Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2024 | Aug. 01, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36786 | |
Entity Registrant Name | RESTAURANT BRANDS INTERNATIONAL INC. | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-1202754 | |
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(b) Security | Common Shares, without par value | |
Trading Symbol | QSR | |
Security Exchange Name | NYSE | |
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 | 2024 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001618756 | |
Current Fiscal Year End Date | --12-31 | |
Common Class A | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 317,025,113 | |
Partnerships Exchangeable Units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 133,576,590 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 942 | $ 1,139 |
Accounts and notes receivable, net of allowance of $37 and $37, respectively | 737 | 749 |
Inventories, net | 160 | 166 |
Prepaids and other current assets | 191 | 119 |
Total current assets | 2,030 | 2,173 |
Property and equipment, net of accumulated depreciation and amortization of $1,230 and $1,187, respectively | 2,213 | 1,952 |
Operating lease assets, net | 1,874 | 1,122 |
Intangible assets, net | 11,266 | 11,107 |
Goodwill | 6,140 | 5,775 |
Other assets, net | 1,326 | 1,262 |
Total assets | 24,849 | 23,391 |
Current liabilities: | ||
Accounts and drafts payable | 720 | 790 |
Other accrued liabilities | 1,099 | 1,005 |
Gift card liability | 181 | 248 |
Current portion of long-term debt and finance leases | 617 | 101 |
Total current liabilities | 2,617 | 2,144 |
Long-term debt, net of current portion | 13,092 | 12,854 |
Finance leases, net of current portion | 302 | 312 |
Operating lease liabilities, net of current portion | 1,768 | 1,059 |
Other liabilities, net | 823 | 996 |
Deferred income taxes, net | 1,296 | 1,296 |
Total liabilities | 19,898 | 18,661 |
Shareholders’ equity: | ||
Common shares, no par value; Unlimited shares authorized at June 30, 2024 and December 31, 2023; 316,897,975 shares issued and outstanding at June 30, 2024; 312,454,851 shares issued and outstanding at December 31, 2023 | 2,138 | 1,973 |
Retained earnings | 1,734 | 1,599 |
Accumulated other comprehensive income (loss) | (804) | (706) |
Total Restaurant Brands International Inc. shareholders’ equity | 3,068 | 2,866 |
Noncontrolling interests | 1,883 | 1,864 |
Total shareholders’ equity | 4,951 | 4,730 |
Total liabilities and shareholders’ equity | $ 24,849 | $ 23,391 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Statement of Financial Position [Abstract] | ||
Financing receivable, allowance for credit loss, current | $ 37 | $ 37 |
Accumulated depreciation and amortization | $ 1,230 | $ 1,187 |
Common stock, par value (in usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | Unlimited | Unlimited |
Common stock, shares issued (in shares) | 316,897,975 | 312,454,851 |
Common stock, shares outstanding (in shares) | 316,897,975 | 312,454,851 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues: | ||||
Total revenues | $ 2,080 | $ 1,775 | $ 3,819 | $ 3,365 |
Operating costs and expenses: | ||||
Franchise and property expenses | 134 | 130 | 260 | 253 |
Advertising expenses and other services | 334 | 312 | 645 | 583 |
General and administrative expenses | 185 | 163 | 358 | 338 |
(Income) loss from equity method investments | (69) | 11 | (72) | 18 |
Other operating expenses (income), net | 7 | (7) | (11) | 10 |
Total operating costs and expenses | 1,417 | 1,221 | 2,612 | 2,364 |
Income from operations | 663 | 554 | 1,207 | 1,001 |
Interest expense, net | 147 | 145 | 295 | 287 |
Loss on early extinguishment of debt | 32 | 0 | 32 | 0 |
Income before income taxes | 484 | 409 | 880 | 714 |
Income tax expense | 85 | 58 | 153 | 86 |
Net income | 399 | 351 | 727 | 628 |
Net income attributable to noncontrolling interests (Note 13) | 119 | 110 | 217 | 198 |
Net income attributable to common shareholders | $ 280 | $ 241 | $ 510 | $ 430 |
Earnings per common share | ||||
Basic (in usd per share) | $ 0.89 | $ 0.77 | $ 1.62 | $ 1.39 |
Diluted (in usd per share) | $ 0.88 | $ 0.77 | $ 1.60 | $ 1.37 |
Weighted average shares outstanding (in millions): | ||||
Basic (in shares) | 317 | 312 | 316 | 310 |
Diluted (in shares) | 453 | 458 | 453 | 457 |
Supply chain sales | ||||
Operating costs and expenses: | ||||
Cost of goods and services sold | $ 540 | $ 551 | $ 1,057 | $ 1,048 |
Company restaurant sales | ||||
Operating costs and expenses: | ||||
Cost of goods and services sold | 286 | 61 | 375 | 114 |
Product | Supply chain sales | ||||
Revenues: | ||||
Total revenues | 682 | 676 | 1,309 | 1,283 |
Product | Company restaurant sales | ||||
Revenues: | ||||
Total revenues | 347 | 68 | 449 | 129 |
Franchise and property revenues | ||||
Revenues: | ||||
Total revenues | 747 | 742 | 1,459 | 1,410 |
Advertising revenues and other services | ||||
Revenues: | ||||
Total revenues | $ 304 | $ 289 | $ 602 | $ 543 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 399 | $ 351 | $ 727 | $ 628 |
Foreign currency translation adjustment | (107) | 194 | (347) | 234 |
Net change in fair value of net investment hedges, net of tax of $3, $4, $6 and $8 | 26 | (84) | 160 | (115) |
Net change in fair value of cash flow hedges, net of tax of $(10), $(31), $(36) and $(16) | 27 | 86 | 96 | 43 |
Amounts reclassified to earnings of cash flow hedges, net of tax of $10, $6, $18 and $11 | (27) | (17) | (49) | (30) |
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 0 | 2 | 0 | 2 |
Other comprehensive income (loss) | (81) | 181 | (140) | 134 |
Comprehensive income (loss) | 318 | 532 | 587 | 762 |
Comprehensive income (loss) attributable to noncontrolling interests | 95 | 166 | 175 | 239 |
Comprehensive income (loss) attributable to common shareholders | $ 223 | $ 366 | $ 412 | $ 523 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change in fair value of net investment hedges, tax | $ 3 | $ 4 | $ 6 | $ 8 |
Net change in fair value of cash flow hedges, tax | (10) | (31) | (36) | (16) |
Amounts reclassified to earnings of cash flow hedges, tax | 10 | 6 | 18 | 11 |
Gain (loss) recognized on other, tax | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Issued Common Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Beginning balances (in shares) at Dec. 31, 2022 | 307,142,436 | ||||
Beginning balances at Dec. 31, 2022 | $ 4,268 | $ 2,057 | $ 1,121 | $ (679) | $ 1,769 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 124,275 | ||||
Stock option exercises | 6 | $ 6 | |||
Share-based compensation | 41 | $ 41 | |||
Issuance of shares (in shares) | 1,690,762 | ||||
Issuance of shares | 15 | $ 15 | |||
Dividends declared | (171) | (171) | |||
Dividend equivalents declared on restricted stock units | 0 | $ 5 | (5) | ||
Distributions declared by partnership on partnership exchangeable units | (77) | (77) | |||
Exchange of partnership exchangeable units for RBI common shares (in shares) | 2,214,072 | ||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | $ 33 | (5) | (28) | |
Restaurant VIE contributions (distributions) | (1) | (1) | |||
Net income | 277 | 189 | 88 | ||
Other comprehensive income (loss) | (47) | (32) | (15) | ||
Ending balances (in shares) at Mar. 31, 2023 | 311,171,545 | ||||
Ending balances at Mar. 31, 2023 | 4,311 | $ 2,157 | 1,134 | (716) | 1,736 |
Beginning balances (in shares) at Dec. 31, 2022 | 307,142,436 | ||||
Beginning balances at Dec. 31, 2022 | 4,268 | $ 2,057 | 1,121 | (679) | 1,769 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 628 | ||||
Other comprehensive income (loss) | 134 | ||||
Ending balances (in shares) at Jun. 30, 2023 | 312,203,465 | ||||
Ending balances at Jun. 30, 2023 | 4,678 | $ 2,247 | 1,198 | (591) | 1,824 |
Beginning balances (in shares) at Mar. 31, 2023 | 311,171,545 | ||||
Beginning balances at Mar. 31, 2023 | 4,311 | $ 2,157 | 1,134 | (716) | 1,736 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 920,438 | ||||
Stock option exercises | 43 | $ 43 | |||
Share-based compensation | 42 | $ 42 | |||
Issuance of shares (in shares) | 87,695 | ||||
Issuance of shares | 0 | ||||
Dividends declared | (172) | (172) | |||
Dividend equivalents declared on restricted stock units | 0 | $ 5 | (5) | ||
Distributions declared by partnership on partnership exchangeable units | (77) | (77) | |||
Exchange of partnership exchangeable units for RBI common shares (in shares) | 23,787 | ||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | $ 0 | 0 | ||
Restaurant VIE contributions (distributions) | (1) | (1) | |||
Net income | 351 | 241 | 110 | ||
Other comprehensive income (loss) | 181 | 125 | 56 | ||
Ending balances (in shares) at Jun. 30, 2023 | 312,203,465 | ||||
Ending balances at Jun. 30, 2023 | $ 4,678 | $ 2,247 | 1,198 | (591) | 1,824 |
Beginning balances (in shares) at Dec. 31, 2023 | 312,454,851 | 312,454,851 | |||
Beginning balances at Dec. 31, 2023 | $ 4,730 | $ 1,973 | 1,599 | (706) | 1,864 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 721,052 | ||||
Stock option exercises | 39 | $ 39 | |||
Share-based compensation | 42 | $ 42 | |||
Issuance of shares (in shares) | 3,204,316 | ||||
Issuance of shares | 17 | $ 17 | |||
Dividends declared | (184) | (184) | |||
Dividend equivalents declared on restricted stock units | 0 | $ 5 | (5) | ||
Distributions declared by partnership on partnership exchangeable units | (77) | (77) | |||
Exchange of partnership exchangeable units for RBI common shares (in shares) | 2,220 | ||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | $ 0 | 0 | 0 | |
Restaurant VIE contributions (distributions) | (1) | (1) | |||
Net income | 328 | 230 | 98 | ||
Other comprehensive income (loss) | (59) | (41) | (18) | ||
Ending balances (in shares) at Mar. 31, 2024 | 316,382,439 | ||||
Ending balances at Mar. 31, 2024 | $ 4,835 | $ 2,076 | 1,640 | (747) | 1,866 |
Beginning balances (in shares) at Dec. 31, 2023 | 312,454,851 | 312,454,851 | |||
Beginning balances at Dec. 31, 2023 | $ 4,730 | $ 1,973 | 1,599 | (706) | 1,864 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 727 | ||||
Other comprehensive income (loss) | $ (140) | ||||
Ending balances (in shares) at Jun. 30, 2024 | 316,897,975 | 316,897,975 | |||
Ending balances at Jun. 30, 2024 | $ 4,951 | $ 2,138 | 1,734 | (804) | 1,883 |
Beginning balances (in shares) at Mar. 31, 2024 | 316,382,439 | ||||
Beginning balances at Mar. 31, 2024 | 4,835 | $ 2,076 | 1,640 | (747) | 1,866 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock option exercises (in shares) | 464,725 | ||||
Stock option exercises | 21 | $ 21 | |||
Share-based compensation | 38 | $ 38 | |||
Issuance of shares (in shares) | 36,411 | ||||
Issuance of shares | 1 | $ 1 | |||
Dividends declared | (184) | (184) | |||
Dividend equivalents declared on restricted stock units | 0 | $ 2 | (2) | ||
Distributions declared by partnership on partnership exchangeable units | (78) | (78) | |||
Exchange of partnership exchangeable units for RBI common shares (in shares) | 14,400 | ||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | ||||
Net income | 399 | 280 | 119 | ||
Other comprehensive income (loss) | $ (81) | (57) | (24) | ||
Ending balances (in shares) at Jun. 30, 2024 | 316,897,975 | 316,897,975 | |||
Ending balances at Jun. 30, 2024 | $ 4,951 | $ 2,138 | $ 1,734 | $ (804) | $ 1,883 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock, dividends declared (in usd per share) | $ 0.58 | $ 0.58 | $ 0.55 | $ 0.55 |
Dividend distributions declared (in usd per share) | $ 0.58 | $ 0.58 | $ 0.55 | $ 0.55 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 727 | $ 628 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 108 | 95 |
Non-cash loss on early extinguishment of debt | 22 | 0 |
Amortization of deferred financing costs and debt issuance discount | 12 | 14 |
(Income) loss from equity method investments | (72) | 18 |
(Gain) loss on remeasurement of foreign denominated transactions | (29) | 7 |
Net (gains) losses on derivatives | (91) | (72) |
Share-based compensation and non-cash incentive compensation expense | 87 | 92 |
Deferred income taxes | 10 | (40) |
Other | 5 | (6) |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 9 | (29) |
Inventories and prepaids and other current assets | 14 | (45) |
Accounts and drafts payable | (70) | (31) |
Other accrued liabilities and gift card liability | (210) | (135) |
Tenant inducements paid to franchisees | (11) | (9) |
Other long-term assets and liabilities | (29) | 0 |
Net cash provided by operating activities | 482 | 487 |
Cash flows from investing activities: | ||
Payments for property and equipment | (69) | (48) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 7 | 13 |
Payment for purchase of Carrols Restaurant Group, net of cash acquired | (508) | 0 |
Net payments for acquisition of franchised restaurants | (23) | 0 |
