☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Canada | 98-1206431 | |||||||
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Toronto, | Ontario | ||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Securities registered pursuant to Section 12(b) of the Act: None | ||||||||||||||
Securities registered pursuant to Section 12(g) of the Act: | ||||||||||||||
Title of each class | Trading Symbols | Name of each exchange on which registered | ||||||||||||
Class B exchangeable limited partnership units | QSP | Toronto Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||||||||
Emerging growth company | ☐ |
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Item 1. | |||||||||
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Item 6. | |||||||||
As of | As of | |||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2022 | December 31, 2021 | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||
Cash and cash equivalents | $ | 3,547.2 | $ | 1,420.4 | Cash and cash equivalents | $ | 946 | $ | 1,087 | |||||||||
Accounts and notes receivable, net of allowance of $18.2 and $14.3, respectively | 421.9 | 403.5 | ||||||||||||||||
Accounts and notes receivable, net of allowance of $26 and $18, respectively | Accounts and notes receivable, net of allowance of $26 and $18, respectively | 598 | 547 | |||||||||||||||
Inventories, net | 91.9 | 71.8 | Inventories, net | 129 | 96 | |||||||||||||
Advertising fund restricted assets | 110.8 | 57.7 | ||||||||||||||||
Prepaids and other current assets | 108.1 | 103.6 | Prepaids and other current assets | 251 | 86 | |||||||||||||
Total current assets | 4,279.9 | 2,057.0 | Total current assets | 1,924 | 1,816 | |||||||||||||
Property and equipment, net of accumulated depreciation and amortization of $585.1 and $474.5, respectively | 2,158.2 | 2,054.7 | ||||||||||||||||
Property and equipment, net of accumulated depreciation and amortization of $1,022 and $979, respectively | Property and equipment, net of accumulated depreciation and amortization of $1,022 and $979, respectively | 1,913 | 2,035 | |||||||||||||||
Operating lease assets, net | Operating lease assets, net | 1,056 | 1,130 | |||||||||||||||
Intangible assets, net | 11,121.8 | 9,228.0 | Intangible assets, net | 10,831 | 11,417 | |||||||||||||
Goodwill | 5,810.3 | 4,675.1 | Goodwill | 5,605 | 6,006 | |||||||||||||
Net investment in property leased to franchisees | 76.1 | 91.9 | Net investment in property leased to franchisees | 83 | 80 | |||||||||||||
Derivative assets | — | 717.9 | ||||||||||||||||
Other assets, net | 481.6 | 300.7 | Other assets, net | 1,145 | 762 | |||||||||||||
Total assets | $ | 23,927.9 | $ | 19,125.3 | Total assets | $ | 22,557 | $ | 23,246 | |||||||||
LIABILITIES, PARTNERSHIP PREFERRED UNITS AND EQUITY | ||||||||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||
Accounts and drafts payable | $ | 365.2 | $ | 369.8 | Accounts and drafts payable | $ | 696 | $ | 614 | |||||||||
Other accrued liabilities | 530.6 | 469.3 | Other accrued liabilities | 959 | 947 | |||||||||||||
Gift card liability | 130.3 | 194.4 | Gift card liability | 148 | 221 | |||||||||||||
Advertising fund liabilities | 154.1 | 83.3 | ||||||||||||||||
Current portion of long term debt and capital leases | 77.5 | 93.9 | ||||||||||||||||
Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases | 117 | 96 | |||||||||||||||
Total current liabilities | 1,257.7 | 1,210.7 | Total current liabilities | 1,920 | 1,878 | |||||||||||||
Term debt, net of current portion | 11,303.6 | 8,410.2 | ||||||||||||||||
Capital leases, net of current portion | 238.7 | 218.4 | ||||||||||||||||
Long-term debt, net of current portion | Long-term debt, net of current portion | 12,853 | 12,916 | |||||||||||||||
Finance leases, net of current portion | Finance leases, net of current portion | 310 | 333 | |||||||||||||||
Operating lease liabilities, net of current portion | Operating lease liabilities, net of current portion | 1,003 | 1,070 | |||||||||||||||
Other liabilities, net | 1,354.0 | 784.9 | Other liabilities, net | 1,044 | 1,822 | |||||||||||||
Deferred income taxes, net | 2,200.3 | 1,715.1 | Deferred income taxes, net | 1,388 | 1,374 | |||||||||||||
Total liabilities | 16,354.3 | 12,339.3 | Total liabilities | 18,518 | 19,393 | |||||||||||||
Partnership preferred units; no par value; 68,530,939 authorized, issued and outstanding at September 30, 2017 and December 31, 2016 | 3,297.0 | 3,297.0 | ||||||||||||||||
Partners’ capital: | Partners’ capital: | |||||||||||||||||
Class A common units; 202,006,067 issued and outstanding at September 30, 2017 and December 31, 2016 | 3,530.7 | 3,364.1 | ||||||||||||||||
Partnership exchangeable units; 226,839,418 issued and outstanding at September 30, 2017; 226,995,404 issued and outstanding at December 31, 2016 | 1,560.9 | 1,476.2 | ||||||||||||||||
Class A common units; 202,006,067 issued and outstanding at September 30, 2022 and December 31, 2021 | Class A common units; 202,006,067 issued and outstanding at September 30, 2022 and December 31, 2021 | 8,570 | 8,421 | |||||||||||||||
Partnership exchangeable units; 143,298,599 issued and outstanding at September 30, 2022; 144,993,458 issued and outstanding at December 31, 2021 | Partnership exchangeable units; 143,298,599 issued and outstanding at September 30, 2022; 144,993,458 issued and outstanding at December 31, 2021 | (3,508) | (3,547) | |||||||||||||||
Accumulated other comprehensive income (loss) | (818.7 | ) | (1,355.4 | ) | Accumulated other comprehensive income (loss) | (1,025) | (1,024) | |||||||||||
Total Partners’ capital | 4,272.9 | 3,484.9 | Total Partners’ capital | 4,037 | 3,850 | |||||||||||||
Noncontrolling interests | 3.7 | 4.1 | Noncontrolling interests | 2 | 3 | |||||||||||||
Total equity | 4,276.6 | 3,489.0 | Total equity | 4,039 | 3,853 | |||||||||||||
Total liabilities, Partnership preferred units and equity | $ | 23,927.9 | $ | 19,125.3 | ||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 22,557 | $ | 23,246 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Revenues: | Revenues: | |||||||||||||||||||||||||||||||||||||
Sales | $ | 631.6 | $ | 586.4 | $ | 1,784.1 | $ | 1,635.5 | Sales | $ | 759 | $ | 621 | $ | 2,076 | $ | 1,718 | |||||||||||||||||||||
Franchise and property revenues | 577.0 | 489.3 | 1,557.8 | 1,398.9 | Franchise and property revenues | 698 | 635 | 1,989 | 1,795 | |||||||||||||||||||||||||||||
Advertising revenues and other services | Advertising revenues and other services | 269 | 239 | 751 | 680 | |||||||||||||||||||||||||||||||||
Total revenues | 1,208.6 | 1,075.7 | 3,341.9 | 3,034.4 | Total revenues | 1,726 | 1,495 | 4,816 | 4,193 | |||||||||||||||||||||||||||||
Operating costs and expenses: | Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||
Cost of sales | 493.3 | 457.1 | 1,376.9 | 1,285.7 | Cost of sales | 615 | 490 | 1,693 | 1,358 | |||||||||||||||||||||||||||||
Franchise and property expenses | 118.5 | 109.8 | 343.2 | 323.5 | Franchise and property expenses | 137 | 121 | 392 | 358 | |||||||||||||||||||||||||||||
Selling, general and administrative expenses | 100.1 | 82.2 | 318.7 | 228.5 | ||||||||||||||||||||||||||||||||||
Advertising expenses and other services | Advertising expenses and other services | 276 | 245 | 782 | 725 | |||||||||||||||||||||||||||||||||
General and administrative expenses | General and administrative expenses | 156 | 115 | 435 | 327 | |||||||||||||||||||||||||||||||||
(Income) loss from equity method investments | (4.1 | ) | (2.6 | ) | (8.9 | ) | (16.6 | ) | (Income) loss from equity method investments | 8 | 7 | 30 | 12 | |||||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | 82.1 | 38.2 | Other operating expenses (income), net | (27) | (16) | (68) | (50) | |||||||||||||||||||||||||||||
Total operating costs and expenses | 729.3 | 655.2 | 2,112.0 | 1,859.3 | Total operating costs and expenses | 1,165 | 962 | 3,264 | 2,730 | |||||||||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 1,229.9 | 1,175.1 | Income from operations | 561 | 533 | 1,552 | 1,463 | |||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | 375.4 | 349.6 | Interest expense, net | 133 | 128 | 389 | 378 | |||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | 78.6 | — | Loss on early extinguishment of debt | — | 11 | — | 11 | |||||||||||||||||||||||||||||
Income before income taxes | 285.1 | 303.2 | 775.9 | 825.5 | Income before income taxes | 428 | 394 | 1,163 | 1,074 | |||||||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 119.0 | 171.0 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | (102) | 65 | 17 | 83 | |||||||||||||||||||||||||||||||||
Net income | 246.8 | 238.6 | 656.9 | 654.5 | Net income | 530 | 329 | 1,146 | 991 | |||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | 0.3 | 1.0 | 1.1 | 2.8 | Net income attributable to noncontrolling interests | 1 | 1 | 3 | 3 | |||||||||||||||||||||||||||||
Partnership preferred unit distributions | 67.5 | 67.5 | 202.5 | 202.5 | ||||||||||||||||||||||||||||||||||
Net income attributable to common unitholders | $ | 179.0 | $ | 170.1 | $ | 453.3 | $ | 449.2 | Net income attributable to common unitholders | $ | 529 | $ | 328 | $ | 1,143 | $ | 988 | |||||||||||||||||||||
Earnings per unit - basic and diluted | Earnings per unit - basic and diluted | |||||||||||||||||||||||||||||||||||||
Class A common units | $ | 0.45 | $ | 0.43 | $ | 1.14 | $ | 1.12 | Class A common units | $ | 1.78 | $ | 1.09 | $ | 3.86 | $ | 3.26 | |||||||||||||||||||||
Partnership exchangeable units | $ | 0.39 | $ | 0.37 | $ | 0.98 | $ | 0.97 | Partnership exchangeable units | $ | 1.18 | $ | 0.71 | $ | 2.53 | $ | 2.14 | |||||||||||||||||||||
Weighted average units outstanding - basic and diluted | ||||||||||||||||||||||||||||||||||||||
Weighted average units outstanding - basic and diluted (in millions): | Weighted average units outstanding - basic and diluted (in millions): | |||||||||||||||||||||||||||||||||||||
Class A common units | 202.0 | 202.0 | 202.0 | 202.0 | Class A common units | 202 | 202 | 202 | 202 | |||||||||||||||||||||||||||||
Partnership exchangeable units | 226.8 | 227.1 | 226.9 | 228.0 | Partnership exchangeable units | 143 | 151 | 144 | 154 | |||||||||||||||||||||||||||||
Distributions per unit | ||||||||||||||||||||||||||||||||||||||
Class A common units | $ | 0.23 | $ | 0.19 | $ | 0.67 | $ | 0.52 | ||||||||||||||||||||||||||||||
Partnership exchangeable units | $ | 0.20 | $ | 0.16 | $ | 0.57 | $ | 0.45 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 656.9 | $ | 654.5 | |||||||
Foreign currency translation adjustment | 423.0 | (131.7 | ) | 884.2 | 538.8 | ||||||||||
Net change in fair value of net investment hedges, net of tax of $45.4, $(2.7), $7.3 and $25.9 | (126.1 | ) | 17.4 | (342.5 | ) | (173.7 | ) | ||||||||
Net change in fair value of cash flow hedges, net of tax of $1.4, $(0.7), $8.2 and $20.7 | (3.9 | ) | 2.4 | (23.0 | ) | (58.6 | ) | ||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax of $(2.5), $(1.9), $(6.3) and $(3.7) | 6.9 | 5.4 | 17.9 | 10.5 | |||||||||||
Pension and post-retirement benefit plans, net of tax of $0, $0, $0.1 and $0 | — | — | (0.1 | ) | — | ||||||||||
Amortization of prior service (credits) costs, net of tax of $0.2, $0.3, $0.8 and $0.9 | (0.5 | ) | (0.4 | ) | (1.3 | ) | (1.3 | ) | |||||||
Amortization of actuarial (gains) losses, net of tax of $0, $0, $0.7 and $(0.1) | 0.3 | 0.1 | 1.5 | 0.2 | |||||||||||
Other comprehensive income (loss) | 299.7 | (106.8 | ) | 536.7 | 315.9 | ||||||||||
Comprehensive income (loss) | 546.5 | 131.8 | 1,193.6 | 970.4 | |||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 0.3 | 1.0 | 1.1 | 2.8 | |||||||||||
Comprehensive income attributable to preferred unitholders | 67.5 | 67.5 | 202.5 | 202.5 | |||||||||||
Comprehensive income (loss) attributable to common unitholders | $ | 478.7 | $ | 63.3 | $ | 990.0 | $ | 765.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income | $ | 530 | $ | 329 | $ | 1,146 | $ | 991 | |||||||||||||||
Foreign currency translation adjustment | (727) | (257) | (1,015) | (62) | |||||||||||||||||||
Net change in fair value of net investment hedges, net of tax of $(87), $(31), $(100) and $10 | 384 | 143 | 575 | 101 | |||||||||||||||||||
Net change in fair value of cash flow hedges, net of tax of $(55), $(4), $(145) and $(32) | 150 | 13 | 394 | 68 | |||||||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax of $(2), $(9), $(15) and $(21) | 5 | 24 | 42 | 77 | |||||||||||||||||||
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0 | 1 | — | 3 | 2 | |||||||||||||||||||
Other comprehensive income (loss) | (187) | (77) | (1) | 186 | |||||||||||||||||||
Comprehensive income (loss) | 343 | 252 | 1,145 | 1,177 | |||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 | 3 | 3 | |||||||||||||||||||
Comprehensive income (loss) attributable to common unitholders | $ | 342 | $ | 251 | $ | 1,142 | $ | 1,174 |
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||
Balances at December 31, 2016 | 202,006,067 | $ | 3,364.1 | 226,995,404 | $ | 1,476.2 | $ | (1,355.4 | ) | $ | 4.1 | $ | 3,489.0 | ||||||||||||
Distributions declared on Class A common units | — | (134.5 | ) | — | — | — | — | (134.5 | ) | ||||||||||||||||
Distributions declared on partnership exchangeable units | — | — | — | (129.3 | ) | — | — | (129.3 | ) | ||||||||||||||||
Preferred unit distributions | — | (103.2 | ) | — | (99.3 | ) | — | — | (202.5 | ) | |||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 8.3 | (155,986 | ) | (8.3 | ) | — | — | — | ||||||||||||||||
Capital contribution from RBI Inc. | — | 61.8 | — | — | — | — | 61.8 | ||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1.5 | ) | (1.5 | ) | ||||||||||||||||
Net income | — | 334.2 | — | 321.6 | — | 1.1 | 656.9 | ||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 536.7 | — | 536.7 | ||||||||||||||||||
Balances at September 30, 2017 | 202,006,067 | $ | 3,530.7 | 226,839,418 | $ | 1,560.9 | $ | (818.7 | ) | $ | 3.7 | $ | 4,276.6 |
