Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Fiscal Period Focus | Q2 |
Document Quarterly Report | true |
Document Period End Date | Jun. 30, 2019 |
Document Transition Report | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2019 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 1-5231 |
Entity Registrant Name | MCDONALDS CORP |
Entity Central Index Key | 0000063908 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2361282 |
Entity Address, Address Line One | 110 North Carpenter StreetChicago, Illinois |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60607 |
City Area Code | 630 |
Local Phone Number | 623-3000 |
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 |
Title of 12(b) Security | Common Stock, |
Trading Symbol | MCD |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 759,444,174 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 1,134.5 | $ 866 |
Accounts and notes receivable | 2,055 | 2,441.5 |
Inventories, at cost, not in excess of market | 44.2 | 51.1 |
Prepaid expenses and other current assets | 681.7 | 694.6 |
Total current assets | 3,915.4 | 4,053.2 |
Other assets | ||
Investments in and advances to affiliates | 1,227.3 | 1,202.8 |
Goodwill | 2,580.5 | 2,331.5 |
Miscellaneous | 2,449.6 | 2,381 |
Total other assets | 6,257.4 | 5,915.3 |
Lease right-of-use asset, net | 12,522.8 | 0 |
Property and equipment | ||
Property and equipment, at cost | 38,192.4 | 37,193.6 |
Accumulated depreciation and amortization | (14,688.2) | (14,350.9) |
Net property and equipment | 23,504.2 | 22,842.7 |
Total assets | 46,199.8 | 32,811.2 |
Current liabilities | ||
Accounts payable | 796.8 | 1,207.9 |
Lease liability | 743.4 | 0 |
Income taxes | 270.8 | 228.3 |
Other taxes | 237.9 | 253.7 |
Accrued interest | 256.1 | 297 |
Accrued payroll and other liabilities | 935 | 986.6 |
Total current liabilities | 3,240 | 2,973.5 |
Long-term debt | 32,654.3 | 31,075.3 |
Long-term lease liability | 11,895.4 | 0 |
Long-term income taxes | 2,281.8 | 2,081.2 |
Deferred revenues - initial franchise fees | 639.6 | 627.8 |
Other long-term liabilities | 939.2 | 1,096.3 |
Deferred income taxes | 1,358.3 | 1,215.5 |
Shareholders' equity (deficit) | ||
Preferred stock, no par value; authorized—165.0 million shares; issued—none | 0 | 0 |
Common stock, $.01 par value; authorized—3.5 billion shares; issued—1,660.6 million shares | 16.6 | 16.6 |
Additional paid-in capital | 7,549.5 | 7,376 |
Retained earnings | 51,562.5 | 50,487 |
Accumulated other comprehensive income (loss) | (2,496.6) | (2,609.5) |
Common stock in treasury, at cost; 901.2 and 893.5 million shares | (63,440.8) | (61,528.5) |
Total shareholders' equity (deficit) | (6,808.8) | (6,258.4) |
Total liabilities and shareholders' equity (deficit) | $ 46,199.8 | $ 32,811.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, authorized | 165,000,000 | 165,000,000 |
Preferred stock, issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 3,500,000,000 | 3,500,000,000 |
Common stock, issued | 1,660,600,000 | 1,660,600,000 |
Common stock in treasury, shares | 901,200,000 | 893,500,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Sales by Company-operated restaurants | $ 2,400.4 | $ 2,594.9 | $ 4,640.9 | $ 5,130.5 |
Revenues from franchised restaurants | 2,940.9 | 2,759 | 5,656 | 5,362.3 |
Total revenues | 5,341.3 | 5,353.9 | 10,296.9 | 10,492.8 |
Operating costs and expenses | ||||
Company-operated restaurant expenses | 1,967.1 | 2,130.5 | 3,853.3 | 4,261.4 |
Franchised restaurants-occupancy expenses | 544.7 | 483.9 | 1,077.8 | 964.2 |
Selling, general & administrative expenses | 533.1 | 542.1 | 1,032.2 | 1,075.2 |
Other operating (income) expense, net | 22.5 | (64.9) | (34.3) | (213.4) |
Total operating costs and expenses | 3,067.4 | 3,091.6 | 5,929 | 6,087.4 |
Operating income | 2,273.9 | 2,262.3 | 4,367.9 | 4,405.4 |
Interest expense | 284.2 | 240.2 | 558.3 | 477 |
Nonoperating (income) expense, net | (18.1) | 4 | (29.5) | 22.4 |
Income before provision for income taxes | 2,007.8 | 2,018.1 | 3,839.1 | 3,906 |
Provision for income taxes | 490.9 | 521.8 | 993.8 | 1,034.3 |
Net income | $ 1,516.9 | $ 1,496.3 | $ 2,845.3 | $ 2,871.7 |
Earnings per common share-basic | $ 1.99 | $ 1.92 | $ 3.73 | $ 3.66 |
Earnings per common share-diluted | 1.97 | 1.90 | 3.69 | 3.62 |