Settlement/sale of derivatives, net | 35 | 28 |
Other investing activities, net | (1) | (1) |
Net cash (used for) provided by investing activities | (559) | (8) |
Cash flows from financing activities: | ||
Proceeds from long-term debt | 1,950 | 2 |
Repayments of long-term debt and finance leases | (1,639) | (68) |
Payment of financing costs | (32) | 0 |
Payment of common share dividends and Partnership exchangeable unit distributions | (506) | (492) |
Proceeds from stock option exercises | 60 | 49 |
Proceeds from derivatives | 57 | 63 |
Other financing activities, net | (2) | (2) |
Net cash used for financing activities | (112) | (448) |
Effect of exchange rates on cash and cash equivalents | (8) | 4 |
(Decrease) increase in cash and cash equivalents | (197) | 35 |
Cash and cash equivalents at beginning of period | 1,139 | 1,178 |
Cash and cash equivalents at end of period | 942 | 1,213 |
Supplemental cash flow disclosures: | ||
Interest paid | 390 | 380 |
Income taxes paid | $ 186 | $ 146 |
Description of Business and Org
Description of Business and Organization | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Restaurant Brands International Inc. (the “Company”, “RBI”, “we”, “us” or “our”) is a Canadian corporation that serves as the sole general partner of Restaurant Brands International Limited Partnership (“Partnership”). We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons ® brand (“Tim Hortons”), fast food hamburgers principally under the Burger King ® brand (“Burger King”), chicken principally under the Popeyes ® brand (“Popeyes”) and sandwiches under the Firehouse Subs ® brand (“Firehouse”). 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, 2024, we franchised or owned 5,836 Tim Hortons restaurants, 19,446 Burger King restaurants, 4,735 Popeyes restaurants and 1,307 Firehouse Subs restaurants, for a total of 31,324 restaurants, and operate in more than 120 countries and territories. As of June 30, 2024, approximately 95% of current system-wide restaurants are franchised. 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, 2024 | |
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 22, 2024. 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 are the sole general partner of Partnership and, as such we have 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, subject to the terms of the amended and restated limited partnership agreement of Partnership (the “partnership agreement”) and applicable laws. As a result, we consolidate the results of Partnership and record a noncontrolling interest in our condensed consolidated balance sheets and statements of operations with respect to the remaining economic interest in Partnership we do not hold. 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 accounts. Supplier Finance Programs Our TH business includes individually negotiated contracts with suppliers, which include payment terms that range up to 120 days. A global financial institution offers a voluntary supply chain finance (“SCF”) program to certain TH vendors, which provides suppliers that elect to participate with the ability to elect early payment, which is discounted based on the payment terms and a rate based on RBI's credit rating, which may be beneficial to the vendor. Participation in the SCF program is at the sole discretion of the suppliers and financial institution and we are not a party to the arrangements between the suppliers and the financial institution. Our obligations to suppliers are not affected by the suppliers’ decisions to participate in the SCF program and our payment terms remain the same based on the original supplier invoicing terms and conditions. No guarantees are provided by us or any of our subsidiaries in connection with the SCF Program. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Segment Reporting – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that expands segment disclosures for public entities, including requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), the title and position of the CODM and an explanation of how the CODM uses reported measures of segment profit or loss in assessing segment performance and allocating resources. The new guidance also expands disclosures about a reportable segment’s profit or loss and assets in interim periods and clarifies that a public entity may report additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss. The new guidance does not remove existing segment disclosure requirements or change how a public entity identifies its operating segments, aggregates those operating segments, or determines its reportable segments. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2023, and subsequent interim periods with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance that expands income tax disclosures for public entities, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance should be applied on a prospective basis, with retrospective application to all prior periods presented in the financial statements permitted. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. |
Carrols Acquisition
Carrols Acquisition | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Carrols Acquisition | Carrols Acquisition Prior to May 16, 2024, we owned a 15% equity interest in Carrols Restaurant Group, Inc. (“Carrols”), which was accounted for as an equity method investment. On May 16, 2024, we acquired the remaining 85% of Carrols issued and outstanding shares that were not already held by us or our affiliates for $9.55 per share in an all cash transaction (the “Carrols Acquisition”) in order to accelerate the reimaging of more than 600 Carrols restaurants before refranchising the majority of the acquired portfolio to new or existing smaller franchise operations. The Carrols Acquisition was accounted for as a business combination by applying the acquisition method of accounting and Carrols became our wholly owned consolidated subsidiary. The acquisition of the 85% equity interest of Carrols was accounted for as a step acquisition, which required remeasurement of our existing 15% ownership interest in Carrols to fair value. We utilized the $9.55 per share acquisition price to determine the fair value of the existing equity interest. This resulted in an increase in the value of our existing 15% equity interest and the recognition of a gain of $79 million (the “Step Acquisition Gain”), which is included in (Income) loss from equity method investments in our condensed consolidated statements of operations for the three and six months ended June 30, 2024. Total cash paid in connection with the Carrols Acquisition was $543 million. Additionally, in connection with the Carrols Acquisition, we assumed approximately $431 million of outstanding debt, all of which was fully extinguished as of June 30, 2024. The cash purchase price and extinguishment of debt assumed in the Carrols Acquisition was funded with a combination of cash on hand and $750 million of incremental borrowings under our senior secured term loan facility. The following table summarizes the purchase price consideration in connection with the Carrols Acquisition (in millions): Total cash paid $ 543 Effective settlement of pre-existing balance sheet accounts (a) 15 Fair value of existing 15% equity interest 90 Total consideration $ 648 (a) Effective settlement of pre-existing balances with Carrols related to franchise and lease agreements prior to the date of acquisition. Fees and expenses related to the Carrols Acquisition and related financings totaled approximately $11 million during the six months ended June 30, 2024, consisting of professional fees and compensation related expenses which are classified as general and administrative expenses in the accompanying condensed consolidated statements of operations (the “Carrols Acquisition Costs”). The preliminary allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in millions): May 16, 2024 Total current assets $ 81 Property and equipment 293 Reacquired franchise rights 371 Operating lease assets 725 Other assets 14 Accounts and drafts payable (12) Other accrued liabilities (151) Current portion of long-term debt and finance leases (434) Finance leases, net of current portion (6) Operating lease liabilities, net of current portion (689) Other liabilities (9) Total identifiable net assets 183 Goodwill 465 Total consideration $ 648 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. Reacquired franchise rights, which represent the fair value of reacquired franchise agreements determined using the excess earnings method, are amortized over the remaining term of the reacquired franchise agreement and have an estimated weighted average remaining term of 13 years. Goodwill is considered to represent the value associated with the workforce and synergies anticipated to be realized as a combined company. Goodwill will be allocated to reporting units when the purchase price allocation is finalized during the measurement period. Total revenues of Carrols from the acquisition date of May 16, 2024 through June 30, 2024, which have been included within Company restaurant sales in our condensed consolidated financial statements, totaled $230 million. Supplemental Pro Forma Information The following table presents unaudited supplemental pro forma consolidated revenue for the three and six months ended June 30, 2024 and 2023, as if the Carrols Acquisition had occurred on January 1, 2023 (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Total revenues $ 2,291 $ 2,210 $ 4,435 $ 4,200 The unaudited supplemental pro forma consolidated revenue gives effect to actual revenues prior to the Carrols Acquisition, adjusted to exclude the elimination of intercompany transactions. Other than the impact of the Step Acquisition Gain and Carrols Acquisition Costs (as discussed above), supplemental pro forma net earnings, assuming the Carrols Acquisition had occurred on January 1, 2023, would not be materially different from the results reported during the three and six months ended June 30, 2024 and 2023. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 2023 2024 2023 Lease income - operating leases Minimum lease payments $ 92 $ 97 $ 186 $ 195 Variable lease payments 119 119 230 215 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 1 Subtotal - lease income from operating leases 212 217 417 411 Earned income on direct financing and sales-type leases 1 3 2 5 Total property revenues $ 213 $ 220 $ 419 $ 416 |
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 2024 2023 2024 2023 Lease income - operating leases Minimum lease payments $ 92 $ 97 $ 186 $ 195 Variable lease payments 119 119 230 215 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 1 Subtotal - lease income from operating leases 212 217 417 411 Earned income on direct financing and sales-type leases 1 3 2 5 Total property revenues $ 213 $ 220 $ 419 $ 416 |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Liabilities Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized franchise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2023 and June 30, 2024 (in millions): Contract Liabilities Balance at December 31, 2023 $ 555 Recognized during period and included in the contract liability balance at the beginning of the year (34) Increase, excluding amounts recognized as revenue during the period 25 Effective settlement of pre-existing contract liabilities in connection with Carrols Acquisition (21) Impact of foreign currency translation (6) Balance at June 30, 2024 $ 519 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of June 30, 2024 (in millions): Contract liabilities expected to be recognized in Remainder of 2024 $ 27 2025 53 2026 49 2027 46 2028 43 Thereafter 301 Total $ 519 Disaggregation of Total Revenues As described in Note 17, Segment Reporting , during the fourth quarter of 2023, we revised our internal reporting structure, which resulted in a change to our operating and reportable segments. Additionally, following the Carrols Acquisition and PLK China Acquisition (as defined below), we are reporting the operations of Burger King restaurants acquired as part of the Carrols Acquisition and commencing in the third quarter of 2024 the operations of PLK China restaurants into a new operating and reportable segment called Restaurant Holdings (“RH”). The following tables disaggregate revenue by segment (in millions): Three Months Ended June 30, 2024 TH BK PLK FHS INTL RH ELIM (a) Total Supply chain sales $ 682 $ — $ — $ — $ — $ — $ — $ 682 Company restaurant sales 11 63 33 10 — 230 — 347 Royalties 86 122 76 19 200 — (10) 493 Property revenues 160 52 4 — 1 — (4) 213 Franchise fees and other revenue 13 3 5 8 12 — — 41 Advertising revenues and other services 78 124 76 16 20 — (10) 304 Total revenues $ 1,030 $ 364 $ 194 $ 53 $ 233 $ 230 $ (24) $ 2,080 (a) Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK from intersegment transactions with RH. Six Months Ended June 30, 2024 TH BK PLK FHS INTL RH ELIM (a) Total Supply chain sales $ 1,309 $ — $ — $ — $ — $ — $ — $ 1,309 Company restaurant sales 22 121 56 20 — 230 — 449 Royalties 163 238 151 36 388 — (10) 966 Property revenues 307 108 7 — 1 — (4) 419 Franchise fees and other revenue 20 6 7 16 25 — — 74 Advertising revenues and other services 148 241 151 31 41 — (10) 602 Total revenues $ 1,969 $ 714 $ 372 $ 103 $ 455 $ 230 $ (24) $ 3,819 Three Months Ended June 30, 2023 TH BK PLK FHS INTL Total Supply chain sales $ 676 $ — $ — $ — $ — $ 676 Company restaurant sales 12 24 22 10 — 68 Royalties 83 125 73 18 192 491 Property revenues 158 58 4 — — 220 Franchise fees and other revenue 6 3 5 6 11 31 Advertising revenues and other services 73 117 69 14 16 289 Total revenues $ 1,008 $ 327 $ 173 $ 48 $ 219 $ 1,775 Six Months Ended June 30, 2023 TH BK PLK FHS INTL Total Supply chain sales $ 1,283 $ — $ — $ — $ — $ 1,283 Company restaurant sales 23 43 43 20 — 129 Royalties 154 238 141 35 365 933 Property revenues 295 113 7 — 1 416 Franchise fees and other revenue 11 7 7 12 24 61 Advertising revenues and other services 135 223 135 18 32 543 Total revenues $ 1,901 $ 624 $ 333 $ 85 $ 422 $ 3,365 |
