1,072) | 6 | $ 8,066 | $ (2,998) | ||
Beginning balance partnership exchangeable unit (in shares) at Mar. 31, 2021 | 155,040,667 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on Class A common units | (164) | (164) | |||||
Distributions declared on partnership exchangeable units | (82) | $ (82) | |||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 6 | $ (6) | ||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (87,767) | ||||||
Capital contribution from RBI | 55 | 55 | |||||
Restaurant VIE contributions (distributions) | (3) | (3) | |||||
Net income | 391 | 1 | $ 259 | $ 131 | |||
Other comprehensive income (loss) | 60 | 60 | |||||
Ending balance Class A (in shares) at Jun. 30, 2021 | 202,006,067 | ||||||
Ending balances at Jun. 30, 2021 | 4,259 | (1,012) | 4 | $ 8,222 | $ (2,955) | ||
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2021 | 154,952,900 | ||||||
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) | ||||||
Distribution to RBI for repurchase of RBI common shares | (161) | $ (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 | ||||||
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 | ||||||
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] | |||||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (1,677,054) | ||||||
Net income | 616 | ||||||
Other comprehensive income (loss) | 186 | ||||||
Ending balance Class A (in shares) at Jun. 30, 2022 | 202,006,067 | 202,006,067 | |||||
Ending balances at Jun. 30, 2022 | 3,909 | (838) | 3 | $ 8,343 | $ (3,599) | ||
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2022 | 143,316,404 | 143,316,404 | |||||
Beginning balance Class A (in shares) at Mar. 31, 2022 | 202,006,067 | ||||||
Beginning balances at Mar. 31, 2022 | 3,961 | (819) | 3 | $ 8,400 | $ (3,623) | ||
Beginning balance partnership exchangeable unit (in shares) at Mar. 31, 2022 | 143,467,558 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Distributions declared on Class A common units | (166) | (166) | |||||
Distributions declared on partnership exchangeable units | (77) | $ (77) | |||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 8 | $ (8) | ||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (151,154) | ||||||
Distribution to RBI for repurchase of RBI common shares | (165) | $ (165) | |||||
Capital contribution from RBI | 30 | 30 | |||||
Restaurant VIE contributions (distributions) | (1) | (1) | |||||
Net income | 346 | 1 | $ 236 | $ 109 | |||
Other comprehensive income (loss) | (19) | (19) | |||||
Ending balance Class A (in shares) at Jun. 30, 2022 | 202,006,067 | 202,006,067 | |||||
Ending balances at Jun. 30, 2022 | $ 3,909 | $ (838) | $ 3 | $ 8,343 | $ (3,599) | ||
Ending balance partnership exchangeable units (in shares) at Jun. 30, 2022 | 143,316,404 | 143,316,404 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | |
Class A common units | ||||
Cash dividend declared (in usd per share) | $ 0.82 | $ 0.83 | $ 0.81 | $ 0.81 |
Partnership exchangeable units | ||||
Cash dividend declared (in usd per share) | $ 0.54 | $ 0.54 | $ 0.53 | $ 0.53 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 616 | $ 662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 97 | 100 |
Amortization of deferred financing costs and debt issuance discount | 14 | 13 |
(Income) loss from equity method investments | 22 | 5 |
(Gain) loss on remeasurement of foreign denominated transactions | (52) | (35) |
Net (gains) losses on derivatives | 27 | 42 |
Share-based compensation and non-cash incentive compensation expense | 59 | 46 |
Deferred income taxes | 0 | 24 |
Other | 2 | (12) |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 4 | 17 |
Inventories and prepaids and other current assets | (27) | (5) |
Accounts and drafts payable | 99 | 103 |
Other accrued liabilities and gift card liability | (199) | (129) |
Tenant inducements paid to franchisees | (6) | (1) |
Other long-term assets and liabilities | 13 | (85) |
Net cash provided by operating activities | 669 | 745 |
Cash flows from investing activities: | ||
Payments for property and equipment | (28) | (46) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 10 | 14 |
Net payments in connection with purchase of Firehouse Subs | (12) | 0 |
Settlement/sale of derivatives, net | 9 | 1 |
Other investing activities, net | (25) | (5) |
Net cash (used for) provided by investing activities | (46) | (36) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 2 | 0 |
Repayments of long-term debt and finance leases | (47) | (54) |
Distributions on Class A common and Partnership exchangeable units | (485) | (484) |
Distribution to RBI for repurchase of RBI common shares | (326) | 0 |
Capital contribution from RBI | 4 | 56 |
(Payments) proceeds from derivatives | (6) | (32) |
Other financing activities, net | (2) | (2) |
Net cash (used for) provided by financing activities | (860) | (516) |
Effect of exchange rates on cash and cash equivalents | (12) | 9 |
Increase (decrease) in cash and cash equivalents | (249) | 202 |
Cash and cash equivalents at beginning of period | 1,087 | 1,560 |
Cash and cash equivalents at end of period | 838 | 1,762 |
Supplemental cash flow disclosures: | ||
Interest paid | 209 | 198 |
Income taxes paid | $ 120 | $ 142 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 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 principally 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 June 30, 2022, we franchised or owned 5,352 Tim Hortons restaurants, 19,311 Burger King restaurants, 3,851 Popeyes restaurants and 1,233 Firehouse Subs restaurants, for a total of 29,747 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Firehouse Acquisition | Firehouse Acquisition We acquired Firehouse Subs on December 15, 2021 (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 $1,016 million. 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 totaled approximately $1 million during the six months ended June 30, 2022, consisting of professional fees and compensation related expenses which are classified as general and administrative expenses in the accompanying condensed consolidated statements of operations. During the six months ended June 30, 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 816 Franchise agreements 19 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 821 Goodwill 195 Total consideration $ 1,016 The adjustments to the preliminary estimate of net assets acquired and a decrease in total consideration resulted in a corresponding decrease 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) Firehouse Subs brand (48) Franchise agreements (19) Total liabilities 35 Total consideration (17) Total decrease in goodwill $ (58) 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. Franchise agreements have a weighted average amortization period of 18 years. 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Lease income - operating leases Minimum lease payments $ 101 $ 117 $ 214 $ 230 Variable lease payments 106 84 179 150 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 2 Subtotal - lease income from operating leases 208 202 394 382 Earned income on direct financing and sales-type leases 1 1 3 3 Total property revenues $ 209 $ 203 $ 397 $ 385 |
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 Six Months Ended 2022 2021 2022 2021 Lease income - operating leases Minimum lease payments $ 101 $ 117 $ 214 $ 230 Variable lease payments 106 84 179 150 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 2 Subtotal - lease income from operating leases 208 202 394 382 Earned income on direct financing and sales-type leases 1 1 3 3 Total property revenues $ 209 $ 203 $ 397 $ 385 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 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 June 30, 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 (5) (21) (2) (1) (29) Increase, excluding amounts recognized as revenue during the period 6 15 6 1 28 Impact of foreign currency translation (1) (13) — — (14) Balance at June 30, 2022 $ 65 $ 391 $ 60 $ 8 $ 524 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 June 30, 2022 (in millions): Contract liabilities expected to be recognized in TH BK PLK FHS Consolidated Remainder of 2022 $ 5 $ 17 $ 2 $ 1 $ 25 2023 10 33 4 2 49 2024 9 32 4 1 46 2025 8 31 4 1 44 2026 7 30 4 1 42 Thereafter 26 248 42 2 318 Total $ 65 $ 391 $ 60 $ 8 $ 524 Disaggregation of Total Revenues Total revenues consist of the following (in millions): Three Months Ended Six Months Ended 2022 2021 2022 2021 Sales $ 708 $ 590 $ 1,317 $ 1,097 Royalties 438 389 841 735 Property revenues 209 203 397 385 Franchise fees and other revenue 29 20 53 40 Advertising revenues and other services 255 236 482 441 Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 |
Earnings per Unit
Earnings per Unit | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 236 $ 259 $ 419 $ 438 Net income allocated to Partnership exchangeable unitholders 109 131 195 222 Net income attributable to common unitholders $ 345 $ 390 $ 614 $ 660 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 202 Weighted average Partnership exchangeable units 143 155 144 155 Earnings per unit - basic and diluted: Class A common units (a) $ 1.17 $ 1.28 $ 2.07 $ 2.17 Partnership exchangeable units (a) $ 0.77 $ 0.84 $ 1.36 $ 1.43 (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 | 6 Months Ended |
Jun. 30, 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 June 30, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 724 $ (298) $ 426 $ 722 $ (290) $ 432 Favorable leases 94 (57) 37 104 (63) 41 Subtotal 818 (355) 463 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,586 $ — $ 6,586 $ 6,695 $ — $ 6,695 Burger King brand 2,076 — 2,076 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 768 — 768 Subtotal 10,833 — 10,833 10,944 — 10,944 Intangible assets, net $ 11,296 $ 11,417 Goodwill Tim Hortons segment $ 4,239 $ 4,306 Burger King segment 587 601 Popeyes segment 846 846 Firehouse Subs segment 194 253 Total $ 5,866 $ 6,006 Amortization expense on intangible assets totaled $10 million and $11 million for the three months ended June 30, 2022 and 2021, respectively. Amortization expense on intangible assets totaled $20 million and $21 million for the six months ended June 30, 2022 and 2021, respectively. The change in the franchise agreements, brands and goodwill balances during the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amounts of our equity method investments were $189 million and $194 million as of June 30, 2022 and December 31, 2021, respectively, and are 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% equity interest in Carrols Restaurant Group, Inc. based on the quoted market price on June 30, 2022 was approximately $19 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 June 30, 2022 was approximately $27 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 in the current period. 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 Six Months Ended 2022 2021 2022 2021 Revenues from affiliates: Royalties $ 86 $ 78 $ 174 $ 143 Advertising revenues and other services 18 15 34 28 Property revenues 8 8 15 16 Franchise fees and other revenue 5 4 9 8 Total $ 117 $ 105 $ 232 $ 195 At June 30, 2022 and December 31, 2021, we had $38 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 $2 million and $3 million during the three months ended June 30, 2022 and 2021, respectively. Distributions received from this joint venture were $5 million and $6 million during the six months ended June 30, 2022 and 2021, respectively. Associated with the TIMWEN Partnership, we recognized $5 million and $4 million of rent expense during the three months ended June 30, 2022 and 2021, respectively, and recognized $9 million and $8 million of rent expense during the six months ended June 30, 2022 and 2021, respectively. (Income) loss from equity method investments reflects our share of investee net income or loss and non-cash dilution gains or losses from changes in our ownership interests in equity investees. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities, net | 6 Months Ended |