Dividends declared per common share | $ 1.16 | $ 1.01 | $ 2.32 | $ 2.02 |
Weighted average shares outstanding-basic | 761.8 | 780 | 763.3 | 785.4 |
Weighted average shares outstanding-diluted | 768.7 | 787.1 | 770.2 | 793 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2019 | |||
Net income | $ 1,516.9 | $ 1,496.3 | $ 2,845.3 | $ 2,871.7 |
Foreign currency translation adjustments: | ||||
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | 27.4 | (326.4) | 70.8 | (300.7) |
Reclassification of (gain) loss to net income | 1.2 | 0 | 46.8 | 0 |
Foreign currency translation adjustments-net of tax benefit (expense) of $27.8, $(143.9), $(32.2) and $(71.6) | 28.6 | (326.4) | 117.6 | (300.7) |
Cash flow hedges: | ||||
Gain (loss) recognized in AOCI | 1 | 32.2 | 9.2 | 24.7 |
Reclassification of (gain) loss to net income | (8) | 3.6 | (17) | 15.6 |
Cash flow hedges-net of tax benefit (expense) of $2.0, $(10.5), $2.3 and $(11.7) | (7) | 35.8 | (7.8) | 40.3 |
Defined benefit pension plans: | ||||
Gain (loss) recognized in AOCI | 0.4 | 0 | 0.4 | (1.1) |
Reclassification of (gain) loss to net income | 1.5 | 2.1 | 2.7 | 4.9 |
Defined benefit pension plans-net of tax benefit (expense) of $0.0, $0.1, $0.0 and $(0.8) | 1.9 | 2.1 | 3.1 | 3.8 |
Total other comprehensive income (loss), net of tax | 23.5 | (288.5) | 112.9 | (256.6) |
Comprehensive income (loss) | $ 1,540.4 | $ 1,207.8 | $ 2,958.2 | $ 2,615.1 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ 27.8 | $ (143.9) | $ (32.2) | $ (71.6) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | 2 | (10.5) | 2.3 | (11.7) |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ 0 | $ 0.1 | $ 0 | $ (0.8) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities | ||||
Net income | $ 1,516.9 | $ 1,496.3 | $ 2,845.3 | $ 2,871.7 |
Charges and credits: | ||||
Depreciation and amortization | 398.3 | 365 | 790.9 | 727.9 |
Deferred income taxes | 58 | 54.4 | 112.3 | 83.6 |
Share-based compensation | 28.9 | 23.9 | 60.5 | 63.7 |
Other | 14.9 | (90.7) | 66.4 | (145.6) |
Changes in working capital items | (91.5) | (510.1) | 70.7 | (617.3) |
Cash provided by operations | 1,925.5 | 1,338.8 | 3,946.1 | 2,984 |
Investing activities | ||||
Capital expenditures | (597.8) | (611.3) | (1,113.1) | (1,164.1) |
Purchases of restaurant and other businesses | (384.8) | (11.6) | (393.8) | (35.3) |
Sales of restaurant businesses | 68.6 | 143.2 | 200.5 | 329.9 |
Sales of property | 68.9 | 52.8 | 91.2 | 124.5 |
Other | (54.9) | (63.9) | (456.1) | (104.9) |
Cash (used for) investing activities | (900) | (490.8) | (1,671.3) | (849.9) |
Financing activities | ||||
Net short-term borrowings | 589.1 | 239.7 | 495.1 | 795.7 |
Long-term financing issuances | 6.5 | 500.5 | 2,519.8 | 2,000.2 |
Long-term financing repayments | (981.2) | (1.2) | (1,396.2) | (1,002.8) |
Treasury stock purchases | (1,067.4) | (1,607.2) | (2,063.5) | (3,240.1) |
Common stock dividends | (883) | (786.1) | (1,769.8) | (1,583.6) |
Proceeds from stock option exercises | 139.4 | 91.7 | 250 | 167 |
Other | 0.5 | (1.6) | (10.8) | (6.8) |
Cash (used for) financing activities | (2,196.1) | (1,564.2) | (1,975.4) | (2,870.4) |
Effect of exchange rates on cash and cash equivalents | 16 | (128.3) | (30.9) | (104) |
Cash and equivalents increase (decrease) | (1,154.6) | (844.5) | 268.5 | (840.3) |
Cash and equivalents at beginning of period | 2,289.1 | 2,468 | 866 | 2,463.8 |
Cash and equivalents at end of period | $ 1,134.5 | $ 1,623.5 | $ 1,134.5 | $ 1,623.5 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock issued | Additional paid-in capital | Retained earnings | Pensions | Cash flow hedges | Foreign currency translation | Common stock in treasury |
Beginning Balance (in shares) at Dec. 31, 2017 | 1,660.6 | (866.5) | ||||||
Beginning Balance at Dec. 31, 2017 | $ (3,268) | $ 16.6 | $ 7,072.4 | $ 48,325.8 | $ (190.2) | $ (16.5) | $ (1,971.7) | $ (56,504.4) |
Net income | 2,871.7 | 2,871.7 | ||||||
Other comprehensive income (loss), net of tax | (256.6) | 3.8 | 40.3 | (300.7) | ||||
Comprehensive income | 2,615.1 | |||||||
Adoption of ASC 606 | (450.2) | (450.2) | ||||||
Adoption of ASU 2016-16 | (57) | (57) | ||||||
Common stock cash dividends | (1,583.6) | (1,583.6) | ||||||
Treasury stock purchases (in shares) | (20.8) | |||||||
Treasury stock purchases | (3,336.3) | $ (3,336.3) | ||||||