Earnings per Share
Earnings per Share | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share An economic interest in Partnership common equity is held by the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”), which is reflected as a noncontrolling interest in our equity. See Note 13, Shareholders’ Equity . Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for the period. We apply the treasury stock method to determine the dilutive weighted average common shares represented by outstanding equity awards, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of noncontrolling interests. The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net income attributable to common shareholders - basic $ 280 $ 241 $ 510 $ 430 Add: Net income attributable to noncontrolling interests 119 109 216 196 Net income available to common shareholders and noncontrolling interests - diluted $ 399 $ 350 $ 726 $ 626 Denominator: Weighted average common shares - basic 317 312 316 310 Exchange of noncontrolling interests for common shares (Note 13) 134 141 134 142 Effect of other dilutive securities 2 5 3 5 Weighted average common shares - diluted 453 458 453 457 Basic earnings per share (a) $ 0.89 $ 0.77 $ 1.62 $ 1.39 Diluted earnings per share (a) $ 0.88 $ 0.77 $ 1.60 $ 1.37 Anti-dilutive securities outstanding 5 5 5 5 (a) Earnings per share 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, 2024 | |
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, 2024 December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 718 $ (359) $ 359 $ 727 $ (348) $ 379 Reacquired franchise rights 386 (4) 382 — — — Favorable leases 80 (55) 25 81 (54) 27 Subtotal 1,184 (418) 766 808 (402) 406 Indefinite-lived intangible assets: Tim Hortons brand $ 6,241 $ — $ 6,241 $ 6,423 $ — $ 6,423 Burger King brand 2,088 — 2,088 2,107 — 2,107 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 816 — 816 Subtotal 10,500 — 10,500 10,701 — 10,701 Intangible assets, net $ 11,266 $ 11,107 Goodwill: TH segment $ 4,006 $ 4,118 BK segment 239 232 PLK segment 844 844 FHS segment 193 193 INTL segment 393 388 RH segment 465 — Total $ 6,140 $ 5,775 Amortization expense on intangible assets totaled $13 million and $10 million for the three months ended June 30, 2024 and 2023, respectively. Amortization expense on intangible assets totaled $22 million and $19 million for the six months ended June 30, 2024 and 2023, respectively. The changes in reacquired franchise rights and goodwill balances during the six months ended June 30, 2024 was primarily due to the Carrols Acquisition. Refer to Note 4, Carrols Acquisition, for a description of goodwill and intangible assets recognized in connection with the Carrols Acquisition. Additionally, the changes in intangible assets and goodwill balances also reflect the impact of foreign currency translation during the six months ended June 30, 2024. |
Equity Method Investments
Equity Method Investments | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments As discussed in Note 4, Carrols Acquisition, prior to May 16, 2024, we owned a 15% equity interest in Carrols, which was accounted for as an equity method investment. In connection with the Carrols Acquisition, we acquired the remaining 85% equity interest in Carrols, resulting in the Step Acquisition Gain. As a result of the Carrols Acquisition, Carrols became a wholly owned consolidated subsidiary beginning on May 16, 2024. The aggregate carrying amounts of our equity method investments were $132 million and $163 million as of June 30, 2024 and December 31, 2023, 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 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on June 30, 2024 was approximately $17 million. The aggregate market value of our 4.2% equity interest in TH International Limited (“Tims China”) based on the quoted market price on June 30, 2024 was approximately $5 million. We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest, including Carrols through May 15, 2024, consist of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues from affiliates: Royalties $ 95 $ 103 $ 196 $ 195 Advertising revenues and other services 11 20 31 38 Property revenues 5 9 13 18 Franchise fees and other revenue 5 4 11 9 Sales 5 6 9 10 Total $ 121 $ 142 $ 260 $ 270 At June 30, 2024 and December 31, 2023, we had $61 million 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 $4 million and $3 million during the three months ended June 30, 2024 and 2023, respectively. Distributions received from this joint venture were $7 million and $6 million during the six months ended June 30, 2024 and 2023, respectively. Associated with the TIMWEN Partnership, we recognized $5 million and $6 million of rent expense during the three months ended June 30, 2024 and 2023, respectively, and we recognized $10 million of rent expense during each of the six months ended June 30, 2024 and 2023. (Income) loss from equity method investments reflects our share of investee net income or loss as well as 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, 2024 | |
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: Dividend payable $ 261 $ 245 Interest payable 69 67 Accrued compensation and benefits 129 147 Taxes payable 158 129 Deferred income 74 77 Accrued advertising expenses 51 58 Restructuring and other provisions 13 18 Current portion of operating lease liabilities 187 147 Other 157 117 Other accrued liabilities $ 1,099 $ 1,005 Noncurrent: Taxes payable $ 58 $ 57 Contract liabilities 519 555 Derivatives liabilities 87 227 Unfavorable leases 37 42 Accrued pension 34 34 Deferred income 60 57 Other 28 24 Other liabilities, net $ 823 $ 996 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 4,750 $ 5,175 Term Loan A 1,275 1,275 5.75% First Lien Senior Notes due 2025 500 500 3.875% First Lien Senior Notes due 2028 1,550 1,550 3.50% First Lien Senior Notes due 2029 750 750 6.125% First Lien Senior Notes due 2029 1,200 — 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 123 143 Less: unamortized deferred financing costs and deferred issue discount (126) (122) Total debt, net 13,672 12,921 Less: current maturities of debt (580) (67) Total long-term debt $ 13,092 $ 12,854 Credit Facilities On May 16, 2024, two of our subsidiaries (the “Borrowers”) entered into a sixth incremental facility amendment and a ninth amendment (the “First 2024 Amendment”) to the credit agreement governing our senior secured term loan A facility (the “Term Loan A”), our senior secured term loan B facility (the “Term Loan B” and together with the Term Loan A the “Term Loan Facilities”) and our $1,250 million senior secured revolving credit facility (including revolving loans, swingline loans and letters of credit) (the “Revolving Credit Facility” and together with the Term Loan Facilities, the “Credit Facilities”). The First 2024 Amendment increased the existing Term Loan B by $750 million to $5,912 million on the same terms as the existing Term Loan B. The First 2024 Amendment also amended the interest rate applicable to the Canadian dollar loans under the credit agreement to be based on Term Canadian Overnight Repo Rate Average (“CORRA”). The security and guarantees under the amended Credit Agreement are the same as those under the existing facilities. The First 2024 Amendment made no other material changes to the terms of the Credit Agreement. The proceeds from the increase in the Term Loan B were used, along with cash on hand, to complete the Carrols Acquisition, the repayment of amounts outstanding under the Carrols' credit agreement and the redemption and discharge of Carrols' outstanding senior notes. On June 17, 2024, the Borrowers entered into a tenth amendment to the credit agreement governing our Credit Facilities (the “Second 2024 Amendment”). The Second 2024 Amendment repriced our Term Loan B from an interest rate equal to the Adjusted Term SOFR plus 2.25% to an interest rate equal to the Adjusted Term SOFR Rate plus 1.75% and reduced the outstanding principal amount of the Term Loan B facility from $5,912 million to $4,750 million using a portion of the net proceeds from the issuance of the 6.125% First Lien Senior Notes due 2029 (defined below). There were no changes to the maturity of the Term Loan B following this repricing and all other terms are substantially unchanged. In connection with the First 2024 Amendment and the Second 2024 Amendment, we capitalized approximately $24 million in debt issuance costs and recorded a $32 million loss on early extinguishment of debt that primarily reflects expensing of fees and the write-off of unamortized debt issuance costs. Revolving Credit Facility As of June 30, 2024, we had no amounts outstanding under our Revolving Credit Facility, had $3 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $1,247 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or equity repurchases, 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. 6.125% First Lien Senior Notes due 2029 On June 17, 2024, the Borrowers entered into an indenture (the “6.125% First Lien Senior Notes Indenture”) in connection with the issuance of $1,200 million of 6.125% first lien senior notes due June 15, 2029 (the “6.125% First Lien Senior Notes due 2029”). No principal payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 6.125% First Lien Senior Notes due 2029 were used to refinance a portion of the Term Loan B, pay related fees and expenses and for general corporate purposes. In connection with the issuance of the 6.125% First Lien Senior Notes due 2029, we capitalized approximately $13 million in debt issuance costs. Obligations under the 6.125% First Lien Senior Notes due 2029 are guaranteed on a senior secured basis, jointly and severally, by Partnership and substantially all of its Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Company LLC, Popeyes Louisiana Kitchen, Inc., FRG, LLC and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The 6.125% First Lien Senior Notes due 2029 are first lien senior secured obligations and rank equal in right of payment with all of the existing and future first lien senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees under our Credit Facilities. Our 6.125% First Lien Senior Notes due 2029 may be redeemed in whole or in part, on or after June 15, 2026 at the redemption prices set forth in the 6.125% First Lien Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 6.125% First Lien Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among others. 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”). Prior to June 30, 2024, the interest rate applicable to the TH Facility was 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. Beginning July 1, 2024, the interest rate applicable to the TH Facility is the Adjusted Term CORRA 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 three of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of June 30, 2024, we had approximately C$166 million outstanding under the TH Facility with a weighted average interest rate of 6.39%. Restrictions and Covenants As of June 30, 2024, 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, 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 $ 13,084 $ 12,401 Principal carrying amount of our variable term debt and senior notes 13,675 12,900 Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Debt (a) $ 145 $ 142 $ 293 $ 280 Finance lease obligations 5 5 10 9 Amortization of deferred financing costs and debt issuance discount 6 7 12 14 Interest income (9) (9) (20) (16) Interest expense, net $ 147 $ 145 $ 295 $ 287 (a) Amount includes $12 million and $16 million benefit during the three months ended June 30, 2024 and 2023, respectively, and $23 million and $31 million benefit during the six months ended June 30, 2024 and 2023, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 14, Derivative Instruments . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 17.6% and 17.4% for the three and six months ended June 30, 2024, respectively. The effective tax rate during these periods was primarily the result of the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements, the impact of the Carrols Acquisition, and equity-based compensation. Our effective tax rate was 14.3% and 12.1% for the three and six months ended June 30, 2023, respectively. The effective tax rate during these periods reflects the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements, a favorable structural change that benefited 2023, and equity-based compensation. On June 20, 2024, Canada enacted significant tax legislation including the introduction of the excessive interest and financing expenses limitation (“EIFEL”) as well as a 2% tax on certain share buy backs. The EIFEL rules are applicable for the current fiscal year, while the tax on share buy backs applies to certain share repurchases on or after January 1, 2024. As a result, we expect to have restricted interest and financing expenses, which can be carried forward indefinitely. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity Noncontrolling Interests The holders of Partnership exchangeable units held an economic interest of approximately 29.7% and 29.9% in Partnership common equity through the ownership of 133,581,144 and 133,597,764 Partnership exchangeable units as of June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024, Partnership exchanged 16,620 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. In connection with an amendment to the partnership agreement, Partnership exchangeable units exchanged for RBI common shares subsequent to December 31, 2023 also result in the issuance of additional Partnership Class A common units to RBI in an amount equal to the number of RBI common shares exchanged. The exchanges represented increases in our ownership interest in Partnership and were accounted for as equity transactions, with no gain or loss recorded in the accompanying condensed consolidated statements of operations. 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. Share Repurchases On August 31, 2023, our Board of Directors approved a share repurchase program that allows us to purchase up to $1,000 million of our common shares until September 30, 2025. For the three and six months ended June 30, 2024, we did not repurchase any of our common shares and as of June 30, 2024 had $500 million remaining under the authorization. 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, 2023 $ 480 $ (13) $ (1,173) $ (706) Foreign currency translation adjustment — — (347) (347) Net change in fair value of derivatives, net of tax 256 — — 256 Amounts reclassified to earnings of cash flow hedges, net of tax (49) — — (49) Amounts attributable to noncontrolling interests (62) — 104 42 Balance at June 30, 2024 $ 625 $ (13) $ (1,416) $ (804) |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
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, 2024, 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 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, 2024, 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. Following the discontinuance of the U.S. dollar LIBOR after June 30, 2023, the interest rate on all these interest rate swaps transitioned from LIBOR to SOFR, with no impact to hedge effectiveness and no change in accounting treatment as a result of applicable accounting relief guidance for the transition away from LIBOR. 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, net of tax, and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. In connection with the Carrols Acquisition, we assumed a receive-variable, pay-fixed interest rate swap utilizing SOFR as the benchmark interest rate with a total notional value of $120 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities, including any subsequent refinancing or replacement of the Term Loan Facilities, through the termination date of February 28, 2025. This interest rate swap is designated as a cash flow hedge for hedge accounting and the unrealized changes in market value are recorded in AOCI, net of tax, and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. At June 30, 2024, the net amount of pre-tax gains that we expect to be reclassified from AOCI into interest expense within the next 12 months is $130 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, 2024, 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, 2024, we had outstanding cross-currency rate swaps that we entered into during 2022 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 in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $5,000 million through the maturity date of September 30, 2028. At June 30, 2024, we had outstanding cross-currency rate swap contracts between the euro and U.S. dollar in which we receive quarterly fixed-rate interest payments on the U.S. dollar aggregate amount of $2,750 million, of which $1,400 million have a maturity date of October 31, 2026, $1,200 million have a maturity date of November 30, 2028, and $150 million have a maturity date of October 31, 2028. At inception, these cross-currency rate swaps were designated and continue to be hedges and are accounted for as a net investment hedge. During 2023, we settled our previously existing cross-currency rate swaps in which we paid 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 and an original maturity date of February 17, 2024. During 2023, we also settled our previously existing cross-currency rate swap contracts between the euro and U.S. dollar with a notional value of $900 million and an original maturity date of February 17, 2024. In connection with the cross-currency rate swaps hedging Canadian dollar and euro net investments, we utilize the spot method to exclude the interest component (the “Excluded Component”) from the accounting hedge without affecting net investment hedge accounting and 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 statements 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, 2024, 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 $163 million with maturities to July 15, 2025. 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 Six Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 35 $ 120 $ 127 $ 63 Forward-currency contracts $ 2 $ (3) $ 5 $ (4) Derivatives designated as net investment hedges Cross-currency rate swaps $ 23 $ (88) $ 154 $ (123) (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 Six Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ 36 $ 20 $ 66 $ 35 Forward-currency contracts Supply chain cost of sales $ 1 $ 3 $ 1 $ 6 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended Six Months Ended 2024 2023 2024 2023 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 12 $ 16 $ 23 $ 31 Fair Value as of June 30, December 31, 2023 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 250 $ 190 Other assets, net Interest rate 3 — Prepaids and other current assets Foreign currency 2 — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 21 7 Other assets, net Total assets at fair value $ 276 $ 197 Liabilities: Derivatives designated as cash flow hedges Foreign currency $ — $ 2 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 87 227 Other liabilities, net Total liabilities at fair value $ 87 $ 229 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Other Operating Expenses (Income), net Other operating expenses (income), net consists of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 8 $ (9) $ 10 $ (11) Litigation settlements (gains) and reserves, net 1 (3) 1 (2) Net losses (gains) on foreign exchange (6) (1) (29) 7 Other, net 4 6 7 16 Other operating expenses (income), net $ 7 $ (7) $ (11) $ 10 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, primarily those denominated in euros and Canadian dollars. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 Company, successor in interest, (“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 Munster, 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. In August 2022, the federal appellate court reversed the lower court's decision to dismiss the case and remanded the case to the lower court for further proceedings. While we intend to vigorously defend these claims, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As stated in Note 1, Description of Business and Organization , we manage four brands: Tim Hortons, Burger King, Popeyes and Firehouse Subs . During the second quarter of 2024, we completed the Carrols Acquisition and PLK China Acquisition. As a result, our consolidated statements of operations for the three and six months ended June 30, 2024 include Carrols revenues and expenses from the acquisition date of May 16, 2024 through June 30, 2024. Due to the timing of the acquisition, PLK China results will be included in our consolidated statements of operations commencing in the third quarter of 2024. During the fourth quarter of 2023, we revised our internal reporting structure, which resulted in a change to our operating and reportable segments. Additionally, following the Carrols Acquisition and the PLK China Acquisition, we established a new operating and reportable segment to reflect the manner in which our chief operating decision maker (“CODM”) manages and assesses performance of our segments. As a result, beginning in the second quarter of 2024, we are reporting results under six operating and reportable segments consisting of the following: 1. Tim Hortons – operations of our Tim Hortons brand in Canada and the U.S. (“TH”); 2. Burger King – operations of our Burger King brand in the U.S. and Canada, excluding Company restaurant results of Burger King restaurants acquired as part of the Carrols Acquisition, included in our RH segment (defined below) (“BK”); 3. Popeyes Louisiana Kitchen – operations of our Popeyes brand in the U.S. and Canada (“PLK”); 4. Firehouse Subs – operations of our Firehouse Subs brand in the U.S. and Canada (“FHS”); 5. International – operations of each of our brands outside the U.S. and Canada, excluding Company restaurant results of PLK China restaurants commencing in the third quarter of 2024, included in our RH segment (“INTL”); and 6. Restaurant Holdings – operations of Burger King restaurants acquired as part of the Carrols Acquisition and commencing in the third quarter of 2024, the operations of PLK China restaurants (“RH”). Prior year amounts presented have been reclassified to conform to this new segment presentation with no effect on previously reported consolidated results. The following tables present revenues, by segment and by country (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues by operating segment: TH $ 1,030 $ 1,008 $ 1,969 $ 1,901 BK 364 327 714 624 PLK 194 173 372 333 FHS 53 48 103 85 INTL 233 219 455 422 RH 230 — 230 — Elimination of intersegment revenues (a) (24) — (24) — Total revenues $ 2,080 $ 1,775 $ 3,819 $ 3,365 (a) Consists of BK royalties, property revenues, advertising contribution revenues and tech fees from intersegment transactions with RH. Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues by country (b): Canada $ 945 $ 925 $ 1,801 $ 1,739 United States 902 631 1,563 1,204 Other 233 219 455 422 Total revenues $ 2,080 $ 1,775 $ 3,819 $ 3,365 (b) 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 Operating Income which represents income from operations adjusted to exclude (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (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 expenses incurred in connection with the Carrols Acquisition, and commencing in the third quarter of 2024 the PLK China Acquisition, consisting primarily of professional fees, compensation related expenses and integration costs (“RH Transaction costs”); (ii) non-recurring fees and expense incurred in connection with the acquisition of Firehouse consisting primarily of professional fees, compensation-related expenses and integration costs (“FHS Transaction costs”); and (iii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations (“Corporate restructuring and advisory fees”). Adjusted Operating Income 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 2024 2023 2024 2023 Segment income: TH $ 269 $ 246 $ 493 $ 458 BK 114 110 220 206 PLK 62 56 120 107 FHS 13 11 23 20 INTL 160 154 302 291 RH 14 — 14 — Adjusted Operating Income 632 577 1,172 1,082 Franchise agreement and reacquired franchise rights amortization 11 8 19 16 RH Transaction costs 9 — 13 — FHS Transaction costs — — — 19 Corporate restructuring and advisory fees 6 7 8 12 Impact of equity method investments (a) (64) 15 (64) 24 Other operating expenses (income), net 7 (7) (11) 10 Income from operations 663 554 1,207 1,001 Interest expense, net 147 145 295 287 Loss on early extinguishment of debt 32 — 32 — Income tax expense 85 58 153 86 Net income $ 399 $ 351 $ 727 $ 628 (a) |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Dividends On July 5, 2024, we paid a cash dividend of $0.58 per common share to common shareholders of record on June 21, 2024. On such date, Partnership also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.58 per exchangeable unit to holders of record on June 21, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 22, 2024. |