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2021 | 202,006,067 | $ | 8,421 | 144,993,458 | $ | (3,547) | $ | (1,024) | $ | 3 | $ | 3,853 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.83 per unit) | — | (167) | — | — | — | — | (167) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.54 per unit) | — | — | — | (78) | — | — | (78) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 84 | (1,525,900) | (84) | — | — | — | ||||||||||||||||||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (161) | — | — | — | — | (161) | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 40 | — | — | — | — | 40 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Net income | — | 183 | — | 86 | — | 1 | 270 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 205 | — | 205 | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2022 | 202,006,067 | $ | 8,400 | 143,467,558 | $ | (3,623) | $ | (819) | $ | 3 | $ | 3,961 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.82 per unit) | — | (166) | — | — | — | — | (166) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.54 per unit) | — | — | — | (77) | — | — | (77) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 8 | (151,154) | (8) | — | — | — | ||||||||||||||||||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (165) | — | — | — | — | (165) | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 30 | — | — | — | — | 30 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (1) | (1) | ||||||||||||||||||||||||||||||||||
Net income | — | 236 | — | 109 | — | 1 | 346 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (19) | — | (19) | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2022 | 202,006,067 | $ | 8,343 | 143,316,404 | $ | (3,599) | $ | (838) | $ | 3 | $ | 3,909 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.82 per unit) | — | (165) | — | — | — | — | (165) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.54 per unit) | — | — | — | (77) | — | — | (77) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 1 | (17,805) | (1) | — | — | — | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 31 | — | — | — | — | 31 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (2) | (2) | ||||||||||||||||||||||||||||||||||
Net income | — | 360 | — | 169 | — | 1 | 530 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (187) | — | (187) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2022 | 202,006,067 | $ | 8,570 | 143,298,599 | $ | (3,508) | $ | (1,025) | $ | 2 | $ | 4,039 |
Class A Common Units | Partnership Exchangeable Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | |||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | ||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | 202,006,067 | $ | 7,994 | 155,113,338 | $ | (3,002) | $ | (1,275) | $ | 4 | $ | 3,721 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.81 per unit) | — | (163) | — | — | — | — | (163) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.53 per unit) | — | — | — | (82) | — | — | (82) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 5 | (72,671) | (5) | — | — | — | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 51 | — | — | — | — | 51 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | 1 | 1 | ||||||||||||||||||||||||||||||||||
Net income | — | 179 | — | 91 | — | 1 | 271 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 203 | — | 203 | ||||||||||||||||||||||||||||||||||
Balances at March 31, 2021 | 202,006,067 | $ | 8,066 | 155,040,667 | $ | (2,998) | $ | (1,072) | $ | 6 | $ | 4,002 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.81 per unit) | — | (164) | — | — | — | — | (164) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.53 per unit) | — | — | — | (82) | — | — | (82) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 6 | (87,767) | (6) | — | — | — | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 55 | — | — | — | — | 55 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||
Net income | — | 259 | — | 131 | — | 1 | 391 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | 60 | — | 60 | ||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | 202,006,067 | $ | 8,222 | 154,952,900 | $ | (2,955) | $ | (1,012) | $ | 4 | $ | 4,259 | |||||||||||||||||||||||||||||
Distributions declared on Class A common units ($0.83 per unit) | — | (167) | — | — | — | — | (167) | ||||||||||||||||||||||||||||||||||
Distributions declared on partnership exchangeable units ($0.53 per unit) | — | — | — | (77) | — | — | (77) | ||||||||||||||||||||||||||||||||||
Exchange of Partnership exchangeable units for RBI common shares | — | 611 | (9,682,964) | (611) | — | — | — | ||||||||||||||||||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (182) | — | — | — | — | (182) | ||||||||||||||||||||||||||||||||||
Capital contribution from RBI | — | 26 | — | — | — | — | 26 | ||||||||||||||||||||||||||||||||||
Restaurant VIE contributions (distributions) | — | — | — | — | — | (3) | (3) | ||||||||||||||||||||||||||||||||||
Net income | — | 221 | — | 107 | — | 1 | 329 | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | (77) | — | (77) | ||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | 202,006,067 | $ | 8,731 | 145,269,936 | $ | (3,536) | $ | (1,089) | $ | 2 | $ | 4,108 |
Nine Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2017 | 2016 | 2022 | 2021 | |||||||||||||||
Cash flows from operating activities: | Cash flows from operating activities: | |||||||||||||||||
Net income | $ | 656.9 | $ | 654.5 | Net income | $ | 1,146 | $ | 991 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 134.9 | 129.0 | Depreciation and amortization | 143 | 150 | |||||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | 75.9 | — | Premiums paid and non-cash loss on early extinguishment of debt | — | 11 | |||||||||||||
Amortization of deferred financing costs and debt issuance discount | 25.2 | 29.1 | Amortization of deferred financing costs and debt issuance discount | 21 | 20 | |||||||||||||
(Income) loss from equity method investments | (8.9 | ) | (16.6 | ) | (Income) loss from equity method investments | 30 | 12 | |||||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 64.7 | 16.1 | ||||||||||||||||
Net losses on derivatives | 23.1 | 15.3 | ||||||||||||||||
Share-based compensation expense | 38.0 | 25.9 | ||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (Gain) loss on remeasurement of foreign denominated transactions | (82) | (58) | |||||||||||||||
Net (gains) losses on derivatives | Net (gains) losses on derivatives | 17 | 65 | |||||||||||||||
Share-based compensation and non-cash incentive compensation expense | Share-based compensation and non-cash incentive compensation expense | 93 | 71 | |||||||||||||||
Deferred income taxes | (3.1 | ) | 34.6 | Deferred income taxes | (29) | 35 | ||||||||||||
Other | 12.8 | 8.0 | Other | 8 | (14) | |||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||
Accounts and notes receivable | 0.3 | 20.0 | Accounts and notes receivable | (93) | 11 | |||||||||||||
Inventories and prepaids and other current assets | (12.5 | ) | (3.0 | ) | Inventories and prepaids and other current assets | (67) | (3) | |||||||||||
Accounts and drafts payable | (30.4 | ) | 11.8 | Accounts and drafts payable | 113 | 129 | ||||||||||||
Advertising fund restricted assets and fund liabilities | 18.1 | 4.0 | ||||||||||||||||
Other accrued liabilities and gift card liability | (161.4 | ) | (23.8 | ) | Other accrued liabilities and gift card liability | (74) | (87) | |||||||||||
Tenant inducements paid to franchisees | Tenant inducements paid to franchisees | (13) | (5) | |||||||||||||||
Other long-term assets and liabilities | (40.0 | ) | 0.9 | Other long-term assets and liabilities | (146) | (73) | ||||||||||||
Net cash provided by operating activities | 793.6 | 905.8 | Net cash provided by operating activities | 1,067 | 1,255 | |||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||
Payments for property and equipment | (16.9 | ) | (18.2 | ) | Payments for property and equipment | (52) | (70) | |||||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 19.6 | 18.1 | ||||||||||||||||
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9 | ) | — | |||||||||||||||
Return of investment on direct financing leases | 11.8 | 12.5 | ||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | Net proceeds from disposal of assets, restaurant closures, and refranchisings | 11 | 14 | |||||||||||||||
Net payments in connection with purchase of Firehouse Subs | Net payments in connection with purchase of Firehouse Subs | (12) | — | |||||||||||||||
Settlement/sale of derivatives, net | 771.8 | 4.9 | Settlement/sale of derivatives, net | 22 | 2 | |||||||||||||
Other investing activities, net | (2.3 | ) | 2.0 | Other investing activities, net | (35) | (15) | ||||||||||||
Net cash provided by (used for) investing activities | (851.9 | ) | 19.3 | |||||||||||||||
Net cash (used for) provided by investing activities | Net cash (used for) provided by investing activities | (66) | (69) | |||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||
Proceeds from issuance of long-term debt | 4,350.0 | — | ||||||||||||||||
Repayments of long-term debt and capital leases | (1,690.0 | ) | (52.7 | ) | ||||||||||||||
Proceeds from long-term debt | Proceeds from long-term debt | 2 | 802 | |||||||||||||||
Repayments of long-term debt and finance leases | Repayments of long-term debt and finance leases | (71) | (865) | |||||||||||||||
Payment of financing costs | (57.0 | ) | — | Payment of financing costs | — | (7) | ||||||||||||
Distributions on common, preferred and Partnership exchangeable units | (451.9 | ) | (396.9 | ) | ||||||||||||||
Capital contribution from RBI Inc. | 17.5 | 12.5 | ||||||||||||||||
Distributions to RBI Inc. | — | (28.5 | ) | |||||||||||||||
Distributions on Class A common and Partnership exchangeable units | Distributions on Class A common and Partnership exchangeable units | (728) | (730) | |||||||||||||||
Distribution to RBI for repurchase of RBI common shares | Distribution to RBI for repurchase of RBI common shares | (326) | (182) | |||||||||||||||
Capital contribution from RBI | Capital contribution from RBI | 7 | 60 | |||||||||||||||
(Payments) proceeds from derivatives | (Payments) proceeds from derivatives | 8 | (45) | |||||||||||||||
Other financing activities, net | (6.2 | ) | 0.8 | Other financing activities, net | (3) | (3) | ||||||||||||
Net cash provided by (used for) financing activities | 2,162.4 | (464.8 | ) | |||||||||||||||
Net cash (used for) provided by financing activities | Net cash (used for) provided by financing activities | (1,111) | (970) | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | 22.7 | 14.6 | Effect of exchange rates on cash and cash equivalents | (31) | (3) | |||||||||||||
Increase (decrease) in cash and cash equivalents | 2,126.8 | 474.9 | Increase (decrease) in cash and cash equivalents | (141) | 213 | |||||||||||||
Cash and cash equivalents at beginning of period | 1,420.4 | 753.7 | Cash and cash equivalents at beginning of period | 1,087 | 1,560 | |||||||||||||
Cash and cash equivalents at end of period | $ | 3,547.2 | $ | 1,228.6 | Cash and cash equivalents at end of period | $ | 946 | $ | 1,773 | |||||||||
Supplemental cashflow disclosures: | ||||||||||||||||||
Supplemental cash flow disclosures: | Supplemental cash flow disclosures: | |||||||||||||||||
Interest paid | $ | 340.2 | $ | 285.9 | Interest paid | $ | 318 | $ | 281 | |||||||||
Income taxes paid | $ | 189.3 | $ | 93.3 | Income taxes paid | $ | 177 | $ | 189 | |||||||||
Non-cash investing and financing activities: | ||||||||||||||||||
Acquisition of property with capital lease obligations | $ | 23.0 | $ | 22.5 |
March 27, 2017 | |||
Total current assets | $ | 64.4 | |
Property and equipment | 115.2 | ||
Intangible assets | 1,405.2 | ||
Other assets | 0.7 | ||
Total current liabilities | (73.9 | ) | |
Total debt and capital lease obligations | (159.0 | ) | |
Deferred income taxes | (523.2 | ) | |
Other liabilities | (20.5 | ) | |
Total identifiable net assets | 808.9 | ||
Goodwill | 845.8 | ||
Total consideration | $ | 1,654.7 |
Increase (Decrease) in Goodwill | |||
Change in: | |||
Total current assets | $ | — | |
Property and equipment | (18.7 | ) | |
Intangible assets | (385.2 | ) | |
Total current liabilities | (0.8 | ) | |
Deferred income taxes | 164.9 | ||
Other liabilities | 7.3 | ||
Total decrease in goodwill | $ | (232.5 | ) |
December 15, 2021 | |||||
Total current assets | $ | 21 | |||
Property and equipment | 4 | ||||
Firehouse Subs brand | 816 | ||||
Franchise agreements | 19 | ||||
Operating lease assets | 9 | ||||
Total liabilities | (48) | ||||
Total identifiable net assets | 821 | ||||
Goodwill | 195 | ||||
Total consideration | $ | 1,016 |
Increase (Decrease) in Goodwill | |||||
Change in: | |||||
Operating lease assets | $ | (9) | |||
Firehouse Subs brand | (48) | ||||
Franchise agreements | (19) | ||||
Total liabilities | 35 | ||||
Total consideration | (17) | ||||
Total decrease in goodwill | $ | (58) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Lease income - operating leases | |||||||||||||||||||||||
Minimum lease payments | $ | 100 | $ | 113 | $ | 314 | $ | 343 | |||||||||||||||
Variable lease payments | 112 | 91 | 291 | 241 | |||||||||||||||||||
Amortization of favorable and unfavorable income lease contracts, net | — | 1 | 1 | 3 | |||||||||||||||||||
Subtotal - lease income from operating leases | 212 | 205 | 606 | 587 | |||||||||||||||||||
Earned income on direct financing and sales-type leases | 2 | 1 | 5 | 4 | |||||||||||||||||||
Total property revenues | $ | 214 | $ | 206 | $ | 611 | $ | 591 |
Contract Liabilities | TH | BK | PLK | FHS | Consolidated | |||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 65 | $ | 410 | $ | 56 | $ | — | $ | 531 | ||||||||||||||||||||||
Effect of business combination | — | — | — | 8 | 8 | |||||||||||||||||||||||||||