Jun. 30, 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 June 30, December 31, Current: Distribution payable $ 243 $ 241 Interest payable 68 63 Accrued compensation and benefits 67 99 Taxes payable 88 106 Deferred income 47 48 Accrued advertising expenses 30 43 Restructuring and other provisions 20 90 Current portion of operating lease liabilities 141 140 Other 79 117 Other accrued liabilities $ 783 $ 947 Noncurrent: Taxes payable $ 541 $ 533 Contract liabilities 524 531 Derivatives liabilities 234 575 Unfavorable leases 58 65 Accrued pension 47 47 Deferred income 46 37 Other 27 34 Other liabilities, net $ 1,477 $ 1,822 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): As of June 30, December 31, Term Loan B $ 5,216 $ 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 168 173 Less: unamortized deferred financing costs and deferred issue discount (125) (138) Total debt, net 12,959 12,978 Less: current maturities of debt (78) (62) Total long-term debt $ 12,881 $ 12,916 Revolving Credit Facility As of June 30, 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 June 30, 2022, we had approximately C$208 million outstanding under the TH Facility with a weighted average interest rate of 4.00%. 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 June 30, 2022, we had approximately $2 million outstanding under the RE Facility with a weighted average interest rate of 2.59%. Restrictions and Covenants As of June 30, 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 June 30, December 31, Fair value of our variable term debt and senior notes $ 11,697 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,916 12,943 Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Debt (a) $ 118 $ 115 $ 233 $ 228 Finance lease obligations 5 5 10 10 Amortization of deferred financing costs and debt issuance discount 7 6 14 13 Interest income (1) — (1) (1) Interest expense, net $ 129 $ 126 $ 256 $ 250 (a) Amount includes $12 million and $11 million benefit during the three months ended June 30, 2022 and 2021, respectively, and $23 million benefit during the six months ended June 30, 2022 and 2021, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective tax rate was 15.9% and 16.2% for the three and six months ended June 30, 2022, respectively. The effective tax rate during these periods reflects the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements and favorable structural changes. Our effective tax rate was (8.1)% and 2.6% for the three and six months ended June 30, 2021, respectively. The effective tax rate was primarily the result of net reserve releases of $89 million and $87 million during the three and six months ended June 30, 2021, respectively, related to expiring statutes of limitation for certain prior tax years which reduced our effective tax rate by approximately 24.7% and 12.8% for the three and six months ended June 30, 2021, respectively. The effective tax rate during these periods also reflects the mix of income from multiple tax jurisdictions and the impact of internal financing arrangements. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Equity | Equity During the six months ended June 30, 2022, Partnership exchanged 1,677,054 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 six months ended June 30, 2022, Partnership distributed to RBI $326 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 — — (288) (288) Net change in fair value of derivatives, net of tax 435 — — 435 Amounts reclassified to earnings of cash flow hedges, net of tax 37 — — 37 Gain (loss) recognized on other, net of tax — 2 — 2 Balance at June 30, 2022 $ 668 $ (28) $ (1,478) $ (838) |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 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 and derivatives designated as net investment hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps At June 30, 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 June 30, 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. The net amount of pre-tax gains in connection with these net unrealized gains in AOCI as of June 30, 2022 that we expect to be reclassified into interest expense within the next 12 months is $23 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 $210 million with maturities to August 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 107 $ (44) $ 330 $ 85 Forward-currency contracts $ 6 $ (1) $ 4 $ (2) Derivatives designated as net investment hedges Cross-currency rate swaps $ 264 $ (92) $ 204 $ (83) (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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (23) $ (31) $ (52) $ (61) Forward-currency contracts Cost of sales $ 1 $ (2) $ 2 $ (4) Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 12 $ 11 $ 23 $ 23 Fair Value as of June 30, December 31, 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 131 $ — Other assets, net Foreign currency 4 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 107 23 Other assets, net Total assets at fair value $ 242 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ — $ 220 Other liabilities, net Derivatives designated as net investment hedges Foreign currency 234 355 Other liabilities, net Total liabilities at fair value $ 234 $ 575 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ (1) $ 1 $ 1 $ (1) Litigation settlements (gains) and reserves, net 2 1 3 3 Net losses (gains) on foreign exchange (31) 8 (52) (35) Other, net 5 (2) 7 (1) Other operating expenses (income), net $ (25) $ 8 $ (41) $ (34) 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 | 6 Months Ended |
Jun. 30, 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 RBI, 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 RBI, 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 RBI 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 RBI, Partnership, The TDL Group Corp., BKW 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. The parties have reached a national settlement of all cases, subject to court approval at a hearing scheduled for September 6, 2022, pursuant to which The TDL Group Corp. will provide each member of the class one hot beverage and one baked good and will pay plaintiffs legal fees, in an amount which we believe will be immaterial. On October 26, 2020, City of Warwick Municipal Employees Pension Fund, a purported stockholder of RBI, 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. On June 6, 2022, we filed an answer to the complaint and on July 8, 2022, we filed an appeal of the denial of the motion to dismiss. 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, BKC was served with two separate purported class action complaints relating to per- and polyfluoroalkyl (“PFAS”) in packaging. Hussain vs. BKC was filed on April 13, 2022 in the U.S. District Court for the Northern District of California, and Cooper v. BKC 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 BKC 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 BKC regarding the safety and sustainability of the packaging and are seeking compensatory, statutory and punitive damages, injunctive relief, corrective action, and attorneys’ fees. Hussain filed an amended complaint on June 27, 2022 to assert a California-only class. We have filed a motion to dismiss. In June 2022, Cooper voluntarily dismissed the case and then refiled their complaint in state court only on behalf of Florida consumers. 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Revenues by operating segment: TH $ 968 $ 831 $ 1,797 $ 1,541 BK 473 459 916 866 PLK 165 148 313 291 FHS 33 — 64 — Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues by country (a): Canada $ 878 $ 754 $ 1,625 $ 1,392 United States 571 515 1,092 993 Other 190 169 373 313 Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 (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 Six Months Ended 2022 2021 2022 2021 Segment income: TH $ 274 $ 253 $ 505 $ 460 BK 270 266 499 483 PLK 61 58 117 114 FHS 13 — 27 — Adjusted EBITDA 618 577 1,148 1,057 Share-based compensation and non-cash incentive compensation expense 32 20 59 46 FHS Transaction costs 4 — 5 — Corporate restructuring and tax advisory fees 6 3 9 4 Impact of equity method investments (a) 12 7 28 11 Other operating expenses (income), net (25) 8 (41) (34) EBITDA 589 539 1,088 1,030 Depreciation and amortization 48 51 97 100 Income from operations 541 488 991 930 Interest expense, net 129 126 256 250 Income tax expense 66 (29) 119 18 Net income $ 346 $ 391 $ 616 $ 662 (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 | 6 Months Ended |