Consolidation | 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. |
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 accounts. |
New Accounting Pronouncements | New Accounting Pronouncements Segment Reporting – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that expands segment disclosures for public entities, including requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), the title and position of the CODM and an explanation of how the CODM uses reported measures of segment profit or loss in assessing segment performance and allocating resources. The new guidance also expands disclosures about a reportable segment’s profit or loss and assets in interim periods and clarifies that a public entity may report additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss. The new guidance does not remove existing segment disclosure requirements or change how a public entity identifies its operating segments, aggregates those operating segments, or determines its reportable segments. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2023, and subsequent interim periods with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance that expands income tax disclosures for public entities, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance should be applied on a prospective basis, with retrospective application to all prior periods presented in the financial statements permitted. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. |
Contract Liabilities | Contract Liabilities |
Earnings per Share | Earnings per Share An economic interest in Partnership common equity is held by the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”), which is reflected as a noncontrolling interest in our equity. See Note 13, Shareholders’ Equity . Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for the period. We apply the treasury stock method to determine the dilutive weighted average common shares represented by outstanding equity awards, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of noncontrolling interests. |
Carrols Acquisition (Tables)
Carrols Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | The following table summarizes the purchase price consideration in connection with the Carrols Acquisition (in millions): Total cash paid $ 543 Effective settlement of pre-existing balance sheet accounts (a) 15 Fair value of existing 15% equity interest 90 Total consideration $ 648 (a) |
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): May 16, 2024 Total current assets $ 81 Property and equipment 293 Reacquired franchise rights 371 Operating lease assets 725 Other assets 14 Accounts and drafts payable (12) Other accrued liabilities (151) Current portion of long-term debt and finance leases (434) Finance leases, net of current portion (6) Operating lease liabilities, net of current portion (689) Other liabilities (9) Total identifiable net assets 183 Goodwill 465 Total consideration $ 648 |
Schedule of Supplemental Pro Forma Information | The following table presents unaudited supplemental pro forma consolidated revenue for the three and six months ended June 30, 2024 and 2023, as if the Carrols Acquisition had occurred on January 1, 2023 (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Total revenues $ 2,291 $ 2,210 $ 4,435 $ 4,200 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Operating leases 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 2024 2023 2024 2023 Lease income - operating leases Minimum lease payments $ 92 $ 97 $ 186 $ 195 Variable lease payments 119 119 230 215 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 1 Subtotal - lease income from operating leases 212 217 417 411 Earned income on direct financing and sales-type leases 1 3 2 5 Total property revenues $ 213 $ 220 $ 419 $ 416 |
Schedule of Financing leases 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 2024 2023 2024 2023 Lease income - operating leases Minimum lease payments $ 92 $ 97 $ 186 $ 195 Variable lease payments 119 119 230 215 Amortization of favorable and unfavorable income lease contracts, net 1 1 1 1 Subtotal - lease income from operating leases 212 217 417 411 Earned income on direct financing and sales-type leases 1 3 2 5 Total property revenues $ 213 $ 220 $ 419 $ 416 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Contract Liabilities | The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2023 and June 30, 2024 (in millions): Contract Liabilities Balance at December 31, 2023 $ 555 Recognized during period and included in the contract liability balance at the beginning of the year (34) Increase, excluding amounts recognized as revenue during the period 25 Effective settlement of pre-existing contract liabilities in connection with Carrols Acquisition (21) Impact of foreign currency translation (6) Balance at June 30, 2024 $ 519 |
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) on a consolidated basis as of June 30, 2024 (in millions): Contract liabilities expected to be recognized in Remainder of 2024 $ 27 2025 53 2026 49 2027 46 2028 43 Thereafter 301 Total $ 519 |
Schedule of Disaggregation of Total Revenues | The following tables disaggregate revenue by segment (in millions): Three Months Ended June 30, 2024 TH BK PLK FHS INTL RH ELIM (a) Total Supply chain sales $ 682 $ — $ — $ — $ — $ — $ — $ 682 Company restaurant sales 11 63 33 10 — 230 — 347 Royalties 86 122 76 19 200 — (10) 493 Property revenues 160 52 4 — 1 — (4) 213 Franchise fees and other revenue 13 3 5 8 12 — — 41 Advertising revenues and other services 78 124 76 16 20 — (10) 304 Total revenues $ 1,030 $ 364 $ 194 $ 53 $ 233 $ 230 $ (24) $ 2,080 (a) Represents elimination of intersegment revenues that consists of royalties, property and advertising and other services revenue recognized by BK from intersegment transactions with RH. Six Months Ended June 30, 2024 TH BK PLK FHS INTL RH ELIM (a) Total Supply chain sales $ 1,309 $ — $ — $ — $ — $ — $ — $ 1,309 Company restaurant sales 22 121 56 20 — 230 — 449 Royalties 163 238 151 36 388 — (10) 966 Property revenues 307 108 7 — 1 — (4) 419 Franchise fees and other revenue 20 6 7 16 25 — — 74 Advertising revenues and other services 148 241 151 31 41 — (10) 602 Total revenues $ 1,969 $ 714 $ 372 $ 103 $ 455 $ 230 $ (24) $ 3,819 Three Months Ended June 30, 2023 TH BK PLK FHS INTL Total Supply chain sales $ 676 $ — $ — $ — $ — $ 676 Company restaurant sales 12 24 22 10 — 68 Royalties 83 125 73 18 192 491 Property revenues 158 58 4 — — 220 Franchise fees and other revenue 6 3 5 6 11 31 Advertising revenues and other services 73 117 69 14 16 289 Total revenues $ 1,008 $ 327 $ 173 $ 48 $ 219 $ 1,775 Six Months Ended June 30, 2023 TH BK PLK FHS INTL Total Supply chain sales $ 1,283 $ — $ — $ — $ — $ 1,283 Company restaurant sales 23 43 43 20 — 129 Royalties 154 238 141 35 365 933 Property revenues 295 113 7 — 1 416 Franchise fees and other revenue 11 7 7 12 24 61 Advertising revenues and other services 135 223 135 18 32 543 Total revenues $ 1,901 $ 624 $ 333 $ 85 $ 422 $ 3,365 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts): Three Months Ended Six Months Ended 2024 2023 2024 2023 Numerator: Net income attributable to common shareholders - basic $ 280 $ 241 $ 510 $ 430 Add: Net income attributable to noncontrolling interests 119 109 216 196 Net income available to common shareholders and noncontrolling interests - diluted $ 399 $ 350 $ 726 $ 626 Denominator: Weighted average common shares - basic 317 312 316 310 Exchange of noncontrolling interests for common shares (Note 13) 134 141 134 142 Effect of other dilutive securities 2 5 3 5 Weighted average common shares - diluted 453 458 453 457 Basic earnings per share (a) $ 0.89 $ 0.77 $ 1.62 $ 1.39 Diluted earnings per share (a) $ 0.88 $ 0.77 $ 1.60 $ 1.37 Anti-dilutive securities outstanding 5 5 5 5 (a) Earnings per share 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, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, net and goodwill consist of the following (in millions): As of June 30, 2024 December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 718 $ (359) $ 359 $ 727 $ (348) $ 379 Reacquired franchise rights 386 (4) 382 — — — Favorable leases 80 (55) 25 81 (54) 27 Subtotal 1,184 (418) 766 808 (402) 406 Indefinite-lived intangible assets: Tim Hortons brand $ 6,241 $ — $ 6,241 $ 6,423 $ — $ 6,423 Burger King brand 2,088 — 2,088 2,107 — 2,107 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 816 — 816 Subtotal 10,500 — 10,500 10,701 — 10,701 Intangible assets, net $ 11,266 $ 11,107 Goodwill: TH segment $ 4,006 $ 4,118 BK segment 239 232 PLK segment 844 844 FHS segment 193 193 INTL segment 393 388 RH segment 465 — Total $ 6,140 $ 5,775 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Franchise and Property Revenues | Revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest, including Carrols through May 15, 2024, consist of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues from affiliates: Royalties $ 95 $ 103 $ 196 $ 195 Advertising revenues and other services 11 20 31 38 Property revenues 5 9 13 18 Franchise fees and other revenue 5 4 11 9 Sales 5 6 9 10 Total $ 121 $ 142 $ 260 $ 270 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities, net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (Non-Current), Net | Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of June 30, December 31, Current: Dividend payable $ 261 $ 245 Interest payable 69 67 Accrued compensation and benefits 129 147 Taxes payable 158 129 Deferred income 74 77 Accrued advertising expenses 51 58 Restructuring and other provisions 13 18 Current portion of operating lease liabilities 187 147 Other 157 117 Other accrued liabilities $ 1,099 $ 1,005 Noncurrent: Taxes payable $ 58 $ 57 Contract liabilities 519 555 Derivatives liabilities 87 227 Unfavorable leases 37 42 Accrued pension 34 34 Deferred income 60 57 Other 28 24 Other liabilities, net $ 823 $ 996 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following (in millions): As of June 30, December 31, Term Loan B $ 4,750 $ 5,175 Term Loan A 1,275 1,275 5.75% First Lien Senior Notes due 2025 500 500 3.875% First Lien Senior Notes due 2028 1,550 1,550 3.50% First Lien Senior Notes due 2029 750 750 6.125% First Lien Senior Notes due 2029 1,200 — 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 123 143 Less: unamortized deferred financing costs and deferred issue discount (126) (122) Total debt, net 13,672 12,921 Less: current maturities of debt (580) (67) Total long-term debt $ 13,092 $ 12,854 |
Schedule 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 $ 13,084 $ 12,401 Principal carrying amount of our variable term debt and senior notes 13,675 12,900 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Debt (a) $ 145 $ 142 $ 293 $ 280 Finance lease obligations 5 5 10 9 Amortization of deferred financing costs and debt issuance discount 6 7 12 14 Interest income (9) (9) (20) (16) Interest expense, net $ 147 $ 145 $ 295 $ 287 (a) Amount includes $12 million and $16 million benefit during the three months ended June 30, 2024 and 2023, respectively, and $23 million and $31 million benefit during the six months ended June 30, 2024 and 2023, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 14, Derivative Instruments . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Schedule of Change in Components of Accumulated Other Comprehensive Income (Loss) ("AOCI") | 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, 2023 $ 480 $ (13) $ (1,173) $ (706) Foreign currency translation adjustment — — (347) (347) Net change in fair value of derivatives, net of tax 256 — — 256 Amounts reclassified to earnings of cash flow hedges, net of tax (49) — — (49) Amounts attributable to noncontrolling interests (62) — 104 42 Balance at June 30, 2024 $ 625 $ (13) $ (1,416) $ (804) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Quantitative Disclosures of Derivative Instruments | 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 Six Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 35 $ 120 $ 127 $ 63 Forward-currency contracts $ 2 $ (3) $ 5 $ (4) Derivatives designated as net investment hedges Cross-currency rate swaps $ 23 $ (88) $ 154 $ (123) (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 Six Months Ended 2024 2023 2024 2023 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ 36 $ 20 $ 66 $ 35 Forward-currency contracts Supply chain cost of sales $ 1 $ 3 $ 1 $ 6 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended Six Months Ended 2024 2023 2024 2023 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 12 $ 16 $ 23 $ 31 |