Recognized during period and included in the contract liability balance at the beginning of the year | (8) | (29) | (4) | (1) | (42) | |||||||||||||||||||||||||||
Increase, excluding amounts recognized as revenue during the period | 9 | 23 | 11 | 1 | 44 | |||||||||||||||||||||||||||
Impact of foreign currency translation | (3) | (24) | — | — | (27) | |||||||||||||||||||||||||||
Balance at September 30, 2022 | $ | 63 | $ | 380 | $ | 63 | $ | 8 | $ | 514 |
Contract liabilities expected to be recognized in | TH | BK | PLK | FHS | Consolidated | |||||||||||||||||||||||||||
Remainder of 2022 | $ | 3 | $ | 9 | $ | 1 | $ | — | $ | 13 | ||||||||||||||||||||||
2023 | 10 | 33 | 4 | 2 | 49 | |||||||||||||||||||||||||||
2024 | 9 | 32 | 4 | 1 | 46 | |||||||||||||||||||||||||||
2025 | 8 | 31 | 4 | 1 | 44 | |||||||||||||||||||||||||||
2026 | 7 | 30 | 4 | 1 | 42 | |||||||||||||||||||||||||||
Thereafter | 26 | 245 | 46 | 3 | 320 | |||||||||||||||||||||||||||
Total | $ | 63 | $ | 380 | $ | 63 | $ | 8 | $ | 514 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales | $ | 759 | $ | 621 | $ | 2,076 | $ | 1,718 | |||||||||||||||
Royalties | 451 | 414 | 1,292 | 1,149 | |||||||||||||||||||
Property revenues | 214 | 206 | 611 | 591 | |||||||||||||||||||
Franchise fees and other revenue | 33 | 15 | 86 | 55 | |||||||||||||||||||
Advertising revenues and other services | 269 | 239 | 751 | 680 | |||||||||||||||||||
Total revenues | $ | 1,726 | $ | 1,495 | $ | 4,816 | $ | 4,193 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Allocation of net income among partner interests: | |||||||||||||||||||||||
Net income allocated to Class A common unitholders | $ | 360 | $ | 221 | $ | 779 | $ | 659 | |||||||||||||||
Net income allocated to Partnership exchangeable unitholders | 169 | 107 | 364 | 329 | |||||||||||||||||||
Net income attributable to common unitholders | $ | 529 | $ | 328 | $ | 1,143 | $ | 988 | |||||||||||||||
Denominator - basic and diluted partnership units: | |||||||||||||||||||||||
Weighted average Class A common units | 202 | 202 | 202 | 202 | |||||||||||||||||||
Weighted average Partnership exchangeable units | 143 | 151 | 144 | 154 | |||||||||||||||||||
Earnings per unit - basic and diluted: | |||||||||||||||||||||||
Class A common units (a) | $ | 1.78 | $ | 1.09 | $ | 3.86 | $ | 3.26 | |||||||||||||||
Partnership exchangeable units (a) | $ | 1.18 | $ | 0.71 | $ | 2.53 | $ | 2.14 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Allocation of net income among partner interests: | |||||||||||||||
Net income allocated to Class A common unitholders | $ | 91.3 | $ | 86.3 | $ | 231.0 | $ | 227.2 | |||||||
Net income allocated to Partnership exchangeable unitholders | 87.7 | 83.8 | 222.3 | 222.0 | |||||||||||
Net income attributable to common unitholders | $ | 179.0 | $ | 170.1 | $ | 453.3 | $ | 449.2 | |||||||
Denominator - basic and diluted partnership units: | |||||||||||||||
Weighted average Class A common units | 202.0 | 202.0 | 202.0 | 202.0 | |||||||||||
Weighted average Partnership exchangeable units | 226.8 | 227.1 | 226.9 | 228.0 | |||||||||||
Total weighted average basic and diluted units outstanding | 428.8 | 429.1 | 428.9 | 430.0 | |||||||||||
Earnings per unit - basic and diluted: | |||||||||||||||
Class A common units | $ | 0.45 | $ | 0.43 | $ | 1.14 | $ | 1.12 | |||||||
Partnership exchangeable units | $ | 0.39 | $ | 0.37 | $ | 0.98 | $ | 0.97 |
As of | |||||||||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||||||||||||||
Franchise agreements | $ | 705 | $ | (298) | $ | 407 | $ | 722 | $ | (290) | $ | 432 | |||||||||||||||||||||||
Favorable leases | 90 | (56) | 34 | 104 | (63) | 41 | |||||||||||||||||||||||||||||
Subtotal | 795 | (354) | 441 | 826 | (353) | 473 | |||||||||||||||||||||||||||||
Indefinite-lived intangible assets: | |||||||||||||||||||||||||||||||||||
Tim Hortons brand | $ | 6,182 | $ | — | $ | 6,182 | $ | 6,695 | $ | — | $ | 6,695 | |||||||||||||||||||||||
Burger King brand | 2,037 | — | 2,037 | 2,126 | — | 2,126 | |||||||||||||||||||||||||||||
Popeyes brand | 1,355 | — | 1,355 | 1,355 | — | 1,355 | |||||||||||||||||||||||||||||
Firehouse Subs brand | 816 | — | 816 | 768 | — | 768 | |||||||||||||||||||||||||||||
Subtotal | 10,390 | — | 10,390 | 10,944 | — | 10,944 | |||||||||||||||||||||||||||||
Intangible assets, net | $ | 10,831 | $ | 11,417 | |||||||||||||||||||||||||||||||
Goodwill | |||||||||||||||||||||||||||||||||||
Tim Hortons segment | $ | 3,991 | $ | 4,306 | |||||||||||||||||||||||||||||||
Burger King segment | 576 | 601 | |||||||||||||||||||||||||||||||||
Popeyes segment | 846 | 846 | |||||||||||||||||||||||||||||||||
Firehouse Subs segment | 192 | 253 | |||||||||||||||||||||||||||||||||
Total | $ | 5,605 | $ | 6,006 |
As of | |||||||||||||||||||||||
September 30, 2017 | December 31, 2016 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
Identifiable assets subject to amortization: | |||||||||||||||||||||||
Franchise agreements | $ | 724.3 | $ | (160.3 | ) | $ | 564.0 | $ | 655.1 | $ | (132.4 | ) | $ | 522.7 | |||||||||
Favorable leases | 460.1 | (184.9 | ) | 275.2 | 436.0 | (149.7 | ) | 286.3 | |||||||||||||||
Subtotal | 1,184.4 | (345.2 | ) | 839.2 | 1,091.1 | (282.1 | ) | 809.0 | |||||||||||||||
Indefinite lived intangible assets: | |||||||||||||||||||||||
Tim Hortons brand | $ | 6,776.9 | $ | — | $ | 6,776.9 | $ | 6,341.6 | $ | — | $ | 6,341.6 | |||||||||||
Burger King brand | 2,150.8 | — | 2,150.8 | 2,077.4 | — | 2,077.4 | |||||||||||||||||
Popeyes brand | 1,354.9 | — | 1,354.9 | — | — | — | |||||||||||||||||
Subtotal | 10,282.6 | — | 10,282.6 | 8,419.0 | — | 8,419.0 | |||||||||||||||||
Intangible assets, net | $ | 11,121.8 | $ | 9,228.0 | |||||||||||||||||||
Goodwill | |||||||||||||||||||||||
Tim Hortons segment | $ | 4,356.9 | $ | 4,087.8 | |||||||||||||||||||
Burger King segment | 607.6 | 587.3 | |||||||||||||||||||||
Popeyes segment | 845.8 | — | |||||||||||||||||||||
Total | $ | 5,810.3 | $ | 4,675.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues from affiliates: | |||||||||||||||||||||||
Royalties | $ | 92 | $ | 111 | $ | 266 | $ | 254 | |||||||||||||||
Advertising revenues and other services | 20 | 22 | 54 | 50 | |||||||||||||||||||
Property revenues | 8 | 8 | 23 | 24 | |||||||||||||||||||
Franchise fees and other revenue | 3 | 4 | 12 | 12 | |||||||||||||||||||
Sales | 4 | 2 | 12 | 7 | |||||||||||||||||||
Total | $ | 127 | $ | 147 | $ | 367 | $ | 347 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues from affiliates: | |||||||||||||||
Franchise royalties | $ | 39.2 | $ | 34.9 | $ | 121.1 | $ | 94.2 | |||||||
Property revenues | 7.2 | 6.9 | 20.1 | 21.1 | |||||||||||
Franchise fees and other revenue | 3.7 | 6.8 | 14.7 | 14.7 | |||||||||||
Total | $ | 50.1 | $ | 48.6 | $ | 155.9 | $ | 130.0 |
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Current: | |||||||||||
Distribution payable | $ | 243 | $ | 241 | |||||||
Interest payable | 96 | 63 | |||||||||
Accrued compensation and benefits | 90 | 99 | |||||||||
Taxes payable | 150 | 106 | |||||||||
Deferred income | 57 | 48 | |||||||||
Accrued advertising expenses | 45 | 43 | |||||||||
Restructuring and other provisions | 20 | 90 | |||||||||
Current portion of operating lease liabilities | 134 | 140 | |||||||||
Other | 124 | 117 | |||||||||
Other accrued liabilities | $ | 959 | $ | 947 | |||||||
Noncurrent: | |||||||||||
Taxes payable | $ | 360 | $ | 533 | |||||||
Contract liabilities | 514 | 531 | |||||||||
Derivatives liabilities | — | 575 | |||||||||
Unfavorable leases | 52 | 65 | |||||||||
Accrued pension | 46 | 47 | |||||||||
Deferred income | 45 | 37 | |||||||||
Other | 27 | 34 | |||||||||
Other liabilities, net | $ | 1,044 | $ | 1,822 |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Current: | |||||||
Dividend payable | $ | 160.3 | $ | 146.1 | |||
Interest payable | 63.9 | 63.3 | |||||
Accrued compensation and benefits | 65.5 | 60.5 | |||||
Taxes payable | 83.2 | 43.3 | |||||
Deferred income | 49.7 | 54.7 | |||||
Closed property reserve | 11.1 | 11.0 | |||||
Restructuring and other provisions | 10.6 | 9.1 | |||||
Other | 86.3 | 81.3 | |||||
Other accrued liabilities | $ | 530.6 | $ | 469.3 | |||
Noncurrent: | |||||||
Unfavorable leases | $ | 264.7 | $ | 275.8 | |||
Taxes payable | 390.0 | 252.2 | |||||
Accrued pension | 77.5 | 82.9 | |||||
Derivatives liabilities | 479.2 | 55.1 | |||||
Lease liability | 26.0 | 27.2 | |||||
Deferred income | 40.5 | 27.1 | |||||
Other | 76.1 | 64.6 | |||||
Other liabilities, net | $ | 1,354.0 | $ | 784.9 |
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Term Loan B | $ | 5,203 | $ | 5,243 | |||||||
Term Loan A | 1,250 | 1,250 | |||||||||
3.875% First Lien Senior Notes due 2028 | 1,550 | 1,550 | |||||||||
3.50% First Lien Senior Notes due 2029 | 750 | 750 | |||||||||
5.75% First Lien Senior Notes due 2025 | 500 | 500 | |||||||||
4.375% Second Lien Senior Notes due 2028 | 750 | 750 | |||||||||
4.00% Second Lien Senior Notes due 2030 | 2,900 | 2,900 | |||||||||
TH Facility and other | 154 | 173 | |||||||||
Less: unamortized deferred financing costs and deferred issue discount | (118) | (138) | |||||||||
Total debt, net | 12,939 | 12,978 | |||||||||
Less: current maturities of debt | (86) | (62) | |||||||||
Total long-term debt | $ | 12,853 | $ | 12,916 |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Term Loan Facility (due February 17, 2024) | $ | 6,404.8 | $ | 5,046.1 | |||
2017 4.25% Senior Notes (due May 15, 2024) | 1,500.0 | — | |||||
2015 4.625% Senior Notes (due January 15, 2022) | 1,250.0 | 1,250.0 | |||||
2017 5.00% Senior Notes (due October 15, 2025) | 1,300.0 | — | |||||
2014 6.00% Senior Notes (due April 1, 2022) | 1,000.0 | 2,250.0 | |||||
Tim Hortons Notes (a) | 5.2 | 40.6 | |||||
Other | 86.1 | 85.4 | |||||
Less: unamortized deferred financing costs and deferred issue discount | (185.8 | ) | (187.1 | ) | |||
Total debt, net | 11,360.3 | 8,485.0 | |||||
Less: current maturities of debt | (56.7 | ) | (74.8 | ) | |||
Total long-term debt | $ | 11,303.6 | $ | 8,410.2 |
As of | |||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||
Fair value of our variable term debt and senior notes | $ | 11,568 | $ | 12,851 | |||||||
Principal carrying amount of our variable term debt and senior notes | 12,903 | 12,943 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Debt (a) | $ | 124 | $ | 117 | $ | 357 | $ | 345 | |||||||||||||||
Finance lease obligations | 4 | 5 | 14 | 15 | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 7 | 7 | 21 | 20 | |||||||||||||||||||
Interest income | (2) | (1) | (3) | (2) | |||||||||||||||||||
Interest expense, net | $ | 133 | $ | 128 | $ | 389 | $ | 378 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Debt | $ | 131.2 | $ | 103.6 | $ | 350.1 | $ | 308.3 | |||||||
Capital lease obligations | 5.4 | 5.2 | 15.4 | 15.0 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 8.5 | 9.8 | 25.2 | 29.1 | |||||||||||
Interest income | (9.1 | ) | (1.3 | ) | (15.3 | ) | (2.8 | ) | |||||||
Interest expense, net | $ | 136.0 | $ | 117.3 | $ | 375.4 | $ | 349.6 |
Derivatives | Pensions | Foreign Currency Translation | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||
Balance at December 31, 2021 | $ | 196 | $ | (30) | $ | (1,190) | $ | (1,024) | |||||||||||||||
Foreign currency translation adjustment | — | — | (1,015) | (1,015) | |||||||||||||||||||
Net change in fair value of derivatives, net of tax | 969 | — | — | 969 | |||||||||||||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 42 | — | — | 42 | |||||||||||||||||||
Gain (loss) recognized on other, net of tax | — | 3 | — | 3 | |||||||||||||||||||
Balance at September 30, 2022 | $ | 1,207 | $ | (27) | $ | (2,205) | $ | (1,025) |
Derivatives | Pensions | Foreign Currency Translation | Accumulated Other Comprehensive Income (Loss) | ||||||||||||
Balances at December 31, 2016 | $ | 533.1 | $ | (32.8 | ) | $ | (1,855.7 | ) | $ | (1,355.4 | ) | ||||
Foreign currency translation adjustment | — | — | 884.2 | 884.2 | |||||||||||
Net change in fair value of derivatives, net of tax | (365.5 | ) | — | — | (365.5 | ) | |||||||||
Amounts reclassified to earnings of cash flow hedges, net of tax | 17.9 | — | — | 17.9 | |||||||||||
Pension and post-retirement benefit plans, net of tax | — | (0.1 | ) | — | (0.1 | ) | |||||||||
Amortization of prior service (credits) costs, net of tax | — | (1.3 | ) | — | (1.3 | ) | |||||||||
Amortization of actuarial (gains) losses, net of tax | — | 1.5 | — | 1.5 | |||||||||||
Balances at September 30, 2017 | $ | 185.5 | $ | (32.7 | ) | $ | (971.5 | ) | $ | (818.7 | ) |
Amounts Reclassified from AOCI | ||||||||||||||||||
Affected Line Item in the Statement of Operations | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
Details about AOCI Components | 2017 | 2016 | 2017 | 2016 | ||||||||||||||
Gains (losses) on cash flow hedges: | ||||||||||||||||||
Interest rate derivative contracts | Interest expense, net | $ | (8.2 | ) | $ | (5.9 | ) | $ | (23.1 | ) | $ | (15.3 | ) | |||||
Forward-currency contracts | Cost of sales | (1.2 | ) | (1.4 | ) | (1.1 | ) | 1.1 | ||||||||||
Total before tax | (9.4 | ) | (7.3 | ) | (24.2 | ) | (14.2 | ) | ||||||||||
Income tax (expense) benefit | 2.5 | 1.9 | 6.3 | 3.7 | ||||||||||||||
Net of tax | $ | (6.9 | ) | $ | (5.4 | ) | $ | (17.9 | ) | $ | (10.5 | ) | ||||||
Defined benefit pension: | ||||||||||||||||||
Amortization of prior service credits (costs) | SG&A (a) | $ | 0.7 | $ | 0.7 | $ | 2.1 | $ | 2.2 | |||||||||
Amortization of actuarial gains (losses) | SG&A (a) | (0.3 | ) | (0.1 | ) | (0.8 | ) | (0.3 | ) | |||||||||
Total before tax | 0.4 | 0.6 | 1.3 | 1.9 | ||||||||||||||
Income tax (expense) benefit | (0.2 | ) | (0.3 | ) | (1.5 | ) | (0.8 | ) | ||||||||||
Net of tax | $ | 0.2 | $ | 0.3 | $ | (0.2 | ) | $ | 1.1 | |||||||||
Total reclassifications | Net of tax | $ | (6.7 | ) | $ | (5.1 | ) | $ | (18.1 | ) | $ | (9.4 | ) |
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Derivatives designated as cash flow hedges(1) | |||||||||||||||||||||||
