Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 23, 2024 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-36787 | |
Entity Registrant Name | RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP | |
Entity Incorporation, State or Country Code | Z4 | |
Entity Tax Identification Number | 98-1206431 | |
Entity Address, Address Line One | 130 King Street West, Suite 300 | |
Entity Address, Postal Zip Code | M5X 1E1 | |
Entity Address, City or Town | Toronto, | |
Entity Address, State or Province | ON | |
City Area Code | 905 | |
Local Phone Number | 339-6011 | |
Title of 12(g) Security | Class B exchangeable limited partnership units | |
Trading Symbol | QSP | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001618755 | |
Current Fiscal Year End Date | --12-31 | |
Partnership exchangeable units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 133,595,544 | |
Class A common units | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 202,008,287 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||||
Cash and cash equivalents | $ 1,049 | $ 1,139 | $ 1,033 | $ 1,178 |
Accounts and notes receivable, net of allowance of $46 and $37, respectively | 749 | 749 | ||
Inventories, net | 152 | 166 | ||
Prepaids and other current assets | 121 | 119 | ||
Total current assets | 2,071 | 2,173 | ||
Property and equipment, net of accumulated depreciation and amortization of $1,206 and $1,187, respectively | 1,929 | 1,952 | ||
Operating lease assets, net | 1,141 | 1,122 | ||
Intangible assets, net | 10,970 | 11,107 | ||
Goodwill | 5,702 | 5,775 | ||
Other assets, net | 1,332 | 1,262 | ||
Total assets | 23,145 | 23,391 | ||
Current liabilities: | ||||
Accounts and drafts payable | 734 | 790 | ||
Other accrued liabilities | 893 | 1,005 | ||
Gift card liability | 187 | 248 | ||
Current portion of long-term debt and finance leases | 110 | 101 | ||
Total current liabilities | 1,924 | 2,144 | ||
Long-term debt, net of current portion | 12,832 | 12,854 | ||
Finance leases, net of current portion | 308 | 312 | ||
Operating lease liabilities, net of current portion | 1,075 | 1,059 | ||
Other liabilities, net | 862 | 996 | ||
Deferred income taxes, net | 1,309 | 1,296 | ||
Total liabilities | 18,310 | 18,661 | ||
Partners’ capital: | ||||
Accumulated other comprehensive income (loss) | (1,044) | (985) | ||
Total Partners’ capital | 4,833 | 4,728 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 4,835 | 4,730 | $ 4,311 | $ 4,268 |
Total liabilities and equity | 23,145 | 23,391 | ||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units; 202,008,287 issued and outstanding at March 31, 2024; 202,006,067 issued and outstanding at December 31, 2023 | 9,764 | 9,620 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units; 133,595,544 issued and outstanding at March 31, 2024; 133,597,764 issued and outstanding at December 31, 2023 | $ (3,887) | $ (3,907) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Financing receivable, allowance for credit loss, current | $ 46 | $ 37 |
Accumulated depreciation and amortization | $ 1,206 | $ 1,187 |
Class A common units | ||
Class A common units, issued (in shares) | 202,008,287 | 202,006,067 |
Class A common units, outstanding (in shares) | 202,008,287 | 202,006,067 |
Partnership exchangeable units | ||
Partnership exchangeable units, issued (in shares) | 133,595,544 | 133,597,764 |
Partnership exchangeable units, outstanding (in shares) | 133,595,544 | 133,597,764 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Total revenues | $ 1,739 | $ 1,590 |
Operating costs and expenses: | ||
Cost of sales | 606 | 550 |
Franchise and property expenses | 126 | 123 |
Advertising expenses and other services | 311 | 271 |
General and administrative expenses | 173 | 175 |
(Income) loss from equity method investments | (3) | 7 |
Other operating expenses (income), net | (18) | 17 |
Total operating costs and expenses | 1,195 | 1,143 |
Income from operations | 544 | 447 |
Interest expense, net | 148 | 142 |
Income before income taxes | 396 | 305 |
Income tax expense | 68 | 28 |
Net income | 328 | 277 |
Net income attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 327 | 276 |
Class A common units | ||
Operating costs and expenses: | ||
Net income attributable to common unitholders | $ 230 | $ 189 |
Earnings per unit - basic and diluted | ||
Earnings per unit, basic (in usd per share) | $ 1.14 | $ 0.94 |
Earnings per unit, diluted (in usd per share) | $ 1.14 | $ 0.94 |
Weighted average units outstanding - basic and diluted (in millions): | ||
Basic (in shares) | 202 | 202 |
Diluted (in shares) | 202 | 202 |
Partnership exchangeable units | ||
Operating costs and expenses: | ||
Net income attributable to common unitholders | $ 97 | $ 87 |
Earnings per unit - basic and diluted | ||
Earnings per unit, basic (in usd per share) | $ 0.73 | $ 0.61 |
Earnings per unit, diluted (in usd per share) | $ 0.73 | $ 0.61 |
Weighted average units outstanding - basic and diluted (in millions): | ||
Basic (in shares) | 134 | 143 |
Diluted (in shares) | 134 | 143 |
Sales | ||
Revenues: | ||
Total revenues | $ 729 | $ 668 |
Franchise and property revenues | ||
Revenues: | ||
Total revenues | 712 | 668 |
Advertising revenues and other services | ||
Revenues: | ||
Total revenues | $ 298 | $ 254 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 328 | $ 277 |
Foreign currency translation adjustment | (240) | 40 |
Net change in fair value of net investment hedges, net of tax of $3 and $4 | 134 | (31) |
Net change in fair value of cash flow hedges, net of tax of $(26) and $15 | 69 | (43) |
Amounts reclassified to earnings of cash flow hedges, net of tax of $8 and $5 | (22) | (13) |
Other comprehensive income (loss) | (59) | (47) |
Comprehensive income (loss) | 269 | 230 |
Comprehensive income (loss) attributable to noncontrolling interests | 1 | 1 |
Comprehensive income (loss) attributable to common unitholders | $ 268 | $ 229 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net change in fair value of net investment hedges, tax | $ 3 | $ 4 |
Net change in fair value of cash flow hedges, tax | (26) | 15 |
Amounts reclassified to earnings of cash flow hedges, tax | $ 8 | $ 5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Equity - USD ($) $ in Millions | Total | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Class A common units | Class A common units Class A Common Units | Class A common units Partnership Exchangeable Units | Partnership exchangeable units | Partnership exchangeable units Partnership Exchangeable Units |
Class A beginning balance (in shares) at Dec. 31, 2022 | 202,006,067 | |||||||
Beginning balance at Dec. 31, 2022 | $ 4,268 | $ (973) | $ 2 | $ 8,735 | $ (3,496) | |||
Partnership exchangeable units beginning balance (in shares) at Dec. 31, 2022 | 142,996,640 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Distributions declared on Class A common units | (171) | (171) | ||||||
Distributions declared on partnership exchangeable units | (77) | $ (77) | ||||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | (2,214,072) | |||||||
Exchange of Partnership exchangeable units for RBI common shares | 0 | 136 | $ (136) | |||||
Capital contribution from RBI | 62 | 62 | ||||||
Restaurant VIE contributions (distributions) | (1) | (1) | ||||||
Net income | 277 | 1 | $ 189 | 87 | ||||
Other comprehensive income (loss) | (47) | (47) | ||||||
Class A ending balance (in shares) at Mar. 31, 2023 | 202,006,067 | |||||||
Ending balance at Mar. 31, 2023 | 4,311 | (1,020) | 2 | $ 8,951 | $ (3,622) | |||
Partnership exchangeable units ending balance (in shares) at Mar. 31, 2023 | 140,782,568 | |||||||
Class A beginning balance (in shares) at Dec. 31, 2023 | 202,006,067 | 202,006,067 | ||||||
Beginning balance at Dec. 31, 2023 | 4,730 | (985) | 2 | $ 9,620 | $ (3,907) | |||
Partnership exchangeable units beginning balance (in shares) at Dec. 31, 2023 | 133,597,764 | 133,597,764 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Distributions declared on Class A common units | (184) | (184) | ||||||
Distributions declared on partnership exchangeable units | (77) | $ (77) | ||||||
Exchange of Partnership exchangeable units for RBI common shares (in shares) | 2,220 | 2,220 | (2,220) | |||||
Capital contribution from RBI | 98 | 98 | ||||||
Restaurant VIE contributions (distributions) | (1) | (1) | ||||||
Net income | 328 | 1 | $ 230 | $ 97 | ||||
Other comprehensive income (loss) | (59) | (59) | ||||||
Class A ending balance (in shares) at Mar. 31, 2024 | 202,008,287 | 202,008,287 | ||||||
Ending balance at Mar. 31, 2024 | $ 4,835 | $ (1,044) | $ 2 | $ 9,764 | $ (3,887) | |||
Partnership exchangeable units ending balance (in shares) at Mar. 31, 2024 | 133,595,544 | 133,595,544 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Class A common units | ||
Dividend distributions declared (in usd per share) | $ 0.91 | $ 0.85 |
Class A common units | Partnership Exchangeable Units | ||
Exchange of partnership exchange units for RBI common shares (in shares) | 2,220 | |
Partnership exchangeable units | ||
Dividend distributions declared (in usd per share) | $ 0.58 | $ 0.55 |
Exchange of partnership exchange units for RBI common shares (in shares) | 2,220 | |
Partnership exchangeable units | Partnership Exchangeable Units | ||
Exchange of partnership exchange units for RBI common shares (in shares) | (2,220) | (2,214,072) |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 328 | $ 277 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49 | 46 |
Amortization of deferred financing costs and debt issuance discount | 6 | 7 |
(Income) loss from equity method investments | (3) | 7 |
(Gain) loss on remeasurement of foreign denominated transactions | (23) | 8 |
Net (gains) losses on derivatives | (41) | (34) |
Share-based compensation and non-cash incentive compensation expense | 46 | 45 |
Deferred income taxes | 18 | (28) |
Other | 7 | 1 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (6) | (8) |
Inventories and prepaids and other current assets | 7 | (20) |
Accounts and drafts payable | (46) | (81) |
Other accrued liabilities and gift card liability | (175) | (123) |
Tenant inducements paid to franchisees | (5) | (6) |
Other long-term assets and liabilities | (14) | 4 |
Net cash provided by operating activities | 148 | 95 |
Cash flows from investing activities: | ||
Payments for property and equipment | (26) | (18) |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 2 | 4 |
Net payments from acquisition of franchised restaurants | (23) | 0 |
Settlement/sale of derivatives, net | 16 | 14 |
Net cash (used for) provided by investing activities | (31) | 0 |
Cash flows from financing activities: | ||
Repayments of long-term debt and finance leases | (24) | (32) |
Distributions on Class A common and Partnership exchangeable units | (245) | (243) |
Capital contribution from RBI | 39 | 6 |
Proceeds from derivatives | 28 | 29 |
Other financing activities, net | (1) | 0 |
Net cash (used for) provided by financing activities | (203) | (240) |
Effect of exchange rates on cash and cash equivalents | (4) | 0 |
Increase (decrease) in cash and cash equivalents | (90) | (145) |
Cash and cash equivalents at beginning of period | 1,139 | 1,178 |
Cash and cash equivalents at end of period | 1,049 | 1,033 |
Supplemental cash flow disclosures: | ||
Interest paid | 170 | 163 |
Income taxes paid | $ 87 | $ 61 |
Description of Business and Org
Description of Business and Organization | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Organization | Description of Business and Organization Restaurant Brands International Limited Partnership (“Partnership”, “we”, “us” or “our”) is a Canadian limited partnership. We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons ® brand (“Tim Hortons”), fast food hamburgers principally under the Burger King ® brand (“Burger King”), chicken principally under the Popeyes ® brand (“Popeyes”) and sandwiches under the Firehouse Subs ® brand (“Firehouse”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of March 31, 2024, we franchised or owned 5,818 Tim Hortons restaurants, 19,374 Burger King restaurants, 4,625 Popeyes restaurants and 1,296 Firehouse Subs restaurants, for a total of 31,113 restaurants, and operate in more than 120 countries and territories. As of March 31, 2024, nearly all of the current system-wide restaurants are franchised. We are a subsidiary of Restaurant Brands International Inc. (“RBI”). RBI is our sole general partner, and as such, RBI has the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership in accordance with the partnership agreement of Partnership (“partnership agreement”) and applicable laws. All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated. |
Basis of Presentation and Conso
Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 22, 2024. The Financial Statements include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year. The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts. Supplier Finance Programs Our TH business includes individually negotiated contracts with suppliers, which include payment terms that range up to 120 days. A global financial institution offers a voluntary supply chain finance (“SCF”) program to certain TH vendors, which provides suppliers that elect to participate with the ability to elect early payment, which is discounted based on the payment terms and a rate based on RBI's credit rating, which may be beneficial to the vendor. Participation in the SCF program is at the sole discretion of the suppliers and financial institution and we are not a party to the arrangements between the suppliers and the financial institution. Our obligations to suppliers are not affected by the suppliers’ decisions to participate in the SCF program and our payment terms remain the same based on the original supplier invoicing terms and conditions. No guarantees are provided by us or any of our subsidiaries in connection with the SCF Program. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements Segment Reporting – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that expands segment disclosures for public entities, including requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), the title and position of the CODM and an explanation of how the CODM uses reported measures of segment profit or loss in assessing segment performance and allocating resources. The new guidance also expands disclosures about a reportable segment’s profit or loss and assets in interim periods and clarifies that a public entity may report additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss. The new guidance does not remove existing segment disclosure requirements or change how a public entity identifies its operating segments, aggregates those operating segments, or determines its reportable segments. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2023, and subsequent interim periods with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance that expands income tax disclosures for public entities, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance should be applied on a prospective basis, with retrospective application to all prior periods presented in the financial statements permitted. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2024 2023 Lease income - operating leases Minimum lease payments $ 94 $ 98 Variable lease payments 108 96 Subtotal - lease income from operating leases 202 194 Earned income on direct financing and sales-type leases 4 2 Total property revenues $ 206 $ 196 |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2024 2023 Lease income - operating leases Minimum lease payments $ 94 $ 98 Variable lease payments 108 96 Subtotal - lease income from operating leases 202 194 Earned income on direct financing and sales-type leases 4 2 Total property revenues $ 206 $ 196 |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2024 2023 Lease income - operating leases Minimum lease payments $ 94 $ 98 Variable lease payments 108 96 Subtotal - lease income from operating leases 202 194 Earned income on direct financing and sales-type leases 4 2 Total property revenues $ 206 $ 196 |