Schedule of Fair Value Measurements | Fair Value as of June 30, December 31, 2023 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 250 $ 190 Other assets, net Interest rate 3 — Prepaids and other current assets Foreign currency 2 — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 21 7 Other assets, net Total assets at fair value $ 276 $ 197 Liabilities: Derivatives designated as cash flow hedges Foreign currency $ — $ 2 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 87 227 Other liabilities, net Total liabilities at fair value $ 87 $ 229 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expenses (Income), net | Other operating expenses (income), net consists of the following (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 8 $ (9) $ 10 $ (11) Litigation settlements (gains) and reserves, net 1 (3) 1 (2) Net losses (gains) on foreign exchange (6) (1) (29) 7 Other, net 4 6 7 16 Other operating expenses (income), net $ 7 $ (7) $ (11) $ 10 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Operating Segment and Country | The following tables present revenues, by segment and by country (in millions): Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues by operating segment: TH $ 1,030 $ 1,008 $ 1,969 $ 1,901 BK 364 327 714 624 PLK 194 173 372 333 FHS 53 48 103 85 INTL 233 219 455 422 RH 230 — 230 — Elimination of intersegment revenues (a) (24) — (24) — Total revenues $ 2,080 $ 1,775 $ 3,819 $ 3,365 (a) Consists of BK royalties, property revenues, advertising contribution revenues and tech fees from intersegment transactions with RH. Three Months Ended Six Months Ended 2024 2023 2024 2023 Revenues by country (b): Canada $ 945 $ 925 $ 1,801 $ 1,739 United States 902 631 1,563 1,204 Other 233 219 455 422 Total revenues $ 2,080 $ 1,775 $ 3,819 $ 3,365 (b) Only Canada and the United States represented 10% or more of our total revenues in each period presented. |
Schedule of 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 2024 2023 2024 2023 Segment income: TH $ 269 $ 246 $ 493 $ 458 BK 114 110 220 206 PLK 62 56 120 107 FHS 13 11 23 20 INTL 160 154 302 291 RH 14 — 14 — Adjusted Operating Income 632 577 1,172 1,082 Franchise agreement and reacquired franchise rights amortization 11 8 19 16 RH Transaction costs 9 — 13 — FHS Transaction costs — — — 19 Corporate restructuring and advisory fees 6 7 8 12 Impact of equity method investments (a) (64) 15 (64) 24 Other operating expenses (income), net 7 (7) (11) 10 Income from operations 663 554 1,207 1,001 Interest expense, net 147 145 295 287 Loss on early extinguishment of debt 32 — 32 — Income tax expense 85 58 153 86 Net income $ 399 $ 351 $ 727 $ 628 (a) |
Description of Business and O_2
Description of Business and Organization (Details) | Jun. 30, 2024 restaurant country |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 31,324 |
Number of countries in which company and franchise restaurants operated (more than) | country | 120 |
Percent of system-wide restaurants franchised | 95% |
Tim Hortons brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 5,836 |
Burger King brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 19,446 |
Popeyes brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 4,735 |
Firehouse Subs | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 1,307 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier finance programs, term | 120 days | |
Supplier finance program, obligation | $ 29 | $ 36 |
Carrols Acquisition - Narrative
Carrols Acquisition - Narrative (Details) $ / shares in Units, $ in Millions | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||
May 16, 2024 USD ($) restaurant $ / shares | Jun. 30, 2024 USD ($) restaurant | Jun. 30, 2024 USD ($) restaurant | Jun. 30, 2024 USD ($) restaurant | May 15, 2024 | |
Asset Acquisition, Contingent Consideration [Line Items] | |||||
Number of restaurants in operation | restaurant | 31,324 | 31,324 | 31,324 | ||
Carrols Restaurant Group Inc | |||||
Asset Acquisition, Contingent Consideration [Line Items] | |||||
Number of restaurants in operation | restaurant | 600 | ||||
Carrols Restaurant Group Inc | |||||
Asset Acquisition, Contingent Consideration [Line Items] | |||||
Equity interest percent | 15% | ||||
Acquisition, remaining issued and outstanding shares percentage | 85% | ||||
Business acquisition price per share (in dollars per share) | $ / shares | $ 9.55 | ||||
Business combination, recognition of gain | $ 79 | $ 79 | |||
Payments to acquire businesses | $ 543 | ||||
Outstanding debt | $ 431 | ||||
Proceeds from loans used to business combination | $ 750 | ||||
Transaction costs | $ 11 | ||||
Weighted average amortization period | 13 years | ||||
Revenue | $ 230 |
Carrols Acquisition - Purchase
Carrols Acquisition - Purchase Price Consideration (Details) - Carrols Restaurant Group, Inc. - USD ($) $ in Millions | May 16, 2024 | May 15, 2024 |
Asset Acquisition [Line Items] | ||
Payments to acquire businesses | $ 543 | |
Effective settlement of pre-existing balance sheet accounts | 15 | |
Fair value of existing 15% equity interest | 90 | |
Equity interest percent | 15% | |
Consideration transferred | $ 648 |
Carrols Acquisition - Allocatio
Carrols Acquisition - Allocation of Consideration to Net Tangible and Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2024 | May 16, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | |||
Goodwill | $ 6,140 | $ 5,775 | |
Carrols Restaurant Group Inc | |||
Business Acquisition [Line Items] | |||
Total current assets | $ 81 | ||
Property and equipment | 293 | ||
Reacquired franchise rights | 371 | ||
Operating lease assets | 725 | ||
Other assets | 14 | ||
Accounts and drafts payable | (12) | ||
Other accrued liabilities | (151) | ||
Current portion of long-term debt and finance leases | (434) | ||
Finance leases, net of current portion | (6) | ||
Operating lease liabilities, net of current portion | (689) | ||
Other liabilities | (9) | ||
Total identifiable net assets | 183 | ||
Goodwill | 465 | ||
Total consideration | $ 648 |
Carrols Acquisition - Supplemen
Carrols Acquisition - Supplemental Pro Forma Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Carrols Restaurant Group Inc | ||||
Business Acquisition [Line Items] | ||||
Total revenues | $ 2,291 | $ 2,210 | $ 4,435 | $ 4,200 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Lease income - operating leases | ||||
Minimum lease payments | $ 92 | $ 97 | $ 186 | $ 195 |
Variable lease payments | 119 | 119 | 230 | 215 |
Amortization of favorable and unfavorable income lease contracts, net | 1 | 1 | 1 | 1 |
Subtotal - lease income from operating leases | 212 | 217 | 417 | 411 |
Earned income on direct financing and sales-type leases | 1 | 3 | 2 | 5 |
Total property revenues | $ 213 | $ 220 | $ 419 | $ 416 |
Revenue Recognition - Change in
Revenue Recognition - Change in Contract Liabilities (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2024 USD ($) | |
Contract Liabilities | |
Beginning balance | $ 555 |
Recognized during period and included in the contract liability balance at the beginning of the year | (34) |
Increase, excluding amounts recognized as revenue during the period | 25 |
Effective settlement of pre-existing contract liabilities in connection with Carrols Acquisition | (21) |
Impact of foreign currency translation | (6) |
Ending balance | $ 519 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Recognition (Details) $ in Millions | Jun. 30, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 519 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 27 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 6 months |
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 | $ 53 |
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 | $ 49 |
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 | $ 46 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 43 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 301 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Total Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | $ 213 | $ 220 | $ 419 | $ 416 |
Total revenues | 2,080 | 1,775 | 3,819 | 3,365 |
TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 158 | 295 | ||
Total revenues | 1,008 | 1,901 | ||
BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 58 | 113 | ||
Total revenues | 327 | 624 | ||
PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 4 | 7 | ||
Total revenues | 173 | 333 | ||
FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 0 | 0 | ||
Total revenues | 48 | 85 | ||
INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 0 | 1 | ||
Total revenues | 219 | 422 | ||
Product | Supply chain sales | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 682 | 676 | 1,309 | 1,283 |
Total revenues | 682 | 676 | 1,309 | 1,283 |
Product | Supply chain sales | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 676 | 1,283 | ||
Product | Supply chain sales | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Product | Supply chain sales | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Product | Supply chain sales | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Product | Supply chain sales | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Product | Company restaurant sales | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 347 | 68 | 449 | 129 |
Total revenues | 347 | 68 | 449 | 129 |
Product | Company restaurant sales | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 12 | 23 | ||
Product | Company restaurant sales | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 24 | 43 | ||
Product | Company restaurant sales | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 22 | 43 | ||
Product | Company restaurant sales | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 10 | 20 | ||
Product | Company restaurant sales | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Royalties | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 493 | 491 | 966 | 933 |
Royalties | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 83 | 154 | ||
Royalties | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 125 | 238 | ||
Royalties | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 73 | 141 | ||
Royalties | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 18 | 35 | ||
Royalties | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 192 | 365 | ||
Franchise fees and other revenue | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 41 | 31 | 74 | 61 |
Franchise fees and other revenue | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 6 | 11 | ||
Franchise fees and other revenue | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 3 | 7 | ||
Franchise fees and other revenue | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 5 | 7 | ||
Franchise fees and other revenue | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 6 | 12 | ||
Franchise fees and other revenue | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 11 | 24 | ||
Advertising revenues and other services | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 304 | 289 | 602 | 543 |
Total revenues | 304 | 289 | 602 | 543 |
Advertising revenues and other services | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 73 | 135 | ||
Advertising revenues and other services | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 117 | 223 | ||
Advertising revenues and other services | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 69 | 135 | ||
Advertising revenues and other services | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 14 | 18 | ||
Advertising revenues and other services | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 16 | 32 | ||
Operating Segments | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 160 | 307 | ||
Total revenues | 1,030 | 1,008 | 1,969 | 1,901 |
Operating Segments | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 52 | 108 | ||
Total revenues | 364 | 327 | 714 | 624 |
Operating Segments | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 4 | 7 | ||
Total revenues | 194 | 173 | 372 | 333 |
Operating Segments | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 0 | 0 | ||
Total revenues | 53 | 103 | ||
Operating Segments | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 1 | 1 | ||
Total revenues | 233 | 219 | 455 | 422 |
Operating Segments | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | 0 | 0 | ||