Interest rate swaps | $ | 191 | $ | 15 | $ | 521 | $ | 100 | |||||||||||||||
Forward-currency contracts | $ | 14 | $ | 2 | $ | 18 | $ | — | |||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Cross-currency rate swaps | $ | 471 | $ | 174 | $ | 675 | $ | 91 |
Location of Gain or (Loss) Reclassified from AOCI into Earnings | Gain or (Loss) Reclassified from AOCI into Earnings | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Derivatives designated as cash flow hedges | ||||||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net | $ | (8) | $ | (31) | $ | (60) | $ | (92) | |||||||||||||||||||||||
Forward-currency contracts | Cost of sales | $ | 1 | $ | (2) | $ | 3 | $ | (6) | |||||||||||||||||||||||
Location of Gain or (Loss) Recognized in Earnings | Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | |||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Derivatives designated as net investment hedges | ||||||||||||||||||||||||||||||||
Cross-currency rate swaps | Interest expense, net | $ | 17 | $ | 11 | $ | 40 | $ | 34 |
Gain (Loss) Recognized in Other Comprehensive Income (Loss) (Effective Portion) | |||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||
Forward-starting interest rate swaps | $ | (0.1 | ) | $ | 1.0 | $ | (20.5 | ) | $ | (71.6 | ) | ||||
Forward-currency contracts | $ | (5.2 | ) | $ | 2.1 | $ | (10.7 | ) | $ | (7.7 | ) | ||||
Derivatives designated as net investment hedges | |||||||||||||||
Cross-currency rate swaps | $ | (171.5 | ) | $ | 20.1 | $ | (349.8 | ) | $ | (199.6 | ) |
Classification on Condensed Consolidated Statements of Operations | Gain (Loss) Reclassified from AOCI into Earnings | ||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest expense, net | $ | (8.2 | ) | $ | (5.9 | ) | $ | (23.1 | ) | $ | (15.3 | ) | |||
Cost of sales | $ | (1.2 | ) | $ | (1.4 | ) | $ | (1.1 | ) | $ | 1.1 |
Fair Value as of | |||||||||||
September 30, 2017 | December 31, 2016 | Balance Sheet Location | |||||||||
Assets: | |||||||||||
Derivatives designated as cash flow hedges | |||||||||||
Foreign currency | $ | 0.4 | $ | 2.8 | Prepaids and other current assets | ||||||
Derivatives designated as net investment hedges | |||||||||||
Foreign currency | — | 717.9 | Derivative assets | ||||||||
Total assets at fair value | $ | 0.4 | $ | 720.7 | |||||||
Liabilities: | |||||||||||
Derivatives designated as cash flow hedges | |||||||||||
Interest rate | $ | 61.8 | $ | 55.1 | Other liabilities, net | ||||||
Foreign currency | 8.6 | 1.1 | Other accrued liabilities | ||||||||
Derivatives designated as net investment hedges | |||||||||||
Foreign currency | 417.4 | — | Other liabilities, net | ||||||||
Total liabilities at fair value | $ | 487.8 | $ | 56.2 |
Fair Value as of | |||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | Balance Sheet Location | |||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||
Interest rate | $ | 314 | $ | — | Other assets, net | ||||||||||||||||||
Foreign currency | 16 | 2 | Prepaids and other current assets | ||||||||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Foreign currency | 261 | 23 | Other assets, net | ||||||||||||||||||||
Foreign currency | 56 | $ | — | Prepaids and other current assets | |||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Foreign currency | 56 | — | Prepaids and other current assets | ||||||||||||||||||||
Total assets at fair value | $ | 703 | $ | 25 | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Derivatives designated as cash flow hedges | |||||||||||||||||||||||
Interest rate | $ | — | $ | 220 | Other liabilities, net | ||||||||||||||||||
Derivatives designated as net investment hedges | |||||||||||||||||||||||
Foreign currency | — | 355 | Other liabilities, net | ||||||||||||||||||||
Derivatives not designated as hedging instruments | |||||||||||||||||||||||
Foreign currency | 30 | — | Other accrued liabilities | ||||||||||||||||||||
Total liabilities at fair value | $ | 30 | $ | 575 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Franchise royalties | $ | 332.8 | $ | 261.1 | $ | 883.5 | $ | 738.7 | |||||||
Property revenues | 204.1 | 194.6 | 568.4 | 563.9 | |||||||||||
Franchise fees and other revenue | 40.1 | 33.6 | 105.9 | 96.3 | |||||||||||
Franchise and property revenues | $ | 577.0 | $ | 489.3 | $ | 1,557.8 | $ | 1,398.9 |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 3.4 | $ | 3.3 | $ | 14.9 | $ | 19.6 | Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 1 | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Litigation settlements and reserves, net | 0.6 | 0.4 | 1.7 | 2.0 | ||||||||||||||||||||||||||||||||||
Litigation settlements (gains) and reserves, net | Litigation settlements (gains) and reserves, net | — | 4 | 3 | 7 | |||||||||||||||||||||||||||||||||
Net losses (gains) on foreign exchange | 17.7 | 4.1 | 64.9 | 16.1 | Net losses (gains) on foreign exchange | (30) | (23) | (82) | (58) | |||||||||||||||||||||||||||||
Other, net | (0.2 | ) | 0.9 | 0.6 | 0.5 | Other, net | 2 | 1 | 9 | — | ||||||||||||||||||||||||||||
Other operating expenses (income), net | $ | 21.5 | $ | 8.7 | $ | 82.1 | $ | 38.2 | Other operating expenses (income), net | $ | (27) | $ | (16) | $ | (68) | $ | (50) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues by operating segment: | |||||||||||||||||||||||
TH | $ | 1,033 | $ | 885 | $ | 2,830 | $ | 2,426 | |||||||||||||||
BK | 491 | 467 | 1,407 | 1,333 | |||||||||||||||||||
PLK | 164 | 143 | 477 | 434 | |||||||||||||||||||
FHS | 38 | — | 102 | — | |||||||||||||||||||
Total revenues | $ | 1,726 | $ | 1,495 | $ | 4,816 | $ | 4,193 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Revenues by operating segment: | |||||||||||||||
TH | $ | 827.0 | $ | 789.9 | $ | 2,332.9 | $ | 2,207.5 | |||||||
BK | 313.6 | 285.8 | 874.3 | 826.9 | |||||||||||
PLK | 68.0 | — | 134.7 | — | |||||||||||
Total revenues | $ | 1,208.6 | $ | 1,075.7 | $ | 3,341.9 | $ | 3,034.4 | |||||||
Revenues by country (a): | |||||||||||||||
Canada | $ | 748.7 | $ | 708.8 | $ | 2,093.6 | $ | 1,973.0 | |||||||
United States | 310.5 | 249.2 | 856.1 | 725.0 | |||||||||||
Other | 149.4 | 117.7 | 392.2 | 336.4 | |||||||||||
Total revenues | $ | 1,208.6 | $ | 1,075.7 | $ | 3,341.9 | $ | 3,034.4 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Revenues by country (a): | |||||||||||||||||||||||
Canada | $ | 940 | $ | 808 | $ | 2,565 | $ | 2,200 | |||||||||||||||
United States | 587 | 500 | 1,679 | 1,493 | |||||||||||||||||||
Other | 199 | 187 | 572 | 500 | |||||||||||||||||||
Total revenues | $ | 1,726 | $ | 1,495 | $ | 4,816 | $ | 4,193 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Segment income: | |||||||||||||||||||||||
TH | $ | 305 | $ | 278 | $ | 810 | $ | 738 | |||||||||||||||
BK | 262 | 272 | 761 | 755 | |||||||||||||||||||
PLK | 62 | 57 | 179 | 171 | |||||||||||||||||||
FHS | 13 | — | 40 | — | |||||||||||||||||||
Adjusted EBITDA | 642 | 607 | 1,790 | 1,664 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 34 | 25 | 93 | 71 | |||||||||||||||||||
FHS Transaction costs | 3 | — | 8 | — | |||||||||||||||||||
Corporate restructuring and tax advisory fees | 12 | 4 | 21 | 8 | |||||||||||||||||||
Impact of equity method investments (a) | 13 | 11 | 41 | 22 | |||||||||||||||||||
Other operating expenses (income), net | (27) | (16) | (68) | (50) | |||||||||||||||||||
EBITDA | 607 | 583 | 1,695 | 1,613 | |||||||||||||||||||
Depreciation and amortization | 46 | 50 | 143 | 150 | |||||||||||||||||||
Income from operations | 561 | 533 | 1,552 | 1,463 | |||||||||||||||||||
Interest expense, net | 133 | 128 | 389 | 378 | |||||||||||||||||||
Loss on early extinguishment of debt | — | 11 | — | 11 | |||||||||||||||||||
Income tax expense (benefit) | (102) | 65 | 17 | 83 | |||||||||||||||||||
Net income | $ | 530 | $ | 329 | $ | 1,146 | $ | 991 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Segment income: | |||||||||||||||
TH | $ | 294.4 | $ | 287.1 | $ | 831.7 | $ | 793.9 | |||||||
BK | 233.9 | 201.8 | 637.8 | 581.9 | |||||||||||
PLK | 36.8 | — | 70.0 | — | |||||||||||
Adjusted EBITDA | 565.1 | 488.9 | 1,539.5 | 1,375.8 | |||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | 42.9 | 31.0 | |||||||||||
PLK Transaction costs | 6.9 | — | 49.8 | — | |||||||||||
Integration costs | — | 4.4 | — | 10.4 | |||||||||||
Impact of equity method investments (a) | (1.3 | ) | 0.3 | (0.1 | ) | (7.6 | ) | ||||||||
Other operating expenses (income), net | 21.5 | 8.7 | 82.1 | 38.2 | |||||||||||
EBITDA | 525.5 | 463.7 | 1,364.8 | 1,303.8 | |||||||||||
Depreciation and amortization | 46.2 | 43.2 | 134.9 | 128.7 | |||||||||||
Income from operations | 479.3 | 420.5 | 1,229.9 | 1,175.1 | |||||||||||
Interest expense, net | 136.0 | 117.3 | 375.4 | 349.6 | |||||||||||
Loss on early extinguishment of debt | 58.2 | — | 78.6 | — | |||||||||||
Income tax expense | 38.3 | 64.6 | 119.0 | 171.0 | |||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 656.9 | $ | 654.5 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 946 | $ | — | $ | — | $ | 946 | |||||||||||||||
Accounts and notes receivable, net | 598 | — | — | 598 | |||||||||||||||||||
Inventories, net | 129 | — | — | 129 | |||||||||||||||||||
Prepaids and other current assets | 251 | — | — | 251 | |||||||||||||||||||
Total current assets | 1,924 | — | — | 1,924 | |||||||||||||||||||
Property and equipment, net | 1,913 | — | — | 1,913 | |||||||||||||||||||
Operating lease assets, net | 1,056 | — | — | 1,056 | |||||||||||||||||||
Intangible assets, net | 10,831 | — | — | 10,831 | |||||||||||||||||||
Goodwill | 5,605 | — | — | 5,605 | |||||||||||||||||||
Net investment in property leased to franchisees | 83 | — | — | 83 | |||||||||||||||||||
Intercompany receivable | — | 243 | (243) | — | |||||||||||||||||||
Investment in subsidiaries | — | 4,039 | (4,039) | — | |||||||||||||||||||
Other assets, net | 1,145 | — | — | 1,145 | |||||||||||||||||||
Total assets | $ | 22,557 | $ | 4,282 | $ | (4,282) | $ | 22,557 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts and drafts payable | $ | 696 | $ | — | $ | — | $ | 696 | |||||||||||||||
Other accrued liabilities | 716 | 243 | — | 959 | |||||||||||||||||||
Gift card liability | 148 | — | — | 148 | |||||||||||||||||||
Current portion of long-term debt and finance leases | 117 | — | — | 117 | |||||||||||||||||||
Total current liabilities | 1,677 | 243 | — | 1,920 | |||||||||||||||||||
Long-term debt, net of current portion | 12,853 | — | — | 12,853 | |||||||||||||||||||
Finance leases, net of current portion | 310 | — | — | 310 | |||||||||||||||||||
Operating lease liabilities, net of current portion | 1,003 | — | — | 1,003 | |||||||||||||||||||
Other liabilities, net | 1,044 | — | — | 1,044 | |||||||||||||||||||
Payables to affiliates | 243 | — | (243) | — | |||||||||||||||||||
Deferred income taxes, net | 1,388 | — | — | 1,388 | |||||||||||||||||||
Total liabilities | 18,518 | 243 | (243) | 18,518 | |||||||||||||||||||
Partners’ capital: | |||||||||||||||||||||||
Class A common units | — | 8,570 | — | 8,570 | |||||||||||||||||||
Partnership exchangeable units | — | (3,508) | — | (3,508) | |||||||||||||||||||
Common shares | 2,410 | — | (2,410) | — | |||||||||||||||||||
Retained earnings | 2,652 | — | (2,652) | — | |||||||||||||||||||
Accumulated other comprehensive income (loss) | (1,025) | (1,025) | 1,025 | (1,025) | |||||||||||||||||||
Total Partners' capital/shareholders' equity | 4,037 | 4,037 | (4,037) | 4,037 | |||||||||||||||||||
Noncontrolling interests | 2 | 2 | (2) | 2 | |||||||||||||||||||
Total equity | 4,039 | 4,039 | (4,039) | 4,039 | |||||||||||||||||||
Total liabilities and equity | $ | 22,557 | $ | 4,282 | $ | (4,282) | $ | 22,557 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 3,547.2 | $ | — | $ | — | $ | 3,547.2 | |||||||
Accounts and notes receivable, net | 421.9 | — | — | 421.9 | |||||||||||
Inventories, net | 91.9 | — | — | 91.9 | |||||||||||
Advertising fund restricted assets | 110.8 | — | — | 110.8 | |||||||||||
Prepaids and other current assets | 108.1 | — | — | 108.1 | |||||||||||
Total current assets | 4,279.9 | — | — | 4,279.9 | |||||||||||
Property and equipment, net | 2,158.2 | — | — | 2,158.2 | |||||||||||
Intangible assets, net | 11,121.8 | — | — | 11,121.8 | |||||||||||
Goodwill | 5,810.3 | — | — | 5,810.3 | |||||||||||
Net investment in property leased to franchisees | 76.1 | — | — | 76.1 | |||||||||||
Intercompany receivable | — | 160.3 | (160.3 | ) | — | ||||||||||
Investment in subsidiaries | — | 7,573.6 | (7,573.6 | ) | — | ||||||||||
Other assets, net | 481.6 | — | — | 481.6 | |||||||||||
Total assets | $ | 23,927.9 | $ | 7,733.9 | $ | (7,733.9 | ) | $ | 23,927.9 | ||||||
LIABILITIES, PREFERRED UNITS AND EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts and drafts payable | $ | 365.2 | $ | — | $ | — | $ | 365.2 | |||||||
Other accrued liabilities | 370.3 | 160.3 | — | 530.6 | |||||||||||
Gift card liability | 130.3 | — | — | 130.3 | |||||||||||
Advertising fund liabilities | 154.1 | — | — | 154.1 | |||||||||||
Current portion of long term debt and capital leases | 77.5 | — | — | 77.5 | |||||||||||
Total current liabilities | 1,097.4 | 160.3 | — | 1,257.7 | |||||||||||
Term debt, net of current portion | 11,303.6 | — | — | 11,303.6 | |||||||||||
Capital leases, net of current portion | 238.7 | — | — | 238.7 | |||||||||||
Other liabilities, net | 1,354.0 | — | — | 1,354.0 | |||||||||||
Payables to affiliates | 160.3 | — | (160.3 | ) | — | ||||||||||
Deferred income taxes, net | 2,200.3 | — | — | 2,200.3 | |||||||||||
Total liabilities | 16,354.3 | 160.3 | (160.3 | ) | 16,354.3 | ||||||||||
Partnership preferred units | — | 3,297.0 | — | 3,297.0 | |||||||||||
Partners’ capital: | |||||||||||||||
Class A common units | — | 3,530.7 | — | 3,530.7 | |||||||||||
Partnership exchangeable units | — | 1,560.9 | — | 1,560.9 | |||||||||||
Common shares | 6,887.6 | — | (6,887.6 | ) | — | ||||||||||
Retained Earnings | 1,501.0 | — | (1,501.0 | ) | — | ||||||||||