Share-based compensation | 63.7 | 63.7 | ||||||
Stock option exercises and other (in shares) | 2.5 | |||||||
Stock option exercises and other | 165.3 | 59.1 | $ 106.2 | |||||
Ending Balance (in shares) at Jun. 30, 2018 | 1,660.6 | (884.8) | ||||||
Ending Balance at Jun. 30, 2018 | (5,851) | $ 16.6 | 7,195.2 | 49,106.7 | (186.4) | 23.8 | (2,272.4) | $ (59,734.5) |
Beginning Balance (in shares) at Mar. 31, 2018 | 1,660.6 | (875.4) | ||||||
Beginning Balance at Mar. 31, 2018 | 4,718.8 | $ 16.6 | 7,122.2 | 48,396.5 | (188.5) | (12) | (1,946) | $ (58,107.6) |
Net income | 1,496.3 | 1,496.3 | ||||||
Other comprehensive income (loss), net of tax | (288.5) | 2.1 | 35.8 | (326.4) | ||||
Comprehensive income | 1,207.8 | |||||||
Adoption of ASC 606 | 0 | |||||||
Adoption of ASU 2016-16 | 0 | |||||||
Common stock cash dividends | (786.1) | (786.1) | ||||||
Treasury stock purchases (in shares) | (10.4) | |||||||
Treasury stock purchases | (1,669.5) | $ (1,669.5) | ||||||
Share-based compensation | 23.9 | 23.9 | ||||||
Stock option exercises and other (in shares) | 1 | |||||||
Stock option exercises and other | 91.7 | 49.1 | $ 42.6 | |||||
Ending Balance (in shares) at Jun. 30, 2018 | 1,660.6 | (884.8) | ||||||
Ending Balance at Jun. 30, 2018 | (5,851) | $ 16.6 | 7,195.2 | 49,106.7 | (186.4) | 23.8 | (2,272.4) | $ (59,734.5) |
Beginning Balance (in shares) at Dec. 31, 2018 | 1,660.6 | (893.5) | ||||||
Beginning Balance at Dec. 31, 2018 | (6,258.4) | $ 16.6 | 7,376 | 50,487 | (216.6) | 32.4 | (2,425.3) | $ (61,528.5) |
Net income | 2,845.3 | 2,845.3 | ||||||
Other comprehensive income (loss), net of tax | 112.9 | 3.1 | (7.8) | 117.6 | ||||
Comprehensive income | 2,958.2 | |||||||
Common stock cash dividends | (1,769.8) | (1,769.8) | ||||||
Treasury stock purchases (in shares) | (10.8) | |||||||
Treasury stock purchases | (2,047.3) | $ (2,047.3) | ||||||
Share-based compensation | 60.5 | 60.5 | ||||||
Stock option exercises and other (in shares) | 3.1 | |||||||
Stock option exercises and other | 248 | 113 | $ 135 | |||||
Ending Balance (in shares) at Jun. 30, 2019 | 1,660.6 | (901.2) | ||||||
Ending Balance at Jun. 30, 2019 | (6,808.8) | $ 16.6 | 7,549.5 | 51,562.5 | (213.5) | 24.6 | (2,307.7) | $ (63,440.8) |
Beginning Balance (in shares) at Mar. 31, 2019 | 1,660.6 | (897.1) | ||||||
Beginning Balance at Mar. 31, 2019 | (6,550.9) | $ 16.6 | 7,438.5 | 50,928.6 | (215.4) | 31.6 | (2,336.3) | $ (62,414.5) |
Net income | 1,516.9 | 1,516.9 | ||||||
Other comprehensive income (loss), net of tax | 23.5 | 1.9 | (7) | 28.6 | ||||
Comprehensive income | 1,540.4 | |||||||
Common stock cash dividends | (883) | (883) | ||||||
Treasury stock purchases (in shares) | (5.4) | |||||||
Treasury stock purchases | (1,083.6) | $ (1,083.6) | ||||||
Share-based compensation | 28.9 | 28.9 | ||||||
Stock option exercises and other (in shares) | 1.3 | |||||||
Stock option exercises and other | 139.4 | 82.1 | $ 57.3 | |||||
Ending Balance (in shares) at Jun. 30, 2019 | 1,660.6 | (901.2) | ||||||
Ending Balance at Jun. 30, 2019 | $ (6,808.8) | $ 16.6 | $ 7,549.5 | $ 51,562.5 | $ (213.5) | $ 24.6 | $ (2,307.7) | $ (63,440.8) |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per common share | $ 1.16 | $ 1.01 | $ 2.32 | $ 2.02 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | McDonald’s Corporation, the registrant, together with its subsidiaries, is referred to herein as the "Company." The Company, its franchisees and suppliers, are referred to herein as the "System." Basis of Presentation The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2018 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and six months ended June 30, 2019 , do not necessarily indicate the results that may be expected for the full year. |
Restaurant Information
Restaurant Information | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Restaurant Information By Ownership Type [Abstract] | |
Restaurant Information | Restaurant Information The following table presents restaurant information by ownership type: Restaurants at June 30, 2019 2018 Conventional franchised 21,717 21,535 Developmental licensed 7,413 7,013 Foreign affiliated 6,331 5,973 Total Franchised 35,461 34,521 Company-operated 2,647 2,885 Total Systemwide restaurants 38,108 37,406 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the Condensed Consolidated Financial Statements for the periods prior to purchase and sale. |