Leases | Leases Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2024 2023 Lease income - operating leases Minimum lease payments $ 94 $ 98 Variable lease payments 108 96 Subtotal - lease income from operating leases 202 194 Earned income on direct financing and sales-type leases 4 2 Total property revenues $ 206 $ 196 |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Contract Liabilities Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized franchise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2023 and March 31, 2024 (in millions): Contract Liabilities Balance at December 31, 2023 $ 555 Recognized during period and included in the contract liability balance at the beginning of the year (19) Increase, excluding amounts recognized as revenue during the period 13 Impact of foreign currency translation (4) Balance at March 31, 2024 $ 545 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of March 31, 2024 (in millions): Contract liabilities expected to be recognized in Remainder of 2024 $ 42 2025 54 2026 50 2027 47 2028 44 Thereafter 308 Total $ 545 Disaggregation of Total Revenues As described in Note 16, Segment Reporting , during the fourth quarter of 2023, we revised our internal reporting structure, which resulted in a change to our operating and reportable segments. As a result, we manage each of our brands’ United States and Canada operations as an operating and reportable segment and our international operations as an operating and reportable segment. The following tables disaggregate revenue by segment (in millions): Three Months Ended March 31, 2024 TH BK PLK FHS INTL Total Sales $ 638 $ 58 $ 23 $ 10 $ — $ 729 Royalties 77 116 75 17 188 473 Property revenues 147 56 3 — — 206 Franchise fees and other revenue 7 3 2 8 13 33 Advertising revenues and other services 70 117 75 15 21 298 Total revenues $ 939 $ 350 $ 178 $ 50 $ 222 $ 1,739 Three Months Ended March 31, 2023 TH BK PLK FHS INTL Total Sales $ 618 $ 19 $ 21 $ 10 $ — $ 668 Royalties 71 113 68 17 173 442 Property revenues 137 55 3 — 1 196 Franchise fees and other revenue 5 4 2 6 13 30 Advertising revenues and other services 62 106 66 4 16 254 Total revenues $ 893 $ 297 $ 160 $ 37 $ 203 $ 1,590 |
Earnings per Unit
Earnings per Unit | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Unit | Earnings per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unit holders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as RBI equity awards will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended 2024 2023 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 230 $ 189 Net income allocated to Partnership exchangeable unitholders 97 87 Net income attributable to common unitholders $ 327 $ 276 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 Weighted average Partnership exchangeable units 134 143 Earnings per unit - basic and diluted: Class A common units (a) $ 1.14 $ 0.94 Partnership exchangeable units (a) $ 0.73 $ 0.61 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Good
Intangible Assets, net and Goodwill | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, net and Goodwill | Intangible Assets, net and Goodwill Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2024 December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 735 $ (353) $ 382 $ 727 $ (348) $ 379 Favorable leases 80 (54) 26 81 (54) 27 Subtotal 815 (407) 408 808 (402) 406 Indefinite-lived intangible assets: Tim Hortons brand $ 6,299 $ — $ 6,299 $ 6,423 $ — $ 6,423 Burger King brand 2,092 — 2,092 2,107 — 2,107 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 816 — 816 Subtotal 10,562 — 10,562 10,701 — 10,701 Intangible assets, net $ 10,970 $ 11,107 Goodwill: TH segment $ 4,042 $ 4,118 BK segment 239 232 PLK segment 844 844 FHS segment 193 193 INTL segment 384 388 Total $ 5,702 $ 5,775 Amortization expense on intangible assets totaled $9 million for the three months ended March 31, 2024 and 2023. The change in franchise agreements, brands and goodwill balances during the three months ended March 31, 2024 was primarily due to the impact of foreign currency translation. |
Equity Method Investments
Equity Method Investments | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The aggregate carrying amounts of our equity method investments were $160 million and $163 million as of March 31, 2024 and December 31, 2023, respectively, and are included as a component of Other assets, net in our accompanying condensed consolidated balance sheets. Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 14.7% equity interest in Carrols Restaurant Group, Inc. (“Carrols”) based on the quoted market price on March 31, 2024 was approximately $90 million. Refer to Note 15, Commitments and Contingencies , for a description of the announced Carrols acquisition. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on March 31, 2024 was approximately $18 million. The aggregate market value of our 4.2% equity interest in TH International Limited based on the quoted market price on March 31, 2024 was approximately $8 million. We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Sales, franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended 2024 2023 Revenues from affiliates: Royalties $ 101 $ 92 Advertising revenues and other services 20 18 Property revenues 8 9 Franchise fees and other revenue 6 5 Sales 4 4 Total $ 139 $ 128 At March 31, 2024 and December 31, 2023, we had $59 million and $61 million, respectively, of accounts receivable, net from our equity method investments which were recorded in Accounts and notes receivable, net in our condensed consolidated balance sheets. With respect to our TH business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $3 million and $2 million during the three months ended March 31, 2024 and 2023, respectively. Associated with the TIMWEN Partnership, we recognized $5 million and $4 million of rent expense during the three months ended March 31, 2024 and 2023, respectively. |
Other Accrued Liabilities and O
Other Accrued Liabilities and Other Liabilities, net | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Accrued Liabilities and Other Liabilities, net | Other Accrued Liabilities and Other Liabilities, net Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, Current: Distribution payable $ 261 $ 245 Interest payable 91 67 Accrued compensation and benefits 67 147 Taxes payable 96 129 Deferred income 84 77 Accrued advertising expenses 45 58 Restructuring and other provisions 16 18 Current portion of operating lease liabilities 148 147 Other 85 117 Other accrued liabilities $ 893 $ 1,005 Noncurrent: Taxes payable $ 60 $ 57 Contract liabilities 545 555 Derivatives liabilities 98 227 Unfavorable leases 38 42 Accrued pension 35 34 Deferred income 63 57 Other 23 24 Other liabilities, net $ 862 $ 996 |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan B $ 5,162 $ 5,175 Term Loan A 1,275 1,275 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 137 143 Less: unamortized deferred financing costs and deferred issue discount (117) (122) Total debt, net 12,907 12,921 Less: current maturities of debt (75) (67) Total long-term debt $ 12,832 $ 12,854 Revolving Credit Facility As of March 31, 2024, we had no amounts outstanding under our Revolving Credit Facility, had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $1,248 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or RBI share repurchases or repurchases of Partnership exchangeable units, fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. TH Facility One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of March 31, 2024, we had approximately C$177 million outstanding under the TH Facility with a weighted average interest rate of 6.69%. Restrictions and Covenants As of March 31, 2024, we were in compliance with all applicable financial debt covenants under our senior secured term loan facilities and Revolving Credit Facility (together the "Credit Facilities"), the TH Facility, and the indentures governing our Senior Notes. Fair Value Measurement The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of March 31, December 31, Fair value of our variable term debt and senior notes $ 12,343 $ 12,401 Principal carrying amount of our variable term debt and senior notes 12,887 12,900 Interest Expense, net Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2024 2023 Debt (a) $ 148 $ 138 Finance lease obligations 5 4 Amortization of deferred financing costs and debt issuance discount 6 7 Interest income (11) (7) Interest expense, net $ 148 $ 142 (a) Amount includes $11 million and $15 million benefit during the three months ended March 31, 2024 and 2023, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 13, Derivative Instruments . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective tax rate was 17.2% for the three months ended March 31, 2024. The effective tax rate during this period was primarily the result of the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements, equity-based compensation and recently implemented Organization for Economic Cooperation and Development related tax changes. |
Equity
Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Equity | Equity During the three months ended March 31, 2024, Partnership exchanged 2,220 Partnership exchangeable units pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of newly issued RBI common shares. In connection with an amendment to the partnership agreement, Partnership exchangeable units exchanged for RBI common shares subsequent to December 31, 2023 also result in the issuance of additional Class A common units to RBI in an amount equal to the number of RBI common shares exchanged. The issuances of shares were accounted for as capital contributions by RBI to Partnership. The exchanges of Partnership exchangeable units were recorded as increases to the Class A common units balance within partners’ capital in our consolidated balance sheet in an amount equal to the market value of the newly issued RBI common shares and a reduction to the Partnership exchangeable units balance within partners’ capital of our consolidated balance sheet in an amount equal to the cash paid by Partnership, if any, and the market value of the newly issued RBI common shares. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit is automatically deemed cancelled concurrently with the exchange. Accumulated Other Comprehensive Income (Loss) The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2023 $ 675 $ (17) $ (1,643) $ (985) Foreign currency translation adjustment — — (240) (240) Net change in fair value of derivatives, net of tax 203 — — 203 Amounts reclassified to earnings of cash flow hedges, net of tax (22) — — (22) Balance at March 31, 2024 $ 856 $ (17) $ (1,883) $ (1,044) |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Disclosures about Derivative Instruments and Hedging Activities We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges and derivatives designated as net investment hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates. Interest Rate Swaps At March 31, 2024, we had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $3,500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities, including any subsequent refinancing or replacement of the Term Loan Facilities, beginning August 31, 2021 through the termination date of October 31, 2028. Additionally, at March 31, 2024, we also had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities effective September 30, 2019 through the termination date of September 30, 2026. Following the discontinuance of the U.S. dollar LIBOR after June 30, 2023, the interest rate on all these interest rate swaps transitioned from LIBOR to SOFR, with no impact to hedge effectiveness and no change in accounting treatment as a result of applicable accounting relief guidance for the transition away from LIBOR. At inception, all of these interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in AOCI, net of tax, and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. The net amount of pre-tax gains in connection with these net unrealized gains in AOCI as of March 31, 2024 that we expect to be reclassified into interest expense within the next 12 months is $129 million. Cross-Currency Rate Swaps To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At March 31, 2024, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the euro and U.S. dollar that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations. At March 31, 2024, we had outstanding cross-currency rate swaps that we entered into during 2022 to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as net investment hedges. These swaps are contracts in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $5,000 million through the maturity date of September 30, 2028. At March 31, 2024, we had outstanding cross-currency rate swap contracts between the euro and U.S. dollar in which we receive quarterly fixed-rate interest payments on the U.S. dollar aggregate amount of $2,750 million, of which $1,400 million have a maturity date of October 31, 2026, $1,200 million have a maturity date of November 30, 2028, and $150 million have a maturity date of October 31, 2028. At inception, these cross-currency rate swaps were designated and continue to be hedges and are accounted for as a net investment hedge. During 2023, we settled our previously existing cross-currency rate swaps in which we paid quarterly fixed-rate interest payments on the euro notional value of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $1,200 million and an original maturity date of February 17, 2024. During 2023, we also settled our previously existing cross-currency rate swap contracts between the euro and U.S. dollar with a notional value of $900 million and an original maturity date of February 17, 2024. In connection with the cross-currency rate swaps hedging Canadian dollar and euro net investments, we utilize the spot method to exclude the interest component (the “Excluded Component”) from the accounting hedge without affecting net investment hedge accounting and amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component is recognized in Interest expense, net in the condensed consolidated statement of operations. The change in fair value that is not related to the Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated. Foreign Currency Exchange Contracts We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and payments, such as coffee purchases made by our Canadian Tim Hortons operations. At March 31, 2024, we had outstanding forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $168 million with maturities to May 15, 2025. We have designated these instruments as cash flow hedges, and as such, the unrealized changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects earnings. Credit Risk By entering into derivative contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty. Credit-Risk Related Contingent Features Our derivative instruments do not contain any credit-risk related contingent features. Quantitative Disclosures about Derivative Instruments and Fair Value Measurements The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended 2024 2023 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 92 $ (57) Forward-currency contracts $ 3 $ (1) Derivatives designated as net investment hedges Cross-currency rate swaps $ 131 $ (35) (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended 2024 2023 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ 30 $ 15 Forward-currency contracts Cost of sales $ — $ 3 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended 2024 2023 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 15 Fair Value as of March 31, December 31, 2023 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 248 $ 190 Other assets, net Foreign currency 1 — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 9 7 Other assets, net Total assets at fair value $ 258 $ 197 Liabilities: Derivatives designated as cash flow hedges Foreign currency $ — $ 2 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 98 227 Other liabilities, net Total liabilities at fair value $ 98 $ 229 |
