Cover
Cover | 6 Months Ended |
Jun. 30, 2022 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2022 |
Document Transition Report | false |
Entity File Number | 1-5231 |
Entity Registrant Name | McDONALD’S CORPORATION |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2361282 |
Entity Address, Address Line One | 110 North Carpenter Street |
Entity Address, City or Town | Chicago, |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60607 |
City Area Code | 630 |
Local Phone Number | 623-3000 |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | MCD |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 735,717,271 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0000063908 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and equivalents | $ 1,872.5 | $ 4,709.2 |
Accounts and notes receivable | 1,836.7 | 1,872.4 |
Inventories, at cost, not in excess of market | 43.3 | 55.6 |
Prepaid expenses and other current assets | 1,166.8 | 511.3 |
Total current assets | 4,919.3 | 7,148.5 |
Other assets | ||
Investments in and advances to affiliates | 1,074 | 1,201.2 |
Goodwill | 2,722.4 | 2,782.5 |
Miscellaneous | 4,403.4 | 4,449.5 |
Total other assets | 8,199.8 | 8,433.2 |
Lease right-of-use asset, net | 12,794.2 | 13,552 |
Property and equipment | ||
Property and equipment, at cost | 40,114.3 | 41,916.6 |
Accumulated depreciation and amortization | (16,779.8) | (17,196) |
Net property and equipment | 23,334.5 | 24,720.6 |
Total assets | 49,247.8 | 53,854.3 |
Current liabilities | ||
Accounts payable | 739.4 | 1,006.8 |
Lease liability | 689.6 | 705.5 |
Income taxes | 503.8 | 360.7 |
Other taxes | 215.9 | 236.7 |
Accrued interest | 312.8 | 363.3 |
Accrued payroll and other liabilities | 1,018.6 | 1,347 |
Total current liabilities | 3,480.1 | 4,020 |
Long-term debt | 34,576.5 | 35,622.7 |
Long-term lease liability | 12,319.4 | 13,020.9 |
Long-term income taxes | 1,236.1 | 1,896.8 |
Deferred revenues - initial franchise fees | 733 | 738.3 |
Other long-term liabilities | 1,022.8 | 1,081 |
Deferred income taxes | 2,249.7 | 2,075.6 |
Shareholders’ equity (deficit) | ||
Preferred stock, no par value; authorized – 165.0 million shares; issued – none | 0 | 0 |
Common stock, $.01 par value; authorized – 3.5 billion shares; issued – 1,660.6 million shares | 16.6 | 16.6 |
Additional paid-in capital | 8,378.7 | 8,231.6 |
Retained earnings | 57,785.1 | 57,534.7 |
Accumulated other comprehensive income (loss) | (2,246.4) | (2,573.7) |
Common stock in treasury, at cost; 924.9 and 915.8 million shares | (70,303.8) | (67,810.2) |
Total shareholders’ equity (deficit) | (6,369.8) | (4,601) |
Total liabilities and shareholders’ equity (deficit) | $ 49,247.8 | $ 53,854.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred stock, authorized | 165,000,000 | 165,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, issued | 1,660,600,000 | 1,660,600,000 |
Common stock in treasury, shares | 924,900,000 | 915,800,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues | ||||
Sales by Company-operated restaurants | $ 2,112.8 | $ 2,488.7 | $ 4,415.2 | $ 4,650.2 |
Revenues from franchised restaurants | 3,526.8 | 3,306.2 | 6,789.6 | 6,183.6 |
Other revenues | 78.8 | 93 | 179.2 | 178.7 |
Total revenues | 5,718.4 | 5,887.9 | 11,384 | 11,012.5 |
Operating costs and expenses | ||||
Company-operated restaurant expenses | 1,769.8 | 2,021 | 3,729 | 3,838.6 |
Franchised restaurants-occupancy expenses | 588.6 | 579.1 | 1,172.6 | 1,150.6 |
Other restaurant expenses | 57.9 | 68.3 | 130.2 | 135.5 |
Selling, general & administrative expenses | ||||
Depreciation and amortization | 93 | 83.1 | 185.7 | 159.1 |
Other | 611.2 | 572.4 | 1,195.5 | 1,062.8 |
Other operating (income) expense, net | 886.1 | (127.1) | 946.6 | (306.5) |
Total operating costs and expenses | 4,006.6 | 3,196.8 | 7,359.6 | 6,040.1 |
Operating income | 1,711.8 | 2,691.1 | 4,024.4 | 4,972.4 |
Interest expense | 290.6 | 296.5 | 577.9 | 596.5 |
Nonoperating (income) expense, net | 12.1 | 18.6 | 496.2 | 47.2 |
Income before provision for income taxes | 1,409.1 | 2,376 | 2,950.3 | 4,328.7 |
Provision for income taxes | 221.1 | 156.7 | 657.9 | 572.2 |
Net income | $ 1,188 | $ 2,219.3 | $ 2,292.4 | $ 3,756.5 |
Earnings per common share-basic (in dollars per share) | $ 1.61 | $ 2.97 | $ 3.10 | $ 5.03 |
Earnings per common share-diluted (in dollars per share) | 1.60 | 2.95 | 3.08 | 5 |
Dividends declared per common share (in dollars per share) | $ 1.38 | $ 1.29 | $ 2.76 | $ 2.58 |
Weighted average shares outstanding-basic (in shares) | 737.5 | 746.6 | 740 | 746.2 |
Weighted average shares outstanding-diluted (in shares) | 742 | 752.1 | 744.8 | 751.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 1,188 | $ 2,219.3 | $ 2,292.4 | $ 3,756.5 |
Foreign currency translation adjustments: | ||||
Gain (loss) recognized in accumulated other comprehensive income ("AOCI"), including net investment hedges | (190.6) | 47.8 | (274.8) | (39.9) |
Reclassification of (gain) loss to net income | 504.1 | 9.7 | 504.1 | 20.4 |