Accumulated other comprehensive income (loss) | (818.7 | ) | (818.7 | ) | 818.7 | (818.7 | ) | ||||||||
Total Partners' capital/shareholders' equity | 7,569.9 | 4,272.9 | (7,569.9 | ) | 4,272.9 | ||||||||||
Noncontrolling interests | 3.7 | 3.7 | (3.7 | ) | 3.7 | ||||||||||
Total equity | 7,573.6 | 4,276.6 | (7,573.6 | ) | 4,276.6 | ||||||||||
Total liabilities, Partnership preferred units and equity | $ | 23,927.9 | $ | 7,733.9 | $ | (7,733.9 | ) | $ | 23,927.9 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 1,087 | $ | — | $ | — | $ | 1,087 | |||||||||||||||
Accounts and notes receivable, net | 547 | — | — | 547 | |||||||||||||||||||
Inventories, net | 96 | — | — | 96 | |||||||||||||||||||
Prepaids and other current assets | 86 | — | — | 86 | |||||||||||||||||||
Total current assets | 1,816 | — | — | 1,816 | |||||||||||||||||||
Property and equipment, net | 2,035 | — | — | 2,035 | |||||||||||||||||||
Operating lease assets. net | 1,130 | — | — | 1,130 | |||||||||||||||||||
Intangible assets, net | 11,417 | — | — | 11,417 | |||||||||||||||||||
Goodwill | 6,006 | — | — | 6,006 | |||||||||||||||||||
Net investment in property leased to franchisees | 80 | — | — | 80 | |||||||||||||||||||
Intercompany receivable | — | 241 | (241) | — | |||||||||||||||||||
Investment in subsidiaries | — | 3,853 | (3,853) | — | |||||||||||||||||||
Other assets, net | 762 | — | — | 762 | |||||||||||||||||||
Total assets | $ | 23,246 | $ | 4,094 | $ | (4,094) | $ | 23,246 | |||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||
Accounts and drafts payable | $ | 614 | $ | — | $ | — | $ | 614 | |||||||||||||||
Other accrued liabilities | 706 | 241 | — | 947 | |||||||||||||||||||
Gift card liability | 221 | — | — | 221 | |||||||||||||||||||
Current portion of long-term debt and finance leases | 96 | — | — | 96 | |||||||||||||||||||
Total current liabilities | 1,637 | 241 | — | 1,878 | |||||||||||||||||||
Long-term debt, net of current portion | 12,916 | — | — | 12,916 | |||||||||||||||||||
Finance leases, net of current portion | 333 | — | — | 333 | |||||||||||||||||||
Operating lease liabilities, net of current portion | 1,070 | — | — | 1,070 | |||||||||||||||||||
Other liabilities, net | 1,822 | — | — | 1,822 | |||||||||||||||||||
Payables to affiliates | 241 | — | (241) | — | |||||||||||||||||||
Deferred income taxes, net | 1,374 | — | — | 1,374 | |||||||||||||||||||
Total liabilities | 19,393 | 241 | (241) | 19,393 | |||||||||||||||||||
Partners’ capital: | |||||||||||||||||||||||
Class A common units | — | 8,421 | — | 8,421 | |||||||||||||||||||
Partnership exchangeable units | — | (3,547) | — | (3,547) | |||||||||||||||||||
Common shares | 2,635 | — | (2,635) | — | |||||||||||||||||||
Retained earnings | 2,239 | — | (2,239) | — | |||||||||||||||||||
Accumulated other comprehensive income (loss) | (1,024) | (1,024) | 1,024 | (1,024) | |||||||||||||||||||
Total Partners' capital/shareholders' equity | 3,850 | 3,850 | (3,850) | 3,850 | |||||||||||||||||||
Noncontrolling interests | 3 | 3 | (3) | 3 | |||||||||||||||||||
Total equity | 3,853 | 3,853 | (3,853) | 3,853 | |||||||||||||||||||
Total liabilities and equity | $ | 23,246 | $ | 4,094 | $ | (4,094) | $ | 23,246 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
ASSETS | |||||||||||||||
Current assets: | |||||||||||||||
Cash and cash equivalents | $ | 1,420.4 | $ | — | $ | — | $ | 1,420.4 | |||||||
Accounts and notes receivable, net | 403.5 | — | — | 403.5 | |||||||||||
Inventories, net | 71.8 | — | — | 71.8 | |||||||||||
Advertising fund restricted assets | 57.7 | — | — | 57.7 | |||||||||||
Prepaids and other current assets | 103.6 | — | — | 103.6 | |||||||||||
Total current assets | 2,057.0 | — | — | 2,057.0 | |||||||||||
Property and equipment, net | 2,054.7 | — | — | 2,054.7 | |||||||||||
Intangible assets, net | 9,228.0 | — | — | 9,228.0 | |||||||||||
Goodwill | 4,675.1 | — | — | 4,675.1 | |||||||||||
Net investment in property leased to franchisees | 91.9 | — | — | 91.9 | |||||||||||
Derivative assets | 717.9 | — | — | 717.9 | |||||||||||
Intercompany receivable | — | 146.1 | (146.1 | ) | — | ||||||||||
Investment in subsidiaries | — | 6,786.0 | (6,786.0 | ) | — | ||||||||||
Other assets, net | 300.7 | — | — | 300.7 | |||||||||||
Total assets | $ | 19,125.3 | $ | 6,932.1 | $ | (6,932.1 | ) | $ | 19,125.3 | ||||||
LIABILITIES, PREFERRED UNITS AND EQUITY | |||||||||||||||
Current liabilities: | |||||||||||||||
Accounts and drafts payable | $ | 369.8 | $ | — | $ | — | $ | 369.8 | |||||||
Other accrued liabilities | 323.2 | 146.1 | — | 469.3 | |||||||||||
Gift card liability | 194.4 | — | — | 194.4 | |||||||||||
Advertising fund liabilities | 83.3 | — | — | 83.3 | |||||||||||
Current portion of long term debt and capital leases | 93.9 | — | — | 93.9 | |||||||||||
Total current liabilities | 1,064.6 | 146.1 | — | 1,210.7 | |||||||||||
Term debt, net of current portion | 8,410.2 | — | — | 8,410.2 | |||||||||||
Capital leases, net of current portion | 218.4 | — | — | 218.4 | |||||||||||
Other liabilities, net | 784.9 | — | — | 784.9 | |||||||||||
Payables to affiliates | 146.1 | — | (146.1 | ) | — | ||||||||||
Deferred income taxes, net | 1,715.1 | — | — | 1,715.1 | |||||||||||
Total liabilities | 12,339.3 | 146.1 | (146.1 | ) | 12,339.3 | ||||||||||
Partnership preferred units | — | 3,297.0 | — | 3,297.0 | |||||||||||
Partners’ capital: | |||||||||||||||
Class A common units | — | 3,364.1 | — | 3,364.1 | |||||||||||
Partnership exchangeable units | — | 1,476.2 | — | 1,476.2 | |||||||||||
Common shares | 6,825.8 | — | (6,825.8 | ) | — | ||||||||||
Retained Earnings | 1,311.5 | — | (1,311.5 | ) | — | ||||||||||
Accumulated other comprehensive income (loss) | (1,355.4 | ) | (1,355.4 | ) | 1,355.4 | (1,355.4 | ) | ||||||||
Total Partners' capital/shareholders' equity | 6,781.9 | 3,484.9 | (6,781.9 | ) | 3,484.9 | ||||||||||
Noncontrolling interests | 4.1 | 4.1 | (4.1 | ) | 4.1 | ||||||||||
Total equity | 6,786.0 | 3,489.0 | (6,786.0 | ) | 3,489.0 | ||||||||||
Total liabilities, Partnership preferred units and equity | $ | 19,125.3 | $ | 6,932.1 | $ | (6,932.1 | ) | $ | 19,125.3 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 759 | $ | — | $ | — | $ | 759 | |||||||||||||||
Franchise and property revenues | 698 | — | — | 698 | |||||||||||||||||||
Advertising revenues and other services | 269 | — | — | 269 | |||||||||||||||||||
Total revenues | 1,726 | — | — | 1,726 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 615 | — | — | 615 | |||||||||||||||||||
Franchise and property expenses | 137 | — | — | 137 | |||||||||||||||||||
Advertising expenses and other services | 276 | — | — | 276 | |||||||||||||||||||
General and administrative expenses | 156 | — | — | 156 | |||||||||||||||||||
(Income) loss from equity method investments | 8 | — | — | 8 | |||||||||||||||||||
Other operating expenses (income), net | (27) | — | — | (27) | |||||||||||||||||||
Total operating costs and expenses | 1,165 | — | — | 1,165 | |||||||||||||||||||
Income from operations | 561 | — | — | 561 | |||||||||||||||||||
Interest expense, net | 133 | — | — | 133 | |||||||||||||||||||
Income before income taxes | 428 | — | — | 428 | |||||||||||||||||||
Income tax expense (benefit) | (102) | — | — | (102) | |||||||||||||||||||
Net income | 530 | — | — | 530 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 530 | (530) | — | |||||||||||||||||||
Net income (loss) | 530 | 530 | (530) | 530 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | 1 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 529 | $ | 529 | $ | (529) | $ | 529 | |||||||||||||||
Comprehensive income (loss) | $ | 343 | $ | 343 | $ | (343) | $ | 343 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 631.6 | $ | — | $ | — | $ | 631.6 | |||||||
Franchise and property revenues | 577.0 | — | — | 577.0 | |||||||||||
Total revenues | 1,208.6 | — | — | 1,208.6 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 493.3 | — | — | 493.3 | |||||||||||
Franchise and property expenses | 118.5 | — | — | 118.5 | |||||||||||
Selling, general and administrative expenses | 100.1 | — | — | 100.1 | |||||||||||
(Income) loss from equity method investments | (4.1 | ) | — | — | (4.1 | ) | |||||||||
Other operating expenses (income), net | 21.5 | — | — | 21.5 | |||||||||||
Total operating costs and expenses | 729.3 | — | — | 729.3 | |||||||||||
Income from operations | 479.3 | — | — | 479.3 | |||||||||||
Interest expense, net | 136.0 | — | — | 136.0 | |||||||||||
Loss on early extinguishment of debt | 58.2 | — | — | 58.2 | |||||||||||
Income before income taxes | 285.1 | — | — | 285.1 | |||||||||||
Income tax expense | 38.3 | — | — | 38.3 | |||||||||||
Net income | 246.8 | — | — | 246.8 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 246.8 | (246.8 | ) | — | ||||||||||
Net income (loss) | 246.8 | 246.8 | (246.8 | ) | 246.8 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 0.3 | 0.3 | (0.3 | ) | 0.3 | ||||||||||
Partnership preferred unit distributions | — | 67.5 | — | 67.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 246.5 | $ | 179.0 | $ | (246.5 | ) | $ | 179.0 | ||||||
Comprehensive income (loss) | $ | 546.5 | $ | 546.5 | $ | (546.5 | ) | $ | 546.5 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 2,076 | $ | — | $ | — | $ | 2,076 | |||||||||||||||
Franchise and property revenues | 1,989 | — | — | 1,989 | |||||||||||||||||||
Advertising revenues and other services | 751 | — | — | 751 | |||||||||||||||||||
Total revenues | 4,816 | — | — | 4,816 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 1,693 | — | — | 1,693 | |||||||||||||||||||
Franchise and property expenses | 392 | — | — | 392 | |||||||||||||||||||
Advertising expenses and other services | 782 | — | — | 782 | |||||||||||||||||||
General and administrative expenses | 435 | — | — | 435 | |||||||||||||||||||
(Income) loss from equity method investments | 30 | — | — | 30 | |||||||||||||||||||
Other operating expenses (income), net | (68) | — | — | (68) | |||||||||||||||||||
Total operating costs and expenses | 3,264 | — | — | 3,264 | |||||||||||||||||||
Income from operations | 1,552 | — | — | 1,552 | |||||||||||||||||||
Interest expense, net | 389 | — | — | 389 | |||||||||||||||||||
Income before income taxes | 1,163 | — | — | 1,163 | |||||||||||||||||||
Income tax expense (benefit) | 17 | — | — | 17 | |||||||||||||||||||
Net income | 1,146 | — | — | 1,146 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 1,146 | (1,146) | — | |||||||||||||||||||
Net income (loss) | 1,146 | 1,146 | (1,146) | 1,146 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 3 | 3 | (3) | 3 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 1,143 | $ | 1,143 | $ | (1,143) | $ | 1,143 | |||||||||||||||
Comprehensive income (loss) | $ | 1,145 | $ | 1,145 | $ | (1,145) | $ | 1,145 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 1,784.1 | $ | — | $ | — | $ | 1,784.1 | |||||||
Franchise and property revenues | 1,557.8 | — | — | 1,557.8 | |||||||||||
Total revenues | 3,341.9 | — | — | 3,341.9 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 1,376.9 | — | — | 1,376.9 | |||||||||||
Franchise and property expenses | 343.2 | — | — | 343.2 | |||||||||||
Selling, general and administrative expenses | 318.7 | — | — | 318.7 | |||||||||||
(Income) loss from equity method investments | (8.9 | ) | — | — | (8.9 | ) | |||||||||
Other operating expenses (income), net | 82.1 | — | — | 82.1 | |||||||||||
Total operating costs and expenses | 2,112.0 | — | — | 2,112.0 | |||||||||||
Income from operations | 1,229.9 | — | — | 1,229.9 | |||||||||||
Interest expense, net | 375.4 | — | — | 375.4 | |||||||||||
Loss on early extinguishment of debt | 78.6 | — | — | 78.6 | |||||||||||
Income before income taxes | 775.9 | — | — | 775.9 | |||||||||||
Income tax expense | 119.0 | — | — | 119.0 | |||||||||||
Net income | 656.9 | — | — | 656.9 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 656.9 | (656.9 | ) | — | ||||||||||
Net income (loss) | 656.9 | 656.9 | (656.9 | ) | 656.9 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 1.1 | 1.1 | (1.1 | ) | 1.1 | ||||||||||
Partnership preferred unit distributions | — | 202.5 | — | 202.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 655.8 | $ | 453.3 | $ | (655.8 | ) | $ | 453.3 | ||||||
Comprehensive income (loss) | $ | 1,193.6 | $ | 1,193.6 | $ | (1,193.6 | ) | $ | 1,193.6 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 621 | $ | — | $ | — | $ | 621 | |||||||||||||||
Franchise and property revenues | 635 | — | — | 635 | |||||||||||||||||||
Advertising revenues and other services | 239 | — | — | 239 | |||||||||||||||||||
Total revenues | 1,495 | — | — | 1,495 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 490 | — | — | 490 | |||||||||||||||||||
Franchise and property expenses | 121 | — | — | 121 | |||||||||||||||||||
Advertising expenses and other services | 245 | — | — | 245 | |||||||||||||||||||
General and administrative expenses | 115 | — | — | 115 | |||||||||||||||||||
(Income) loss from equity method investments | 7 | — | — | 7 | |||||||||||||||||||
Other operating expenses (income), net | (16) | — | — | (16) | |||||||||||||||||||
Total operating costs and expenses | 962 | — | — | 962 | |||||||||||||||||||
Income from operations | 533 | — | — | 533 | |||||||||||||||||||
Interest expense, net | 128 | — | — | 128 | |||||||||||||||||||
Loss on early extinguishment of debt | 11 | — | — | 11 | |||||||||||||||||||
Income before income taxes | 394 | — | — | 394 | |||||||||||||||||||
Income tax expense (benefit) | 65 | — | — | 65 | |||||||||||||||||||
Net income | 329 | — | — | 329 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 329 | (329) | — | |||||||||||||||||||
Net income (loss) | 329 | 329 | (329) | 329 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 1 | 1 | (1) | 1 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 328 | $ | 328 | $ | (328) | $ | 328 | |||||||||||||||
Comprehensive income (loss) | $ | 252 | $ | 252 | $ | (252) | $ | 252 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 586.4 | $ | — | $ | — | $ | 586.4 | |||||||