Other Operating Expenses (Incom
Other Operating Expenses (Income), net | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses (Income), net | Other Operating Expenses (Income), net Other operating expenses (income), net consists of the following (in millions): Three Months Ended March 31, 2024 2023 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2 $ (2) Litigation settlements (gains) and reserves, net — 1 Net losses (gains) on foreign exchange (23) 8 Other, net 3 10 Other operating expenses (income), net $ (18) $ 17 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods. Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities, primarily those denominated in euros and Canadian dollars. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Acquisition of Carrols Restaurant Group On January 16, 2024, we announced that we have reached an agreement to acquire all of Carrols issued and outstanding shares that are not already held by RBI or its affiliates for $9.55 per share in an all cash transaction, or an aggregate total enterprise value of approximately $1.0 billion. Carrols is the largest Burger King franchisee in the U.S. today, currently operating approximately 1,020 Burger King restaurants and approximately 60 Popeyes restaurants. The transaction is expected to be completed in the second quarter of 2024 and is subject to customary closing conditions, including approval by the holders of the majority of common stock held by Carrols stockholders excluding shares held by RBI and its affiliates and officers of Carrols in addition to approval by holders of a majority of outstanding common stock of Carrols. The transaction is not subject to a financing contingency and is expected to be financed with cash on hand of approximately $230 million and term loan debt. We secured financing whereby lenders will provide an additional $750 million of Term Loan B loans on the same terms as the existing Term Loan B under our Credit Agreement, subject to the closing of the Carrols acquisition. Litigation From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property. On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King Company, successor in interest, (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of all others similarly situated. On October 18, 2018, a second class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On November 2, 2018, a fourth class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Sandra Munster, individually and on behalf of all others similarly situated. These complaints have been consolidated and allege that the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages for himself or herself and other members of the class. On March 24, 2020, the Court granted BKC’s motion to dismiss for failure to state a claim and on April 20, 2020 the plaintiffs filed a motion for leave to amend their complaint. On April 27, 2020, BKC filed a motion opposing the motion for leave to amend. The court denied the plaintiffs motion for leave to amend their complaint in August 2020 and the plaintiffs appealed this ruling. In August 2022, the federal appellate court reversed the lower court's decision to dismiss the case and remanded the case to the lower court for further proceedings. While we intend to vigorously defend these claims, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any. On April 23, 2024, a purported shareholder of Carrols Restaurant Group, Inc. (“CRG”), filed a complaint against CRG, its directors, RBI and BK Cheshire Corp. (our wholly-owned merger subsidiary) in the Supreme Court of the State of New York County of Westchester. The complaint alleges various breaches under Delaware law of fiduciary duties by the CRG directors and disclosure obligations by CRG with respect to the Agreement and Plan of Merger, dated as of January 16, 2024 among RBI, BK Cheshire Corp. and CRG (the “Merger Agreement”). In addition, the complaint alleges that RBI aided and abetted these breaches through its actions in negotiating the transaction and assistance in the dissemination of proxy statement related to the stockholder approval of the Merger Agreement. The complaint seeks, among other things, to enjoin the stockholder vote to approve the Merger Agreement and/or the consummation of the sale pending resolution of the complaint as well as compensatory and/or rescissory damages and fees and expenses. We intend to vigorously defend these claims, however, we are unable to predict the ultimate outcome of this case, estimate the range of possible loss, if any, or whether such complaint could adversely affect our ability to consummate the Merger Agreement. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As stated in Note 1, Description of Business and Organization , we manage four brands. Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, we operate in the chicken category of the quick service segment of the restaurant industry. Under the Firehouse Subs brand, we operate in the specialty subs category of the quick service segment of the restaurant industry. We generate revenues from the following sources: (i) sales, consisting primarily of (1) Tim Hortons supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales of consumer packaged goods (“CPG”), and (2) sales at Company restaurants; (ii) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchised restaurants and franchise fees paid by franchisees; (iii) property revenues from properties we lease or sublease to franchisees; and (iv) advertising revenues and other services, consisting primarily of (1) advertising fund contributions based on a percentage of sales reported by franchised restaurants to fund advertising expenses and (2) tech fees and revenues that vary by market and partially offset expenses related to technology initiatives. All Tim Hortons global supply chain sales, including coffee to International franchisees, are included in the TH segment. During the fourth quarter of 2023, we revised our internal reporting structure, which resulted in a change to our operating and reportable segments. As a result, we manage each of our brands’ United States and Canada operations as an operating and reportable segment and our international operations as a separate operating and reportable segment. Consequently, we have five operating and reportable segments: (1) TH, which includes all operations of our Tim Hortons brand in the United States and Canada, (2) BK, which includes all operations of our Burger King brand in the United States and Canada, (3) PLK, which includes all operations of our Popeyes brand in the United States and Canada, (4) FHS, which includes all operations of our Firehouse Subs brand in the United States and Canada, and (5) INTL, which includes all operations of each of our brands outside the United States and Canada. Our five operating segments represent our reportable segments. Prior year amounts presented have been reclassified to conform to this new segment presentation with no effect on previously reported consolidated results. The following tables present revenues, by segment and by country (in millions): Three Months Ended 2024 2023 Revenues by operating segment: TH $ 939 $ 893 BK 350 297 PLK 178 160 FHS 50 37 INTL 222 203 Total revenues $ 1,739 $ 1,590 Three Months Ended 2024 2023 Revenues by country (a): Canada $ 856 $ 814 United States 661 573 Other 222 203 Total revenues $ 1,739 $ 1,590 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. In connection with our change in operating and reportable segments, we also transitioned our definition of segment income from Adjusted EBITDA to Adjusted Operating Income which represents income from operations adjusted to exclude (i) franchise agreement amortization as a result of acquisition accounting, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) income/expenses from non-recurring projects and non-operating activities. For the periods referenced, income/expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expense incurred in connection with the announced acquisition of Carrols consisting primarily of professional fees (“CRG Transaction costs”); (ii) non-recurring fees and expense incurred in connection with the acquisition of Firehouse consisting primarily of professional fees, compensation-related expenses and integration costs (“FHS Transaction costs”); and (iii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations (“Corporate restructuring and advisory fees”). Unlike Adjusted EBITDA, our previous measure of segment income, Adjusted Operating Income includes depreciation and amortization (excluding franchise agreement amortization) as well as share-based compensation and non-cash incentive compensation expense. Prior year amounts presented have been reclassified to conform to this new segment income presentation with no effect on previously reported consolidated results. Adjusted Operating Income is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of segment income to net income consists of the following (in millions): Three Months Ended 2024 2023 Segment income: TH $ 224 $ 212 BK 106 96 PLK 58 51 FHS 10 9 INTL 142 137 Adjusted Operating Income 540 505 Franchise agreement amortization 8 8 CRG Transaction costs 4 — FHS Transaction costs — 19 Corporate restructuring and advisory fees 2 5 Impact of equity method investments (a) — 9 Other operating expenses (income), net (18) 17 Income from operations 544 447 Interest expense, net 148 142 Income tax expense 68 28 Net income $ 328 $ 277 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Informat
Supplemental Financial Information | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental Financial Information | Supplemental Financial Information 1011778 B.C. Unlimited Liability Company (the “Parent Issuer”) and New Red Finance Inc. (the “Co-Issuer” and together with the Parent Issuer, the “Issuers”) entered into an amended credit agreement, as amended from time to time, that provides for obligations under the Credit Facilities. The Issuers entered into the 3.875% First Lien Senior Notes Indenture with respect to the 3.875% First Lien Senior Notes due 2028. The Issuers entered into the 3.500% First Lien Senior Notes Indenture with respect to the 3.500% First Lien Senior Notes due 2029. The Issuers entered into the 5.750% First Lien Senior Notes Indenture with respect to the 5.750% First Lien Senior Notes due 2025. The Issuers entered into the 4.375% Second Lien Senior Notes Indenture with respect to the 4.375% Second Lien Senior Notes due 2028. The Issuers entered into the 4.000% Second Lien Senior Notes Indenture with respect to the 4.000% Second Lien Senior Notes due 2030. The agreement governing our Credit Facilities, the 3.875% First Lien Senior Notes Indenture, the 3.500% First Lien Senior Notes Indenture, the 5.750% First Lien Senior Notes Indenture, the 4.375% Second Lien Senior Notes Indenture and the 4.000% Second Lien Senior Notes Indenture allow the financial reporting obligation of the Parent Issuer to be satisfied through the reporting of Partnership’s consolidated financial information, provided that the consolidated financial information of the Parent Issuer and its restricted subsidiaries is presented on a standalone basis. The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,049 $ — $ — $ 1,049 Accounts and notes receivable, net 749 — — 749 Inventories, net 152 — — 152 Prepaids and other current assets 121 — — 121 Total current assets 2,071 — — 2,071 Property and equipment, net 1,929 — — 1,929 Operating lease assets, net 1,141 — — 1,141 Intangible assets, net 10,970 — — 10,970 Goodwill 5,702 — — 5,702 Intercompany receivable — 261 (261) — Investment in subsidiaries — 4,835 (4,835) — Other assets, net 1,332 — — 1,332 Total assets $ 23,145 $ 5,096 $ (5,096) $ 23,145 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 734 $ — $ — $ 734 Other accrued liabilities 632 261 — 893 Gift card liability 187 — — 187 Current portion of long-term debt and finance leases 110 — — 110 Total current liabilities 1,663 261 — 1,924 Long-term debt, net of current portion 12,832 — — 12,832 Finance leases, net of current portion 308 — — 308 Operating lease liabilities, net of current portion 1,075 — — 1,075 Other liabilities, net 862 — — 862 Payables to affiliates 261 — (261) — Deferred income taxes, net 1,309 — — 1,309 Total liabilities 18,310 261 (261) 18,310 Partners’ capital: Class A common units — 9,764 — 9,764 Partnership exchangeable units — (3,887) — (3,887) Common shares 2,344 — (2,344) — Retained earnings 3,533 — (3,533) — Accumulated other comprehensive income (loss) (1,044) (1,044) 1,044 (1,044) Total Partners' capital/shareholders' equity 4,833 4,833 (4,833) 4,833 Noncontrolling interests 2 2 (2) 2 Total equity 4,835 4,835 (4,835) 4,835 Total liabilities and equity $ 23,145 $ 5,096 $ (5,096) $ 23,145 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,139 $ — $ — $ 1,139 Accounts and notes receivable, net 749 — — 749 Inventories, net 166 — — 166 Prepaids and other current assets 119 — — 119 Total current assets 2,173 — — 2,173 Property