Total revenues | 230 | 0 | 230 | 0 |
Operating Segments | Product | Supply chain sales | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 682 | 1,309 | ||
Operating Segments | Product | Supply chain sales | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Supply chain sales | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Supply chain sales | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Supply chain sales | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Supply chain sales | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Company restaurant sales | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 11 | 22 | ||
Operating Segments | Product | Company restaurant sales | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 63 | 121 | ||
Operating Segments | Product | Company restaurant sales | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 33 | 56 | ||
Operating Segments | Product | Company restaurant sales | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 10 | 20 | ||
Operating Segments | Product | Company restaurant sales | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Product | Company restaurant sales | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 230 | 230 | ||
Operating Segments | Royalties | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 86 | 163 | ||
Operating Segments | Royalties | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 122 | 238 | ||
Operating Segments | Royalties | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 76 | 151 | ||
Operating Segments | Royalties | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 19 | 36 | ||
Operating Segments | Royalties | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 200 | 388 | ||
Operating Segments | Royalties | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Franchise fees and other revenue | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 13 | 20 | ||
Operating Segments | Franchise fees and other revenue | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 3 | 6 | ||
Operating Segments | Franchise fees and other revenue | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 5 | 7 | ||
Operating Segments | Franchise fees and other revenue | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 8 | 16 | ||
Operating Segments | Franchise fees and other revenue | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 12 | 25 | ||
Operating Segments | Franchise fees and other revenue | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Operating Segments | Advertising revenues and other services | TH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 78 | 148 | ||
Operating Segments | Advertising revenues and other services | BK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 124 | 241 | ||
Operating Segments | Advertising revenues and other services | PLK | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 76 | 151 | ||
Operating Segments | Advertising revenues and other services | FHS | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 16 | 31 | ||
Operating Segments | Advertising revenues and other services | INTL | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 20 | 41 | ||
Operating Segments | Advertising revenues and other services | RH | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Intersegment Eliminations | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Lease Income | (4) | (4) | ||
Total revenues | (24) | $ 0 | (24) | $ 0 |
Intersegment Eliminations | Product | Supply chain sales | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Intersegment Eliminations | Product | Company restaurant sales | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Intersegment Eliminations | Royalties | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | (10) | (10) | ||
Intersegment Eliminations | Franchise fees and other revenue | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | 0 | 0 | ||
Intersegment Eliminations | Advertising revenues and other services | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Total revenues | $ (10) | $ (10) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Assumed conversion of convertible securities, percent | 100% | 100% | ||
Numerator: | ||||
Net income attributable to common shareholders - basic | $ 280 | $ 241 | $ 510 | $ 430 |
Add: Net income attributable to noncontrolling interests | 119 | 109 | 216 | 196 |
Net income available to common shareholders and noncontrolling interests - diluted | $ 399 | $ 350 | $ 726 | $ 626 |
Denominator: | ||||
Weighted average common shares - basic (in shares) | 317 | 312 | 316 | 310 |
Exchange of noncontrolling interests for common shares (in shares) | 134 | 141 | 134 | 142 |
Effect of other dilutive securities (in shares) | 2 | 5 | 3 | 5 |
Weighted average common shares - diluted (in shares) | 453 | 458 | 453 | 457 |
Basic earnings per share (in usd per share) | $ 0.89 | $ 0.77 | $ 1.62 | $ 1.39 |
Diluted earnings per share (in usd per share) | $ 0.88 | $ 0.77 | $ 1.60 | $ 1.37 |
Anti-dilutive securities outstanding (in shares) | 5 | 5 | 5 | 5 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,184 | $ 808 |
Accumulated Amortization | (418) | (402) |
Net | 766 | 406 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 11,266 | 11,107 |
Trade Names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 10,500 | 10,701 |
Trade Names | Tim Hortons brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 6,241 | 6,423 |
Trade Names | Burger King brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets: | 2,088 | 2,107 |
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 | 816 |
Franchise Agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 718 | 727 |
Accumulated Amortization | (359) | (348) |
Net | 359 | 379 |
Reacquired franchise rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 386 | 0 |
Accumulated Amortization | (4) | 0 |
Net | 382 | 0 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 80 | 81 |
Accumulated Amortization | (55) | (54) |
Net | $ 25 | $ 27 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Goodwill (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 6,140 | $ 5,775 |
TH | ||
Goodwill [Line Items] | ||
Goodwill | 4,006 | 4,118 |
BK | ||
Goodwill [Line Items] | ||
Goodwill | 239 | 232 |
PLK | ||
Goodwill [Line Items] | ||
Goodwill | 844 | 844 |
FHS | ||
Goodwill [Line Items] | ||
Goodwill | 193 | 193 |
INTL | ||
Goodwill [Line Items] | ||
Goodwill | 393 | 388 |
RH | ||
Goodwill [Line Items] | ||
Goodwill | $ 465 | $ 0 |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense on intangible assets | $ 13 | $ 10 | $ 22 | $ 19 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 28, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | May 16, 2024 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 132 | $ 132 | $ 163 | ||||
Other accrued liabilities | 1,099 | 1,099 | 1,005 | ||||
Equity Method Investee | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Accounts receivable from equity method investments | 61 | 61 | $ 61 | ||||
Related Party | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Other accrued liabilities | $ 30 | $ 30 | |||||
Propeyes China | Related Party | Convertible Notes Payable | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Debt instrument, face amount | $ 20 | ||||||
Debt instrument term | 3 years | ||||||
Carrols Restaurant Group Inc | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Acquisition, remaining issued and outstanding shares percentage | 85% | ||||||
BK Brasil | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 9.40% | 9.40% | |||||
Quoted market price | $ 17 | $ 17 | |||||
TH International Limited | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 4.20% | 4.20% | |||||
Quoted market price | $ 5 | $ 5 | |||||
Wendy's Company TIMWEN Partnership | Canada | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Ownership percentage | 50% | 50% | |||||
Wendy's Company TIMWEN Partnership | Tim Hortons brand | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Cash distributions | $ 4 | $ 3 | $ 7 | $ 6 | |||
Rent expense | $ 5 | $ 6 | $ 10 | $ 10 |
Equity Method Investments - Fra
Equity Method Investments - Franchise and Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenues from affiliates: | ||||
Lease Income | $ 213 | $ 220 | $ 419 | $ 416 |
Total revenues | 2,080 | 1,775 | 3,819 | 3,365 |
Affiliates | ||||
Revenues from affiliates: | ||||
Total revenues | 121 | 142 | 260 | 270 |
Royalties | ||||
Revenues from affiliates: | ||||
Revenues | 493 | 491 | 966 | 933 |
Royalties | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 95 | 103 | 196 | 195 |
Advertising revenues and other services | ||||
Revenues from affiliates: | ||||
Revenues | 304 | 289 | 602 | 543 |
Total revenues | 304 | 289 | 602 | 543 |
Advertising revenues and other services | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 11 | 20 | 31 | 38 |
Property revenues | Affiliates | ||||
Revenues from affiliates: | ||||
Lease Income | 5 | 9 | 13 | 18 |
Franchise fees and other revenue | ||||
Revenues from affiliates: | ||||
Revenues | 41 | 31 | 74 | 61 |
Franchise fees and other revenue | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | 5 | 4 | 11 | 9 |
Sales | Affiliates | ||||
Revenues from affiliates: | ||||
Revenues | $ 5 | $ 6 | $ 9 | $ 10 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities, net (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Current: | ||
Dividend payable | $ 261 | $ 245 |
Interest payable | 69 | 67 |
Accrued compensation and benefits | 129 | 147 |
Taxes payable | 158 | 129 |
Deferred income | 74 | 77 |
Accrued advertising expenses | 51 | 58 |
Restructuring and other provisions | 13 | 18 |
Current portion of operating lease liabilities | 187 | 147 |
Other | 157 | 117 |
Other accrued liabilities | 1,099 | 1,005 |
Noncurrent: | ||
Taxes payable | 58 | 57 |
Contract liabilities | 519 | 555 |
Derivatives liabilities | 87 | 227 |
Unfavorable leases | 37 | 42 |
Accrued pension | 34 | 34 |
Deferred income | 60 | 57 |
Other | 28 | 24 |
Other liabilities, net | $ 823 | $ 996 |
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
TH Facility and other | $ 123 | $ 143 |
Less: unamortized deferred financing costs and deferred issue discount | (126) | (122) |
Total debt, net | 13,672 | 12,921 |
Less: current maturities of debt | (580) | (67) |
Total long-term debt | 13,092 | 12,854 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Term loan facility | 4,750 | 5,175 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Term loan facility | $ 1,275 | 1,275 |
5.75% First Lien Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.75% | |
Senior notes | $ 500 | 500 |
3.875% First Lien Senior Notes due 2028 | ||
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 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.50% | |
Senior notes | $ 750 | 750 |
6.125% First Lien Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Senior notes | $ 1,200 | 0 |
4.375% Second Lien Senior Notes due 2028 | ||
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% | |
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Credit Facilit
Long-Term Debt - Credit Facilities (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||||
Jun. 17, 2024 USD ($) | Jun. 16, 2024 | May 16, 2024 USD ($) subsidiary | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | ||||||||
Number of subsidiaries, that entered into an amendment | subsidiary | 2 | |||||||
Loss on early extinguishment of debt | $ 32 | $ 0 | $ 32 | $ 0 | ||||
Term Loan B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Term loan facility | $ 4,750 | $ 4,750 | $ 5,175 | |||||
6.125% First Lien Senior Notes due 2029 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Capitalized debt issuance costs | $ 13 | |||||||
Senior Notes | Term Loan B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Stated interest rate (as a percent) | 6.125% | 6.125% | ||||||
Revolving Credit Facility | Line of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,250 | |||||||
Revolving Credit Facility | Line of Credit | Term Loan B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Secured debt, period increase | 750 | |||||||
Term loan facility | $ 4,750 | $ 5,912 | ||||||
Basis spread on variable rate | 1.75% | 2.25% | ||||||
Capitalized debt issuance costs | $ 24 | |||||||
Loss on early extinguishment of debt | $ 32 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - Line of Credit | Jun. 30, 2024 USD ($) |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Letters of credit issued against credit facility | $ 0 |
Remaining borrowing capacity | 1,247,000,000 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit issued against credit facility | 3,000,000 |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - Senior Notes (