Per Common Share Information
Per Common Share Information | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Per Common Share Information | Per Common Share Information Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 6.9 million shares and 7.1 million shares for the quarters 2019 and 2018 , respectively, and 6.9 million shares and 7.6 million shares for the six months 2019 and 2018 , respectively. Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 1.1 million shares and 2.6 million shares for the quarters 2019 and 2018 , respectively, and 2.0 million shares and 2.6 million shares for the six months 2019 and 2018 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards Lease Accounting The Company adopted ASU 2016-02, "Leases (Topic 842)” as of January 1, 2019, using the modified retrospective method. As discussed further in the “Franchise Arrangements” and “Leasing Arrangements” footnotes, the Company is engaged in a significant amount of leasing activity, both from a lessor and a lessee perspective. The Company has elected the package of practical expedients, which allows the Company to retain the classification of existing leases; therefore, there was minimal initial impact in the Consolidated Statement of Income, and no cumulative adjustment to retained earnings was recognized upon adoption. As the Company enters into new ground leases or as existing ground leases are modified, many of these may be reclassified from operating classification to financing classification, which will change the timing and classification of a portion of lease expense between Operating income and Interest expense. It is not possible to quantify the impact at this time, due to the unknown timing of new leases and lease modifications, however the Company does not expect the impact to be material to any given year. The Company has also made an accounting policy election to keep leases with an initial term of 12 months or less off of the balance sheet. These types of leases primarily relate to leases of office equipment, and are not significant in comparison to the Company’s overall lease portfolio. Payments related to those leases will continue to be recognized in the Consolidated Statement of Income on a straight-line basis over the lease term. The Company has certain leases subject to index adjustments. Historically, the Company has calculated and disclosed future minimum payments for these leases using the index as of the end of the reporting period. As part of the transition, the Company used the index in effect at transition for adoption of Topic 842 in its disclosure of future minimum lease payments and its calculation of the lease liability. For leases entered into after January 1, 2019, the index at lease inception date will be used to calculate the lease liability until lease modification. The Company recorded a Right of Use Asset and Lease Liability on the Condensed Consolidated Balance Sheet of $12.5 billion |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2018 Annual Report on Form 10-K. At June 30, 2019 , the fair value of the Company’s debt obligations was estimated at $35.5 billion , compared to a carrying amount of $32.7 billion . The fair value was based upon quoted market prices, Level 2 within the valuation hierarchy. The carrying amounts of cash and equivalents, short-term investments and notes receivable approximate fair value. |
Financial Instruments and Hedgi
Financial Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Hedging Activities | Financial Instruments and Hedging Activities The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification June 30, 2019 December 31, 2018 Balance Sheet Classification June 30, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 21.2 $ 30.9 Accrued payroll and other liabilities $ (1.3 ) $ (0.7 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities — (0.1 ) Foreign currency Miscellaneous other assets 4.1 3.8 Other long-term liabilities (1.4 ) (1.3 ) Interest rate Miscellaneous other assets 14.0 — Other long-term liabilities — (11.8 ) Total derivatives designated as hedging instruments $ 39.3 $ 34.7 $ (2.7 ) $ (13.9 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 198.2 $ 167.1 Accrued payroll and other liabilities $ (0.1 ) $ (2.7 ) Foreign currency Prepaid expenses and other current assets 6.2 4.5 Accrued payroll and other liabilities (0.2 ) — Total derivatives not designated as hedging instruments $ 204.4 $ 171.6 $ (0.3 ) $ (2.7 ) Total derivatives $ 243.7 $ 206.3 $ (3.0 ) $ (16.6 ) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the quarters ended June 30, 2019 and 2018 , respectively: Location of Gain or Loss Recognized in Income on Derivative Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified into Income from AOCI Gain (Loss) Recognized in Income on Derivative In millions 2019 2018 2019 2018 2019 2018 Foreign currency Nonoperating income/expense $ 11.9 $ 31.8 $ 22.6 $ (19.7 ) Interest rate Interest expense (0.6 ) (0.5 ) Cash flow hedges $ 11.9 $ 31.8 $ 22.0 $ (20.2 ) Foreign currency denominated debt Nonoperating income/expense $ 104.3 $ 399.7 Foreign currency derivatives Nonoperating income/expense 9.2 1.0 Foreign currency derivatives (1) Interest expense $ 5.1 $ 0.2 Net investment hedges $ 113.5 $ 400.7 $ 5.1 $ 0.2 Foreign currency Nonoperating income/expense $ (2.9 ) $ 11.8 Equity Selling, general & administrative expenses 61.0 (8.6 ) Undesignated derivatives $ 58.1 $ 3.2 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. Fair Value Hedges The Company enters into fair value hedges to reduce the exposure to changes in fair values of certain liabilities. The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps. At June 30, 2019 , the carrying amount of fixed-rate debt that was effectively converted was $964.0 million , which included an increase of $14.0 million of cumulative hedging adjustments. For the quarter ended June 30, 2019 , the Company recognized a $25.9 million gain on the fair value of interest rate swaps, and a corresponding loss on the fair value of the related hedged debt instrument to interest expense. Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover the next 18 months for certain exposures and are denominated in various currencies. As of June 30, 2019 , the Company had derivatives outstanding with an equivalent notional amount of $770.7 million that hedged a portion of forecasted foreign currency denominated cash flows. Based on market conditions at June 30, 2019 , the $24.6 million in cumulative cash flow hedging gains , after tax, is not expected to have a significant effect on earnings over the next 12 months. Net Investment Hedges The Company primarily uses foreign currency denominated debt (third party and intercompany) to hedge its investments in certain foreign subsidiaries and affiliates. Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of Other comprehensive income ("OCI") and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI. As of June 30, 2019 , $13.4 billion of the Company's third party foreign currency denominated debt and $4.5 billion of intercompany foreign currency denominated debt was designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. The changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, along with the currency gain or loss from the hedged balance sheet position. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at June 30, 2019 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in the financial statements and supplementary data, including for counterparties subject to netting arrangements. Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits. At June 30, 2019 , the Company was required to post an immaterial amount of collateral due to the negative fair value of certain derivative positions. The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions. |
Franchise Arrangements
Franchise Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Franchise Arrangements Additional Information [Abstract] | |