and equipment, net 1,952 — — 1,952 Operating lease assets. net 1,122 — — 1,122 Intangible assets, net 11,107 — — 11,107 Goodwill 5,775 — — 5,775 Intercompany receivable — 245 (245) — Investment in subsidiaries — 4,730 (4,730) — Other assets, net 1,262 — — 1,262 Total assets $ 23,391 $ 4,975 $ (4,975) $ 23,391 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 790 $ — $ — $ 790 Other accrued liabilities 760 245 — 1,005 Gift card liability 248 — — 248 Current portion of long-term debt and finance leases 101 — — 101 Total current liabilities 1,899 245 — 2,144 Long-term debt, net of current portion 12,854 — — 12,854 Finance leases, net of current portion 312 — — 312 Operating lease liabilities, net of current portion 1,059 — — 1,059 Other liabilities, net 996 — — 996 Payables to affiliates 245 — (245) — Deferred income taxes, net 1,296 — — 1,296 Total liabilities 18,661 245 (245) 18,661 Partners’ capital: Class A common units — 9,620 — 9,620 Partnership exchangeable units — (3,907) — (3,907) Common shares 2,246 — (2,246) — Retained earnings 3,467 — (3,467) — Accumulated other comprehensive income (loss) (985) (985) 985 (985) Total Partners' capital/shareholders' equity 4,728 4,728 (4,728) 4,728 Noncontrolling interests 2 2 (2) 2 Total equity 4,730 4,730 (4,730) 4,730 Total liabilities and equity $ 23,391 $ 4,975 $ (4,975) $ 23,391 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 729 $ — $ — $ 729 Franchise and property revenues 712 — — 712 Advertising revenues and other services 298 — — 298 Total revenues 1,739 — — 1,739 Operating costs and expenses: Cost of sales 606 — — 606 Franchise and property expenses 126 — — 126 Advertising expenses and other services 311 — — 311 General and administrative expenses 173 — — 173 (Income) loss from equity method investments (3) — — (3) Other operating expenses (income), net (18) — — (18) Total operating costs and expenses 1,195 — — 1,195 Income from operations 544 — — 544 Interest expense, net 148 — — 148 Income before income taxes 396 — — 396 Income tax expense 68 — — 68 Net income 328 — — 328 Equity in earnings of consolidated subsidiaries — 328 (328) — Net income (loss) 328 328 (328) 328 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 327 $ 327 $ (327) $ 327 Comprehensive income (loss) $ 269 $ 269 $ (269) $ 269 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 668 $ — $ — $ 668 Franchise and property revenues 668 — — 668 Advertising revenues and other services 254 — — 254 Total revenues 1,590 — — 1,590 Operating costs and expenses: Cost of sales 550 — — 550 Franchise and property expenses 123 — — 123 Advertising expenses and other services 271 — — 271 General and administrative expenses 175 — — 175 (Income) loss from equity method investments 7 — — 7 Other operating expenses (income), net 17 — — 17 Total operating costs and expenses 1,143 — — 1,143 Income from operations 447 — — 447 Interest expense, net 142 — — 142 Income before income taxes 305 — — 305 Income tax expense 28 — — 28 Net income 277 — — 277 Equity in earnings of consolidated subsidiaries — 277 (277) — Net income (loss) 277 277 (277) 277 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 276 $ 276 $ (276) $ 276 Comprehensive income (loss) $ 230 $ 230 $ (230) $ 230 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three months ended March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 328 $ 328 $ (328) $ 328 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (328) 328 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 6 — — 6 (Income) loss from equity method investments (3) — — (3) (Gain) loss on remeasurement of foreign denominated transactions (23) — — (23) Net (gains) losses on derivatives (41) — — (41) Share-based compensation and non-cash incentive compensation expense 46 — — 46 Deferred income taxes 18 — — 18 Other 7 — — 7 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (6) — — (6) Inventories and prepaids and other current assets 7 — — 7 Accounts and drafts payable (46) — — (46) Other accrued liabilities and gift card liability (175) — — (175) Tenant inducements paid to franchisees (5) — — (5) Other long-term assets and liabilities (14) — — (14) Net cash provided by operating activities 148 — — 148 Cash flows from investing activities: Payments for property and equipment (26) — — (26) Net proceeds from disposal of assets, restaurant closures, and refranchisings 2 — — 2 Net payments from acquisition of franchised restaurants (23) — — (23) Settlement/sale of derivatives, net 16 — — 16 Net cash (used for) provided by investing activities (31) — — (31) Cash flows from financing activities: Repayments of long-term debt and finance leases (24) — — (24) Distributions on Class A common and Partnership exchangeable units — (245) — (245) Capital contribution from RBI 39 — — 39 Distributions from subsidiaries (245) 245 — — Proceeds from derivatives 28 — — 28 Other financing activities, net (1) — — (1) Net cash (used for) provided by financing activities (203) — — (203) Effect of exchange rates on cash and cash equivalents (4) — — (4) Increase (decrease) in cash and cash equivalents (90) — — (90) Cash and cash equivalents at beginning of period 1,139 — — 1,139 Cash and cash equivalents at end of period $ 1,049 $ — $ — $ 1,049 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 277 $ 277 $ (277) $ 277 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (277) 277 — Depreciation and amortization 46 — — 46 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 7 — — 7 (Gain) loss on remeasurement of foreign denominated transactions 8 — — 8 Net (gains) losses on derivatives (34) — — (34) Share-based compensation and non-cash incentive compensation expense 45 — — 45 Deferred income taxes (28) — — (28) Other 1 — — 1 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (8) — — (8) Inventories and prepaids and other current assets (20) — — (20) Accounts and drafts payable (81) — — (81) Other accrued liabilities and gift card liability (123) — — (123) Tenant inducements paid to franchisees (6) — — (6) Other long-term assets and liabilities 4 — — 4 Net cash provided by operating activities 95 — — 95 Cash flows from investing activities: Payments for property and equipment (18) — — (18) Net proceeds from disposal of assets, restaurant closures, and refranchisings 4 — — 4 Settlement/sale of derivatives, net 14 — — 14 Net cash (used for) provided by investing activities — — — — Cash flows from financing activities: Repayments of long-term debt and finance leases (32) — — (32) Distributions on Class A common and Partnership exchangeable units — (243) — (243) Capital contribution from RBI 6 — — 6 Distributions from subsidiaries (243) 243 — — Proceeds from derivatives 29 — — 29 Net cash (used for) provided by financing activities (240) — — (240) Effect of exchange rates on cash and cash equivalents — — — — Increase (decrease) in cash and cash equivalents (145) — — (145) Cash and cash equivalents at beginning of period 1,178 — — 1,178 Cash and cash equivalents at end of period $ 1,033 $ — $ — $ 1,033 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Cash Distributions/Dividends On April 4, 2024, RBI paid a cash dividend of $0.58 per RBI common share to common shareholders of record on March 21, 2024. Partnership made a distribution to RBI as holder of Class A common units in the amount of the aggregate dividends declared and paid by RBI on RBI common shares and also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.58 per exchangeable unit to holders of record on March 21, 2024. |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation and Con_2
Basis of Presentation and Consolidation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 22, 2024. |
Principles of Consolidation | The Financial Statements include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year. |
Use of Estimates | The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates. |
New Accounting Pronouncements | New Accounting Pronouncements Segment Reporting – In November 2023, the Financial Accounting Standards Board (“FASB”) issued guidance that expands segment disclosures for public entities, including requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”), the title and position of the CODM and an explanation of how the CODM uses reported measures of segment profit or loss in assessing segment performance and allocating resources. The new guidance also expands disclosures about a reportable segment’s profit or loss and assets in interim periods and clarifies that a public entity may report additional measures of segment profit if the CODM uses more than one measure of a segment’s profit or loss. The new guidance does not remove existing segment disclosure requirements or change how a public entity identifies its operating segments, aggregates those operating segments, or determines its reportable segments. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2023, and subsequent interim periods with early adoption permitted, and requires retrospective application to all prior periods presented in the financial statements. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. Improvements to Income Tax Disclosures – In December 2023, the FASB issued guidance that expands income tax disclosures for public entities, including requiring enhanced disclosures related to the rate reconciliation and income taxes paid information. The guidance is effective for annual disclosures for fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance should be applied on a prospective basis, with retrospective application to all prior periods presented in the financial statements permitted. We are currently evaluating the impact this new guidance will have on our disclosures upon adoption and expect to provide additional detail and disclosures under this new guidance. |
Contract Liabilities | Contract Liabilities |
Earnings per Unit | Earnings per Unit Partnership uses the two-class method in the computation of earnings per unit. Pursuant to the terms of the partnership agreement, RBI, as the holder of the Class A common units, is entitled to receive distributions from Partnership in an amount equal to the aggregate dividends payable by RBI to holders of RBI common shares, and the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”) are entitled to receive distributions from Partnership in an amount per unit equal to the dividends payable by RBI on each RBI common share. Partnership’s net income available to common unitholders is allocated between the Class A common units and Partnership exchangeable units on a fully-distributed basis and reflects residual net income after noncontrolling interests. Basic and diluted earnings per Class A common unit is determined by dividing net income allocated to Class A common unit holders by the weighted average number of Class A common units outstanding for the period. Basic and diluted earnings per Partnership exchangeable unit is determined by dividing net income allocated to the Partnership exchangeable units by the weighted average number of Partnership exchangeable units outstanding during the period. There are no dilutive securities for Partnership as RBI equity awards will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership’s Class A common units and Partnership exchangeable units. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Property Revenues | Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions): Three Months Ended 2024 2023 Lease income - operating leases Minimum lease payments $ 94 $ 98 Variable lease payments 108 96 Subtotal - lease income from operating leases 202 194 Earned income on direct financing and sales-type leases 4 2 Total property revenues $ 206 $ 196 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Change in Contract Liabilities | The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2023 and March 31, 2024 (in millions): Contract Liabilities Balance at December 31, 2023 $ 555 Recognized during period and included in the contract liability balance at the beginning of the year (19) Increase, excluding amounts recognized as revenue during the period 13 Impact of foreign currency translation (4) Balance at March 31, 2024 $ 545 |
Schedule of Estimated Revenues Expected to be Recognized | The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of March 31, 2024 (in millions): Contract liabilities expected to be recognized in Remainder of 2024 $ 42 2025 54 2026 50 2027 47 2028 44 Thereafter 308 Total $ 545 |
Schedule of Disaggregation of Total Revenues | The following tables disaggregate revenue by segment (in millions): Three Months Ended March 31, 2024 TH BK PLK FHS INTL Total Sales $ 638 $ 58 $ 23 $ 10 $ — $ 729 Royalties 77 116 75 17 188 473 Property revenues 147 56 3 — — 206 Franchise fees and other revenue 7 3 2 8 13 33 Advertising revenues and other services 70 117 75 15 21 298 Total revenues $ 939 $ 350 $ 178 $ 50 $ 222 $ 1,739 Three Months Ended March 31, 2023 TH BK PLK FHS INTL Total Sales $ 618 $ 19 $ 21 $ 10 $ — $ 668 Royalties 71 113 68 17 173 442 Property revenues 137 55 3 — 1 196 Franchise fees and other revenue 5 4 2 6 13 30 Advertising revenues and other services 62 106 66 4 16 254 Total revenues $ 893 $ 297 $ 160 $ 37 $ 203 $ 1,590 |
Earnings per Unit (Tables)
Earnings per Unit (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Unit | The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts): Three Months Ended 2024 2023 Allocation of net income among partner interests: Net income allocated to Class A common unitholders $ 230 $ 189 Net income allocated to Partnership exchangeable unitholders 97 87 Net income attributable to common unitholders $ 327 $ 276 Denominator - basic and diluted partnership units: Weighted average Class A common units 202 202 Weighted average Partnership exchangeable units 134 143 Earnings per unit - basic and diluted: Class A common units (a) $ 1.14 $ 0.94 Partnership exchangeable units (a) $ 0.73 $ 0.61 (a) Earnings per unit may not recalculate exactly as it is calculated based on unrounded numbers. |
Intangible Assets, net and Go_2
Intangible Assets, net and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | Intangible assets, net and goodwill consist of the following (in millions): As of March 31, 2024 December 31, 2023 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Identifiable assets subject to amortization: Franchise agreements $ 735 $ (353) $ 382 $ 727 $ (348) $ 379 Favorable leases 80 (54) 26 81 (54) 27 Subtotal 815 (407) 408 808 (402) 406 Indefinite-lived intangible assets: Tim Hortons brand $ 6,299 $ — $ 6,299 $ 6,423 $ — $ 6,423 Burger King brand 2,092 — 2,092 2,107 — 2,107 Popeyes brand 1,355 — 1,355 1,355 — 1,355 Firehouse Subs brand 816 — 816 816 — 816 Subtotal 10,562 — 10,562 10,701 — 10,701 Intangible assets, net $ 10,970 $ 11,107 Goodwill: TH segment $ 4,042 $ 4,118 BK segment 239 232 PLK segment 844 844 FHS segment 193 193 INTL segment 384 388 Total $ 5,702 $ 5,775 |
Equity Method Investments (Tabl