Long-Term Debt - Senior Notes (Details) - 6.125% First Lien Senior Notes due 2029 $ in Millions | Jun. 17, 2024 USD ($) |
Line of Credit Facility [Line Items] | |
Debt instrument, face amount | $ 1,200 |
Capitalized debt issuance costs | $ 13 |
Long-Term Debt - TH Facility (D
Long-Term Debt - TH Facility (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 USD ($) subsidiary | Jun. 30, 2024 CAD ($) subsidiary | Dec. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |||
Amount outstanding | $ 13,672 | $ 12,921 | |
TH Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Maximum borrowing capacity | $ 225,000,000 | ||
Number of guaranteed subsidiaries | subsidiary | 3 | 3 | |
Amount outstanding | $ 166,000,000 | ||
Weighted average interest rate | 6.39% | 6.39% | |
TH Facility | Line of Credit | Canadian Bankers' Acceptance Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 1.40% | ||
TH Facility | Line of Credit | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 0.40% |
Long-Term Debt - Fair Value Mea
Long-Term Debt - Fair Value Measurement (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Fair value of our variable term debt and senior notes | $ 13,084 | $ 12,401 |
Principal carrying amount of our variable term debt and senior notes | $ 13,675 | $ 12,900 |
Long-Term Debt - Interest Expen
Long-Term Debt - Interest Expense, Net and Other (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Disclosure [Abstract] | ||||
Debt | $ 145 | $ 142 | $ 293 | $ 280 |
Finance lease obligations | 5 | 5 | 10 | 9 |
Amortization of deferred financing costs and debt issuance discount | 6 | 7 | 12 | 14 |
Interest income | (9) | (9) | (20) | (16) |
Interest expense, net | 147 | 145 | 295 | 287 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Gain (loss) reclassified to earnings, net investment hedge | $ 12 | $ 16 | $ 23 | $ 31 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate (as a percent) | 17.60% | 14.30% | 17.40% | 12.10% |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2024 | Dec. 31, 2023 | Aug. 31, 2023 | |
Stockholders Equity [Line Items] | |||
Number of shares authorized to be repurchased (in shares) | 1,000,000,000 | ||
Remaining authorized repurchase amount | $ 500 | ||
Partnerships Exchangeable Units | |||
Stockholders Equity [Line Items] | |||
Exchange of partnership exchangeable units for RBI common shares (in shares) | 16,620 | ||
Restaurant Brands International Limited Partnership | |||
Stockholders Equity [Line Items] | |||
Partnership exchangeable units economic interest | 29.70% | 29.90% | |
Partnership exchangeable units economic interest (in shares) | 133,581,144 | 133,597,764 |
Shareholders' Equity - Change i
Shareholders' Equity - Change in Components of Accumulated Other Comprehensive Income (Loss) ("AOCI") (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | $ 4,835 | $ 4,311 | $ 4,730 | $ 4,268 |
Foreign currency translation adjustment | (107) | 194 | (347) | 234 |
Net change in fair value of derivatives, net of tax | 256 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | (27) | (17) | (49) | (30) |
Amounts attributable to noncontrolling interests | 42 | |||
Ending balances | 4,951 | 4,678 | 4,951 | 4,678 |
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (747) | (716) | (706) | (679) |
Ending balances | (804) | $ (591) | (804) | $ (591) |
Derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | 480 | |||
Net change in fair value of derivatives, net of tax | 256 | |||
Amounts reclassified to earnings of cash flow hedges, net of tax | (49) | |||
Amounts attributable to noncontrolling interests | (62) | |||
Ending balances | 625 | 625 | ||
Pensions | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (13) | |||
Amounts attributable to noncontrolling interests | 0 | |||
Ending balances | (13) | (13) | ||
Foreign Currency Translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balances | (1,173) | |||
Foreign currency translation adjustment | (347) | |||
Amounts attributable to noncontrolling interests | 104 | |||
Ending balances | $ (1,416) | $ (1,416) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) | 6 Months Ended | ||
Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2023 EUR (€) | |
Interest Rate Swap - Period One | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | $ 3,500,000,000 | ||
Interest Rate Swap - Period Two | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 500,000,000 | ||
Interest Rate Swaps - Period Three | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 120,000,000 | ||
Interest rate swaps | Interest expense, net | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain reclassified from AOCI to income | 130,000,000 | ||
Cross currency interest rate contract | Fixed income interest rate | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | $ 1,200,000,000 | € 1,108,000,000 | |
Cross currency interest rate contract | Derivatives designated as net investment hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 2,750,000,000 | ||
Cross currency interest rate contract | Derivatives designated as net investment hedges | Fixed income interest rate | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 5,000,000,000 | $ 900,000,000 | |
Cross Currency Interest Rate Contract, Maturing October 31, 2026 | Derivatives designated as net investment hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 1,400,000,000 | ||
Cross Currency Interest Rate Contract, Maturing November 30, 2028 | Derivatives designated as net investment hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 1,200,000,000 | ||
Cross Currency Interest Rate Contract, Maturing October 31, 2028 | Derivatives designated as net investment hedges | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | 150,000,000 | ||
Foreign Exchange Contract | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional value | $ 163,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivatives designated as cash flow hedges | Interest rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ 35 | $ 120 | $ 127 | $ 63 |
Derivatives designated as cash flow hedges | Interest rate swaps | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Reclassified from AOCI into Earnings | 36 | 20 | 66 | 35 |
Derivatives designated as cash flow hedges | Forward-currency contracts | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 2 | (3) | 5 | (4) |
Derivatives designated as cash flow hedges | Forward-currency contracts | Supply chain cost of sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Reclassified from AOCI into Earnings | 1 | 3 | 1 | 6 |
Derivatives designated as net investment hedges | Cross-currency rate swaps | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 23 | (88) | 154 | (123) |
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | 12 | 16 | 23 | 31 |
Derivatives designated as net investment hedges | Cross-currency rate swaps | Interest expense, net | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 12 | $ 16 | $ 23 | $ 31 |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value Measurements (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Derivative [Line Items] | ||
Derivatives assets | $ 276 | $ 197 |
Derivatives liabilities | 87 | 229 |
Derivatives designated as cash flow hedges | Interest rate | Other assets, net | ||
Derivative [Line Items] | ||
Derivatives assets | 250 | 190 |
Derivatives designated as cash flow hedges | Interest rate | Prepaids and other current assets | ||
Derivative [Line Items] | ||
Derivatives assets | 3 | 0 |
Derivatives designated as cash flow hedges | Foreign currency | Prepaids and other current assets | ||
Derivative [Line Items] | ||
Derivatives assets | 2 | 0 |
Derivatives designated as cash flow hedges | Foreign currency | Other accrued liabilities | ||
Derivative [Line Items] | ||
Derivatives liabilities | 0 | 2 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Derivative [Line Items] | ||
Derivatives assets | 21 | 7 |
Derivatives designated as net investment hedges | Foreign currency | Other liabilities, net | ||
Derivative [Line Items] | ||
Derivatives liabilities | $ 87 | $ 227 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ 8 | $ (9) | $ 10 | $ (11) |
Litigation settlements (gains) and reserves, net | 1 | (3) | 1 | (2) |
Net losses (gains) on foreign exchange | (6) | (1) | (29) | 7 |
Other, net | 4 | 6 | 7 | 16 |
Other operating expenses (income), net | $ 7 | $ (7) | $ (11) | $ 10 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2024 segment | Jun. 30, 2024 brand | |
Segment Reporting [Abstract] | ||
Number of brands | brand | 4 | |
Number of operating segments | 6 | |
Number of reportable segments | 6 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Operating Segment and Country (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 2,080 | $ 1,775 | $ 3,819 | $ 3,365 |
Intersegment Eliminations | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | (24) | 0 | (24) | 0 |
Canada | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 945 | $ 925 | $ 1,801 | $ 1,739 |
Canada | Sales Revenue | Geographic Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (as a percent) | 10% | 10% | 10% | 10% |
United States | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 902 | $ 631 | $ 1,563 | $ 1,204 |
United States | Sales Revenue | Geographic Concentration Risk | ||||
Revenue, Major Customer [Line Items] | ||||
Percentage of revenue (as a percent) | 10% | 10% | 10% | 10% |
Other | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 233 | $ 219 | $ 455 | $ 422 |
TH | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 1,008 | 1,901 | ||
TH | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 1,030 | 1,008 | 1,969 | 1,901 |
BK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 327 | 624 | ||
BK | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 364 | 327 | 714 | 624 |
PLK | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 173 | 333 | ||
PLK | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 194 | 173 | 372 | 333 |
FHS | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 53 | 48 | 103 | 85 |
INTL | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 219 | 422 | ||
INTL | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | 233 | 219 | 455 | 422 |
RH | Operating Segments | ||||
Revenue, Major Customer [Line Items] | ||||
Total revenues | $ 230 | $ 0 | $ 230 | $ 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, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | $ 632 | $ 577 | $ 1,172 | $ 1,082 | ||
Impact of equity method investments | (69) | 11 | (72) | 18 | ||
Other operating expenses (income), net | 7 | (7) | (11) | 10 | ||
Income from operations | 663 | 554 | 1,207 | 1,001 | ||
Interest expense, net | 147 | 145 | 295 | 287 | ||
Loss on early extinguishment of debt | 32 | 0 | 32 | 0 | ||
Income tax expense | 85 | 58 | 153 | 86 | ||
Net income | 399 | $ 328 | 351 | $ 277 | 727 | 628 |
Unallocated Management G&A | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Franchise agreement and reacquired franchise rights amortization | 11 | 8 | 19 | 16 | ||
Corporate restructuring and advisory fees | 6 | 7 | 8 | 12 | ||
Impact of equity method investments | (64) | 15 | (64) | 24 | ||
Other operating expenses (income), net | 7 | (7) | (11) | 10 | ||
Unallocated Management G&A | CRG | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Transaction costs | 9 | 0 | 13 | 0 | ||
Unallocated Management G&A | FHS | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Transaction costs | 0 | 0 | 0 | 19 | ||
TH | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | 269 | 246 | 493 | 458 | ||
BK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | 114 | 110 | 220 | 206 | ||
PLK | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | 62 | 56 | 120 | 107 | ||
FHS | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | 13 | 11 | 23 | 20 | ||
INTL | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | 160 | 154 | 302 | 291 | ||
RH | Operating Segments | ||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||
Adjusted Operating Income | $ 14 | $ 0 | $ 14 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | 3 Months Ended | |||||
Oct. 04, 2024 | Jul. 05, 2024 | Aug. 08, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Subsequent Event [Line Items] | |||||||
Common stock, dividends declared (in usd per share) | $ 0.58 | $ 0.58 | $ 0.55 | $ 0.55 | |||
Forecast | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends paid (in usd per share) | $ 0.58 | ||||||
Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Common stock, dividends paid (in usd per share) | $ 0.58 | ||||||
Common stock, dividends declared (in usd per share) | $ 0.58 | ||||||
Subsequent Event | Partnerships Exchangeable Units | Restaurant Brands International Limited Partnership | |||||||
Subsequent Event [Line Items] | |||||||
Distribution in respect of each Partnership exchangeable unit (in usd per share) | $ 0.58 | $ 0.58 |