Foreign currency translation adjustments-net of tax benefit (expense) of (178.0), 22.7, (237.0) and (67.6) | 313.5 | 57.5 | 229.3 | (19.5) |
Cash flow hedges: | ||||
Gain (loss) recognized in AOCI | 103 | (1.2) | 130.4 | 21.9 |
Reclassification of (gain) loss to net income | (18.3) | 13.4 | (28.4) | 28.4 |
Cash flow hedges-net of tax benefit (expense) of (24.3), (3.7), (29.3) and (14.9) | 84.7 | 12.2 | 102 | 50.3 |
Defined benefit pension plans: | ||||
Gain (loss) recognized in AOCI | 0 | 0.1 | 0.1 | 0.8 |
Reclassification of (gain) loss to net income | (2.7) | (5.1) | (4.1) | (16) |
Defined benefit pension plans-net of tax benefit (expense) of 0.1, 0.1, 0.1 and 0.1 | (2.7) | (5) | (4) | (15.2) |
Total other comprehensive income (loss), net of tax | 395.5 | 64.7 | 327.3 | 15.6 |
Comprehensive income | $ 1,583.5 | $ 2,284 | $ 2,619.7 | $ 3,772.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (24.3) | $ (3.7) | $ (29.3) | $ (14.9) |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | 0.1 | 0.1 | 0.1 | 0.1 |
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ (178) | $ 22.7 | $ (237) | $ (67.6) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Operating activities | ||||
Net income | $ 1,188 | $ 2,219.3 | $ 2,292.4 | $ 3,756.5 |
Charges and credits: | ||||
Depreciation and amortization | 462.2 | 463.4 | 941.9 | 917.3 |
Deferred income taxes | (136.3) | (368.9) | (186.8) | (370.4) |
Share-based compensation | 38.3 | 36.5 | 92.6 | 63.8 |
Other | 234.2 | (71.2) | 306.2 | (201.2) |
Changes in working capital items | (1,168.3) | (545.9) | (694.9) | (308.8) |
Cash provided by operations | 618.1 | 1,733.2 | 2,751.4 | 3,857.2 |
Investing activities | ||||
Capital expenditures | (437.9) | (482.6) | (839.1) | (851.3) |
Purchases of restaurant businesses | (110.5) | (49.4) | (197.2) | (88.1) |
Sales of restaurant and other businesses | 351.7 | 52.2 | 368.2 | 81.8 |
Sales of property | 6.3 | 23.8 | 11.2 | 56.6 |
Other | (128.8) | 42.5 | (216.8) | 142.9 |
Cash used for investing activities | (319.2) | (413.5) | (873.7) | (658.1) |
Financing activities | ||||
Net short-term borrowings | 310.1 | 1.4 | 316.1 | 7.9 |
Long-term financing issuances | 1,874.5 | 0 | 1,874.5 | 0 |
Long-term financing repayments | (850.8) | (401.2) | (2,201.4) | (1,739) |
Treasury stock purchases | (1,031.2) | (3) | (2,537.7) | (24.5) |
Common stock dividends | (1,016.9) | (963.3) | (2,042) | (1,925.6) |
Proceeds from stock option exercises | 47.2 | 72.9 | 105.9 | 132 |
Other | (19.6) | (13.1) | (32.2) | (21) |
Cash used for financing activities | (686.7) | (1,306.3) | (4,516.8) | (3,570.2) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (75.4) | 16.3 | (197.6) | (28.6) |
Cash and equivalents increase (decrease) | (463.2) | 29.7 | (2,836.7) | (399.7) |
Cash and equivalents at beginning of period | 2,335.7 | 3,019.7 | 4,709.2 | 3,449.1 |
Cash and equivalents at end of period | $ 1,872.5 | $ 3,049.4 | $ 1,872.5 | $ 3,049.4 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock issued | Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | Common stock in treasury |
Beginning Balance (in shares) at Dec. 31, 2020 | 1,660.6 | 915.2 | ||||||
Beginning Balance at Dec. 31, 2020 | $ (7,824.9) | $ 16.6 | $ 7,903.6 | $ 53,908.1 | $ (287.6) | $ (111.3) | $ (2,187.9) | $ (67,066.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 3,756.5 | 3,756.5 | ||||||
Other comprehensive income (loss), net of tax | 15.6 | (15.2) | 50.3 | (19.5) | ||||
Comprehensive income | 3,772.1 | |||||||
Common stock cash dividends | (1,925.6) | (1,925.6) | ||||||
Treasury stock purchases (in shares) | (0.1) | |||||||
Treasury stock purchases | (24.5) | $ (24.5) | ||||||
Share-based compensation | 63.8 | 63.8 | ||||||
Stock option exercises and other (in shares) | 1.5 | |||||||
Stock option exercises and other | 131.1 | 78.6 | $ 52.5 | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 1,660.6 | 913.8 | ||||||
Ending Balance at Jun. 30, 2021 | (5,808) | $ 16.6 | 8,046 | 55,739 | (302.8) | (61) | (2,207.4) | $ (67,038.4) |
Beginning Balance (in shares) at Mar. 31, 2021 | 1,660.6 | 914.5 | ||||||
Beginning Balance at Mar. 31, 2021 | (7,235.5) | $ 16.6 | 7,959.1 | 54,483 | (297.8) | (73.2) | (2,264.9) | $ (67,058.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,219.3 | 2,219.3 | ||||||
Other comprehensive income (loss), net of tax | 64.7 | (5) | 12.2 | 57.5 | ||||
Comprehensive income | 2,284 | |||||||
Common stock cash dividends | (963.3) | (963.3) | ||||||
Treasury stock purchases (in shares) | 0 | |||||||
Treasury stock purchases | (3) | $ (3) | ||||||
Share-based compensation | 36.5 | 36.5 | ||||||
Stock option exercises and other (in shares) | 0.7 | |||||||
Stock option exercises and other | 73.3 | 50.4 | $ 22.9 | |||||
Ending Balance (in shares) at Jun. 30, 2021 | 1,660.6 | 913.8 | ||||||
Ending Balance at Jun. 30, 2021 | (5,808) | $ 16.6 | 8,046 | 55,739 | (302.8) | (61) | (2,207.4) | $ (67,038.4) |
Beginning Balance (in shares) at Dec. 31, 2021 | 1,660.6 | 915.8 | ||||||