Equity Method Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summary of Franchise and Property Revenues | We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Sales, franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions): Three Months Ended 2024 2023 Revenues from affiliates: Royalties $ 101 $ 92 Advertising revenues and other services 20 18 Property revenues 8 9 Franchise fees and other revenue 6 5 Sales 4 4 Total $ 139 $ 128 |
Other Accrued Liabilities and_2
Other Accrued Liabilities and Other Liabilities, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Other Accrued Liabilities (Current) and Other Liabilities (NonCurrent), Net | Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions): As of March 31, December 31, Current: Distribution payable $ 261 $ 245 Interest payable 91 67 Accrued compensation and benefits 67 147 Taxes payable 96 129 Deferred income 84 77 Accrued advertising expenses 45 58 Restructuring and other provisions 16 18 Current portion of operating lease liabilities 148 147 Other 85 117 Other accrued liabilities $ 893 $ 1,005 Noncurrent: Taxes payable $ 60 $ 57 Contract liabilities 545 555 Derivatives liabilities 98 227 Unfavorable leases 38 42 Accrued pension 35 34 Deferred income 63 57 Other 23 24 Other liabilities, net $ 862 $ 996 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Debt | Long-term debt consists of the following (in millions): As of March 31, December 31, Term Loan B $ 5,162 $ 5,175 Term Loan A 1,275 1,275 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 137 143 Less: unamortized deferred financing costs and deferred issue discount (117) (122) Total debt, net 12,907 12,921 Less: current maturities of debt (75) (67) Total long-term debt $ 12,832 $ 12,854 |
Summary of Fair Value Measurement | The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions): As of March 31, December 31, Fair value of our variable term debt and senior notes $ 12,343 $ 12,401 Principal carrying amount of our variable term debt and senior notes 12,887 12,900 |
Schedule of Interest Expense, Net | Interest expense, net consists of the following (in millions): Three Months Ended March 31, 2024 2023 Debt (a) $ 148 $ 138 Finance lease obligations 5 4 Amortization of deferred financing costs and debt issuance discount 6 7 Interest income (11) (7) Interest expense, net $ 148 $ 142 (a) Amount includes $11 million and $15 million benefit during the three months ended March 31, 2024 and 2023, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 13, Derivative Instruments . |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Change in the Components of AOCI | The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions): Derivatives Pensions Foreign Currency Translation Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2023 $ 675 $ (17) $ (1,643) $ (985) Foreign currency translation adjustment — — (240) (240) Net change in fair value of derivatives, net of tax 203 — — 203 Amounts reclassified to earnings of cash flow hedges, net of tax (22) — — (22) Balance at March 31, 2024 $ 856 $ (17) $ (1,883) $ (1,044) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values | The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions): Gain or (Loss) Recognized in Other Comprehensive Income (Loss) Three Months Ended 2024 2023 Derivatives designated as cash flow hedges (1) Interest rate swaps $ 92 $ (57) Forward-currency contracts $ 3 $ (1) Derivatives designated as net investment hedges Cross-currency rate swaps $ 131 $ (35) (1) We did not exclude any components from the cash flow hedge relationships presented in this table. Location of Gain or (Loss) Reclassified from AOCI into Earnings Gain or (Loss) Reclassified from Three Months Ended 2024 2023 Derivatives designated as cash flow hedges Interest rate swaps Interest expense, net $ 30 $ 15 Forward-currency contracts Cost of sales $ — $ 3 Location of Gain or (Loss) Recognized in Earnings Gain or (Loss) Recognized in Earnings Three Months Ended 2024 2023 Derivatives designated as net investment hedges Cross-currency rate swaps Interest expense, net $ 11 $ 15 |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value as of March 31, December 31, 2023 Balance Sheet Location Assets: Derivatives designated as cash flow hedges Interest rate $ 248 $ 190 Other assets, net Foreign currency 1 — Prepaids and other current assets Derivatives designated as net investment hedges Foreign currency 9 7 Other assets, net Total assets at fair value $ 258 $ 197 Liabilities: Derivatives designated as cash flow hedges Foreign currency $ — $ 2 Other accrued liabilities Derivatives designated as net investment hedges Foreign currency 98 227 Other liabilities, net Total liabilities at fair value $ 98 $ 229 |
Other Operating Expenses (Inc_2
Other Operating Expenses (Income), net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Expenses (Income), Net | Other operating expenses (income), net consists of the following (in millions): Three Months Ended March 31, 2024 2023 Net losses (gains) on disposal of assets, restaurant closures, and refranchisings $ 2 $ (2) Litigation settlements (gains) and reserves, net — 1 Net losses (gains) on foreign exchange (23) 8 Other, net 3 10 Other operating expenses (income), net $ (18) $ 17 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Operating Segment and Country | The following tables present revenues, by segment and by country (in millions): Three Months Ended 2024 2023 Revenues by operating segment: TH $ 939 $ 893 BK 350 297 PLK 178 160 FHS 50 37 INTL 222 203 Total revenues $ 1,739 $ 1,590 Three Months Ended 2024 2023 Revenues by country (a): Canada $ 856 $ 814 United States 661 573 Other 222 203 Total revenues $ 1,739 $ 1,590 (a) Only Canada and the United States represented 10% or more of our total revenues in each period presented. |
Schedule of Reconciliation of Segment Income to Net Income (Loss) | Adjusted Operating Income is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of segment income to net income consists of the following (in millions): Three Months Ended 2024 2023 Segment income: TH $ 224 $ 212 BK 106 96 PLK 58 51 FHS 10 9 INTL 142 137 Adjusted Operating Income 540 505 Franchise agreement amortization 8 8 CRG Transaction costs 4 — FHS Transaction costs — 19 Corporate restructuring and advisory fees 2 5 Impact of equity method investments (a) — 9 Other operating expenses (income), net (18) 17 Income from operations 544 447 Interest expense, net 148 142 Income tax expense 68 28 Net income $ 328 $ 277 (a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income. |
Supplemental Financial Inform_2
Supplemental Financial Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | The following represents the condensed consolidating financial information for the Parent Issuer and its restricted subsidiaries (“Consolidated Borrowers”) on a consolidated basis, together with eliminations, as of and for the periods indicated. The condensed consolidating financial information of Partnership is combined with the financial information of its wholly-owned subsidiaries that are also parent entities of the Parent Issuer and presented in a single column under the heading “RBILP”. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had the Issuers and Partnership operated as independent entities. RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,049 $ — $ — $ 1,049 Accounts and notes receivable, net 749 — — 749 Inventories, net 152 — — 152 Prepaids and other current assets 121 — — 121 Total current assets 2,071 — — 2,071 Property and equipment, net 1,929 — — 1,929 Operating lease assets, net 1,141 — — 1,141 Intangible assets, net 10,970 — — 10,970 Goodwill 5,702 — — 5,702 Intercompany receivable — 261 (261) — Investment in subsidiaries — 4,835 (4,835) — Other assets, net 1,332 — — 1,332 Total assets $ 23,145 $ 5,096 $ (5,096) $ 23,145 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 734 $ — $ — $ 734 Other accrued liabilities 632 261 — 893 Gift card liability 187 — — 187 Current portion of long-term debt and finance leases 110 — — 110 Total current liabilities 1,663 261 — 1,924 Long-term debt, net of current portion 12,832 — — 12,832 Finance leases, net of current portion 308 — — 308 Operating lease liabilities, net of current portion 1,075 — — 1,075 Other liabilities, net 862 — — 862 Payables to affiliates 261 — (261) — Deferred income taxes, net 1,309 — — 1,309 Total liabilities 18,310 261 (261) 18,310 Partners’ capital: Class A common units — 9,764 — 9,764 Partnership exchangeable units — (3,887) — (3,887) Common shares 2,344 — (2,344) — Retained earnings 3,533 — (3,533) — Accumulated other comprehensive income (loss) (1,044) (1,044) 1,044 (1,044) Total Partners' capital/shareholders' equity 4,833 4,833 (4,833) 4,833 Noncontrolling interests 2 2 (2) 2 Total equity 4,835 4,835 (4,835) 4,835 Total liabilities and equity $ 23,145 $ 5,096 $ (5,096) $ 23,145 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In millions of U.S. dollars) As of December 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated ASSETS Current assets: Cash and cash equivalents $ 1,139 $ — $ — $ 1,139 Accounts and notes receivable, net 749 — — 749 Inventories, net 166 — — 166 Prepaids and other current assets 119 — — 119 Total current assets 2,173 — — 2,173 Property and equipment, net 1,952 — — 1,952 Operating lease assets. net 1,122 — — 1,122 Intangible assets, net 11,107 — — 11,107 Goodwill 5,775 — — 5,775 Intercompany receivable — 245 (245) — Investment in subsidiaries — 4,730 (4,730) — Other assets, net 1,262 — — 1,262 Total assets $ 23,391 $ 4,975 $ (4,975) $ 23,391 LIABILITIES AND EQUITY Current liabilities: Accounts and drafts payable $ 790 $ — $ — $ 790 Other accrued liabilities 760 245 — 1,005 Gift card liability 248 — — 248 Current portion of long-term debt and finance leases 101 — — 101 Total current liabilities 1,899 245 — 2,144 Long-term debt, net of current portion 12,854 — — 12,854 Finance leases, net of current portion 312 — — 312 Operating lease liabilities, net of current portion 1,059 — — 1,059 Other liabilities, net 996 — — 996 Payables to affiliates 245 — (245) — Deferred income taxes, net 1,296 — — 1,296 Total liabilities 18,661 245 (245) 18,661 Partners’ capital: Class A common units — 9,620 — 9,620 Partnership exchangeable units — (3,907) — (3,907) Common shares 2,246 — (2,246) — Retained earnings 3,467 — (3,467) — Accumulated other comprehensive income (loss) (985) (985) 985 (985) Total Partners' capital/shareholders' equity 4,728 4,728 (4,728) 4,728 Noncontrolling interests 2 2 (2) 2 Total equity 4,730 4,730 (4,730) 4,730 Total liabilities and equity $ 23,391 $ 4,975 $ (4,975) $ 23,391 |
Condensed Income Statement | Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 729 $ — $ — $ 729 Franchise and property revenues 712 — — 712 Advertising revenues and other services 298 — — 298 Total revenues 1,739 — — 1,739 Operating costs and expenses: Cost of sales 606 — — 606 Franchise and property expenses 126 — — 126 Advertising expenses and other services 311 — — 311 General and administrative expenses 173 — — 173 (Income) loss from equity method investments (3) — — (3) Other operating expenses (income), net (18) — — (18) Total operating costs and expenses 1,195 — — 1,195 Income from operations 544 — — 544 Interest expense, net 148 — — 148 Income before income taxes 396 — — 396 Income tax expense 68 — — 68 Net income 328 — — 328 Equity in earnings of consolidated subsidiaries — 328 (328) — Net income (loss) 328 328 (328) 328 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 327 $ 327 $ (327) $ 327 Comprehensive income (loss) $ 269 $ 269 $ (269) $ 269 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Operations (In millions of U.S. dollars) Three Months Ended March 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated Revenues: Sales $ 668 $ — $ — $ 668 Franchise and property revenues 668 — — 668 Advertising revenues and other services 254 — — 254 Total revenues 1,590 — — 1,590 Operating costs and expenses: Cost of sales 550 — — 550 Franchise and property expenses 123 — — 123 Advertising expenses and other services 271 — — 271 General and administrative expenses 175 — — 175 (Income) loss from equity method investments 7 — — 7 Other operating expenses (income), net 17 — — 17 Total operating costs and expenses 1,143 — — 1,143 Income from operations 447 — — 447 Interest expense, net 142 — — 142 Income before income taxes 305 — — 305 Income tax expense 28 — — 28 Net income 277 — — 277 Equity in earnings of consolidated subsidiaries — 277 (277) — Net income (loss) 277 277 (277) 277 Net income (loss) attributable to noncontrolling interests 1 1 (1) 1 Net income (loss) attributable to common unitholders $ 276 $ 276 $ (276) $ 276 Comprehensive income (loss) $ 230 $ 230 $ (230) $ 230 |
Condensed Cash Flow Statement | Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three months ended March 31, 2024 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 328 $ 328 $ (328) $ 328 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (328) 328 — Depreciation and amortization 49 — — 49 Amortization of deferred financing costs and debt issuance discount 6 — — 6 (Income) loss from equity method investments (3) — — (3) (Gain) loss on remeasurement of foreign denominated transactions (23) — — (23) Net (gains) losses on derivatives (41) — — (41) Share-based compensation and non-cash incentive compensation expense 46 — — 46 Deferred income taxes 18 — — 18 Other 7 — — 7 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (6) — — (6) Inventories and prepaids and other current assets 7 — — 7 Accounts and drafts payable (46) — — (46) Other accrued liabilities and gift card liability (175) — — (175) Tenant inducements paid to franchisees (5) — — (5) Other long-term assets and liabilities (14) — — (14) Net cash provided by operating activities 148 — — 148 Cash flows from investing activities: Payments for property and equipment (26) — — (26) Net proceeds from disposal of assets, restaurant closures, and refranchisings 2 — — 2 Net payments from acquisition of franchised restaurants (23) — — (23) Settlement/sale of derivatives, net 16 — — 16 Net cash (used for) provided by investing activities (31) — — (31) Cash flows from financing activities: Repayments of long-term debt and finance leases (24) — — (24) Distributions on Class A common and Partnership exchangeable units — (245) — (245) Capital contribution from RBI 39 — — 39 Distributions from subsidiaries (245) 245 — — Proceeds from derivatives 28 — — 28 Other financing activities, net (1) — — (1) Net cash (used for) provided by financing activities (203) — — (203) Effect of exchange rates on cash and cash equivalents (4) — — (4) Increase (decrease) in cash and cash equivalents (90) — — (90) Cash and cash equivalents at beginning of period 1,139 — — 1,139 Cash and cash equivalents at end of period $ 1,049 $ — $ — $ 1,049 RESTAURANT BRANDS INTERNATIONAL LIMITED PARTNERSHIP AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In millions of U.S. dollars) Three Months Ended March 31, 2023 Consolidated Borrowers RBILP Eliminations Consolidated Cash flows from operating activities: Net income $ 277 $ 277 $ (277) $ 277 Adjustments to reconcile net income to net cash provided by operating activities: Equity in loss (earnings) of consolidated subsidiaries — (277) 277 — Depreciation and amortization 46 — — 46 Amortization of deferred financing costs and debt issuance discount 7 — — 7 (Income) loss from equity method investments 7 — — 7 (Gain) loss on remeasurement of foreign denominated transactions 8 — — 8 Net (gains) losses on derivatives (34) — — (34) Share-based compensation and non-cash incentive compensation expense 45 — — 45 Deferred income taxes (28) — — (28) Other 1 — — 1 Changes in current assets and liabilities, excluding acquisitions and dispositions: Accounts and notes receivable (8) — — (8) Inventories and prepaids and other current assets (20) — — (20) Accounts and drafts payable (81) — — (81) Other accrued liabilities and gift card liability (123) — — (123) Tenant inducements paid to franchisees (6) — — (6) Other long-term assets and liabilities 4 — — 4 Net cash provided by operating activities 95 — — 95 Cash flows from investing activities: Payments for property and equipment (18) — — (18) Net proceeds from disposal of assets, restaurant closures, and refranchisings 4 — — 4 Settlement/sale of derivatives, net 14 — — 14 Net cash (used for) provided by investing activities — — — — Cash flows from financing activities: Repayments of long-term debt and finance leases (32) — — (32) Distributions on Class A common and Partnership exchangeable units — (243) — (243) Capital contribution from RBI 6 — — 6 Distributions from subsidiaries (243) 243 — — Proceeds from derivatives 29 — — 29 Net cash (used for) provided by financing activities (240) — — (240) Effect of exchange rates on cash and cash equivalents — — — — Increase (decrease) in cash and cash equivalents (145) — — (145) Cash and cash equivalents at beginning of period 1,178 — — 1,178 Cash and cash equivalents at end of period $ 1,033 $ — $ — $ 1,033 |