Jun. 30, 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 June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 838 $ — $ — $ 838 Accounts and notes receivable, net 551 — — 551 Inventories, net 114 — — 114 Prepaids and other current assets 65 — — 65 Total current assets 1,568 — — 1,568 Property and equipment, net 1,984 — — 1,984 Operating lease assets, net 1,113 — — 1,113 Intangible assets, net 11,296 — — 11,296 Goodwill 5,866 — — 5,866 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 243 (243) — Investment in subsidiaries — 3,909 (3,909) — Other assets, net 845 — — 845 Total assets $ 22,754 $ 4,152 $ (4,152) $ 22,754 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 705 $ — $ — $ 705 Other accrued liabilities 540 243 — 783 Gift card liability 163 — — 163 Current portion of long-term debt and finance leases 112 — — 112 Total current liabilities 1,520 243 — 1,763 Long-term debt, net of current portion 12,881 — — 12,881 Finance leases, net of current portion 326 — — 326 Operating lease liabilities, net of current portion 1,053 — — 1,053 Other liabilities, net 1,477 — — 1,477 Payables to affiliates 243 — (243) — Deferred income taxes, net 1,345 — — 1,345 Total liabilities 18,845 243 (243) 18,845 Partners’ capital: Class A common units — 8,343 — 8,343 Partnership exchangeable units — (3,599) — (3,599) Common shares 2,379 — (2,379) — Retained earnings 2,365 — (2,365) — Accumulated other comprehensive income (loss) (838) (838) 838 (838) Total Partners' capital/shareholders' equity 3,906 3,906 (3,906) 3,906 Noncontrolling interests 3 3 (3) 3 Total equity 3,909 3,909 (3,909) 3,909 Total liabilities and equity $ 22,754 $ 4,152 $ (4,152) $ 22,754 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 June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 708 $ — $ — $ 708 Franchise and property revenues 676 — — 676 Advertising revenues and other services 255 — — 255 Total revenues 1,639 — — 1,639 Operating costs and expenses: Cost of sales 584 — — 584 Franchise and property expenses 125 — — 125 Advertising expenses and other services 259 — — 259 General and administrative expenses 146 — — 146 (Income) loss from equity method investments 9 — — 9 Other operating expenses (income), net (25) — — (25) Total operating costs and expenses 1,098 — — 1,098 Income from operations 541 — — 541 Interest expense, net 129 — — 129 Income before income taxes 412 — — 412 Income tax expense 66 — — 66 Net income 346 — — 346 Equity in earnings of consolidated subsidiaries — 346 (346) — Net income (loss) 346 346 (346) 346 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 345 $ 345 $ (345) $ 345 Comprehensive income (loss) $ 327 $ 327 $ (327) $ 327 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,317 $ — $ — $ 1,317 Franchise and property revenues 1,291 — — 1,291 Advertising revenues and other services 482 — — 482 Total revenues 3,090 — — 3,090 Operating costs and expenses: Cost of sales 1,078 — — 1,078 Franchise and property expenses 255 — — 255 Advertising expenses and other services 506 — — 506 General and administrative expenses 279 — — 279 (Income) loss from equity method investments 22 — — 22 Other operating expenses (income), net (41) — — (41) Total operating costs and expenses 2,099 — — 2,099 Income from operations 991 — — 991 Interest expense, net 256 — — 256 Income before income taxes 735 — — 735 Income tax expense 119 — — 119 Net income 616 — — 616 Equity in earnings of consolidated subsidiaries — 616 (616) — Net income (loss) 616 616 (616) 616 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 614 $ 614 $ (614) $ 614 Comprehensive income (loss) $ 802 $ 802 $ (802) $ 802 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 590 $ — $ — $ 590 Franchise and property revenues 612 — — 612 Advertising revenues and other services 236 — — 236 Total revenues 1,438 — — 1,438 Operating costs and expenses: Cost of sales 467 — — 467 Franchise and property expenses 121 — — 121 Advertising expenses and other services 243 — — 243 General and administrative expenses 108 — — 108 (Income) loss from equity method investments 3 — — 3 Other operating expenses (income), net 8 — — 8 Total operating costs and expenses 950 — — 950 Income from operations 488 — — 488 Interest expense, net 126 — — 126 Income before income taxes 362 — — 362 Income tax expense (benefit) (29) — — (29) Net income 391 — — 391 Equity in earnings of consolidated subsidiaries — 391 (391) — Net income (loss) 391 391 (391) 391 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 390 $ 390 $ (390) $ 390 Comprehensive income (loss) $ 451 $ 451 $ (451) $ 451 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,097 $ — $ — $ 1,097 Franchise and property revenues 1,160 — — 1,160 Advertising revenues and other services 441 441 Total revenues 2,698 — — 2,698 Operating costs and expenses: Cost of sales 868 — — 868 Franchise and property expenses 237 — — 237 Advertising expenses and other services 480 — — 480 General and administrative expenses 212 — — 212 (Income) loss from equity method investments 5 — — 5 Other operating expenses (income), net (34) — — (34) Total operating costs and expenses 1,768 — — 1,768 Income from operations 930 — — 930 Interest expense, net 250 — — 250 Income before income taxes 680 — — 680 Income tax expense 18 — — 18 Net income 662 — — 662 Equity in earnings of consolidated subsidiaries — 662 (662) — Net income (loss) 662 662 (662) 662 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 660 $ 660 $ (660) $ 660 Comprehensive income (loss) $ 925 $ 925 $ (925) $ 925 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six months ended June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 616 $ 616 $ (616) $ 616 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (616) 616 — Depreciation and amortization 97 — — 97 Amortization of deferred financing costs and debt issuance discount 14 — — 14 (Income) loss from equity method investments 22 — — 22 (Gain) loss on remeasurement of foreign denominated transactions (52) — — (52) Net (gains) losses on derivatives 27 — — 27 Share-based compensation and non-cash incentive compensation expense 59 — — 59 Other 2 — — 2 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 4 — — 4 Inventories and prepaids and other current assets (27) — — (27) Accounts and drafts payable 99 — — 99 Other accrued liabilities and gift card liability (199) — — (199) Tenant inducements paid to franchisees (6) — — (6) Other long-term assets and liabilities 13 — — 13 Net cash provided by operating activities 669 — — 669 Cash flows from investing activities: Payments for property and equipment (28) — — (28) Net proceeds from disposal of assets, restaurant closures, and refranchisings 10 — — 10 Net payments in connection with purchase of Firehouse Subs (12) — — (12) Settlement/sale of derivatives, net 9 — — 9 Other investing activities, net (25) — — (25) Net cash (used for) provided by investing activities (46) — — (46) Cash flows from financing activities: Proceeds from long-term debt 2 — — 2 Repayments of long-term debt and finance leases (47) — — (47) Distributions on Class A common and Partnership exchangeable units — (485) — (485) Distribution to RBI for repurchase of RBI common shares — (326) — (326) Capital contribution from RBI 4 — — 4 Distributions from subsidiaries (811) 811 — — (Payments) proceeds from derivatives (6) — — (6) Other financing activities, net (2) — — (2) Net cash (used for) provided by financing activities (860) — — (860) Effect of exchange rates on cash and cash equivalents (12) — — (12) Increase (decrease) in cash and cash equivalents (249) — — (249) Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 838 $ — $ — $ 838 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 662 $ 662 $ (662) $ 662 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (662) 662 — Depreciation and amortization 100 — — 100 Amortization of deferred financing costs and debt issuance discount 13 — — 13 (Income) loss from equity method investments 5 — — 5 (Gain) loss on remeasurement of foreign denominated transactions (35) — — (35) Net (gains) losses on derivatives 42 — — 42 Share-based compensation and non-cash incentive compensation expense 46 — — 46 Deferred income taxes 24 — — 24 Other (12) — — (12) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 17 — — 17 Inventories and prepaids and other current assets (5) — — (5) Accounts and drafts payable 103 — — 103 Other accrued liabilities and gift card liability (129) — — (129) Tenant inducements paid to franchisees (1) — — (1) Other long-term assets and liabilities (85) — — (85) Net cash provided by operating activities 745 — — 745 Cash flows from investing activities: Payments for property and equipment (46) — — (46) Net proceeds from disposal of assets, restaurant closures, and refranchisings 14 — — 14 Settlement/sale of derivatives, net 1 — — 1 Other investing activities, net (5) — — (5) Net cash (used for) provided by investing activities (36) — — (36) Cash flows from financing activities: Repayments of long-term debt and finance leases (54) — — (54) Distributions on Class A common and Partnership exchangeable units — (484) — (484) Capital contribution from RBI 56 — — 56 Distributions from subsidiaries (484) 484 — — (Payments) proceeds from derivatives (32) — — (32) Other financing activities, net (2) — — (2) Net cash (used for) provided by financing activities (516) — — (516) Effect of exchange rates on cash and cash equivalents 9 — — 9 Increase (decrease) in cash and cash equivalents 202 — — 202 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,762 $ — $ — $ 1,762 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Distributions/Dividends On July 6, 2022, RBI paid a cash dividend of $0.54 per RBI common share to common shareholders of record on June 22, 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 June 22, 2022. |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 816 Franchise agreements 19 Operating lease assets 9 Total liabilities (48) Total identifiable net assets 821 Goodwill 195 Total consideration $ 1,016 |
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 decrease 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) Firehouse Subs brand (48) Franchise agreements (19) Total liabilities 35 Total consideration (17) Total decrease in goodwill $ (58) |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Lease income - operating leases Minimum lease payments $ 101 $ 117 $ 214 $ 230 Variable lease payments 106 84 179 150 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 2 Subtotal - lease income from operating leases 208 202 394 382 Earned income on direct financing and sales-type leases 1 1 3 3 Total property revenues $ 209 $ 203 $ 397 $ 385 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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 (5) (21) (2) (1) (29) Increase, excluding amounts recognized as revenue during the period 6 15 6 1 28 Impact of foreign currency translation (1) (13) — — (14) Balance at June 30, 2022 $ 65 $ 391 $ 60 $ 8 $ 524 |
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 June 30, 2022 (in millions): Contract liabilities expected to be recognized in TH BK PLK FHS Consolidated Remainder of 2022 $ 5 $ 17 $ 2 $ 1 $ 25 2023 10 33 4 2 49 2024 9 32 4 1 46 2025 8 31 4 1 44 2026 7 30 4 1 42 Thereafter 26 248 42 2 318 Total $ 65 $ 391 $ 60 $ 8 $ 524 |
Disaggregation of Total Revenues | Total revenues consist of the following (in millions): Three Months Ended Six Months Ended 2022 2021 2022 2021 Sales $ 708 $ 590 $ 1,317 $ 1,097 Royalties 438 389 841 735 Property revenues 209 203 397 385 Franchise fees and other revenue 29 20 53 40 Advertising revenues and other services 255 236 482 441 Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 |
Earnings per Unit (Tables)