Franchise and property revenues | 489.3 | — | 489.3 | ||||||||||||
Total revenues | 1,075.7 | — | — | 1,075.7 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 457.1 | — | — | 457.1 | |||||||||||
Franchise and property expenses | 109.8 | — | — | 109.8 | |||||||||||
Selling, general and administrative expenses | 82.2 | — | — | 82.2 | |||||||||||
(Income) loss from equity method investments | (2.6 | ) | — | — | (2.6 | ) | |||||||||
Other operating expenses (income), net | 8.7 | — | — | 8.7 | |||||||||||
Total operating costs and expenses | 655.2 | — | — | 655.2 | |||||||||||
Income from operations | 420.5 | — | — | 420.5 | |||||||||||
Interest expense, net | 117.3 | — | — | 117.3 | |||||||||||
Income before income taxes | 303.2 | — | — | 303.2 | |||||||||||
Income tax expense | 64.6 | — | — | 64.6 | |||||||||||
Net income | 238.6 | — | — | 238.6 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 238.6 | (238.6 | ) | — | ||||||||||
Net income (loss) | 238.6 | 238.6 | (238.6 | ) | 238.6 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 1.0 | 1.0 | (1.0 | ) | 1.0 | ||||||||||
Partnership preferred unit distributions | — | 67.5 | — | 67.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 237.6 | $ | 170.1 | $ | (237.6 | ) | $ | 170.1 | ||||||
Comprehensive income (loss) | $ | 131.8 | $ | 131.8 | $ | (131.8 | ) | $ | 131.8 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | 1,718 | $ | — | $ | — | $ | 1,718 | |||||||||||||||
Franchise and property revenues | 1,795 | — | — | 1,795 | |||||||||||||||||||
Advertising revenues and other services | 680 | 680 | |||||||||||||||||||||
Total revenues | 4,193 | — | — | 4,193 | |||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||
Cost of sales | 1,358 | — | — | 1,358 | |||||||||||||||||||
Franchise and property expenses | 358 | — | — | 358 | |||||||||||||||||||
Advertising expenses and other services | 725 | — | — | 725 | |||||||||||||||||||
General and administrative expenses | 327 | — | — | 327 | |||||||||||||||||||
(Income) loss from equity method investments | 12 | — | — | 12 | |||||||||||||||||||
Other operating expenses (income), net | (50) | — | — | (50) | |||||||||||||||||||
Total operating costs and expenses | 2,730 | — | — | 2,730 | |||||||||||||||||||
Income from operations | 1,463 | — | — | 1,463 | |||||||||||||||||||
Interest expense, net | 378 | — | — | 378 | |||||||||||||||||||
Loss on early extinguishment of debt | 11 | — | — | 11 | |||||||||||||||||||
Income before income taxes | 1,074 | — | — | 1,074 | |||||||||||||||||||
Income tax expense (benefit) | 83 | — | — | 83 | |||||||||||||||||||
Net income | 991 | — | — | 991 | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | — | 991 | (991) | — | |||||||||||||||||||
Net income (loss) | 991 | 991 | (991) | 991 | |||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 3 | 3 | (3) | 3 | |||||||||||||||||||
Net income (loss) attributable to common unitholders | $ | 988 | $ | 988 | $ | (988) | $ | 988 | |||||||||||||||
Comprehensive income (loss) | $ | 1,177 | $ | 1,177 | $ | (1,177) | $ | 1,177 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Revenues: | |||||||||||||||
Sales | $ | 1,635.5 | $ | — | $ | — | $ | 1,635.5 | |||||||
Franchise and property revenues | 1,398.9 | — | — | 1,398.9 | |||||||||||
Total revenues | 3,034.4 | — | — | 3,034.4 | |||||||||||
Operating costs and expenses: | |||||||||||||||
Cost of sales | 1,285.7 | — | — | 1,285.7 | |||||||||||
Franchise and property expenses | 323.5 | — | — | 323.5 | |||||||||||
Selling, general and administrative expenses | 228.5 | — | — | 228.5 | |||||||||||
(Income) loss from equity method investments | (16.6 | ) | — | — | (16.6 | ) | |||||||||
Other operating expenses (income), net | 38.2 | — | — | 38.2 | |||||||||||
Total operating costs and expenses | 1,859.3 | — | — | 1,859.3 | |||||||||||
Income from operations | 1,175.1 | — | — | 1,175.1 | |||||||||||
Interest expense, net | 349.6 | — | — | 349.6 | |||||||||||
Income before income taxes | 825.5 | — | — | 825.5 | |||||||||||
Income tax expense | 171.0 | — | — | 171.0 | |||||||||||
Net income | 654.5 | — | — | 654.5 | |||||||||||
Equity in earnings of consolidated subsidiaries | — | 654.5 | (654.5 | ) | — | ||||||||||
Net income (loss) | 654.5 | 654.5 | (654.5 | ) | 654.5 | ||||||||||
Net income (loss) attributable to noncontrolling interests | 2.8 | 2.8 | (2.8 | ) | 2.8 | ||||||||||
Partnership preferred unit distributions | — | 202.5 | — | 202.5 | |||||||||||
Net income (loss) attributable to common unitholders | $ | 651.7 | $ | 449.2 | $ | (651.7 | ) | $ | 449.2 | ||||||
Comprehensive income (loss) | $ | 970.4 | $ | 970.4 | $ | (970.4 | ) | $ | 970.4 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 1,146 | $ | 1,146 | $ | (1,146) | $ | 1,146 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (1,146) | 1,146 | — | |||||||||||||||||||
Depreciation and amortization | 143 | — | — | 143 | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 21 | — | — | 21 | |||||||||||||||||||
(Income) loss from equity method investments | 30 | — | — | 30 | |||||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (82) | — | — | (82) | |||||||||||||||||||
Net (gains) losses on derivatives | 17 | — | — | 17 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 93 | — | — | 93 | |||||||||||||||||||
Deferred income taxes | (29) | — | — | (29) | |||||||||||||||||||
Other | 8 | — | — | 8 | |||||||||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||||||||
Accounts and notes receivable | (93) | — | — | (93) | |||||||||||||||||||
Inventories and prepaids and other current assets | (67) | — | — | (67) | |||||||||||||||||||
Accounts and drafts payable | 113 | — | — | 113 | |||||||||||||||||||
Other accrued liabilities and gift card liability | (74) | — | — | (74) | |||||||||||||||||||
Tenant inducements paid to franchisees | (13) | — | — | (13) | |||||||||||||||||||
Other long-term assets and liabilities | (146) | — | — | (146) | |||||||||||||||||||
Net cash provided by operating activities | 1,067 | — | — | 1,067 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Payments for property and equipment | (52) | — | — | (52) | |||||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 11 | — | — | 11 | |||||||||||||||||||
Net payments in connection with purchase of Firehouse Subs | (12) | — | — | (12) | |||||||||||||||||||
Settlement/sale of derivatives, net | 22 | — | — | 22 | |||||||||||||||||||
Other investing activities, net | (35) | — | — | (35) | |||||||||||||||||||
Net cash (used for) provided by investing activities | (66) | — | — | (66) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from long-term debt | 2 | — | — | 2 | |||||||||||||||||||
Repayments of long-term debt and finance leases | (71) | — | — | (71) | |||||||||||||||||||
Distributions on Class A common and Partnership exchangeable units | — | (728) | — | (728) | |||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (326) | — | (326) | |||||||||||||||||||
Capital contribution from RBI | 7 | — | — | 7 | |||||||||||||||||||
Distributions from subsidiaries | (1,054) | 1,054 | — | — | |||||||||||||||||||
(Payments) proceeds from derivatives | 8 | — | — | 8 | |||||||||||||||||||
Other financing activities, net | (3) | — | — | (3) | |||||||||||||||||||
Net cash (used for) provided by financing activities | (1,111) | — | — | (1,111) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (31) | — | — | (31) | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | (141) | — | — | (141) | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,087 | — | — | 1,087 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 946 | $ | — | $ | — | $ | 946 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 656.9 | $ | 656.9 | $ | (656.9 | ) | $ | 656.9 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (656.9 | ) | 656.9 | — | ||||||||||
Depreciation and amortization | 134.9 | — | — | 134.9 | |||||||||||
Premiums paid and non-cash loss on early extinguishment of debt | 75.9 | — | — | 75.9 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 25.2 | — | — | 25.2 | |||||||||||
(Income) loss from equity method investments | (8.9 | ) | — | — | (8.9 | ) | |||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 64.7 | — | — | 64.7 | |||||||||||
Net losses on derivatives | 23.1 | — | — | 23.1 | |||||||||||
Share-based compensation expense | 38.0 | — | — | 38.0 | |||||||||||
Deferred income taxes | (3.1 | ) | — | — | (3.1 | ) | |||||||||
Other | 12.8 | — | — | 12.8 | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||
Accounts and notes receivable | 0.3 | — | — | 0.3 | |||||||||||
Inventories and prepaids and other current assets | (12.5 | ) | — | — | (12.5 | ) | |||||||||
Accounts and drafts payable | (30.4 | ) | — | — | (30.4 | ) | |||||||||
Advertising fund restricted assets and fund liabilities | 18.1 | — | — | 18.1 | |||||||||||
Other accrued liabilities and gift card liability | (161.4 | ) | — | — | (161.4 | ) | |||||||||
Other long-term assets and liabilities | (40.0 | ) | — | — | (40.0 | ) | |||||||||
Net cash provided by operating activities | 793.6 | — | — | 793.6 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Payments for property and equipment | (16.9 | ) | — | — | (16.9 | ) | |||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 19.6 | — | — | 19.6 | |||||||||||
Net payment for purchase of Popeyes, net of cash acquired | (1,635.9 | ) | — | — | (1,635.9 | ) | |||||||||
Return of investment on direct financing leases | 11.8 | — | — | 11.8 | |||||||||||
Settlement/sale of derivatives, net | 771.8 | — | — | 771.8 | |||||||||||
Other investing activities, net | (2.3 | ) | — | — | (2.3 | ) | |||||||||
Net cash provided by (used for) investing activities | (851.9 | ) | — | — | (851.9 | ) | |||||||||
Cash flows from financing activities: | |||||||||||||||
Proceeds from issuance of long-term debt | 4,350.0 | — | — | 4,350.0 | |||||||||||
Repayments of long-term debt and capital leases | (1,690.0 | ) | — | — | (1,690.0 | ) | |||||||||
Payment of financing costs | (57.0 | ) | — | — | (57.0 | ) | |||||||||
Distributions on common, preferred and Partnership exchangeable units | — | (451.9 | ) | — | (451.9 | ) | |||||||||
Capital contribution from RBI Inc. | 17.5 | — | — | 17.5 | |||||||||||
Distributions from subsidiaries | (451.9 | ) | 451.9 | — | — | ||||||||||
Other financing activities, net | (6.2 | ) | — | — | (6.2 | ) | |||||||||
Net cash provided by (used for) financing activities | 2,162.4 | — | — | 2,162.4 | |||||||||||
Effect of exchange rates on cash and cash equivalents | 22.7 | — | — | 22.7 | |||||||||||
Increase (decrease) in cash and cash equivalents | 2,126.8 | — | — | 2,126.8 | |||||||||||
Cash and cash equivalents at beginning of period | 1,420.4 | — | — | 1,420.4 | |||||||||||
Cash and cash equivalents at end of period | $ | 3,547.2 | $ | — | $ | — | $ | 3,547.2 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||||||
Net income | $ | 991 | $ | 991 | $ | (991) | $ | 991 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (991) | 991 | — | |||||||||||||||||||
Depreciation and amortization | 150 | — | — | 150 | |||||||||||||||||||
Premiums paid and non-cash loss on extinguishment of debt | 11 | — | — | 11 | |||||||||||||||||||
Amortization of deferred financing costs and debt issuance discount | 20 | — | — | 20 | |||||||||||||||||||
(Income) loss from equity method investments | 12 | — | — | 12 | |||||||||||||||||||
(Gain) loss on remeasurement of foreign denominated transactions | (58) | — | — | (58) | |||||||||||||||||||
Net (gains) losses on derivatives | 65 | — | — | 65 | |||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 71 | — | — | 71 | |||||||||||||||||||
Deferred income taxes | 35 | — | — | 35 | |||||||||||||||||||
Other | (14) | — | — | (14) | |||||||||||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||||||||||
Accounts and notes receivable | 11 | — | — | 11 | |||||||||||||||||||
Inventories and prepaids and other current assets | (3) | — | — | (3) | |||||||||||||||||||
Accounts and drafts payable | 129 | — | — | 129 | |||||||||||||||||||
Other accrued liabilities and gift card liability | (87) | — | — | (87) | |||||||||||||||||||
Tenant inducements paid to franchisees | (5) | — | — | (5) | |||||||||||||||||||
Other long-term assets and liabilities | (73) | — | — | (73) | |||||||||||||||||||
Net cash provided by operating activities | 1,255 | — | — | 1,255 | |||||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||||||
Payments for property and equipment | (70) | — | — | (70) | |||||||||||||||||||
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 14 | — | — | 14 | |||||||||||||||||||
Settlement/sale of derivatives, net | 2 | — | — | 2 | |||||||||||||||||||
Other investing activities, net | (15) | — | — | (15) | |||||||||||||||||||
Net cash (used for) provided by investing activities | (69) | — | — | (69) | |||||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||||
Proceeds from revolving line of credit and long-term debt | 802 | — | — | 802 | |||||||||||||||||||
Repayments of long-term debt and finance leases | (865) | — | — | (865) | |||||||||||||||||||
Payment of financing costs | (7) | — | — | (7) | |||||||||||||||||||
Distributions on Class A common and Partnership exchangeable units | — | (730) | — | (730) | |||||||||||||||||||
Distribution to RBI for repurchase of RBI common shares | — | (182) | — | (182) | |||||||||||||||||||
Capital contribution from RBI | 60 | — | — | 60 | |||||||||||||||||||
Distributions from subsidiaries | (912) | 912 | — | — | |||||||||||||||||||
(Payments) proceeds from derivatives | (45) | — | — | (45) | |||||||||||||||||||
Other financing activities, net | (3) | — | — | (3) | |||||||||||||||||||
Net cash (used for) provided by financing activities | (970) | — | — | (970) | |||||||||||||||||||
Effect of exchange rates on cash and cash equivalents | (3) | — | — | (3) | |||||||||||||||||||