Description of Business and O_2
Description of Business and Organization (Details) | Mar. 31, 2024 restaurant country |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 31,113 |
Number of countries in which company and franchise restaurants operated (more than) | country | 120 |
Tim Hortons brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 5,818 |
Burger King brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 19,374 |
Popeyes brand | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 4,625 |
Firehouse Subs restaurants | |
Basis Of Presentation [Line Items] | |
Number of restaurants in operation | 1,296 |
Basis of Presentation and Con_3
Basis of Presentation and Consolidation - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Supplier finance programs, term | 120 days | |
Supplier financing obligation | $ 16 | $ 36 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Lease income - operating leases | ||
Minimum lease payments | $ 94 | $ 98 |
Variable lease payments | 108 | 96 |
Subtotal - lease income from operating leases | 202 | 194 |
Earned income on direct financing and sales-type leases | 4 | 2 |
Total property revenues | $ 206 | $ 196 |
Revenue Recognition - Change In
Revenue Recognition - Change In Contract Liabilities (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Change In Contract With Customer Liability [Roll Forward] | |
Beginning balance | $ 555 |
Recognized during period and included in the contract liability balance at the beginning of the year | (19) |
Increase, excluding amounts recognized as revenue during the period | 13 |
Impact of foreign currency translation | (4) |
Ending balance | $ 545 |
Revenue Recognition - Estimated
Revenue Recognition - Estimated Revenue Recognition (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contract liabilities expected to be recognized in | $ 545 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months |
Contract liabilities expected to be recognized in | $ 42 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 54 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 50 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 47 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 44 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Contract liabilities expected to be recognized in | $ 308 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Total Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | $ 206 | $ 196 |
Total revenues | 1,739 | 1,590 |
TH | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | 147 | 137 |
Total revenues | 939 | 893 |
BK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | 56 | 55 |
Total revenues | 350 | 297 |
PLK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | 3 | 3 |
Total revenues | 178 | 160 |
FHS | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | 0 | 0 |
Total revenues | 50 | 37 |
INTL | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Property revenues | 0 | 1 |
Total revenues | 222 | 203 |
Sales | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 729 | 668 |
Total revenues | 729 | 668 |
Sales | TH | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 638 | 618 |
Sales | BK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 58 | 19 |
Sales | PLK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 23 | 21 |
Sales | FHS | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 10 | 10 |
Sales | INTL | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 0 | 0 |
Royalties | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 473 | 442 |
Royalties | TH | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 77 | 71 |
Royalties | BK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 116 | 113 |
Royalties | PLK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 75 | 68 |
Royalties | FHS | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 17 | 17 |
Royalties | INTL | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 188 | 173 |
Franchise fees and other revenue | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 33 | 30 |
Franchise fees and other revenue | TH | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 7 | 5 |
Franchise fees and other revenue | BK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 3 | 4 |
Franchise fees and other revenue | PLK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 2 | 2 |
Franchise fees and other revenue | FHS | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 8 | 6 |
Franchise fees and other revenue | INTL | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 13 | 13 |
Advertising revenues and other services | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 298 | 254 |
Total revenues | 298 | 254 |
Advertising revenues and other services | TH | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 70 | 62 |
Advertising revenues and other services | BK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 117 | 106 |
Advertising revenues and other services | PLK | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 75 | 66 |
Advertising revenues and other services | FHS | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | 15 | 4 |
Advertising revenues and other services | INTL | ||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||
Sales | $ 21 | $ 16 |
Earnings Per Unit - Basic and D
Earnings Per Unit - Basic and Diluted Earnings Per Unit (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 327 | $ 276 |
Class A common units | ||
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 230 | $ 189 |
Denominator - basic and diluted partnership units: | ||
Weighted average number of unit outstanding, basic (in dollars per share) | 202 | 202 |
Weighted average number of units outstanding, diluted (in shares) | 202 | 202 |
Earnings per unit - basic and diluted: | ||
Earnings per unit, basic (in usd per share) | $ 1.14 | $ 0.94 |
Earnings per unit, diluted (in usd per share) | $ 1.14 | $ 0.94 |
Partnership exchangeable units | ||
Allocation of net income among partner interests: | ||
Net income attributable to common unitholders | $ 97 | $ 87 |
Denominator - basic and diluted partnership units: | ||
Weighted average number of unit outstanding, basic (in dollars per share) | 134 | 143 |
Weighted average number of units outstanding, diluted (in shares) | 134 | 143 |
Earnings per unit - basic and diluted: | ||
Earnings per unit, basic (in usd per share) | $ 0.73 | $ 0.61 |
Earnings per unit, diluted (in usd per share) | $ 0.73 | $ 0.61 |
Intangible Assets, net and Go_3
Intangible Assets, net and Goodwill - Schedule of Intangible Assets, net and Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 815 | $ 808 |
Accumulated Amortization | (407) | (402) |
Net | 408 | 406 |
Indefinite-lived Intangible Assets [Line Items] | ||
Intangible assets, net | 10,970 | 11,107 |
Trade names | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 10,562 | 10,701 |
Trade names | Tim Hortons brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 6,299 | 6,423 |
Trade names | Burger King brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 2,092 | 2,107 |
Trade names | Popeyes brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 1,355 | 1,355 |
Trade names | Firehouse Subs brand | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 816 | 816 |
Franchise agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 735 | 727 |
Accumulated Amortization | (353) | (348) |
Net | 382 | 379 |
Favorable leases | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 80 | 81 |
Accumulated Amortization | (54) | (54) |
Net | $ 26 | $ 27 |
Intangible Assets, net and Go_4
Intangible Assets, net and Goodwill - Schedule Of Goodwill (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill [Line Items] | ||
Goodwill | $ 5,702 | $ 5,775 |
TH | ||
Goodwill [Line Items] | ||
Goodwill | 4,042 | 4,118 |
BK | ||
Goodwill [Line Items] | ||
Goodwill | 239 | 232 |
PLK | ||
Goodwill [Line Items] | ||
Goodwill | 844 | 844 |
FHS | ||
Goodwill [Line Items] | ||
Goodwill | 193 | 193 |
INTL | ||
Goodwill [Line Items] | ||
Goodwill | $ 384 | $ 388 |
Intangible Assets, net and Go_5
Intangible Assets, net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense on intangible assets | $ 9 | $ 9 |
Equity Method Investments - Add
Equity Method Investments - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity method investments | $ 160 | $ 163 | |
Equity Method Investee | |||
Schedule of Equity Method Investments [Line Items] | |||
Accounts receivable from equity method investments | 59 | $ 61 | |
Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | $ 90 | ||
BK Brasil | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 9.40% | ||
Quoted market price | $ 18 | ||
TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Quoted market price | 8 | ||
Wendy's Company TIMWEN Partnership | TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Cash distributions | 3 | $ 2 | |
Rent expense | $ 5 | $ 4 | |
United States | Carrols Restaurant Group, Inc. | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 14.70% | ||
United States | TH | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 4.20% | ||
Canada | Wendy's Company TIMWEN Partnership | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage | 50% |
Equity Method Investments - Sum
Equity Method Investments - Summary of Franchise and Property Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues from affiliates: | ||
Property revenues | $ 206 | $ 196 |
Total revenues | 1,739 | 1,590 |
Royalties | ||
Revenues from affiliates: | ||
Revenues | 473 | 442 |
Advertising revenues and other services | ||
Revenues from affiliates: | ||
Revenues | 298 | 254 |
Total revenues | 298 | 254 |
Franchise fees and other revenue | ||
Revenues from affiliates: | ||
Revenues | 33 | 30 |
Affiliates | ||
Revenues from affiliates: | ||
Total revenues | 139 | 128 |
Affiliates | Royalties | ||
Revenues from affiliates: | ||
Revenues | 101 | 92 |
Affiliates | Advertising revenues and other services | ||
Revenues from affiliates: | ||
Revenues | 20 | 18 |
Affiliates | Property revenues | ||
Revenues from affiliates: | ||
Property revenues | 8 | 9 |
Affiliates | Franchise fees and other revenue | ||
Revenues from affiliates: | ||
Revenues | 6 | 5 |
Affiliates | Sales | ||
Revenues from affiliates: | ||
Revenues | $ 4 | $ 4 |
Other Accrued Liabilities and_3
Other Accrued Liabilities and Other Liabilities, net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current: | ||
Distribution payable | $ 261 | $ 245 |
Interest payable | 91 | 67 |
Accrued compensation and benefits | 67 | 147 |
Taxes payable | 96 | 129 |
Deferred income | 84 | 77 |
Accrued advertising expenses | 45 | 58 |
Restructuring and other provisions | 16 | 18 |
Current portion of operating lease liabilities | 148 | 147 |
Other | 85 | 117 |
Other accrued liabilities | 893 | 1,005 |
Noncurrent: | ||
Taxes payable | 60 | 57 |
Contract liabilities | 545 | 555 |
Derivatives liabilities | 98 | 227 |
Unfavorable leases | 38 | 42 |
Accrued pension | 35 | 34 |
Deferred income | 63 | 57 |
Other | 23 | 24 |
Other liabilities, net | $ 862 | $ 996 |
Operating lease, liability, current, statement of financial position [Extensible Enumeration] | Other accrued liabilities | Other accrued liabilities |
Long-Term Debt - Summary of Lon
Long-Term Debt - Summary of Long-Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
TH Facility and other | $ 137 | $ 143 |
Less: unamortized deferred financing costs and deferred issue discount | (117) | (122) |
Total debt, net | 12,907 | 12,921 |
Less: current maturities of debt | (75) | (67) |
Total long-term debt | 12,832 | 12,854 |
Term Loan B | ||
Debt Instrument [Line Items] | ||
Term loan facility | 5,162 | 5,175 |
Term Loan A | ||
Debt Instrument [Line Items] | ||
Term loan facility | $ 1,275 | 1,275 |
3.875% First Lien Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.875% | |
Senior notes | $ 1,550 | 1,550 |
3.50% First Lien Senior Notes due 2029 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 3.50% | |
Senior notes | $ 750 | 750 |
5.75% First Lien Senior Notes due 2025 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 5.75% | |
Senior notes | $ 500 | 500 |
4.375% Second Lien Senior Notes due 2028 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4.375% | |
Senior notes | $ 750 | 750 |
4.00% Second Lien Senior Notes due 2030 | ||
Debt Instrument [Line Items] | ||
Stated interest rate (as a percent) | 4% | |
Senior notes | $ 2,900 | $ 2,900 |
Long-Term Debt - Revolving Cred
Long-Term Debt - Revolving Credit Facility (Details) - Line of Credit | Mar. 31, 2024 USD ($) |
Revolving Credit Facility | |
Line of Credit Facility [Line Items] | |
Letters of credit issued against credit facility | $ 0 |
Remaining borrowing capacity | 1,248,000,000 |
Letter of Credit | |
Line of Credit Facility [Line Items] | |
Letters of credit issued against credit facility | 2,000,000 |
Letter of credit sublimit as part of revolving credit facility | $ 125,000,000 |
Long-Term Debt - TH facility (D
Long-Term Debt - TH facility (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) subsidiary | Mar. 31, 2024 CAD ($) subsidiary | Dec. 31, 2023 USD ($) | |
Line of Credit Facility [Line Items] | |||
Amount outstanding under credit facility | $ 12,907 | $ 12,921 | |
TH Facility | |||
Line of Credit Facility [Line Items] | |||