Beginning Balance at Dec. 31, 2021 | (4,601) | $ 16.6 | 8,231.6 | 57,534.7 | (179.5) | (24.8) | (2,369.4) | $ (67,810.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,292.4 | 2,292.4 | ||||||
Other comprehensive income (loss), net of tax | 327.3 | (4) | 102 | 229.3 | ||||
Comprehensive income | 2,619.7 | |||||||
Common stock cash dividends | (2,042) | (2,042) | ||||||
Treasury stock purchases (in shares) | (10.4) | |||||||
Treasury stock purchases | (2,537.7) | $ (2,537.7) | ||||||
Share-based compensation | 92.6 | 92.6 | ||||||
Stock option exercises and other (in shares) | 1.3 | |||||||
Stock option exercises and other | 98.6 | 54.5 | $ 44.1 | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 1,660.6 | 924.9 | ||||||
Ending Balance at Jun. 30, 2022 | (6,369.8) | $ 16.6 | 8,378.7 | 57,785.1 | (183.5) | 77.2 | (2,140.1) | $ (70,303.8) |
Beginning Balance (in shares) at Mar. 31, 2022 | 1,660.6 | 921.1 | ||||||
Beginning Balance at Mar. 31, 2022 | (5,990.8) | $ 16.6 | 8,307.1 | 57,614 | (180.8) | (7.5) | (2,453.6) | $ (69,286.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,188 | 1,188 | ||||||
Other comprehensive income (loss), net of tax | 395.5 | (2.7) | 84.7 | 313.5 | ||||
Comprehensive income | 1,583.5 | |||||||
Common stock cash dividends | (1,016.9) | (1,016.9) | ||||||
Treasury stock purchases (in shares) | (4.3) | |||||||
Treasury stock purchases | (1,031.2) | $ (1,031.2) | ||||||
Share-based compensation | 38.3 | 38.3 | ||||||
Stock option exercises and other (in shares) | 0.5 | |||||||
Stock option exercises and other | 47.3 | 33.3 | $ 14 | |||||
Ending Balance (in shares) at Jun. 30, 2022 | 1,660.6 | 924.9 | ||||||
Ending Balance at Jun. 30, 2022 | $ (6,369.8) | $ 16.6 | $ 8,378.7 | $ 57,785.1 | $ (183.5) | $ 77.2 | $ (2,140.1) | $ (70,303.8) |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock cash dividends (in dollars per share) | $ 1.38 | $ 1.29 | $ 2.76 | $ 2.58 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | McDonald’s Corporation, the registrant, together with its subsidiaries, is referred to herein as the "Company." The Company, its franchisees and suppliers, are referred to herein as the "System." Basis of Presentation The accompanying condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and six months ended June 30, 2022 do not necessarily indicate the results that may be expected for the full year. In the first quarter of 2022, the Company temporarily closed restaurants in Russia and Ukraine due to the ongoing war in the region. Restaurants remained closed in Ukraine throughout the second quarter. During the second quarter of 2022, the Company completed the sale of its Russian business, resulting in a total exit from the market. The Company recorded a charge for the quarter of $1.2 billion, comprised primarily of the write-off of the Company’s net investment in Russia, along with related cumulative foreign currency translation losses. Restaurants remained closed in Russia through the completion of the sale in mid-June. |
Restaurant Information
Restaurant Information | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant Information | Restaurant Information The following table presents restaurant information by ownership type: Restaurants at June 30, 2022 2021 Conventional franchised 21,621 21,519 Developmental licensed 7,918 7,753 Foreign affiliated 8,125 7,445 Total Franchised 37,664 36,717 Company-operated 2,032 2,679 Total Systemwide restaurants 39,696 * 39,396 *Reflects the sale of over 850 restaurants in Russia in the second quarter of 2022, most of which were Company-operated. |
Per Common Share Information
Per Common Share Information | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Per Common Share Information | Per Common Share Information Diluted earnings per common share is calculated as net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 4.5 million shares and 5.5 million shares for the quarters ended 2022 and 2021, respectively, and 4.8 million shares and |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements Leases In July 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). The pronouncement amends the current guidance on classification for a lease that includes variable lease payments that do not depend on an index or rate. Under the amended guidance, a lessor must classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease and that would result in the recognition of a selling loss at lease commencement. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, including applicable interim periods. The Company adopted the new standard effective January 1, 2022. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 will not have a material impact on the Company's consolidated financial statements. |
Updates to Significant Accounti