Earnings per Unit (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended 2022 2021 2022 2021 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 236 $ 259 $ 419 $ 438 Net income allocated to Partnership exchangeable unitholders 109 131 195 222 Net income attributable to common unitholders $ 345 $ 390 $ 614 $ 660 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 202 202 Weighted average Partnership exchangeable units 143 155 144 155 Earnings per unit - basic and diluted: Class A common units (a) $ 1.17 $ 1.28 $ 2.07 $ 2.17 Partnership exchangeable units (a) $ 0.77 $ 0.84 $ 1.36 $ 1.43 (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) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 December 31, 2021 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 724 $ (298) $ 426 $ 722 $ (290) $ 432 Favorable leases 94 (57) 37 104 (63) 41 Subtotal 818 (355) 463 826 (353) 473 Indefinite-lived intangible assets: Tim Hortons brand $ 6,586 $ — $ 6,586 $ 6,695 $ — $ 6,695 Burger King brand 2,076 — 2,076 2,126 — 2,126 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 768 — 768 Subtotal 10,833 — 10,833 10,944 — 10,944 Intangible assets, net $ 11,296 $ 11,417 Goodwill Tim Hortons segment $ 4,239 $ 4,306 Burger King segment 587 601 Popeyes segment 846 846 Firehouse Subs segment 194 253 Total $ 5,866 $ 6,006 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Franchise and Property Revenues | 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 Six Months Ended 2022 2021 2022 2021 Revenues from affiliates: Royalties $ 86 $ 78 $ 174 $ 143 Advertising revenues and other services 18 15 34 28 Property revenues 8 8 15 16 Franchise fees and other revenue 5 4 9 8 Total $ 117 $ 105 $ 232 $ 195 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities, net (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, December 31, Current: Distribution payable $ 243 $ 241 Interest payable 68 63 Accrued compensation and benefits 67 99 Taxes payable 88 106 Deferred income 47 48 Accrued advertising expenses 30 43 Restructuring and other provisions 20 90 Current portion of operating lease liabilities 141 140 Other 79 117 Other accrued liabilities $ 783 $ 947 Noncurrent: Taxes payable $ 541 $ 533 Contract liabilities 524 531 Derivatives liabilities 234 575 Unfavorable leases 58 65 Accrued pension 47 47 Deferred income 46 37 Other 27 34 Other liabilities, net $ 1,477 $ 1,822 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): As of June 30, December 31, Term Loan B $ 5,216 $ 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 168 173 Less: unamortized deferred financing costs and deferred issue discount (125) (138) Total debt, net 12,959 12,978 Less: current maturities of debt (78) (62) Total long-term debt $ 12,881 $ 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 June 30, December 31, Fair value of our variable term debt and senior notes $ 11,697 $ 12,851 Principal carrying amount of our variable term debt and senior notes 12,916 12,943 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Debt (a) $ 118 $ 115 $ 233 $ 228 Finance lease obligations 5 5 10 10 Amortization of deferred financing costs and debt issuance discount 7 6 14 13 Interest income (1) — (1) (1) Interest expense, net $ 129 $ 126 $ 256 $ 250 |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 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 — — (288) (288) Net change in fair value of derivatives, net of tax 435 — — 435 Amounts reclassified to earnings of cash flow hedges, net of tax 37 — — 37 Gain (loss) recognized on other, net of tax — 2 — 2 Balance at June 30, 2022 $ 668 $ (28) $ (1,478) $ (838) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 107 $ (44) $ 330 $ 85 Forward-currency contracts $ 6 $ (1) $ 4 $ (2) Derivatives designated as net investment hedges Cross-currency rate swaps $ 264 $ (92) $ 204 $ (83) (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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ (23) $ (31) $ (52) $ (61) Forward-currency contracts Cost of sales $ 1 $ (2) $ 2 $ (4) Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 12 $ 11 $ 23 $ 23 |
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of June 30, December 31, 2021 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 131 $ — Other assets, net Foreign currency 4 2 Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 107 23 Other assets, net Total assets at fair value $ 242 $ 25 Liabilities: Derivatives designated as cash flow hedges Interest rate $ — $ 220 Other liabilities, net Derivatives designated as net investment hedges Foreign currency 234 355 Other liabilities, net Total liabilities at fair value $ 234 $ 575 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ (1) $ 1 $ 1 $ (1) Litigation settlements (gains) and reserves, net 2 1 3 3 Net losses (gains) on foreign exchange (31) 8 (52) (35) Other, net 5 (2) 7 (1) Other operating expenses (income), net $ (25) $ 8 $ (41) $ (34) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenues by Geographic Segment | The following tables present revenues, by segment and by country (in millions): Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues by operating segment: TH $ 968 $ 831 $ 1,797 $ 1,541 BK 473 459 916 866 PLK 165 148 313 291 FHS 33 — 64 — Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 Three Months Ended Six Months Ended 2022 2021 2022 2021 Revenues by country (a): Canada $ 878 $ 754 $ 1,625 $ 1,392 United States 571 515 1,092 993 Other 190 169 373 313 Total revenues $ 1,639 $ 1,438 $ 3,090 $ 2,698 (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 Six Months Ended 2022 2021 2022 2021 Segment income: TH $ 274 $ 253 $ 505 $ 460 BK 270 266 499 483 PLK 61 58 117 114 FHS 13 — 27 — Adjusted EBITDA 618 577 1,148 1,057 Share-based compensation and non-cash incentive compensation expense 32 20 59 46 FHS Transaction costs 4 — 5 — Corporate restructuring and tax advisory fees 6 3 9 4 Impact of equity method investments (a) 12 7 28 11 Other operating expenses (income), net (25) 8 (41) (34) EBITDA 589 539 1,088 1,030 Depreciation and amortization 48 51 97 100 Income from operations 541 488 991 930 Interest expense, net 129 126 256 250 Income tax expense 66 (29) 119 18 Net income $ 346 $ 391 $ 616 $ 662 (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) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 838 $ — $ — $ 838 Accounts and notes receivable, net 551 — — 551 Inventories, net 114 — — 114 Prepaids and other current assets 65 — — 65 Total current assets 1,568 — — 1,568 Property and equipment, net 1,984 — — 1,984 Operating lease assets, net 1,113 — — 1,113 Intangible assets, net 11,296 — — 11,296 Goodwill 5,866 — — 5,866 Net investment in property leased to franchisees 82 — — 82 Intercompany receivable — 243 (243) — Investment in subsidiaries — 3,909 (3,909) — Other assets, net 845 — — 845 Total assets $ 22,754 $ 4,152 $ (4,152) $ 22,754 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 705 $ — $ — $ 705 Other accrued liabilities 540 243 — 783 Gift card liability 163 — — 163 Current portion of long-term debt and finance leases 112 — — 112 Total current liabilities 1,520 243 — 1,763 Long-term debt, net of current portion 12,881 — — 12,881 Finance leases, net of current portion 326 — — 326 Operating lease liabilities, net of current portion 1,053 — — 1,053 Other liabilities, net 1,477 — — 1,477 Payables to affiliates 243 — (243) — Deferred income taxes, net 1,345 — — 1,345 Total liabilities 18,845 243 (243) 18,845 Partners’ capital: Class A common units — 8,343 — 8,343 Partnership exchangeable units — (3,599) — (3,599) Common shares 2,379 — (2,379) — Retained earnings 2,365 — (2,365) — Accumulated other comprehensive income (loss) (838) (838) 838 (838) Total Partners' capital/shareholders' equity 3,906 3,906 (3,906) 3,906 Noncontrolling interests 3 3 (3) 3 Total equity 3,909 3,909 (3,909) 3,909 Total liabilities and equity $ 22,754 $ 4,152 $ (4,152) $ 22,754 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 June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 708 $ — $ — $ 708 Franchise and property revenues 676 — — 676 Advertising revenues and other services 255 — — 255 Total revenues 1,639 — — 1,639 Operating costs and expenses: Cost of sales 584 — — 584 Franchise and property expenses 125 — — 125 Advertising expenses and other services 259 — — 259 General and administrative expenses 146 — — 146 (Income) loss from equity method investments 9 — — 9 Other operating expenses (income), net (25) — — (25) Total operating costs and expenses 1,098 — — 1,098 Income from operations 541 — — 541 Interest expense, net 129 — — 129 Income before income taxes 412 — — 412 Income tax expense 66 — — 66 Net income 346 — — 346 Equity in earnings of consolidated subsidiaries — 346 (346) — Net income (loss) 346 346 (346) 346 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 345 $ 345 $ (345) $ 345 Comprehensive income (loss) $ 327 $ 327 $ (327) $ 327 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,317 $ — $ — $ 1,317 Franchise and property revenues 1,291 — — 1,291 Advertising revenues and other services 482 — — 482 Total revenues 3,090 — — 3,090 Operating costs and expenses: Cost of sales 1,078 — — 1,078 Franchise and property expenses 255 — — 255 Advertising expenses and other services 506 — — 506 General and administrative expenses 279 — — 279 (Income) loss from equity method investments 22 — — 22 Other operating expenses (income), net (41) — — (41) Total operating costs and expenses 2,099 — — 2,099 Income from operations 991 — — 991 Interest expense, net 256 — — 256 Income before income taxes 735 — — 735 Income tax expense 119 — — 119 Net income 616 — — 616 Equity in earnings of consolidated subsidiaries — 616 (616) — Net income (loss) 616 616 (616) 616 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 614 $ 614 $ (614) $ 614 Comprehensive income (loss) $ 802 $ 802 $ (802) $ 802 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 590 $ — $ — $ 590 Franchise and property revenues 612 — — 612 Advertising revenues and other services 236 — — 236 Total revenues 1,438 — — 1,438 Operating costs and expenses: Cost of sales 467 — — 467 Franchise and property expenses 121 — — 121 Advertising expenses and other services 243 — — 243 General and administrative expenses 108 — — 108 (Income) loss from equity method investments 3 — — 3 Other operating expenses (income), net 8 — — 8 Total operating costs and expenses 950 — — 950 Income from operations 488 — — 488 Interest expense, net 126 — — 126 Income before income taxes 362 — — 362 Income tax expense (benefit) (29) — — (29) Net income 391 — — 391 Equity in earnings of consolidated subsidiaries — 391 (391) — Net income (loss) 391 391 (391) 391 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 390 $ 390 $ (390) $ 390 Comprehensive income (loss) $ 451 $ 451 $ (451) $ 451 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 1,097 $ — $ — $ 1,097 Franchise and property revenues 1,160 — — 1,160 Advertising revenues and other services 441 441 Total revenues 2,698 — — 2,698 Operating costs and expenses: Cost of sales 868 — — 868 Franchise and property expenses 237 — — 237 Advertising expenses and other services 480 — — 480 General and administrative expenses 212 — — 212 (Income) loss from equity method investments 5 — — 5 Other operating expenses (income), net (34) — — (34) Total operating costs and expenses 1,768 — — 1,768 Income from operations 930 — — 930 Interest expense, net 250 — — 250 Income before income taxes 680 — — 680 Income tax expense 18 — — 18 Net income 662 — — 662 Equity in earnings of consolidated subsidiaries — 662 (662) — Net income (loss) 662 662 (662) 662 Net income (loss) attributable to noncontrolling interests 2 2 (2) 2 Net income (loss) attributable to common unitholders $ 660 $ 660 $ (660) $ 660 Comprehensive income (loss) $ 925 $ 925 $ (925) $ 925 |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six months ended June 30, 2022 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 616 $ 616 $ (616) $ 616 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (616) 616 — Depreciation and amortization 97 — — 97 Amortization of deferred financing costs and debt issuance discount 14 — — 14 (Income) loss from equity method investments 22 — — 22 (Gain) loss on remeasurement of foreign denominated transactions (52) — — (52) Net (gains) losses on derivatives 27 — — 27 Share-based compensation and non-cash incentive compensation expense 59 — — 59 Other 2 — — 2 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 4 — — 4 Inventories and prepaids and other current assets (27) — — (27) Accounts and drafts payable 99 — — 99 Other accrued liabilities and gift card liability (199) — — (199) Tenant inducements paid to franchisees (6) — — (6) Other long-term assets and liabilities 13 — — 13 Net cash provided by operating activities 669 — — 669 Cash flows from investing activities: Payments for property and equipment (28) — — (28) Net proceeds from disposal of assets, restaurant closures, and refranchisings 10 — — 10 Net payments in connection with purchase of Firehouse Subs (12) — — (12) Settlement/sale of derivatives, net 9 — — 9 Other investing activities, net (25) — — (25) Net cash (used for) provided by investing activities (46) — — (46) Cash flows from financing activities: Proceeds from long-term debt 2 — — 2 Repayments of long-term debt and finance leases (47) — — (47) Distributions on Class A common and Partnership exchangeable units — (485) — (485) Distribution to RBI for repurchase of RBI common shares — (326) — (326) Capital contribution from RBI 4 — — 4 Distributions from subsidiaries (811) 811 — — (Payments) proceeds from derivatives (6) — — (6) Other financing activities, net (2) — — (2) Net cash (used for) provided by financing activities (860) — — (860) Effect of exchange rates on cash and cash equivalents (12) — — (12) Increase (decrease) in cash and cash equivalents (249) — — (249) Cash and cash equivalents at beginning of period 1,087 — — 1,087 Cash and cash equivalents at end of period $ 838 $ — $ — $ 838 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Six Months Ended June 30, 2021 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 662 $ 662 $ (662) $ 662 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (662) 662 — Depreciation and amortization 100 — — 100 Amortization of deferred financing costs and debt issuance discount 13 — — 13 (Income) loss from equity method investments 5 — — 5 (Gain) loss on remeasurement of foreign denominated transactions (35) — — (35) Net (gains) losses on derivatives 42 — — 42 Share-based compensation and non-cash incentive compensation expense 46 — — 46 Deferred income taxes 24 — — 24 Other (12) — — (12) Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable 17 — — 17 Inventories and prepaids and other current assets (5) — — (5) Accounts and drafts payable 103 — — 103 Other accrued liabilities and gift card liability (129) — — (129) Tenant inducements paid to franchisees (1) — — (1) Other long-term assets and liabilities (85) — — (85) Net cash provided by operating activities 745 — — 745 Cash flows from investing activities: Payments for property and equipment (46) — — (46) Net proceeds from disposal of assets, restaurant closures, and refranchisings 14 — — 14 Settlement/sale of derivatives, net 1 — — 1 Other investing activities, net (5) — — (5) Net cash (used for) provided by investing activities (36) — — (36) Cash flows from financing activities: Repayments of long-term debt and finance leases (54) — — (54) Distributions on Class A common and Partnership exchangeable units — (484) — (484) Capital contribution from RBI 56 — — 56 Distributions from subsidiaries (484) 484 — — (Payments) proceeds from derivatives (32) — — (32) Other financing activities, net (2) — — (2) Net cash (used for) provided by financing activities (516) — — (516) Effect of exchange rates on cash and cash equivalents 9 — — 9 Increase (decrease) in cash and cash equivalents 202 — — 202 Cash and cash equivalents at beginning of period 1,560 — — 1,560 Cash and cash equivalents at end of period $ 1,762 $ — $ — $ 1,762 |
Description of Business and O_2
Description of Business and Organization - Additional Information (Details) | Jun. 30, 2022 restaurant brand country |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 29,747 |
Number of countries in which company and franchise restaurants operated (more than) | country | 100 |
Percentage of franchised restaurants | 100% |
Tim Hortons brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 5,352 |
Burger King brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 19,311 |
Popeyes brand | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | 3,851 |
FHS | |
Basis Of Presentation [Line Items] | |
Number of franchised or owned restaurants | brand | 1,233 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) restaurant | Jun. 30, 2021 USD ($) | Dec. 31, 2021 restaurant | |
Summary Of Accounting Policies [Line Items] | |||||
Revenues | $ 1,639 | $ 1,438 | $ 3,090 | $ 2,698 | |
General and administrative expenses decrease | (146) | (108) | (279) | (212) | |
Advertising expenses and other services | 259 | 243 | 506 | 480 | |
Revision of Prior Period, Reclassification, Adjustment | Technology Expense | |||||
Summary Of Accounting Policies [Line Items] | |||||
General and administrative expenses decrease | 5 | 6 | |||
Advertising expenses and other services | 5 | 6 | |||
Advertising revenues and other services | |||||
Summary Of Accounting Policies [Line Items] | |||||
Revenues | 255 | 236 | 482 | 441 | |
Advertising revenues and other services | Revision of Prior Period, Reclassification, Adjustment | Technology Fee | |||||
Summary Of Accounting Policies [Line Items] | |||||
Revenues | 2 | 2 | |||
Franchise and property revenues | |||||
Summary Of Accounting Policies [Line Items] | |||||
Revenues | $ 676 | 612 | $ 1,291 | 1,160 | |
Franchise and property revenues | Revision of Prior Period, Reclassification, Adjustment | Technology Fee | |||||
Summary Of Accounting Policies [Line Items] | |||||
Revenues | $ (2) | $ (2) | |||
Restaurant VIEs | |||||
Summary Of Accounting Policies [Line Items] | |||||
Number of VIE consolidated restaurants | restaurant | 45 | 46 |
Firehouse Acquisition - Narrati
Firehouse Acquisition - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 15, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Acquisition [Line Items] | |||||
Proceeds from long-term debt | $ 2 | $ 0 | |||
Firehouse Subs brand | |||||
Business Acquisition [Line Items] | |||||
Business combination, consideration transferred | $ 1,016 | ||||
Firehouse Subs brand | Franchise agreements | |||||
Business Acquisition [Line Items] | |||||
Weighted average amortization period | 18 years | ||||
Firehouse Subs brand | Unallocated Management G&A | |||||
Business Acquisition [Line Items] | |||||
FHS Transaction costs | $ 4 | $ 0 | $ 5 | $ 0 | |
Firehouse Subs brand | Unallocated Management G&A | Selling, General and Administrative Expenses | |||||
Business Acquisition [Line Items] | |||||
FHS Transaction costs | $ 1 | ||||
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 | Jun. 30, 2022 | Dec. 31, 2021 | Dec. 15, 2021 |
Business Acquisition [Line Items] | |||
Goodwill | $ 5,866 | $ 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 | 821 | ||
Goodwill | 195 | ||
Total consideration | 1,016 | ||
Firehouse Subs brand | Franchise agreements | |||
Business Acquisition [Line Items] | |||
Franchise agreements | 19 | ||
Firehouse Subs brand | Trade names | |||
Business Acquisition [Line Items] | |||
Firehouse Subs brand | $ 816 |
Firehouse Acquisition - Sched_2
Firehouse Acquisition - Schedule of Adjustments to Net Assets (Details) - Firehouse Subs brand $ in Millions | 7 Months Ended |
Jun. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Operating lease assets | $ (9) |
Total liabilities | 35 |
Total consideration | (17) |
Total decrease in goodwill | (58) |
Franchise agreements | |
Business Acquisition [Line Items] | |
Firehouse Subs brand and Franchise agreements | (19) |
Trade names | |
Business Acquisition [Line Items] | |
Firehouse Subs brand and Franchise agreements | $ (48) |
Leases - Property Revenues (Det
Leases - Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lease income - operating leases | ||||
Minimum lease payments | $ 101 | $ 117 | $ 214 | $ 230 |
Variable lease payments | 106 | 84 | 179 | 150 |
Amortization of favorable and unfavorable income lease contracts, net | 1 | 1 | 1 | 2 |
Subtotal - lease income from operating leases | 208 | 202 | 394 | 382 |
Earned income on direct financing and sales-type leases | 1 | 1 | 3 | 3 |
Total property revenues | $ 209 | $ 203 | $ 397 | $ 385 |
Revenue Recognition - Change In
Revenue Recognition - Change In Contract Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
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 | (29) |
Increase, excluding amounts recognized as revenue during the period | 28 |
Impact of foreign currency translation | (14) |
Ending balance | 524 |
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 | (5) |
Increase, excluding amounts recognized as revenue during the period | 6 |
Impact of foreign currency translation | (1) |
Ending balance | 65 |
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 | (21) |
Increase, excluding amounts recognized as revenue during the period | 15 |
Impact of foreign currency translation | (13) |
Ending balance | 391 |
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 | 6 |
Impact of foreign currency translation | 0 |
Ending balance | 60 |
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 | (1) |
Increase, excluding amounts recognized as revenue during the period | 1 |
Impact of foreign currency translation | 0 |
Ending balance | $ 8 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Recognition (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 524 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 25 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 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 | $ 44 |
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 | $ 318 |
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 | $ 65 |