Maximum borrowing capacity | $ 225,000,000 | ||
Amount outstanding under credit facility | $ 177,000,000 | ||
Effective interest rate (as a percent) | 6.69% | 6.69% | |
TH Facility | Canadian Bankers' Acceptance Rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 1.40% | ||
TH Facility | Prime Rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument floor rate (as a percent) | 0.40% | ||
TH Facility | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Number of subsidiaries | subsidiary | 1 | 1 | |
Number of guaranteed subsidiaries | subsidiary | 4 | 4 |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value Measurement (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Disclosure [Abstract] | ||
Fair value of our variable term debt and senior notes | $ 12,343 | $ 12,401 |
Principal carrying amount of our variable term debt and senior notes | $ 12,887 | $ 12,900 |
Long-Term Debt - Schedule of In
Long-Term Debt - Schedule of Interest Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Debt Disclosure [Abstract] | ||
Debt | $ 148 | $ 138 |
Finance lease obligations | 5 | 4 |
Amortization of deferred financing costs and debt issuance discount | 6 | 7 |
Interest income | (11) | (7) |
Interest expense, net | 148 | 142 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | ||
Debt Instrument [Line Items] | ||
Gain (loss) reclassified to earnings, net investment hedge | $ 11 | $ 15 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 17.20% | 9.10% |
Equity - Additional Information
Equity - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 shares | |
Partnership exchangeable units | |
Stockholders Equity [Line Items] | |
Exchange of partnership exchange units for RBI common shares (in shares) | 2,220 |
Equity - Summary of Changes in
Equity - Summary of Changes in the Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 4,730 | $ 4,268 |
Foreign currency translation adjustment | (240) | 40 |
Net change in fair value of derivatives, net of tax | 203 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | (22) | (13) |
Ending balance | 4,835 | 4,311 |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (985) | (973) |
Ending balance | (1,044) | $ (1,020) |
Derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 675 | |
Net change in fair value of derivatives, net of tax | 203 | |
Amounts reclassified to earnings of cash flow hedges, net of tax | (22) | |
Ending balance | 856 | |
Pensions | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (17) | |
Ending balance | (17) | |
Foreign Currency Translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (1,643) | |
Foreign currency translation adjustment | (240) | |
Ending balance | $ (1,883) |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Details) - 3 months ended Mar. 31, 2024 | USD ($) | EUR (€) |
Interest Rate Swaps - Period One | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 3,500,000,000 | |
Interest Rate Swaps - Period Two | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 500,000,000 | |
Interest Rate | Interest expense, net | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Loss reclassified from AOCI to income | 129,000,000 | |
Cross Currency Interest Rate Contract | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 2,750,000,000 | |
Cross Currency Interest Rate Contract | Derivatives designated as net investment hedges | Fixed Income Interest Rate | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 5,000,000,000 | |
Cross Currency Interest Rate Contract | Derivatives designated as net investment hedges | Fixed Income Interest Rate | Euro Member Countries, Euro | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 900,000,000 | |
Cross Currency Interest Rate Contract, Maturing October 31, 2026 | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 1,400,000,000 | |
Cross Currency Interest Rate Contract, Maturing November 30, 2028 | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 1,200,000,000 | |
Cross Currency Interest Rate Contract, Maturing October 31, 2028 | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 150,000,000 | |
Cross Currency Interest Rate Contract, Maturing February 17, 2024 | Derivatives designated as net investment hedges | Fixed Income Interest Rate | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | 1,200,000,000 | € 1,108,000,000 |
Foreign Exchange Contract | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Notional amount | $ 168,000,000 |
Derivative Instruments - Quanti
Derivative Instruments - Quantitative Disclosures of Derivative Instruments Including Estimated Fair Values (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest rate swaps | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | $ 92 | $ (57) |
Interest rate swaps | Interest expense, net | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Reclassified from AOCI into Earnings | 30 | 15 |
Forward-currency contracts | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 3 | (1) |
Forward-currency contracts | Cost of sales | Derivatives designated as cash flow hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Reclassified from AOCI into Earnings | 0 | 3 |
Cross-currency rate swaps | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Other Comprehensive Income (Loss) | 131 | (35) |
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | 11 | 15 |
Cross-currency rate swaps | Interest expense, net | Derivatives designated as net investment hedges | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain or (Loss) Recognized in Earnings (Amount Excluded from Effectiveness Testing) | $ 11 | $ 15 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | $ 258 | $ 197 |
Derivatives liabilities | 98 | 229 |
Derivatives designated as cash flow hedges | Interest rate | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 248 | 190 |
Derivatives designated as cash flow hedges | Foreign currency | Prepaids and other current assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 1 | 0 |
Derivatives designated as cash flow hedges | Foreign currency | Other accrued liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | 0 | 2 |
Derivatives designated as net investment hedges | Foreign currency | Other assets, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives assets | 9 | 7 |
Derivatives designated as net investment hedges | Foreign currency | Other liabilities, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives liabilities | $ 98 | $ 227 |
Other Operating Expenses (Inc_3
Other Operating Expenses (Income), net - Other Operating Expenses (Income), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | ||
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings | $ 2 | $ (2) |
Litigation settlements (gains) and reserves, net | 0 | 1 |
Net losses (gains) on foreign exchange | (23) | 8 |
Other, net | 3 | 10 |
Other operating expenses (income), net | $ (18) | $ 17 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ / shares in Units, $ in Millions | Jan. 16, 2024 USD ($) restaurant $ / shares | Mar. 31, 2024 restaurant |
Loss Contingencies [Line Items] | ||
Number of restaurants in operation | 31,113 | |
BK | ||
Loss Contingencies [Line Items] | ||
Number of restaurants in operation | 19,374 | |
BK | CRG Transaction costs | ||
Loss Contingencies [Line Items] | ||
Number of restaurants in operation | 1,020 | |
PLK | ||
Loss Contingencies [Line Items] | ||
Number of restaurants in operation | 4,625 | |
PLK | CRG Transaction costs | ||
Loss Contingencies [Line Items] | ||
Number of restaurants in operation | 60 | |
CRG Transaction costs | ||
Loss Contingencies [Line Items] | ||
Business acquisition price per share (in dollars per share) | $ / shares | $ 9.55 | |
Business combination, consideration transferred | $ | $ 1,000 | |
Payment to acquire business, cash | $ | 230 | |
Payment to acquire business, liabilities incurred | $ | $ 750 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2024 segment brand | |
Segment Reporting [Abstract] | |
Number of brands | brand | 4 |
Number of operating segments | 5 |
Number of reportable segments | 5 |
Segment Reporting - Revenues by
Segment Reporting - Revenues by Operating Segment and Country (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 1,739 | $ 1,590 |
Canada | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 856 | $ 814 |
Canada | Sales Revenue | Geographic Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue (as a percent) | 10% | 10% |
United States | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 661 | $ 573 |
United States | Sales Revenue | Geographic Concentration Risk | ||
Revenue, Major Customer [Line Items] | ||
Percentage of revenue (as a percent) | 10% | 10% |
Other | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 222 | $ 203 |
TH | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 939 | 893 |
TH | Operating Segments | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 939 | 893 |
BK | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 350 | 297 |
BK | Operating Segments | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 350 | 297 |
PLK | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 178 | 160 |
PLK | Operating Segments | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 178 | 160 |
FHS | Operating Segments | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 50 | 37 |
INTL | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | 222 | 203 |
INTL | Operating Segments | ||
Revenue, Major Customer [Line Items] | ||
Total revenues | $ 222 | $ 203 |
Segment Reporting - Reconciliat
Segment Reporting - Reconciliation of Segment Income to Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | $ 540 | $ 505 |
Impact of equity method investments | (3) | 7 |
Other operating expenses (income), net | (18) | 17 |
Income from operations | 544 | 447 |
Interest expense, net | 148 | 142 |
Income tax expense | 68 | 28 |
Net income | 328 | 277 |
Unallocated Management G&A | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Franchise agreement amortization | 8 | 8 |
Corporate restructuring and advisory fees | 2 | 5 |
Impact of equity method investments | 0 | 9 |
Other operating expenses (income), net | (18) | 17 |
Unallocated Management G&A | CRG Transaction costs | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Transaction costs | 4 | 0 |
Unallocated Management G&A | FHS Transaction costs | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Transaction costs | 0 | 19 |
TH | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | 224 | 212 |
BK | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | 106 | 96 |
PLK | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | 58 | 51 |
FHS | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | 10 | 9 |
INTL | Operating Segments | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||
Adjusted Operating Income | $ 142 | $ 137 |
Supplemental Financial Inform_3
Supplemental Financial Information - Additional Information (Details) | Mar. 31, 2024 |
3.875% First Lien Senior Notes due 2028 | |
Stated interest rate (as a percent) | 3.875% |
3.875% First Lien Senior Notes due 2028 | Senior Notes | |
Stated interest rate (as a percent) | 3.875% |
2020 3.50% Senior Notes (due February 15, 2029) | |
Stated interest rate (as a percent) | 3.50% |
5.75% First Lien Senior Notes due 2025 | |
Stated interest rate (as a percent) | 5.75% |
4.375% Second Lien Senior Notes due 2028 | |
Stated interest rate (as a percent) | 4.375% |
4.00% Second Lien Senior Notes due 2030 | |
Stated interest rate (as a percent) | 4% |
Supplemental Financial Inform_4
Supplemental Financial Information - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||||
Cash and cash equivalents | $ 1,049 | $ 1,139 | $ 1,033 | $ 1,178 |
Accounts and notes receivable, net | 749 | 749 | ||
Inventories, net | 152 | 166 | ||
Prepaids and other current assets | 121 | 119 | ||
Total current assets | 2,071 | 2,173 | ||
Property and equipment, net | 1,929 | 1,952 | ||
Operating lease assets, net | 1,141 | 1,122 | ||
Intangible assets, net | 10,970 | 11,107 | ||
Goodwill | 5,702 | 5,775 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 1,332 | 1,262 | ||
Total assets | 23,145 | 23,391 | ||
Current liabilities: | ||||
Accounts and drafts payable | 734 | 790 | ||
Other accrued liabilities | 893 | 1,005 | ||
Gift card liability | 187 | 248 | ||
Current portion of long-term debt and finance leases | 110 | 101 | ||
Total current liabilities | 1,924 | 2,144 | ||
Long-term debt, net of current portion | 12,832 | 12,854 | ||
Finance leases, net of current portion | 308 | 312 | ||
Operating lease liabilities, net of current portion | 1,075 | 1,059 | ||
Other liabilities, net | 862 | 996 | ||
Deferred income taxes, net | 1,309 | 1,296 | ||
Total liabilities | 18,310 | 18,661 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (1,044) | (985) | ||
Total Partners’ capital | 4,833 | 4,728 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 4,835 | 4,730 | 4,311 | 4,268 |
Total liabilities and equity | 23,145 | 23,391 | ||
Related Party | ||||
Current assets: | ||||
Intercompany receivable | 0 | 0 | ||
Current liabilities: | ||||
Other liabilities, net | 0 | 0 | ||
Nonrelated Party | ||||
Current liabilities: | ||||
Other liabilities, net | 862 | |||
Deferred income taxes, net | 1,296 | |||
Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 9,764 | 9,620 | ||
Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | (3,887) | (3,907) | ||
Eliminations | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | (4,835) | (4,730) | ||
Other assets, net | 0 | 0 | ||
Total assets | (5,096) | (4,975) | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 0 | 0 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Finance leases, net of current portion | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | |||
Deferred income taxes, net | 0 | |||
Total liabilities | (261) | (245) | ||
Partners’ capital: | ||||
Common shares | (2,344) | (2,246) | ||
Retained earnings | (3,533) | (3,467) | ||
Accumulated other comprehensive income (loss) | 1,044 | 985 | ||
Total Partners’ capital | (4,833) | (4,728) | ||
Noncontrolling interests | (2) | (2) | ||
Total equity | (4,835) | (4,730) | ||
Total liabilities and equity | (5,096) | (4,975) | ||
Eliminations | Related Party | ||||
Current assets: | ||||
Intercompany receivable | (261) | (245) | ||
Current liabilities: | ||||
Other liabilities, net | (261) | (245) | ||
Eliminations | Nonrelated Party | ||||
Current liabilities: | ||||
Other liabilities, net | 0 | |||
Deferred income taxes, net | 0 | |||
Eliminations | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Eliminations | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 1,049 | 1,139 | 1,033 | 1,178 |
Accounts and notes receivable, net | 749 | 749 | ||
Inventories, net | 152 | 166 | ||
Prepaids and other current assets | 121 | 119 | ||
Total current assets | 2,071 | 2,173 | ||
Property and equipment, net | 1,929 | 1,952 | ||
Operating lease assets, net | 1,141 | 1,122 | ||
Intangible assets, net | 10,970 | 11,107 | ||
Goodwill | 5,702 | 5,775 | ||
Investment in subsidiaries | 0 | 0 | ||
Other assets, net | 1,332 | 1,262 | ||
Total assets | 23,145 | 23,391 | ||