Updates to Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Updates to Significant Accounting Policies | Updates to Significant Accounting Policies Long-lived Assets and Goodwill Long-lived assets and Goodwill are typically reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists. Although the Company completed the sale of its business in Russia in mid-June of 2022, the ongoing war between Russia and Ukraine continues to present uncertainty and risk to the Company's operations in Ukraine. The Company temporarily closed restaurants in Ukraine during the first quarter of 2022, and restaurants remained closed throughout the second quarter. The Company continues to monitor the economic uncertainty, while assessing the financial impact and outlook for restaurant operations in this market. As such, the Company conducted an analysis during the second quarter of 2022. Based on the Company’s analysis and review of current circumstances, there was no impairment recorded during the second quarter of 2022. As of June 30, 2022, the Company’s net investment in Ukraine was approximately $110 million, primarily consisting of building and equipment assets. In addition, there was approximately $140 million of cumulative foreign currency translation losses reflected in the AOCI section of the condensed consolidated statement of shareholder’s equity at June 30, 2022. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The effective income tax rate was 15.7% and 6.6% for the quarters ended 2022 and 2021, respectively, and 22.3% and 13.2% for the six months ended 2022 and 2021, respectively. The effective tax rate for both periods of 2022 reflected tax audit settlements and the remeasurement of income tax reserves associated with global tax audit progression, as well as the sale of Dynamic Yield and the Company's business in Russia. The effective tax rate for both periods of 2021 included a benefit related to the remeasurement of deferred taxes as a result of a change in the U.K. statutory income tax rate. As of June 30, 2022 and December 31, 2021, the Company’s gross unrecognized tax benefits totaled $640.0 million and $1,504.9 million, respectively. The Company continues to engage with various tax jurisdictions to resolve tax audits. In the quarter, the Company finalized and settled certain tax examinations and remeasured other income tax reserves based on audit progression. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2022 Balance at January 1 $ 1,504.9 Decreases for positions taken in prior years (572.1) Increases for positions taken in prior years 49.8 Increases for positions in the current year 19.4 Decreases due to settlements with taxing authorities (362.0) Decreases due to the lapsing of statutes of limitations — Balance at June 30 $ 640.0 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. There were no significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2021 Annual Report on Form 10-K. |
Financial Instruments and Hedgi
Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Hedging Activities | Financial Instruments and Hedging Activities The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification June 30, 2022 December 31, 2021 Balance Sheet Classification June 30, 2022 December 31, 2021 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 107.5 $ 42.4 Accrued payroll and other liabilities $ — $ (3.3) Interest rate Prepaid expenses and other current assets 66.1 0.3 Accrued payroll and other liabilities — — Foreign currency Miscellaneous other assets 43.8 28.0 Other long-term liabilities — (0.5) Interest rate Miscellaneous other assets — 8.6 Other long-term liabilities (60.9) (4.1) Total derivatives designated as hedging instruments $ 217.4 $ 79.3 $ (60.9) $ (7.9) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 1.0 $ 9.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets 7.0 0.5 Accrued payroll and other liabilities — — Equity Miscellaneous other assets 185.4 200.3 Total derivatives not designated as hedging instruments $ 193.4 $ 210.3 $ — $ — Total derivatives $ 410.8 $ 289.6 $ (60.9) $ (7.9) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the six months ended June 30, 2022 and 2021, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2022 2021 2022 2021 2022 2021 Foreign currency Nonoperating income/expense $ 101.8 $ 28.4 $ 38.8 $ (33.7) Interest rate Interest expense 66.1 — (2.2) (3.1) Cash flow hedges $ 167.9 $ 28.4 $ 36.6 $ (36.8) Foreign currency denominated debt Nonoperating income/expense $ 1,015.2 $ 274.0 $ — $ 32.4 Foreign currency derivatives Nonoperating income/expense 27.4 26.5 Foreign currency derivatives (1) Interest expense $ 4.4 $ 7.3 Net investment hedges $ 1,042.6 $ 300.5 $ — $ 32.4 $ 4.4 $ 7.3 Foreign currency Nonoperating income/expense $ 6.5 $ 4.5 Equity Selling, general & administrative expenses (23.3) 43.7 Equity Other operating income/expense, net — (16.3) Undesignated derivatives $ (16.8) $ 31.9 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. Fair Value Hedges The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed-rate debt into floating-rate debt by the use of interest rate swaps. At June 30, 2022, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $1.0 billion, which included a decrease of $60.9 million of cumulative hedging adjustments. For the six months ended June 30, 2022, the Company recognized a $65.7 million loss on the fair value of interest rate swaps, and a corresponding gain on the fair value of the related hedged debt instrument to interest expense. Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover up to the next 18 months for certain exposures and are denominated in various currencies. As of June 30, 2022, the Company had foreign currency derivatives outstanding with an equivalent notional amount of $1.5 billion that hedged a portion of forecasted foreign currency denominated cash flows. To protect against the variability of interest rates on anticipated bond issuances, the Company may use treasury locks to hedge a portion of expected future cash flows. As of June 30, 2022, the Company had derivatives outstanding with a notional amount of $500 million that hedge a portion of forecasted cash flows. Based on market conditions at June 30, 2022, the $77.2 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on the Company's earnings over the next 12 months. Net Investment Hedges The Company uses foreign currency denominated debt (third-party and intercompany) and foreign currency derivatives to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of Other comprehensive income ("OCI") and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of June 30, 2022, $12.5 billion of the Company's third-party foreign currency denominated debt, $882.5 million of the Company's intercompany foreign currency denominated debt and $239.8 million of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting. Therefore, the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in Selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. Changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, together with the currency gain or loss from the hedged balance sheet position. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at June 30, 2022 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in its financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At June 30, 2022, the Company was required to post an immaterial amount of collateral due to the negative fair value of certain derivative positions. The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions. |
Franchise Arrangements
Franchise Arrangements | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Franchise Arrangements | Franchise Arrangements Revenues from franchised restaurants consisted of: Quarters Ended Six Months Ended June 30, June 30, In millions 2022 2021 2022 2021 Rents $ 2,275.2 $ 2,125.7 $ 4,356.3 $ 3,951.8 Royalties 1,239.6 1,167.8 2,408.3 2,206.5 Initial fees 12.0 12.7 25.0 25.3 Revenues from franchised restaurants $ 3,526.8 $ 3,306.2 $ 6,789.6 $ 6,183.6 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance: • U.S. - the Company's largest market. The segment is 95% franchised as of June 30, 2022. • International Operated Markets - comprised of markets or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Spain and the U.K. The segment is 89% franchised as of June 30, 2022. During the second quarter of 2022, the Company completed the sale of its business in Russia. • International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald’s System. Corporate activities are also reported in this segment. The segment is 98% franchised as of June 30, 2022. The following table presents the Company’s revenues and operating income by segment: Quarters Ended Six Months Ended June 30, June 30, In millions 2022 2021 2022 2021 Revenues U.S. $ 2,410.0 $ 2,278.8 4,585.6 $ 4,354.3 International Operated Markets 2,747.5 3,078.7 5,669.6 $ 5,634.9 International Developmental Licensed Markets & Corporate 560.9 530.4 1,128.8 1,023.3 Total revenues $ 5,718.4 $ 5,887.9 $ 11,384.0 $ 11,012.5 Operating Income U.S. $ 1,319.9 $ 1,267.5 $ 2,470.9 $ 2,393.0 International Operated Markets 136.3 1,272.0 $ 1,265.5 $ 2,225.8 International Developmental Licensed Markets & Corporate 255.6 151.6 288.0 353.6 Total operating income* $ 1,711.8 $ 2,691.1 4,024.4 4,972.4 *Results for 2022 included pre-tax charges of $1.2 billion for the quarter and $1.3 billion for the six months related to the sale of the Company's business in Russia, as well as $271 million of gains in both periods related to the Company's sale of its Dynamic Yield business. The quarter and six months 2021 reflected $98 million and $233 million, respectively, of net gains, primarily related to the sale of McDonald's Japan stock. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2021 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and six months ended June 30, 2022 do not necessarily indicate the results that may be expected for the full year. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In July 2021, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2021-05, "Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments" ("ASU 2021-05"). The pronouncement amends the current guidance on classification for a lease that includes variable lease payments that do not depend on an index or rate. Under the amended guidance, a lessor must classify as an operating lease any lease that would otherwise be classified as a sales-type or direct financing lease and that would result in the recognition of a selling loss at lease commencement. ASU 2021-05 is effective for fiscal years beginning after December 15, 2021, including applicable interim periods. The Company adopted the new standard effective January 1, 2022. The adoption of this standard did not have a material effect on the Company’s consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted Reference Rate Reform In March 2020, the FASB issued ASU No. 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The adoption of ASU 2020-04 will not have a material impact on the Company's consolidated financial statements. |