TH | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 5 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 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 | $ 26 |
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 | $ 391 |
BK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 17 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 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 | $ 31 |
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 | $ 30 |
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 | $ 248 |
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 | $ 60 |
PLK | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 2 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 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 | $ 4 |
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 | $ 42 |
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]: 2022-07-01 | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Property revenues | $ 209 | $ 203 | $ 397 | $ 385 |
Total revenues | 1,639 | 1,438 | 3,090 | 2,698 |
Sales | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 708 | 590 | 1,317 | 1,097 |
Total revenues | 708 | 590 | 1,317 | 1,097 |
Royalties | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 438 | 389 | 841 | 735 |
Franchise fees and other revenue | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 29 | 20 | 53 | 40 |
Advertising revenues and other services | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Revenues | 255 | 236 | 482 | 441 |
Total revenues | $ 255 | $ 236 | $ 482 | $ 441 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 345 | $ 390 | $ 614 | $ 660 |
Class A common units | ||||
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 236 | $ 259 | $ 419 | $ 438 |
Denominator - basic and diluted partnership units: | ||||
Weighted average number of unit outstanding, basic (in shares) | 202 | 202 | 202 | 202 |
Weighted average number of units outstanding, diluted (in shares) | 202 | 202 | 202 | 202 |
Earnings per unit - basic and diluted: | ||||
Earnings per unit, basic (in usd per share) | $ 1.17 | $ 1.28 | $ 2.07 | $ 2.17 |
Earnings per unit, diluted (in usd per share) | $ 1.17 | $ 1.28 | $ 2.07 | $ 2.17 |
Partnership exchangeable units | ||||
Allocation of net income among partner interests: | ||||
Net income attributable to common unitholders | $ 109 | $ 131 | $ 195 | $ 222 |
Denominator - basic and diluted partnership units: | ||||
Weighted average number of unit outstanding, basic (in shares) | 143 | 155 | 144 | 155 |
Weighted average number of units outstanding, diluted (in shares) | 143 | 155 | 144 | 155 |
Earnings per unit - basic and diluted: | ||||
Earnings per unit, basic (in usd per share) | $ 0.77 | $ 0.84 | $ 1.36 | $ 1.43 |
Earnings per unit, diluted (in usd per share) | $ 0.77 | $ 0.84 | $ 1.36 | $ 1.43 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, net and Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 818 | $ 826 |
Accumulated Amortization | (355) | (353) |
Net | 463 | 473 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 11,296 | 11,417 |
Goodwill [Line Items] | ||
Goodwill | 5,866 | 6,006 |
Tim Hortons brand | ||
Goodwill [Line Items] | ||
Goodwill | 4,239 | 4,306 |
Burger King brand | ||
Goodwill [Line Items] | ||
Goodwill | 587 | 601 |
Popeyes brand | ||
Goodwill [Line Items] | ||
Goodwill | 846 | 846 |
Firehouse Subs brand | ||
Goodwill [Line Items] | ||
Goodwill | 194 | 253 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 10,833 | 10,944 |
Trade names | Tim Hortons brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 6,586 | 6,695 |
Trade names | Burger King brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 2,076 | 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 | 816 | 768 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 724 | 722 |
Accumulated Amortization | (298) | (290) |
Net | 426 | 432 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 94 | 104 |
Accumulated Amortization | (57) | (63) |
Net | $ 37 | $ 41 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 10 | $ 11 | $ 20 | $ 21 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment in subsidiaries | $ 0 | $ 0 | $ 0 | ||
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Accounts receivable from equity method investments | 38 | 38 | 48 | ||
Carrols Restaurant Group, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Quoted market price | $ 19 | $ 19 | |||
BK Brasil | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 9.40% | 9.40% | |||
Quoted market price | $ 27 | $ 27 | |||
Wendy's Company TIMWEN Partnership | Tim Hortons brand | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Cash distributions | 2 | $ 3 | 5 | $ 6 | |
Rent expense | $ 5 | $ 4 | $ 9 | $ 8 | |
United States | Carrols Restaurant Group, Inc. | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 15% | 15% | |||
Canada | Wendy's Company TIMWEN Partnership | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Joint-venture interest | 50% | 50% | |||
Other assets | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment in subsidiaries | $ 189 | $ 189 | $ 194 |
Equity Method Investments - Sum
Equity Method Investments - Summary of Franchise and Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from affiliates: | ||||
Property revenues | $ 209 | $ 203 | $ 397 | $ 385 |
Total revenues | 1,639 | 1,438 | 3,090 | 2,698 |
Affiliates | ||||
Revenues from affiliates: | ||||
Total revenues | 117 | 105 | 232 | 195 |
Royalties | ||||
Revenues from affiliates: | ||||
Revenues | 438 | 389 | 841 | 735 |
Royalties | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 86 | 78 | 174 | 143 |
Advertising revenues and other services | ||||
Revenues from affiliates: | ||||
Revenues | 255 | 236 | 482 | 441 |
Total revenues | 255 | 236 | 482 | 441 |
Advertising revenues and other services | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 18 | 15 | 34 | 28 |
Property revenues | Affiliates | ||||
Revenues from affiliates: | ||||
Property revenues | 8 | 8 | 15 | 16 |
Franchise fees and other revenue | ||||
Revenues from affiliates: | ||||
Revenues | 29 | 20 | 53 | 40 |
Franchise fees and other revenue | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | $ 5 | $ 4 | $ 9 | $ 8 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Current: | ||
Distribution payable | $ 243 | $ 241 |
Interest payable | 68 | 63 |
Accrued compensation and benefits | 67 | 99 |
Taxes payable | 88 | 106 |
Deferred income | 47 | 48 |
Accrued advertising expenses | 30 | 43 |
Restructuring and other provisions | 20 | 90 |
Current portion of operating lease liabilities | 141 | 140 |
Other | 79 | 117 |
Other accrued liabilities | 783 | 947 |
Noncurrent: | ||
Taxes payable | 541 | 533 |
Contract liabilities | 524 | 531 |
Derivatives liabilities | 234 | 575 |
Unfavorable leases | 58 | 65 |
Accrued pension | 47 | 47 |
Deferred income | 46 | 37 |
Other | 27 | 34 |
Other liabilities, net | $ 1,477 | $ 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 | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
TH Facility and other | $ 168 | $ 173 |
Less: unamortized deferred financing costs and deferred issue discount | (125) | (138) |
Total debt, net | 12,959 | 12,978 |
Less: current maturities of debt | (78) | (62) |
Total long-term debt | 12,881 | 12,916 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Term loan facility | 5,216 | 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% | |
4.00% Second Lien Senior Notes due 2030 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4% | |
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Line of Credit Facility [Line Items] | ||
Amount outstanding under credit facility | $ 12,959,000,000 | $ 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 | 6 Months Ended | ||
Jun. 30, 2022 USD ($) subsidiary | Jun. 30, 2022 CAD ($) subsidiary | Dec. 31, 2021 USD ($) | |
Line of Credit Facility [Line Items] | |||
Amount outstanding under credit facility | $ 12,959 | $ 12,978 | |
TH Facility | |||
Line of Credit Facility [Line Items] | |||
Aggregate principal amount outstanding | $ 225,000,000 | ||
Amount outstanding under credit facility | $ 208,000,000 | ||
Interest rate | 4% | 4% | |
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) | 6 Months Ended | |
Jun. 30, 2022 USD ($) subsidiary | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | ||
Amount outstanding under credit facility | $ 12,959,000,000 | $ 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 | $ 2,000,000 | |
Interest rate | 2.59% | |
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% |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Fair value of our variable term debt and senior notes | $ 11,697 | $ 12,851 |
Principal carrying amount of our variable term debt and senior notes | $ 12,916 | $ 12,943 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Debt | $ 118 | $ 115 | $ 233 | $ 228 |
Finance lease obligations | 5 | 5 | 10 | 10 |
Amortization of deferred financing costs and debt issuance discount | 7 | 6 | 14 | 13 |
Interest income | (1) | 0 | (1) | (1) |
Interest expense, net | 129 | 126 | 256 | 250 |
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 | $ 12 | $ 11 | $ 23 | $ 23 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 15.90% | (8.10%) | 16.20% | 2.60% |
Effective tax rate, net reserve releases | $ 89 | $ 87 | ||
Decrease in effective tax rate | 24.70% | 12.80% |
Equity - Additional Information
Equity - Additional Information (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) shares | |
Stockholders Equity [Line Items] | |
Repurchase of common shares | $ | $ 326 |
Partnership exchangeable units | |
Stockholders Equity [Line Items] | |
BKW reorganization into Partnership (in shares) | shares | 1,677,054 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balances | $ 3,961 | $ 4,002 | $ 3,853 | $ 3,721 |
Foreign currency translation adjustment | (345) | 141 | (288) | 195 |
Net change in fair value of derivatives, net of tax | 435 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 16 | 29 | 37 | 53 |
Gain (loss) recognized on other, net of tax | 1 | 1 | 2 | 2 |
Ending balances | 3,909 | 4,259 | 3,909 | 4,259 |
Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balances | 196 | |||
Net change in fair value of derivatives, net of tax | 435 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | 37 | |||
Ending balances | 668 | 668 | ||
Pensions | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balances | (30) | |||
Gain (loss) recognized on other, net of tax | 2 | |||
Ending balances | (28) | (28) | ||
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balances | (1,190) | |||
Foreign currency translation adjustment | (288) | |||
Ending balances | (1,478) | (1,478) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balances | (819) | (1,072) | (1,024) | (1,275) |