Current liabilities: | ||||
Accounts and drafts payable | 734 | 790 | ||
Other accrued liabilities | 632 | 760 | ||
Gift card liability | 187 | 248 | ||
Current portion of long-term debt and finance leases | 110 | 101 | ||
Total current liabilities | 1,663 | 1,899 | ||
Long-term debt, net of current portion | 12,832 | 12,854 | ||
Finance leases, net of current portion | 308 | 312 | ||
Operating lease liabilities, net of current portion | 1,075 | 1,059 | ||
Other liabilities, net | 996 | |||
Deferred income taxes, net | 1,309 | |||
Total liabilities | 18,310 | 18,661 | ||
Partners’ capital: | ||||
Common shares | 2,344 | 2,246 | ||
Retained earnings | 3,533 | 3,467 | ||
Accumulated other comprehensive income (loss) | (1,044) | (985) | ||
Total Partners’ capital | 4,833 | 4,728 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 4,835 | 4,730 | ||
Total liabilities and equity | 23,145 | 23,391 | ||
Consolidated Borrowers | Reportable Legal Entities | Related Party | ||||
Current assets: | ||||
Intercompany receivable | 0 | 0 | ||
Current liabilities: | ||||
Other liabilities, net | 261 | 245 | ||
Consolidated Borrowers | Reportable Legal Entities | Nonrelated Party | ||||
Current liabilities: | ||||
Other liabilities, net | 862 | |||
Deferred income taxes, net | 1,296 | |||
Consolidated Borrowers | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 0 | 0 | ||
Consolidated Borrowers | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | 0 | 0 | ||
RBILP | Reportable Legal Entities | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts and notes receivable, net | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaids and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property and equipment, net | 0 | 0 | ||
Operating lease assets, net | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Investment in subsidiaries | 4,835 | 4,730 | ||
Other assets, net | 0 | 0 | ||
Total assets | 5,096 | 4,975 | ||
Current liabilities: | ||||
Accounts and drafts payable | 0 | 0 | ||
Other accrued liabilities | 261 | 245 | ||
Gift card liability | 0 | 0 | ||
Current portion of long-term debt and finance leases | 0 | 0 | ||
Total current liabilities | 261 | 245 | ||
Long-term debt, net of current portion | 0 | 0 | ||
Finance leases, net of current portion | 0 | 0 | ||
Operating lease liabilities, net of current portion | 0 | 0 | ||
Other liabilities, net | 0 | |||
Deferred income taxes, net | 0 | |||
Total liabilities | 261 | 245 | ||
Partners’ capital: | ||||
Common shares | 0 | 0 | ||
Retained earnings | 0 | 0 | ||
Accumulated other comprehensive income (loss) | (1,044) | (985) | ||
Total Partners’ capital | 4,833 | 4,728 | ||
Noncontrolling interests | 2 | 2 | ||
Total equity | 4,835 | 4,730 | ||
Total liabilities and equity | 5,096 | 4,975 | ||
RBILP | Reportable Legal Entities | Related Party | ||||
Current assets: | ||||
Intercompany receivable | 261 | 245 | ||
Current liabilities: | ||||
Other liabilities, net | 0 | 0 | ||
RBILP | Reportable Legal Entities | Nonrelated Party | ||||
Current liabilities: | ||||
Other liabilities, net | 0 | |||
Deferred income taxes, net | 0 | |||
RBILP | Reportable Legal Entities | Class A common units | ||||
Partners’ capital: | ||||
Class A common units | 9,764 | 9,620 | ||
RBILP | Reportable Legal Entities | Partnership exchangeable units | ||||
Partners’ capital: | ||||
Partnership exchangeable units | $ (3,887) | $ (3,907) |
Supplemental Financial Inform_5
Supplemental Financial Information - Condensed Consolidating Statements of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenues: | ||
Total revenues | $ 1,739 | $ 1,590 |
Operating costs and expenses: | ||
Cost of sales | 606 | 550 |
Franchise and property expenses | 126 | 123 |
Advertising expenses and other services | 311 | 271 |
General and administrative expenses | 173 | 175 |
(Income) loss from equity method investments | (3) | 7 |
Other operating expenses (income), net | (18) | 17 |
Total operating costs and expenses | 1,195 | 1,143 |
Income from operations | 544 | 447 |
Interest expense, net | 148 | 142 |
Income before income taxes | 396 | 305 |
Income tax expense | 68 | 28 |
Net income | 328 | 277 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Net income | 328 | 277 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 327 | 276 |
Comprehensive income (loss) | 269 | 230 |
Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Operating costs and expenses: | ||
Cost of sales | 0 | 0 |
Franchise and property expenses | 0 | 0 |
Advertising expenses and other services | 0 | 0 |
General and administrative expenses | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
Other operating expenses (income), net | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (328) | (277) |
Net income | (328) | (277) |
Net income (loss) attributable to noncontrolling interests | (1) | (1) |
Net income attributable to common unitholders | (327) | (276) |
Comprehensive income (loss) | (269) | (230) |
Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 1,739 | 1,590 |
Operating costs and expenses: | ||
Cost of sales | 606 | 550 |
Franchise and property expenses | 126 | 123 |
Advertising expenses and other services | 311 | 271 |
General and administrative expenses | 173 | 175 |
(Income) loss from equity method investments | (3) | 7 |
Other operating expenses (income), net | (18) | 17 |
Total operating costs and expenses | 1,195 | 1,143 |
Income from operations | 544 | 447 |
Interest expense, net | 148 | 142 |
Income before income taxes | 396 | 305 |
Income tax expense | 68 | 28 |
Net income | 328 | 277 |
Equity in earnings of consolidated subsidiaries | 0 | 0 |
Net income | 328 | 277 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 327 | 276 |
Comprehensive income (loss) | 269 | 230 |
RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Operating costs and expenses: | ||
Cost of sales | 0 | 0 |
Franchise and property expenses | 0 | 0 |
Advertising expenses and other services | 0 | 0 |
General and administrative expenses | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
Other operating expenses (income), net | 0 | 0 |
Total operating costs and expenses | 0 | 0 |
Income from operations | 0 | 0 |
Interest expense, net | 0 | 0 |
Income before income taxes | 0 | 0 |
Income tax expense | 0 | 0 |
Net income | 0 | 0 |
Equity in earnings of consolidated subsidiaries | 328 | 277 |
Net income | 328 | 277 |
Net income (loss) attributable to noncontrolling interests | 1 | 1 |
Net income attributable to common unitholders | 327 | 276 |
Comprehensive income (loss) | 269 | 230 |
Sales | ||
Revenues: | ||
Total revenues | 729 | 668 |
Sales | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Sales | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 729 | 668 |
Sales | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Franchise and property revenues | ||
Revenues: | ||
Total revenues | 712 | 668 |
Franchise and property revenues | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Franchise and property revenues | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 712 | 668 |
Franchise and property revenues | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 0 | 0 |
Advertising revenues and other services | ||
Revenues: | ||
Total revenues | 298 | 254 |
Advertising revenues and other services | Eliminations | ||
Revenues: | ||
Total revenues | 0 | 0 |
Advertising revenues and other services | Consolidated Borrowers | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | 298 | 254 |
Advertising revenues and other services | RBILP | Reportable Legal Entities | ||
Revenues: | ||
Total revenues | $ 0 | $ 0 |
Supplemental Financial Inform_6
Supplemental Financial Information - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 328 | $ 277 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 |
Depreciation and amortization | 49 | 46 |
Amortization of deferred financing costs and debt issuance discount | 6 | 7 |
(Income) loss from equity method investments | (3) | 7 |
(Gain) loss on remeasurement of foreign denominated transactions | (23) | 8 |
Net (gains) losses on derivatives | (41) | (34) |
Share-based compensation and non-cash incentive compensation expense | 46 | 45 |
Deferred income taxes | 18 | (28) |
Other | 7 | 1 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (6) | (8) |
Inventories and prepaids and other current assets | 7 | (20) |
Accounts and drafts payable | (46) | (81) |
Other accrued liabilities and gift card liability | (175) | (123) |
Tenant inducements paid to franchisees | (5) | (6) |
Other long-term assets and liabilities | (14) | 4 |
Net cash provided by operating activities | 148 | 95 |
Cash flows from investing activities: | ||
Payments for property and equipment | 26 | 18 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 2 | 4 |
Net payments from acquisition of franchised restaurants | (23) | 0 |
Settlement/sale of derivatives, net | 16 | 14 |
Net cash (used for) provided by investing activities | (31) | 0 |
Cash flows from financing activities: | ||
Repayments of long-term debt and finance leases | (24) | (32) |
Distributions on Class A common and Partnership exchangeable units | (245) | (243) |
Capital contribution from RBI | 39 | 6 |
Distributions from subsidiaries | 0 | 0 |
Proceeds from derivatives | 28 | 29 |
Other financing activities, net | (1) | 0 |
Net cash (used for) provided by financing activities | (203) | (240) |
Effect of exchange rates on cash and cash equivalents | (4) | 0 |
Increase (decrease) in cash and cash equivalents | (90) | (145) |
Cash and cash equivalents at beginning of period | 1,139 | 1,178 |
Cash and cash equivalents at end of period | 1,049 | 1,033 |
Eliminations | ||
Cash flows from operating activities: | ||
Net income | (328) | (277) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 328 | 277 |
Depreciation and amortization | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 |
Accounts and drafts payable | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Payments for property and equipment | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 |
Net payments from acquisition of franchised restaurants | 0 | |
Settlement/sale of derivatives, net | 0 | 0 |
Net cash (used for) provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Repayments of long-term debt and finance leases | 0 | 0 |
Distributions on Class A common and Partnership exchangeable units | 0 | 0 |
Capital contribution from RBI | 0 | 0 |
Distributions from subsidiaries | 0 | 0 |
Proceeds from derivatives | 0 | 0 |
Other financing activities, net | 0 | |
Net cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Consolidated Borrowers | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income | 328 | 277 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | 0 | 0 |
Depreciation and amortization | 49 | 46 |
Amortization of deferred financing costs and debt issuance discount | 6 | 7 |
(Income) loss from equity method investments | (3) | 7 |
(Gain) loss on remeasurement of foreign denominated transactions | (23) | 8 |
Net (gains) losses on derivatives | (41) | (34) |
Share-based compensation and non-cash incentive compensation expense | 46 | 45 |
Deferred income taxes | 18 | (28) |
Other | 7 | 1 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | (6) | (8) |
Inventories and prepaids and other current assets | 7 | (20) |
Accounts and drafts payable | (46) | (81) |
Other accrued liabilities and gift card liability | (175) | (123) |
Tenant inducements paid to franchisees | (5) | (6) |
Other long-term assets and liabilities | (14) | 4 |
Net cash provided by operating activities | 148 | 95 |
Cash flows from investing activities: | ||
Payments for property and equipment | 26 | 18 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 2 | 4 |
Net payments from acquisition of franchised restaurants | (23) | |
Settlement/sale of derivatives, net | 16 | 14 |
Net cash (used for) provided by investing activities | (31) | 0 |
Cash flows from financing activities: | ||
Repayments of long-term debt and finance leases | (24) | (32) |
Distributions on Class A common and Partnership exchangeable units | 0 | 0 |
Capital contribution from RBI | 39 | 6 |
Distributions from subsidiaries | (245) | (243) |
Proceeds from derivatives | 28 | 29 |
Other financing activities, net | (1) | |
Net cash (used for) provided by financing activities | (203) | (240) |
Effect of exchange rates on cash and cash equivalents | (4) | 0 |
Increase (decrease) in cash and cash equivalents | (90) | (145) |
Cash and cash equivalents at beginning of period | 1,139 | 1,178 |
Cash and cash equivalents at end of period | 1,049 | 1,033 |
RBILP | Reportable Legal Entities | ||
Cash flows from operating activities: | ||
Net income | 328 | 277 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in loss (earnings) of consolidated subsidiaries | (328) | (277) |
Depreciation and amortization | 0 | 0 |
Amortization of deferred financing costs and debt issuance discount | 0 | 0 |
(Income) loss from equity method investments | 0 | 0 |
(Gain) loss on remeasurement of foreign denominated transactions | 0 | 0 |
Net (gains) losses on derivatives | 0 | 0 |
Share-based compensation and non-cash incentive compensation expense | 0 | 0 |
Deferred income taxes | 0 | 0 |
Other | 0 | 0 |
Changes in current assets and liabilities, excluding acquisitions and dispositions: | ||
Accounts and notes receivable | 0 | 0 |
Inventories and prepaids and other current assets | 0 | 0 |
Accounts and drafts payable | 0 | 0 |
Other accrued liabilities and gift card liability | 0 | 0 |
Tenant inducements paid to franchisees | 0 | 0 |
Other long-term assets and liabilities | 0 | 0 |
Net cash provided by operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Payments for property and equipment | 0 | 0 |
Net proceeds from disposal of assets, restaurant closures, and refranchisings | 0 | 0 |
Net payments from acquisition of franchised restaurants | 0 | |
Settlement/sale of derivatives, net | 0 | 0 |
Net cash (used for) provided by investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Repayments of long-term debt and finance leases | 0 | 0 |
Distributions on Class A common and Partnership exchangeable units | (245) | (243) |
Capital contribution from RBI | 0 | 0 |
Distributions from subsidiaries | 245 | 243 |
Proceeds from derivatives | 0 | 0 |
Other financing activities, net | 0 | |
Net cash (used for) provided by financing activities | 0 | 0 |
Effect of exchange rates on cash and cash equivalents | 0 | 0 |
Increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 1 Months Ended | ||
Jul. 05, 2024 | Apr. 04, 2024 | Apr. 30, 2024 | |
Forecast | |||
Subsequent Event [Line Items] | |||
Common stock dividends paid (in usd per share) | $ 0.58 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Common stock dividends paid (in usd per share) | $ 0.58 | ||
Common stock, dividends declared (in usd per share) | $ 0.58 | ||
Subsequent Event | Partnership exchangeable units | Restaurant Brands International Limited Partnership | |||
Subsequent Event [Line Items] | |||
Distribution in respect of each Partnership exchangeable unit (in usd per share) | $ 0.58 | $ 0.58 |