Updates to Significant Accoun_2
Updates to Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Long-lived Assets and Goodwill | Long-lived Assets and GoodwillLong-lived assets and Goodwill are typically reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists. Although the Company completed the sale of its business in Russia in mid-June of 2022, the ongoing war between Russia and Ukraine continues to present uncertainty and risk to the Company's operations in Ukraine. The Company temporarily closed restaurants in Ukraine during the first quarter of 2022, and restaurants remained closed throughout the second quarter. The Company continues to monitor the economic uncertainty, while assessing the financial impact and outlook for restaurant operations in this market. |
Restaurant Information (Tables)
Restaurant Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at June 30, 2022 2021 Conventional franchised 21,621 21,519 Developmental licensed 7,918 7,753 Foreign affiliated 8,125 7,445 Total Franchised 37,664 36,717 Company-operated 2,032 2,679 Total Systemwide restaurants 39,696 * 39,396 *Reflects the sale of over 850 restaurants in Russia in the second quarter of 2022, most of which were Company-operated. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2022 Balance at January 1 $ 1,504.9 Decreases for positions taken in prior years (572.1) Increases for positions taken in prior years 49.8 Increases for positions in the current year 19.4 Decreases due to settlements with taxing authorities (362.0) Decreases due to the lapsing of statutes of limitations — Balance at June 30 $ 640.0 |
Financial Instruments and Hed_2
Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | The following table presents the fair values of derivative instruments included on the condensed consolidated balance sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification June 30, 2022 December 31, 2021 Balance Sheet Classification June 30, 2022 December 31, 2021 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 107.5 $ 42.4 Accrued payroll and other liabilities $ — $ (3.3) Interest rate Prepaid expenses and other current assets 66.1 0.3 Accrued payroll and other liabilities — — Foreign currency Miscellaneous other assets 43.8 28.0 Other long-term liabilities — (0.5) Interest rate Miscellaneous other assets — 8.6 Other long-term liabilities (60.9) (4.1) Total derivatives designated as hedging instruments $ 217.4 $ 79.3 $ (60.9) $ (7.9) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 1.0 $ 9.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets 7.0 0.5 Accrued payroll and other liabilities — — Equity Miscellaneous other assets 185.4 200.3 Total derivatives not designated as hedging instruments $ 193.4 $ 210.3 $ — $ — Total derivatives $ 410.8 $ 289.6 $ (60.9) $ (7.9) |
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income | The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the six months ended June 30, 2022 and 2021, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2022 2021 2022 2021 2022 2021 Foreign currency Nonoperating income/expense $ 101.8 $ 28.4 $ 38.8 $ (33.7) Interest rate Interest expense 66.1 — (2.2) (3.1) Cash flow hedges $ 167.9 $ 28.4 $ 36.6 $ (36.8) Foreign currency denominated debt Nonoperating income/expense $ 1,015.2 $ 274.0 $ — $ 32.4 Foreign currency derivatives Nonoperating income/expense 27.4 26.5 Foreign currency derivatives (1) Interest expense $ 4.4 $ 7.3 Net investment hedges $ 1,042.6 $ 300.5 $ — $ 32.4 $ 4.4 $ 7.3 Foreign currency Nonoperating income/expense $ 6.5 $ 4.5 Equity Selling, general & administrative expenses (23.3) 43.7 Equity Other operating income/expense, net — (16.3) Undesignated derivatives $ (16.8) $ 31.9 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Leases [Abstract] | |