Increase (decrease) in cash and cash equivalents | 213 | — | — | 213 | |||||||||||||||||||
Cash and cash equivalents at beginning of period | 1,560 | — | — | 1,560 | |||||||||||||||||||
Cash and cash equivalents at end of period | $ | 1,773 | $ | — | $ | — | $ | 1,773 |
Consolidated Borrowers | RBILP | Eliminations | Consolidated | ||||||||||||
Cash flows from operating activities: | |||||||||||||||
Net income | $ | 654.5 | $ | 654.5 | $ | (654.5 | ) | $ | 654.5 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||
Equity in loss (earnings) of consolidated subsidiaries | — | (654.5 | ) | 654.5 | — | ||||||||||
Depreciation and amortization | 129.0 | — | — | 129.0 | |||||||||||
Amortization of deferred financing costs and debt issuance discount | 29.1 | — | — | 29.1 | |||||||||||
(Income) loss from equity method investments | (16.6 | ) | — | — | (16.6 | ) | |||||||||
Loss (gain) on remeasurement of foreign denominated transactions | 16.1 | — | — | 16.1 | |||||||||||
Net losses on derivatives | 15.3 | — | — | 15.3 | |||||||||||
Share-based compensation expense | 25.9 | — | — | 25.9 | |||||||||||
Deferred income taxes | 34.6 | — | — | 34.6 | |||||||||||
Other | 8.0 | — | — | 8.0 | |||||||||||
Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||||||||||||||
Accounts and notes receivable | 20.0 | — | — | 20.0 | |||||||||||
Inventories and prepaids and other current assets | (3.0 | ) | — | — | (3.0 | ) | |||||||||
Accounts and drafts payable | 11.8 | — | — | 11.8 | |||||||||||
Advertising fund restricted assets and fund liabilities | 4.0 | — | — | 4.0 | |||||||||||
Other accrued liabilities and gift card liability | (23.8 | ) | — | — | (23.8 | ) | |||||||||
Other long-term assets and liabilities | 0.9 | — | — | 0.9 | |||||||||||
Net cash provided by operating activities | 905.8 | — | — | 905.8 | |||||||||||
Cash flows from investing activities: | |||||||||||||||
Payments for property and equipment | (18.2 | ) | — | — | (18.2 | ) | |||||||||
Proceeds from disposal of assets, restaurant closures, and refranchisings | 18.1 | — | — | 18.1 | |||||||||||
Return of investment on direct financing leases | 12.5 | — | — | 12.5 | |||||||||||
Settlement/sale of derivatives, net | 4.9 | — | — | 4.9 | |||||||||||
Other investing activities, net | 2.0 | — | — | 2.0 | |||||||||||
Net cash provided by (used for) investing activities | 19.3 | — | — | 19.3 | |||||||||||
Cash flows from financing activities: | |||||||||||||||
Repayments of long-term debt and capital leases | (52.7 | ) | — | — | (52.7 | ) | |||||||||
Distributions on common, preferred and Partnership exchangeable units | — | (396.9 | ) | — | (396.9 | ) | |||||||||
Capital contribution from RBI Inc. | — | 12.5 | — | 12.5 | |||||||||||
Distributions to RBI Inc. | — | (28.5 | ) | — | (28.5 | ) | |||||||||
Distributions from subsidiaries | (412.9 | ) | 412.9 | — | — | ||||||||||
Other financing activities, net | 0.8 | — | — | 0.8 | |||||||||||
Net cash provided by (used for) financing activities | (464.8 | ) | — | — | (464.8 | ) | |||||||||
Effect of exchange rates on cash and cash equivalents | 14.6 | — | — | 14.6 | |||||||||||
Increase (decrease) in cash and cash equivalents | 474.9 | — | — | 474.9 | |||||||||||
Cash and cash equivalents at beginning of period | 753.7 | — | — | 753.7 | |||||||||||
Cash and cash equivalents at end of period | $ | 1,228.6 | $ | — | $ | — | $ | 1,228.6 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Key Business Metrics | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
System-wide sales growth | |||||||||||||||||||||||
TH | 13.4 | % | 11.1 | % | 14.2 | % | 12.0 | % | |||||||||||||||
BK | 14.5 | % | 12.3 | % | 15.2 | % | 16.0 | % | |||||||||||||||
PLK | 12.3 | % | 4.4 | % | 8.8 | % | 7.3 | % | |||||||||||||||
Consolidated (a) | 14.0 | % | 10.8 | % | 14.0 | % | 13.8 | % | |||||||||||||||
FHS (b) | 3.8 | % | 19.3 | % | 4.4 | % | 27.6 | % | |||||||||||||||
System-wide sales (in US$ millions) | |||||||||||||||||||||||
TH | $ | 1,945 | $ | 1,774 | $ | 5,339 | $ | 4,790 | |||||||||||||||
BK | $ | 6,668 | $ | 6,212 | $ | 18,930 | $ | 17,268 | |||||||||||||||
PLK | $ | 1,532 | $ | 1,392 | $ | 4,418 | $ | 4,122 | |||||||||||||||
FHS | $ | 289 | $ | — | $ | 853 | $ | — | |||||||||||||||
Consolidated (a) | $ | 10,434 | $ | 9,378 | $ | 29,540 | $ | 26,180 | |||||||||||||||
FHS (b) | $ | — | $ | 278 | $ | — | $ | 818 | |||||||||||||||
Comparable sales | |||||||||||||||||||||||
TH | 9.8 | % | 8.9 | % | 10.2 | % | 10.7 | % | |||||||||||||||
BK | 10.3 | % | 7.9 | % | 10.2 | % | 8.5 | % | |||||||||||||||
PLK | 3.1 | % | (2.4) | % | 0.5 | % | (0.5) | % | |||||||||||||||
Consolidated (a) | 9.1 | % | 6.5 | % | 8.7 | % | 7.4 | % | |||||||||||||||
FHS (b) | 0.0 | % | 14.9 | % | 0.8 | % | 23.1 | % | |||||||||||||||
As of September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Net restaurant growth | |||||||||||||||||||||||
TH | 5.2 | % | 4.1 | % | |||||||||||||||||||
BK | 2.5 | % | 1.3 | % | |||||||||||||||||||
PLK | 8.9 | % | 5.5 | % | |||||||||||||||||||
Consolidated (a) | 3.9 | % | 2.4 | % | |||||||||||||||||||
FHS (b) | 2.5 | % | 2.0 | % | |||||||||||||||||||
Restaurant count | |||||||||||||||||||||||
TH | 5,405 | 5,137 | |||||||||||||||||||||
BK | 19,401 | 18,923 | |||||||||||||||||||||
PLK | 3,928 | 3,607 | |||||||||||||||||||||
FHS | 1,234 | — | |||||||||||||||||||||
Consolidated | 29,968 | 27,667 | |||||||||||||||||||||
FHS (b) | — | 1,204 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
Key Business Metrics (excluding Russia) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
System-wide sales growth | |||||||||||||||||||||||
BK | 13.6 | % | 11.7 | % | 14.3 | % | 15.2 | % | |||||||||||||||
Consolidated (a) | 13.4 | % | 10.4 | % | 13.4 | % | 13.3 | % | |||||||||||||||
System-wide sales (in US$ millions) | |||||||||||||||||||||||
BK | $ | 6,346 | $ | 6,017 | $ | 18,127 | $ | 16,730 | |||||||||||||||
Consolidated (a) | $ | 10,112 | $ | 9,182 | $ | 28,737 | $ | 25,642 | |||||||||||||||
Comparable sales | |||||||||||||||||||||||
BK | 9.6 | % | 7.4 | % | 9.4 | % | 7.9 | % | |||||||||||||||
Consolidated (a) | 8.6 | % | 6.1 | % | 8.1 | % | 7.0 | % | |||||||||||||||
As of September 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Net restaurant growth | |||||||||||||||||||||||
BK | 2.5 | % | 1.3 | % | |||||||||||||||||||
Consolidated (a) | 3.9 | % | 2.4 | % | |||||||||||||||||||
Restaurant count | |||||||||||||||||||||||
BK | 18,581 | 18,131 | |||||||||||||||||||||
Consolidated | 29,148 | 26,875 |
Consolidated | Three Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 759 | $ | 621 | $ | 138 | $ | (19) | $ | 157 | $ | 2,076 | $ | 1,718 | $ | 358 | $ | (38) | $ | 396 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 698 | 635 | 63 | (26) | 89 | 1,989 | 1,795 | 194 | (54) | 248 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 269 | 239 | 30 | (3) | 33 | 751 | 680 | 71 | (6) | 77 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,726 | 1,495 | 231 | (48) | 279 | 4,816 | 4,193 | 623 | (98) | 721 | |||||||||||||||||||||||||||||||||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 615 | 490 | (125) | 15 | (140) | 1,693 | 1,358 | (335) | 30 | (365) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 137 | 121 | (16) | 3 | (19) | 392 | 358 | (34) | 6 | (40) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 276 | 245 | (31) | 4 | (35) | 782 | 725 | (57) | 7 | (64) | |||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | 156 | 115 | (41) | 3 | (44) | 435 | 327 | (108) | 7 | (115) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Income) loss from equity method investments | 8 | 7 | (1) | — | (1) | 30 | 12 | (18) | — | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses (income), net | (27) | (16) | 11 | (4) | 15 | (68) | (50) | 18 | (6) | 24 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total operating costs and expenses | 1,165 | 962 | (203) | 21 | (224) | 3,264 | 2,730 | (534) | 44 | (578) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 561 | 533 | 28 | (27) | 55 | 1,552 | 1,463 | 89 | (54) | 143 | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 133 | 128 | (5) | — | (5) | 389 | 378 | (11) | — | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | — | 11 | 11 | — | 11 | — | 11 | 11 | — | 11 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 428 | 394 | 34 | (27) | 61 | 1,163 | 1,074 | 89 | (54) | 143 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (102) | 65 | 167 | — | 167 | 17 | 83 | 66 | 2 | 64 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 530 | $ | 329 | $ | 201 | $ | (27) | $ | 228 | $ | 1,146 | $ | 991 | $ | 155 | $ | (52) | $ | 207 |
TH Segment | Three Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 710 | $ | 592 | $ | 118 | $ | (19) | $ | 137 | $ | 1,937 | $ | 1,621 | $ | 316 | $ | (38) | $ | 354 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 250 | 230 | 20 | (7) | 27 | 694 | 639 | 55 | (15) | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 73 | 63 | 10 | (2) | 12 | 199 | 166 | 33 | (4) | 37 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 1,033 | 885 | 148 | (28) | 176 | 2,830 | 2,426 | 404 | (57) | 461 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 568 | 462 | (106) | 15 | (121) | 1,558 | 1,266 | (292) | 30 | (322) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 87 | 84 | (3) | 3 | (6) | 252 | 251 | (1) | 6 | (7) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 73 | 68 | (5) | 3 | (8) | 211 | 198 | (13) | 5 | (18) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 31 | 27 | (4) | — | (4) | 92 | 77 | (15) | 1 | (16) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 26 | 31 | 5 | 1 | 4 | 83 | 94 | 11 | 2 | 9 | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income (c) | 305 | 278 | 27 | (9) | 36 | 810 | 738 | 72 | (18) | 90 |
BK Segment | Three Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 19 | $ | 16 | $ | 3 | $ | — | $ | 3 | $ | 52 | $ | 49 | $ | 3 | $ | — | $ | 3 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 349 | 333 | 16 | (18) | 34 | 1,002 | 944 | 58 | (37) | 95 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 123 | 118 | 5 | (1) | 6 | 353 | 340 | 13 | (2) | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 491 | 467 | 24 | (19) | 43 | 1,407 | 1,333 | 74 | (39) | 113 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 19 | 16 | (3) | — | (3) | 55 | 49 | (6) | — | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 46 | 34 | (12) | — | (12) | 125 | 100 | (25) | — | (25) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 130 | 118 | (12) | 1 | (13) | 372 | 351 | (21) | 2 | (23) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 45 | 38 | (7) | 1 | (8) | 130 | 114 | (16) | 3 | (19) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 11 | 12 | 1 | 1 | — | 35 | 36 | 1 | 1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | 262 | 272 | (10) | (16) | 6 | 761 | 755 | 6 | (34) | 40 |
PLK Segment (in millions of U.S. dollars) | Three months ended September 30, 2017 | Nine months ended September 30, 2017 | ||||
Revenues: | ||||||
Sales | $ | 22.7 | $ | 45.7 | ||
Franchise and property revenues | 45.3 | 89.0 | ||||
Total revenues | 68.0 | 134.7 | ||||
Cost of sales | 17.8 | 37.0 | ||||
Franchise and property expenses | 2.2 | 4.5 | ||||
Segment SG&A | 12.8 | 27.2 | ||||
Segment depreciation and amortization (a) | 1.6 | 4.0 | ||||
Segment income | 36.8 | 70.0 |
PLK Segment | Three Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact (a) | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 21 | $ | 13 | $ | 8 | $ | — | $ | 8 | $ | 58 | $ | 48 | $ | 10 | $ | — | $ | 10 | |||||||||||||||||||||||||||||||||||||||
Franchise and property revenues | 78 | 72 | 6 | (1) | 7 | 230 | 212 | 18 | (2) | 20 | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising revenues and other services | 65 | 58 | 7 | — | 7 | 189 | 174 | 15 | — | 15 | |||||||||||||||||||||||||||||||||||||||||||||||||
Total revenues | 164 | 143 | 21 | (1) | 22 | 477 | 434 | 43 | (2) | 45 | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales | 19 | 12 | (7) | — | (7) | 54 | 43 | (11) | — | (11) | |||||||||||||||||||||||||||||||||||||||||||||||||
Franchise and property expenses | 2 | 3 | 1 | — | 1 | 9 | 7 | (2) | — | (2) | |||||||||||||||||||||||||||||||||||||||||||||||||
Advertising expenses and other services | 66 | 59 | (7) | — | (7) | 191 | 176 | (15) | — | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A | 16 | 15 | (1) | — | (1) | 48 | 42 | (6) | — | (6) | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment depreciation and amortization (b) | 2 | 1 | (1) | — | (1) | 5 | 5 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Segment income | 62 | 57 | 5 | (1) | 6 | 179 | 171 | 8 | (2) | 10 |
FHS Segment | Three Months Ended September 30, 2022 | Nine Months Ended September 30, 2022 | |||||||||
Revenues: | |||||||||||
Sales | $ | 9 | $ | 29 | |||||||
Franchise and property revenues | 21 | 63 | |||||||||
Advertising revenues and other services | 8 | 10 | |||||||||
Total revenues | 38 | 102 | |||||||||
Cost of sales | 9 | 26 | |||||||||
Franchise and property expenses | 2 | 6 | |||||||||
Advertising expenses and other services | 7 | 8 | |||||||||
Segment G&A | 9 | 25 | |||||||||
Segment depreciation and amortization (b) | 1 | 2 | |||||||||
Segment income | 13 | 40 |
Consolidated | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 631.6 | $ | 586.4 | $ | 45.2 | $ | 20.6 | $ | 24.6 | $ | 1,784.1 | $ | 1,635.5 | $ | 148.6 | $ | 15.6 | $ | 133.0 | |||||||||||||||||||
Franchise and property revenues | 577.0 | 489.3 | 87.7 | 9.8 | 77.9 | 1,557.8 | 1,398.9 | 158.9 | 3.7 | 155.2 | |||||||||||||||||||||||||||||
Total revenues | 1,208.6 | 1,075.7 | 132.9 | 30.4 | 102.5 | 3,341.9 | 3,034.4 | 307.5 | 19.3 | 288.2 | |||||||||||||||||||||||||||||
Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||
Cost of sales | 493.3 | 457.1 | (36.2 | ) | (16.0 | ) | (20.2 | ) | 1,376.9 | 1,285.7 | (91.2 | ) | (12.4 | ) | (78.8 | ) | |||||||||||||||||||||||