Ending balances | $ (838) | $ (1,012) | $ (838) | $ (1,012) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) € in Millions, $ in Millions | 6 Months Ended | |||||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 CAD ($) | Jun. 30, 2022 EUR (€) | Dec. 31, 2021 USD ($) | Dec. 31, 2019 USD ($) | Dec. 31, 2018 USD ($) | |
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 | Interest expense, net | ||||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||||
Loss reclassified from OACI to Income | 23,000,000 | |||||
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 | $ 210,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 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) | $ 107 | $ (44) | $ 330 | $ 85 |
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 | (23) | (31) | (52) | (61) |
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) | 6 | (1) | 4 | (2) |
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) | 2 | (4) |
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) | 264 | (92) | 204 | (83) |
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) | $ 12 | $ 11 | $ 23 | $ 23 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 242 | $ 25 |
Derivatives liabilities | 234 | 575 |
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 | 131 | 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 | 0 | 220 |
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 | 4 | 2 |
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 | 107 | 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 | $ 234 | $ 355 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Other Income and Expenses [Abstract] | ||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ (1) | $ 1 | $ 1 | $ (1) |
Litigation settlements (gains) and reserves, net | 2 | 1 | 3 | 3 |
Net losses (gains) on foreign exchange | (31) | 8 | (52) | (35) |
Other, net | 5 | (2) | 7 | (1) |
Other operating expenses (income), net | $ (25) | $ 8 | $ (41) | $ (34) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 1 Months Ended | ||
Apr. 30, 2022 case | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Hussain vs. Burger King Corporation | Pending Litigation | |||
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) | 6 Months Ended |
Jun. 30, 2022 brand | |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 1,639 | $ 1,438 | $ 3,090 | $ 2,698 |
Canada | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 878 | 754 | $ 1,625 | $ 1,392 |
Canada | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | ||
United States | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 571 | 515 | $ 1,092 | $ 993 |
United States | Revenue Benchmark | Geographic Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk, percentage | 10% | 10% | ||
Other | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 190 | 169 | $ 373 | $ 313 |
TH | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 968 | 831 | 1,797 | 1,541 |
BK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 473 | 459 | 916 | 866 |
PLK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 165 | 148 | 313 | 291 |
FHS | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 33 | $ 0 | $ 64 | $ 0 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | $ 618 | $ 577 | $ 1,148 | $ 1,057 | ||
Impact of equity method investments | 9 | 3 | 22 | 5 | ||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | ||
EBITDA | 589 | 539 | 1,088 | 1,030 | ||
Depreciation and amortization | 48 | 51 | 97 | 100 | ||
Income from operations | 541 | 488 | 991 | 930 | ||
Interest expense, net | 129 | 126 | 256 | 250 | ||
Income tax expense | 66 | (29) | 119 | 18 | ||
Net income | 346 | $ 270 | 391 | $ 271 | 616 | 662 |
Unallocated Management G&A | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Share-based compensation and non-cash incentive compensation expense | 32 | 20 | 59 | 46 | ||
Corporate restructuring and tax advisory fees | 6 | 3 | 9 | 4 | ||
Impact of equity method investments | 12 | 7 | 28 | 11 | ||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | ||
Unallocated Management G&A | Firehouse Subs brand | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
FHS Transaction costs | 4 | 0 | 5 | 0 | ||
TH | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | 274 | 253 | 505 | 460 | ||
BK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | 270 | 266 | 499 | 483 | ||
PLK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | 61 | 58 | 117 | 114 | ||
FHS | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted EBITDA | $ 13 | $ 0 | $ 27 | $ 0 |
Supplemental Financial Inform_3
Supplemental Financial Information - Narrative (Details) | Jun. 30, 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% |
4.00% Second Lien Senior Notes due 2030 | Senior Notes | |
Stated interest rate (as a percent) | 4% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||||||
Cash and cash equivalents | $ 838 | $ 1,087 | $ 1,762 | $ 1,560 | ||
Accounts and notes receivable, net | 551 | 547 | ||||
Inventories, net | 114 | 96 | ||||
Prepaids and other current assets | 65 | 86 | ||||
Total current assets | 1,568 | 1,816 | ||||
Property and equipment, net | 1,984 | 2,035 | ||||
Operating lease assets, net | 1,113 | 1,130 | ||||
Intangible assets, net | 11,296 | 11,417 | ||||
Goodwill | 5,866 | 6,006 | ||||
Net investment in property leased to franchisees | 82 | 80 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other assets, net | 845 | 762 | ||||
Total assets | 22,754 | 23,246 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 705 | 614 | ||||
Other accrued liabilities | 783 | 947 | ||||
Gift card liability | 163 | 221 | ||||
Current portion of long-term debt and finance leases | 112 | 96 | ||||
Total current liabilities | 1,763 | 1,878 | ||||
Long-term debt, net of current portion | 12,881 | 12,916 | ||||
Finance leases, net of current portion | 326 | 333 | ||||
Operating lease liabilities, net of current portion | 1,053 | 1,070 | ||||
Other liabilities, net | 1,477 | 1,822 | ||||
Payables to affiliates | 0 | 0 | ||||
Deferred income taxes, net | 1,345 | 1,374 | ||||
Total liabilities | 18,845 | 19,393 | ||||
Partners’ capital: | ||||||
Common shares | 0 | 0 | ||||
Retained earnings | 0 | 0 | ||||
Accumulated other comprehensive income (loss) | (838) | (1,024) | ||||
Total Partners’ capital | 3,906 | 3,850 | ||||
Noncontrolling interests | 3 | 3 | ||||
Total equity | 3,909 | $ 3,961 | 3,853 | 4,259 | $ 4,002 | 3,721 |
Total liabilities and equity | 22,754 | 23,246 | ||||
Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 8,343 | 8,421 | ||||
Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | (3,599) | (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 | (243) | (241) | ||||
Investment in subsidiaries | (3,909) | (3,853) | ||||
Other assets, net | 0 | 0 | ||||
Total assets | (4,152) | (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 | (243) | (241) | ||||
Deferred income taxes, net | 0 | 0 | ||||
Total liabilities | (243) | (241) | ||||
Partners’ capital: | ||||||
Common shares | (2,379) | (2,635) | ||||
Retained earnings | (2,365) | (2,239) | ||||
Accumulated other comprehensive income (loss) | 838 | 1,024 | ||||
Total Partners’ capital | (3,906) | (3,850) | ||||
Noncontrolling interests | (3) | (3) | ||||
Total equity | (3,909) | (3,853) | ||||
Total liabilities and equity | (4,152) | (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 | 838 | 1,087 | 1,762 | 1,560 | ||
Accounts and notes receivable, net | 551 | 547 | ||||
Inventories, net | 114 | 96 | ||||
Prepaids and other current assets | 65 | 86 | ||||
Total current assets | 1,568 | 1,816 | ||||
Property and equipment, net | 1,984 | 2,035 | ||||
Operating lease assets, net | 1,113 | 1,130 | ||||
Intangible assets, net | 11,296 | 11,417 | ||||
Goodwill | 5,866 | 6,006 | ||||
Net investment in property leased to franchisees | 82 | 80 | ||||
Intercompany receivable | 0 | 0 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Other assets, net | 845 | 762 | ||||
Total assets | 22,754 | 23,246 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 705 | 614 | ||||
Other accrued liabilities | 540 | 706 | ||||
Gift card liability | 163 | 221 | ||||
Current portion of long-term debt and finance leases | 112 | 96 | ||||
Total current liabilities | 1,520 | 1,637 | ||||
Long-term debt, net of current portion | 12,881 | 12,916 | ||||
Finance leases, net of current portion | 326 | 333 | ||||
Operating lease liabilities, net of current portion | 1,053 | 1,070 | ||||
Other liabilities, net | 1,477 | 1,822 | ||||
Payables to affiliates | 243 | 241 | ||||
Deferred income taxes, net | 1,345 | 1,374 | ||||
Total liabilities | 18,845 | 19,393 | ||||
Partners’ capital: | ||||||
Common shares | 2,379 | 2,635 | ||||
Retained earnings | 2,365 | 2,239 | ||||
Accumulated other comprehensive income (loss) | (838) | (1,024) | ||||
Total Partners’ capital | 3,906 | 3,850 | ||||
Noncontrolling interests | 3 | 3 | ||||
Total equity | 3,909 | 3,853 | ||||
Total liabilities and equity | 22,754 | 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 | 243 | 241 | ||||
Investment in subsidiaries | 3,909 | 3,853 | ||||
Other assets, net | 0 | 0 | ||||
Total assets | 4,152 | 4,094 | ||||
Current liabilities: | ||||||
Accounts and drafts payable | 0 | 0 | ||||
Other accrued liabilities | 243 | 241 | ||||
Gift card liability | 0 | 0 | ||||
Current portion of long-term debt and finance leases | 0 | 0 | ||||
Total current liabilities | 243 | 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 | 243 | 241 | ||||
Partners’ capital: | ||||||
Common shares | 0 | 0 | ||||
Retained earnings | 0 | 0 | ||||
Accumulated other comprehensive income (loss) | (838) | (1,024) | ||||
Total Partners’ capital | 3,906 | 3,850 | ||||
Noncontrolling interests | 3 | 3 | ||||
Total equity | 3,909 | 3,853 | ||||
Total liabilities and equity | 4,152 | 4,094 | ||||
RBILP | Reportable Legal Entities | Class A common units | ||||||
Partners’ capital: | ||||||
Class A common units | 8,343 | 8,421 | ||||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||||
Partners’ capital: | ||||||
Partnership exchangeable units | $ (3,599) | $ (3,547) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues: | ||||||
Total revenues | $ 1,639 | $ 1,438 | $ 3,090 | $ 2,698 | ||
Operating costs and expenses: | ||||||
Cost of sales | 584 | 467 | 1,078 | 868 | ||
Franchise and property expenses | 125 | 121 | 255 | 237 | ||
Advertising expenses and other services | 259 | 243 | 506 | 480 | ||
General and administrative expenses | 146 | 108 | 279 | 212 | ||
(Income) loss from equity method investments | 9 | 3 | 22 | 5 | ||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | ||
Total operating costs and expenses | 1,098 | 950 | 2,099 | 1,768 | ||
Income from operations | 541 | 488 | 991 | 930 | ||
Interest expense, net | 129 | 126 | 256 | 250 | ||
Income before income taxes | 412 | 362 | 735 | 680 | ||
Income tax expense (benefit) | 66 | (29) | 119 | 18 | ||
Net income | 346 | 391 | 616 | 662 | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income | 346 | $ 270 | 391 | $ 271 | 616 | 662 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 2 | ||