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of: Quarters Ended Six Months Ended June 30, June 30, In millions 2022 2021 2022 2021 Rents $ 2,275.2 $ 2,125.7 $ 4,356.3 $ 3,951.8 Royalties 1,239.6 1,167.8 2,408.3 2,206.5 Initial fees 12.0 12.7 25.0 25.3 Revenues from franchised restaurants $ 3,526.8 $ 3,306.2 $ 6,789.6 $ 6,183.6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Segment | The following table presents the Company’s revenues and operating income by segment: Quarters Ended Six Months Ended June 30, June 30, In millions 2022 2021 2022 2021 Revenues U.S. $ 2,410.0 $ 2,278.8 4,585.6 $ 4,354.3 International Operated Markets 2,747.5 3,078.7 5,669.6 $ 5,634.9 International Developmental Licensed Markets & Corporate 560.9 530.4 1,128.8 1,023.3 Total revenues $ 5,718.4 $ 5,887.9 $ 11,384.0 $ 11,012.5 Operating Income U.S. $ 1,319.9 $ 1,267.5 $ 2,470.9 $ 2,393.0 International Operated Markets 136.3 1,272.0 $ 1,265.5 $ 2,225.8 International Developmental Licensed Markets & Corporate 255.6 151.6 288.0 353.6 Total operating income* $ 1,711.8 $ 2,691.1 4,024.4 4,972.4 *Results for 2022 included pre-tax charges of $1.2 billion for the quarter and $1.3 billion for the six months related to the sale of the Company's business in Russia, as well as $271 million of gains in both periods related to the Company's sale of its Dynamic Yield business. The quarter and six months 2021 reflected $98 million and $233 million, respectively, of net gains, primarily related to the sale of McDonald's Japan stock. |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Billions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 | Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gain (Loss) on Disposition of Business | $ (1.2) | $ (1.3) |
Restaurant Information (Details
Restaurant Information (Details) - Restaurant | 3 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 39,696 | 39,396 |
Number of restaurants sold | 850 | |
Franchised | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 37,664 | 36,717 |
Franchised | Conventional franchised | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 21,621 | 21,519 |
Franchised | Developmental licensed | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 7,918 | 7,753 |
Franchised | Foreign affiliated | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 8,125 | 7,445 |
Company-operated | ||
Franchisor Disclosure [Line Items] | ||
Number of restaurants | 2,032 | 2,679 |
Per Common Share Information (D
Per Common Share Information (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Dilutive effect of share-based compensation (in shares) | 4.5 | 5.5 | 4.8 | 5.4 |
Antidilutive share-based compensation awards (in shares) | 1.6 | 3 | 1.6 | 3 |
Updates to Significant Accoun_3
Updates to Significant Accounting Policies (Details) | 3 Months Ended |
Jun. 30, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Impairment of long-lived assets and goodwill | $ 0 |
Cumulative foreign currency translation losses | 140,000,000 |
UKRAINE | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |
Building and equipment assets in Ukraine | $ 110,000,000 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 15.70% | 6.60% | 22.30% | 13.20% | |
Gross unrecognized tax benefits | $ 640 | $ 640 | $ 1,504.9 |
Income Taxes (Reconciliation of
Income Taxes (Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Reconciliation of Unrecognized Tax [Roll Forward] | |
Balance at January 1 | $ 1,504.9 |
Decreases for positions taken in prior years | (572.1) |
Increases for positions taken in prior years | 49.8 |
Increases for positions in the current year | 19.4 |
Decreases due to settlements with taxing authorities | (362) |
Decreases due to the lapsing of statutes of limitations | 0 |
Balance at June 30 | $ 640 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Billions | Jun. 30, 2022 USD ($) |
Fair Value Disclosures [Abstract] | |
Debt obligations, fair value | $ 33.7 |
Debt obligations, carrying amount | $ 34.6 |
Financial Instruments and Hed_3
Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 410.8 | $ 289.6 |
Derivative Liabilities | (60.9) | (7.9) |
Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 217.4 | 79.3 |
Derivative Liabilities | (60.9) | (7.9) |
Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 193.4 | 210.3 |
Derivative Liabilities | 0 | 0 |
Foreign currency | Prepaid expenses and other current assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 107.5 | 42.4 |
Foreign currency | Prepaid expenses and other current assets | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7 | 0.5 |
Foreign currency | Accrued payroll and other liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | (3.3) |
Foreign currency | Accrued payroll and other liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Foreign currency | Miscellaneous other assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 43.8 | 28 |
Foreign currency | Other long-term liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | (0.5) |
Equity | Prepaid expenses and other current assets | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1 | 9.5 |
Equity | Accrued payroll and other liabilities | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Equity | Miscellaneous other assets | Derivatives not designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 185.4 | 200.3 |
Interest rate | Prepaid expenses and other current assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 66.1 | 0.3 |
Interest rate | Accrued payroll and other liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 0 | 0 |