Franchise and property expenses | 118.5 | 109.8 | (8.7 | ) | (3.2 | ) | (5.5 | ) | 343.2 | 323.5 | (19.7 | ) | (1.9 | ) | (17.8 | ) | |||||||||||||||||||||||
Selling, general and administrative expenses | 100.1 | 82.2 | (17.9 | ) | (2.1 | ) | (15.8 | ) | 318.7 | 228.5 | (90.2 | ) | (1.4 | ) | (88.8 | ) | |||||||||||||||||||||||
(Income) loss from equity method investments | (4.1 | ) | (2.6 | ) | 1.5 | — | 1.5 | (8.9 | ) | (16.6 | ) | (7.7 | ) | (0.1 | ) | (7.6 | ) | ||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | (12.8 | ) | (0.6 | ) | (12.2 | ) | 82.1 | 38.2 | (43.9 | ) | 0.6 | (44.5 | ) | ||||||||||||||||||||||||
Total operating costs and expenses | 729.3 | 655.2 | (74.1 | ) | (21.9 | ) | (52.2 | ) | 2,112.0 | 1,859.3 | (252.7 | ) | (15.2 | ) | (237.5 | ) | |||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 58.8 | 8.5 | 50.3 | 1,229.9 | 1,175.1 | 54.8 | 4.1 | 50.7 | |||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | (18.7 | ) | 0.1 | (18.8 | ) | 375.4 | 349.6 | (25.8 | ) | (0.1 | ) | (25.7 | ) | ||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | (58.2 | ) | — | (58.2 | ) | 78.6 | — | (78.6 | ) | — | (78.6 | ) | |||||||||||||||||||||||||
Income before income taxes | 285.1 | 303.2 | (18.1 | ) | 8.6 | (26.7 | ) | 775.9 | 825.5 | (49.6 | ) | 4.0 | (53.6 | ) | |||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 26.3 | 1.5 | 24.8 | 119.0 | 171.0 | 52.0 | 0.2 | 51.8 | |||||||||||||||||||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 8.2 | $ | 10.1 | $ | (1.9 | ) | $ | 656.9 | $ | 654.5 | $ | 2.4 | $ | 4.2 | $ | (1.8 | ) | |||||||||||||||||
TH Segment | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 585.5 | $ | 563.0 | $ | 22.5 | $ | 20.4 | $ | 2.1 | $ | 1,666.8 | $ | 1,565.8 | $ | 101.0 | $ | 14.7 | $ | 86.3 | |||||||||||||||||||
Franchise and property revenues | 241.5 | 226.9 | 14.6 | 8.5 | 6.1 | 666.1 | 641.7 | 24.4 | 6.6 | 17.8 | |||||||||||||||||||||||||||||
Total revenues | 827.0 | 789.9 | 37.1 | 28.9 | 8.2 | 2,332.9 | 2,207.5 | 125.4 | 21.3 | 104.1 | |||||||||||||||||||||||||||||
Cost of sales | 454.2 | 436.7 | (17.5 | ) | (15.9 | ) | (1.6 | ) | 1,273.8 | 1,226.4 | (47.4 | ) | (11.7 | ) | (35.7 | ) | |||||||||||||||||||||||
Franchise and property expenses | 83.2 | 77.7 | (5.5 | ) | (3.0 | ) | (2.5 | ) | 240.7 | 224.8 | (15.9 | ) | (2.5 | ) | (13.4 | ) | |||||||||||||||||||||||
Segment SG&A | 24.1 | 17.0 | (7.1 | ) | (0.5 | ) | (6.6 | ) | 71.4 | 48.3 | (23.1 | ) | (0.4 | ) | (22.7 | ) | |||||||||||||||||||||||
Segment depreciation and amortization(a) | 26.1 | 25.7 | (0.4 | ) | (0.8 | ) | 0.4 | 75.9 | 76.9 | 1.0 | (0.7 | ) | 1.7 | ||||||||||||||||||||||||||
Segment income (b) | 294.4 | 287.1 | 7.3 | 10.5 | (3.2 | ) | 831.7 | 793.9 | 37.8 | 7.6 | 30.2 | ||||||||||||||||||||||||||||
BK Segment | Three Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | Nine Months Ended September 30, | Variance | FX Impact | Variance Excluding FX Impact | |||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | ||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||
Sales | $ | 23.4 | $ | 23.4 | $ | — | $ | 0.2 | $ | (0.2 | ) | $ | 71.6 | $ | 69.7 | $ | 1.9 | $ | 0.9 | $ | 1.0 | ||||||||||||||||||
Franchise and property revenues | 290.2 | 262.4 | 27.8 | 1.3 | 26.5 | 802.7 | 757.2 | 45.5 | (2.9 | ) | 48.4 | ||||||||||||||||||||||||||||
Total revenues | 313.6 | 285.8 | 27.8 | 1.5 | 26.3 | 874.3 | 826.9 | 47.4 | (2.0 | ) | 49.4 | ||||||||||||||||||||||||||||
Cost of sales | 21.3 | 20.4 | (0.9 | ) | (0.1 | ) | (0.8 | ) | 66.1 | 59.3 | (6.8 | ) | (0.7 | ) | (6.1 | ) | |||||||||||||||||||||||
Franchise and property expenses | 33.1 | 32.1 | (1.0 | ) | (0.2 | ) | (0.8 | ) | 98.0 | 98.7 | 0.7 | 0.6 | 0.1 | ||||||||||||||||||||||||||
Segment SG&A | 38.0 | 43.5 | 5.5 | (0.5 | ) | 6.0 | 110.3 | 122.9 | 12.6 | (0.1 | ) | 12.7 | |||||||||||||||||||||||||||
Segment depreciation and amortization (a) | 12.7 | 12.0 | (0.7 | ) | (0.1 | ) | (0.6 | ) | 37.9 | 35.9 | (2.0 | ) | — | (2.0 | ) | ||||||||||||||||||||||||
Segment income | 233.9 | 201.8 | 32.1 | 0.8 | 31.3 | 637.8 | 581.9 | 55.9 | (2.2 | ) | 58.1 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Key Business Metrics | 2017 | 2016 | 2017 | 2016 | |||||||||||
Comparable sales | |||||||||||||||
TH | 0.3 | % | 2.0 | % | (0.2 | )% | 3.3 | % | |||||||
BK | 3.6 | % | 1.7 | % | 2.6 | % | 2.2 | % | |||||||
PLK (c) | (1.8 | )% | 1.8 | % | (1.5 | )% | 1.4 | % | |||||||
System-wide sales growth | |||||||||||||||
TH | 3.0 | % | 4.8 | % | 3.0 | % | 6.1 | % | |||||||
BK | 11.2 | % | 7.0 | % | 9.4 | % | 7.5 | % | |||||||
PLK (c) | 4.5 | % | 8.3 | % | 4.6 | % | 7.0 | % | |||||||
System-wide sales | |||||||||||||||
TH | $ | 1,812.3 | $ | 1,690.4 | $ | 4,971.8 | $ | 4,783.0 | |||||||
BK | $ | 5,335.0 | $ | 4,776.7 | $ | 14,773.1 | $ | 13,557.6 | |||||||
PLK (c) | $ | 897.3 | $ | 781.6 | $ | 2,623.5 | $ | 2,519.0 | |||||||
As of | |||||||||||||||
September 30, 2017 | September 30, 2016 | ||||||||||||||
Net restaurant growth | |||||||||||||||
TH | 4.2 | % | 3.4 | % | |||||||||||
BK | 6.6 | % | 3.9 | % | |||||||||||
PLK (d) | 5.9 | % | 5.9 | % | |||||||||||
Restaurant count | |||||||||||||||
TH | 4,680 | 4,492 | |||||||||||||
BK | �� | 16,253 | 15,243 | ||||||||||||
PLK (d) | 2,809 | 2,653 |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | 2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment SG&A: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment G&A: | Segment G&A: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TH | $ | 24.1 | $ | 17.0 | $ | (7.1 | ) | (41.8 | )% | $ | 71.4 | $ | 48.3 | $ | (23.1 | ) | (47.8 | )% | TH | $ | 31 | $ | 27 | $ | (4) | (14.8) | % | $ | 92 | $ | 77 | $ | (15) | (19.5) | % | |||||||||||||||||||||||||||||||||||||||||
BK | 38.0 | 43.5 | 5.5 | 12.6 | % | 110.3 | 122.9 | 12.6 | 10.3 | % | BK | 45 | 38 | (7) | (18.4) | % | 130 | 114 | (16) | (14.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK | 12.8 | — | (12.8 | ) | NM | 27.2 | — | (27.2 | ) | NM | PLK | 16 | 15 | (1) | (6.7) | % | 48 | 42 | (6) | (14.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS | FHS | 9 | — | (9) | NM | 25 | — | (25) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | (0.7 | ) | (5.9 | )% | 42.9 | 31.0 | (11.9 | ) | (38.4 | )% | Share-based compensation and non-cash incentive compensation expense | 34 | 25 | (9) | (36.0) | % | 93 | 71 | (22) | (31.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 5.8 | 5.5 | (0.3 | ) | (5.5 | )% | 17.1 | 15.9 | (1.2 | ) | (7.5 | )% | Depreciation and amortization | 6 | 6 | — | — | % | 18 | 15 | (3) | (20.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK Transaction costs | 6.9 | — | (6.9 | ) | NM | 49.8 | — | (49.8 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration costs | — | 4.4 | 4.4 | NM | — | 10.4 | 10.4 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses | $ | 100.1 | $ | 82.2 | $ | (17.9 | ) | (21.8 | )% | $ | 318.7 | $ | 228.5 | $ | (90.2 | ) | (39.5 | )% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS Transaction costs | FHS Transaction costs | 3 | — | (3) | NM | 8 | — | (8) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate restructuring and tax advisory fees | Corporate restructuring and tax advisory fees | 12 | 4 | (8) | (200.0) | % | 21 | 8 | (13) | (162.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative expenses | General and administrative expenses | $ | 156 | $ | 115 | $ | (41) | (35.7) | % | $ | 435 | $ | 327 | $ | (108) | (33.0) | % |
Three Months Ended September 30, | Nine Months Ended September 30, | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2017 | 2016 | 2017 | 2016 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 3.4 | $ | 3.3 | $ | 14.9 | $ | 19.6 | Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ | 1 | $ | 2 | $ | 2 | $ | 1 | |||||||||||||||||||||
Litigation settlements and reserves, net | 0.6 | 0.4 | 1.7 | 2.0 | ||||||||||||||||||||||||||||||||||
Litigation settlements (gains) and reserves, net | Litigation settlements (gains) and reserves, net | — | 4 | 3 | 7 | |||||||||||||||||||||||||||||||||
Net losses (gains) on foreign exchange | 17.7 | 4.1 | 64.9 | 16.1 | Net losses (gains) on foreign exchange | (30) | (23) | (82) | (58) | |||||||||||||||||||||||||||||
Other, net | (0.2 | ) | 0.9 | 0.6 | 0.5 | Other, net | 2 | 1 | 9 | — | ||||||||||||||||||||||||||||
Other operating expenses (income), net | $ | 21.5 | $ | 8.7 | $ | 82.1 | $ | 38.2 | Other operating expenses (income), net | $ | (27) | $ | (16) | $ | (68) | $ | (50) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Interest expense, net | $ | 133 | $ | 128 | $ | 389 | $ | 378 | |||||||||||||||
Weighted average interest rate on long-term debt | 4.5 | % | 4.2 | % | 4.2 | % | 4.2 | % |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Interest expense, net | $ | 136.0 | $ | 117.3 | $ | 375.4 | $ | 349.6 | |||||||
Weighted average interest rate on long-term debt | 4.8 | % | 5.2 | % | 4.9 | % | 5.2 | % |
Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | Three Months Ended September 30, | Variance | Nine Months Ended September 30, | Variance | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | Favorable / (Unfavorable) | 2017 | 2016 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | 2022 | 2021 | Favorable / (Unfavorable) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment income: | Segment income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
TH | $ | 294.4 | $ | 287.1 | $ | 7.3 | 2.5 | % | $ | 831.7 | $ | 793.9 | $ | 37.8 | 4.8 | % | TH | $ | 305 | $ | 278 | $ | 27 | 9.6 | % | $ | 810 | $ | 738 | $ | 72 | 9.7 | % | |||||||||||||||||||||||||||||||||||||||||||
BK | 233.9 | 201.8 | 32.1 | 15.9 | % | 637.8 | 581.9 | 55.9 | 9.6 | % | BK | 262 | 272 | (10) | (3.8) | % | 761 | 755 | 6 | 0.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK | 36.8 | — | 36.8 | NM | 70.0 | — | 70.0 | NM | PLK | 62 | 57 | 5 | 10.4 | % | 179 | 171 | 8 | 5.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS | FHS | 13 | — | 13 | NM | 40 | — | 40 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adjusted EBITDA | 565.1 | 488.9 | 76.2 | 15.6 | % | 1,539.5 | 1,375.8 | 163.7 | 11.9 | % | Adjusted EBITDA | 642 | 607 | 35 | 5.8 | % | 1,790 | 1,664 | 126 | 7.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation and non-cash incentive compensation expense | 12.5 | 11.8 | (0.7 | ) | (5.9 | )% | 42.9 | 31.0 | (11.9 | ) | (38.4 | )% | Share-based compensation and non-cash incentive compensation expense | 34 | 25 | (9) | (36.0) | % | 93 | 71 | (22) | (31.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
PLK Transaction costs | 6.9 | — | (6.9 | ) | NM | 49.8 | — | (49.8 | ) | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Integration costs | — | 4.4 | 4.4 | NM | — | 10.4 | 10.4 | NM | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FHS Transaction costs | FHS Transaction costs | 3 | — | (3) | NM | 8 | — | (8) | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate restructuring and tax advisory fees | Corporate restructuring and tax advisory fees | 12 | 4 | (8) | (200.0) | % | 21 | 8 | (13) | (162.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of equity method investments (a) | (1.3 | ) | 0.3 | 1.6 | NM | (0.1 | ) | (7.6 | ) | (7.5 | ) | 98.7 | % | Impact of equity method investments (a) | 13 | 11 | (2) | (18.2) | % | 41 | 22 | (19) | (86.4) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expenses (income), net | 21.5 | 8.7 | (12.8 | ) | NM | 82.1 | 38.2 | (43.9 | ) | (114.9 | )% | Other operating expenses (income), net | (27) | (16) | 11 | NM | (68) | (50) | 18 | (36.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
EBITDA | 525.5 | 463.7 | 61.8 | 13.3 | % | 1,364.8 | 1,303.8 | 61.0 | 4.7 | % | EBITDA | 607 | 583 | 24 | 4.1 | % | 1,695 | 1,613 | 82 | 5.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 46.2 | 43.2 | (3.0 | ) | (6.9 | )% | 134.9 | 128.7 | (6.2 | ) | (4.8 | )% | Depreciation and amortization | 46 | 50 | 4 | 8.0 | % | 143 | 150 | 7 | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income from operations | 479.3 | 420.5 | 58.8 | 14.0 | % | 1,229.9 | 1,175.1 | 54.8 | 4.7 | % | Income from operations | 561 | 533 | 28 | 5.3 | % | 1,552 | 1,463 | 89 | 6.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, net | 136.0 | 117.3 | (18.7 | ) | (15.9 | )% | 375.4 | 349.6 | (25.8 | ) | (7.4 | )% | Interest expense, net | 133 | 128 | (5) | (3.9) | % | 389 | 378 | (11) | (2.9) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | 58.2 | — | (58.2 | ) | NM | 78.6 | — | (78.6 | ) | NM | Loss on early extinguishment of debt | — | 11 | 11 | NM | — | 11 | 11 | NM | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 38.3 | 64.6 | 26.3 | 40.7 | % | 119.0 | 171.0 | 52.0 | 30.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | Income tax expense (benefit) | (102) | 65 | 167 | 256.9 | % | 17 | 83 | 66 | 79.5 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 246.8 | $ | 238.6 | $ | 8.2 | 3.4 | % | $ | 656.9 | $ | 654.5 | $ | 2.4 | 0.4 | % | Net income | $ | 530 | $ | 329 | $ | 201 | 61.1 | % | $ | 1,146 | $ | 991 | $ | 155 | 15.6 | % |
Payment Due by Period | |||||||||||||||||||
Less Than | More Than | ||||||||||||||||||
Contractual Obligations | Total | 1 Year | 1-3 Years | 3-5 Years | 5 Years | ||||||||||||||
(In millions) | |||||||||||||||||||
Credit Facilities, including interest (a) | $ | 7,821.2 | $ | 292.4 | $ | 578.6 | $ | 568.9 | $ | 6,381.3 | |||||||||
All Senior Notes, including interest (b) | 7,346.3 | 261.6 | 523.1 | 1,732.2 | 4,829.4 |
Exhibit Number | Description | |||||||
101.INS | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101) |
RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | ||||||||||||||||||||||||||||||
By: | Restaurant Brands International Inc., its general partner | |||||||||||||||||||||||||||||
Date: | By: | /s/ | ||||||||||||||||||||||||||||
Name: | ||||||||||||||||||||||||||||||
Title: | Chief Financial Officer of Restaurant Brands International Inc. (principal financial officer) (duly authorized officer) |