Net income attributable to common unitholders | 345 | 390 | 614 | 660 | ||
Comprehensive income (loss) | 327 | 451 | 802 | 925 | ||
Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Operating costs and expenses: | ||||||
Cost of sales | 0 | 0 | 0 | 0 | ||
Franchise and property expenses | 0 | 0 | 0 | 0 | ||
Advertising expenses and other services | 0 | 0 | 0 | 0 | ||
General and administrative expenses | 0 | 0 | 0 | 0 | ||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
Other operating expenses (income), net | 0 | 0 | 0 | 0 | ||
Total operating costs and expenses | 0 | 0 | 0 | 0 | ||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | (346) | (391) | (616) | (662) | ||
Net income | (346) | (391) | (616) | (662) | ||
Net income (loss) attributable to noncontrolling interests | (1) | (1) | (2) | (2) | ||
Net income attributable to common unitholders | (345) | (390) | (614) | (660) | ||
Comprehensive income (loss) | (327) | (451) | (802) | (925) | ||
Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 1,639 | 1,438 | 3,090 | 2,698 | ||
Operating costs and expenses: | ||||||
Cost of sales | 584 | 467 | 1,078 | 868 | ||
Franchise and property expenses | 125 | 121 | 255 | 237 | ||
Advertising expenses and other services | 259 | 243 | 506 | 480 | ||
General and administrative expenses | 146 | 108 | 279 | 212 | ||
(Income) loss from equity method investments | 9 | 3 | 22 | 5 | ||
Other operating expenses (income), net | (25) | 8 | (41) | (34) | ||
Total operating costs and expenses | 1,098 | 950 | 2,099 | 1,768 | ||
Income from operations | 541 | 488 | 991 | 930 | ||
Interest expense, net | 129 | 126 | 256 | 250 | ||
Income before income taxes | 412 | 362 | 735 | 680 | ||
Income tax expense (benefit) | 66 | (29) | 119 | 18 | ||
Net income | 346 | 391 | 616 | 662 | ||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Net income | 346 | 391 | 616 | 662 | ||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 2 | ||
Net income attributable to common unitholders | 345 | 390 | 614 | 660 | ||
Comprehensive income (loss) | 327 | 451 | 802 | 925 | ||
RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Operating costs and expenses: | ||||||
Cost of sales | 0 | 0 | 0 | 0 | ||
Franchise and property expenses | 0 | 0 | 0 | 0 | ||
Advertising expenses and other services | 0 | 0 | 0 | 0 | ||
General and administrative expenses | 0 | 0 | 0 | 0 | ||
(Income) loss from equity method investments | 0 | 0 | 0 | 0 | ||
Other operating expenses (income), net | 0 | 0 | 0 | 0 | ||
Total operating costs and expenses | 0 | 0 | 0 | 0 | ||
Income from operations | 0 | 0 | 0 | 0 | ||
Interest expense, net | 0 | 0 | 0 | 0 | ||
Income before income taxes | 0 | 0 | 0 | 0 | ||
Income tax expense (benefit) | 0 | 0 | 0 | 0 | ||
Net income | 0 | 0 | 0 | 0 | ||
Equity in earnings of consolidated subsidiaries | 346 | 391 | 616 | 662 | ||
Net income | 346 | 391 | 616 | 662 | ||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | 2 | 2 | ||
Net income attributable to common unitholders | 345 | 390 | 614 | 660 | ||
Comprehensive income (loss) | 327 | 451 | 802 | 925 | ||
Sales | ||||||
Revenues: | ||||||
Total revenues | 708 | 590 | 1,317 | 1,097 | ||
Sales | Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Sales | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 708 | 590 | 1,317 | 1,097 | ||
Sales | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Franchise and property revenues | ||||||
Revenues: | ||||||
Total revenues | 676 | 612 | 1,291 | 1,160 | ||
Franchise and property revenues | Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 676 | 612 | 1,291 | 1,160 | ||
Franchise and property revenues | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | 0 | ||
Advertising revenues and other services | ||||||
Revenues: | ||||||
Total revenues | 255 | 236 | 482 | 441 | ||
Advertising revenues and other services | Eliminations | ||||||
Revenues: | ||||||
Total revenues | 0 | 0 | 0 | |||
Advertising revenues and other services | Consolidated Borrowers | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | 255 | 236 | 482 | 441 | ||
Advertising revenues and other services | RBILP | Reportable Legal Entities | ||||||
Revenues: | ||||||
Total revenues | $ 0 | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||||||
Net income | $ 346 | $ 270 | $ 391 | $ 271 | $ 616 | $ 662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 97 | 100 | ||||
Amortization of deferred financing costs and debt issuance discount | 7 | 6 | 14 | 13 | ||
(Income) loss from equity method investments | 9 | 3 | 22 | 5 | ||
(Gain) loss on remeasurement of foreign denominated transactions | (52) | (35) | ||||
Net (gains) losses on derivatives | 27 | 42 | ||||
Share-based compensation and non-cash incentive compensation expense | 59 | 46 | ||||
Deferred income taxes | 0 | 24 | ||||
Other | 2 | (12) | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 4 | 17 | ||||
Inventories and prepaids and other current assets | (27) | (5) | ||||
Accounts and drafts payable | 99 | 103 | ||||
Other accrued liabilities and gift card liability | (199) | (129) | ||||
Tenant inducements paid to franchisees | (6) | (1) | ||||
Other long-term assets and liabilities | 13 | (85) | ||||
Net cash provided by operating activities | 669 | 745 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | (28) | (46) | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 10 | 14 | ||||
Net payments in connection with purchase of Firehouse Subs | (12) | 0 | ||||
Settlement/sale of derivatives, net | 9 | 1 | ||||
Other investing activities, net | (25) | (5) | ||||
Net cash (used for) provided by investing activities | (46) | (36) | ||||
Cash flows from financing activities: | ||||||
Proceeds from long-term debt | 2 | 0 | ||||
Repayments of long-term debt and finance leases | (47) | (54) | ||||
Distributions on Class A common and Partnership exchangeable units | (485) | (484) | ||||
Distribution to RBI for repurchase of RBI common shares | (326) | 0 | ||||
Capital contribution from RBI | 4 | 56 | ||||
Distributions from subsidiaries | 0 | 0 | ||||
(Payments) proceeds from derivatives | (6) | (32) | ||||
Other financing activities, net | (2) | (2) | ||||
Net cash (used for) provided by financing activities | (860) | (516) | ||||
Effect of exchange rates on cash and cash equivalents | (12) | 9 | ||||
Increase (decrease) in cash and cash equivalents | (249) | 202 | ||||
Cash and cash equivalents at beginning of period | 1,087 | 1,560 | 1,087 | 1,560 | ||
Cash and cash equivalents at end of period | 838 | 1,762 | 838 | 1,762 | ||
Eliminations | ||||||
Cash flows from operating activities: | ||||||
Net income | (346) | (391) | (616) | (662) | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 346 | 391 | 616 | 662 | ||
Depreciation and amortization | 0 | 0 | ||||
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | ||||
(Income) loss from equity method investments | 0 | 0 | 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 | |||||
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 | 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 | ||||
Net payments in connection with purchase of Firehouse Subs | 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 | 0 | 0 | ||
Cash and cash equivalents at end of period | 0 | 0 | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||||
Cash flows from operating activities: | ||||||
Net income | 346 | 391 | 616 | 662 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 97 | 100 | ||||
Amortization of deferred financing costs and debt issuance discount | 14 | 13 | ||||
(Income) loss from equity method investments | 9 | 3 | 22 | 5 | ||
(Gain) loss on remeasurement of foreign denominated transactions | (52) | (35) | ||||
Net (gains) losses on derivatives | 27 | 42 | ||||
Share-based compensation and non-cash incentive compensation expense | 59 | 46 | ||||
Deferred income taxes | 24 | |||||
Other | 2 | (12) | ||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||||||
Accounts and notes receivable | 4 | 17 | ||||
Inventories and prepaids and other current assets | (27) | (5) | ||||
Accounts and drafts payable | 99 | 103 | ||||
Other accrued liabilities and gift card liability | (199) | (129) | ||||
Tenant inducements paid to franchisees | (6) | (1) | ||||
Other long-term assets and liabilities | 13 | (85) | ||||
Net cash provided by operating activities | 669 | 745 | ||||
Cash flows from investing activities: | ||||||
Payments for property and equipment | (28) | (46) | ||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 10 | 14 | ||||
Net payments in connection with purchase of Firehouse Subs | (12) | |||||
Settlement/sale of derivatives, net | 9 | 1 | ||||
Other investing activities, net | (25) | (5) | ||||
Net cash (used for) provided by investing activities | (46) | (36) | ||||
Cash flows from financing activities: | ||||||
Proceeds from long-term debt | 2 | |||||
Repayments of long-term debt and finance leases | (47) | (54) | ||||
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 | 4 | 56 | ||||
Distributions from subsidiaries | (811) | (484) | ||||
(Payments) proceeds from derivatives | (6) | (32) | ||||
Other financing activities, net | (2) | (2) | ||||
Net cash (used for) provided by financing activities | (860) | (516) | ||||
Effect of exchange rates on cash and cash equivalents | (12) | 9 | ||||
Increase (decrease) in cash and cash equivalents | (249) | 202 | ||||
Cash and cash equivalents at beginning of period | 1,087 | 1,560 | 1,087 | 1,560 | ||
Cash and cash equivalents at end of period | 838 | 1,762 | 838 | 1,762 | ||
RBILP | Reportable Legal Entities | ||||||
Cash flows from operating activities: | ||||||
Net income | 346 | 391 | 616 | 662 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Equity in loss (earnings) of consolidated subsidiaries | (346) | (391) | (616) | (662) | ||
Depreciation and amortization | 0 | 0 | ||||
Amortization of deferred financing costs and debt issuance discount | 0 | 0 | ||||
(Income) loss from equity method investments | 0 | 0 | 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 | |||||
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 | 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 | ||||
Net payments in connection with purchase of Firehouse Subs | 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 | (485) | (484) | ||||
Distribution to RBI for repurchase of RBI common shares | (326) | |||||
Capital contribution from RBI | 0 | 0 | ||||
Distributions from subsidiaries | 811 | 484 | ||||
(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 | 0 | 0 | ||
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 | $ 0 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - $ / shares | 3 Months Ended | |||||
Oct. 05, 2022 | Jul. 06, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | 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 | $ 0.54 | $ 0.53 | $ 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 |