Interest rate | Miscellaneous other assets | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 8.6 |
Interest rate | Other long-term liabilities | Derivatives designated as hedging instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ (60.9) | $ (4.1) |
Financial Instruments and Hed_4
Financial Instruments and Hedging Activities (Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flow hedges | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | $ 167.9 | $ 28.4 |
Gain (loss) reclassified into income from AOCI | 36.6 | (36.8) |
Net investment hedges | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 1,042.6 | 300.5 |
Gain (loss) reclassified into income from AOCI | 0 | 32.4 |
Gain (loss) recognized in income on derivative | 4.4 | 7.3 |
Derivatives not designated as hedging instruments | ||
Net investment hedges | ||
Gain (loss) recognized in income on derivative | (16.8) | 31.9 |
Foreign currency | Cash flow hedges | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | 101.8 | 28.4 |
Gain (loss) reclassified into income from AOCI | 38.8 | (33.7) |
Foreign currency | Derivatives not designated as hedging instruments | ||
Net investment hedges | ||
Gain (loss) recognized in income on derivative | 6.5 | 4.5 |
Interest rate | Cash flow hedges | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | 66.1 | 0 |
Gain (loss) reclassified into income from AOCI | (2.2) | (3.1) |
Foreign currency denominated debt | Net investment hedges | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 1,015.2 | 274 |
Gain (loss) reclassified into income from AOCI | 0 | 32.4 |
Foreign currency derivatives | Net investment hedges | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 27.4 | 26.5 |
Foreign currency derivatives | Net investment hedges | ||
Net investment hedges | ||
Gain (loss) recognized in income on derivative | 4.4 | 7.3 |
Equity | Derivatives not designated as hedging instruments | ||
Net investment hedges | ||
Gain (loss) recognized in income on derivative | (23.3) | 43.7 |
Equity | Derivatives not designated as hedging instruments | ||
Net investment hedges | ||
Gain (loss) recognized in income on derivative | $ 0 | $ (16.3) |
Financial Instruments and Hed_5
Financial Instruments and Hedging Activities (Additional Information) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Cumulative cash flow hedging gain (losses), after tax | $ (77.2) | |
Debt | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 12,500 | |
Intercompany Debt | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 882.5 | |
Cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, notional amount | 500 | |
Net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, notional amount | 239.8 | |
Gain (loss) on the fair value of interest rate swaps | 4.4 | $ 7.3 |
Interest Rate Risk | Fair Value Hedging | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Increase (decrease) of cumulative hedging adjustments | (60.9) | |
Gain (loss) on the fair value of interest rate swaps | (65.7) | |
Royalty Arrangement | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, notional amount | $ 1,500 | |
Period covered by hedge | 18 months | |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, notional amount | $ 1,000 |
Franchise Arrangements (Detail)
Franchise Arrangements (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Leases [Abstract] | ||||
Rents | $ 2,275.2 | $ 2,125.7 | $ 4,356.3 | $ 3,951.8 |
Royalties | 1,239.6 | 1,167.8 | 2,408.3 | 2,206.5 |
Initial fees | 12 | 12.7 | 25 | 25.3 |
Revenues from franchised restaurants | $ 3,526.8 | $ 3,306.2 | $ 6,789.6 | $ 6,183.6 |
Segment Information (Additional
Segment Information (Additional Information) (Details) | Jun. 30, 2022 |
U.S. | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 95% |
International Operated Markets | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 89% |
International Developmental Licensed Markets & Corporate | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 98% |
Segment Information (Revenues a
Segment Information (Revenues and Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 5,718.4 | $ 5,887.9 | $ 11,384 | $ 11,012.5 |
Operating Income | 1,711.8 | 2,691.1 | 4,024.4 | 4,972.4 |
Gain (Loss) on Disposition of Business | (1,200) | (1,300) | ||
Gain (Loss) on Disposition of Stock in Subsidiary or Equity Method Investee | 98 | 233 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dynamic Yield | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain (loss) on disposal | 271 | |||
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,410 | 2,278.8 | 4,585.6 | 4,354.3 |
Operating Income | 1,319.9 | 1,267.5 | 2,470.9 | 2,393 |
International Operated Markets | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 2,747.5 | 3,078.7 | 5,669.6 | 5,634.9 |
Operating Income | 136.3 | 1,272 | 1,265.5 | 2,225.8 |
International Developmental Licensed Markets & Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 560.9 | 530.4 | 1,128.8 | 1,023.3 |
Operating Income | $ 255.6 | $ 151.6 | $ 288 | $ 353.6 |