Franchise Arrangements | Franchise Arrangements Conventional franchise arrangements generally include a lease and a license and provide for payment of initial fees, as well as continuing rent and royalties to the Company based upon a percent of sales with minimum rent payments. Minimum rent payments are based on the Company's underlying investment in owned sites and parallel the Company’s underlying leases and escalations on properties that are leased. Under the franchise arrangement, franchisees are granted the right to operate a restaurant using the McDonald’s System and, in most cases, the use of a restaurant facility, generally for a period of 20 years. At the end of the 20-year franchise arrangement, the Company maintains control of the underlying real estate and building and can either enter into a new 20-year franchise arrangement with the existing franchisee or a different franchisee, or close the restaurant. Franchisees generally pay related occupancy costs including property taxes, insurance and site maintenance. Developmental licensees and affiliates operating under license agreements pay a royalty to the Company based upon a percent of sales, and may pay initial fees. McDonald’s has elected to allocate consideration in the franchise contract among lease and non-lease components in the same manner that it has historically: rental income (lease), royalty income (non-lease) and initial fee income (non-lease). This disaggregation and presentation of revenue is based on the nature, amount, timing and certainty of the revenue and cash flows. The allocation has been determined based on a mix of both observable and estimated standalone selling prices (the price at which an entity would sell a promised good or service separately to a customer). Revenues from franchised restaurants consisted of: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Rents $ 1,898.6 $ 1,776.4 $ 3,646.2 $ 3,437.7 Royalties 1,031.8 972.7 1,988.5 1,904.7 Initial fees 10.5 9.9 21.3 19.9 Revenues from franchised restaurants $ 2,940.9 $ 2,759.0 $ 5,656.0 $ 5,362.3 As of June 30, 2019 , future gross minimum rent payments due to the Company under existing conventional franchise arrangements were: In millions Owned sites Leased sites Total 2019 $ 788.8 $ 727.2 $ 1,516.0 2020 1,534.5 1,405.5 2,940.0 2021 1,476.9 1,335.6 2,812.5 2022 1,412.7 1,262.7 2,675.4 2023 1,357.7 1,201.1 2,558.8 Thereafter 12,161.4 9,689.3 21,850.7 Total minimum payments $ 18,732.0 $ 15,621.4 $ 34,353.4 |
Leasing Arrangements
Leasing Arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leasing Arrangements The Company is the lessee in a significant real estate portfolio, primarily through ground leases (the Company leases the land and the Company generally owns the building) and through improved leases (the Company leases land and buildings). The Company determines whether an arrangement is a lease at inception. Lease terms for most restaurants, where market conditions allow, are generally for 20 years and, in many cases, provide for rent escalations and renewal options. Renewal options are typically solely at the Company’s discretion. Escalation terms vary by market with examples including fixed-rent escalations, escalations based on an inflation index and fair-value market adjustments. The timing of these escalations generally range from annually to every five years. The following table provides detail of rent expense: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Restaurants $ 379.7 $ 358.3 $ 757.9 $ 718.1 Other 18.2 25.4 37.9 44.2 Total rent expense $ 397.9 $ 383.7 $ 795.8 $ 762.3 Rent expense included percent rents in excess of minimum rents (in millions) as follows - Quarter ended: 2019 - $68.4 ; 2018 - $75.0 . Six months ended: 2019 - $130.5 ; 2018 - $144.7 . The amount of the Right of Use Asset and Lease Liability recorded at transition included known escalations and renewal option periods reasonably assured of being exercised. Typically, renewal options are considered reasonably assured of being exercised if the associated asset lives of the building or leasehold improvements exceed that of the initial lease term, and the sales performance of the restaurant remains strong. Therefore, the Right of Use Asset and Lease Liability include an assumption on renewal options that have not yet been exercised by the Company, and are not currently a future obligation. The Company has elected not to separate non-lease components from lease components in our lessee portfolio. To the extent that occupancy costs, such as site maintenance, are included in the Asset and Liability, the impact is immaterial and is generally limited to Company-owned restaurant locations. For franchised locations, which represent the majority of the restaurant portfolio, the related occupancy costs including property taxes, insurance and site maintenance are generally required to be paid by the franchisees as part of the franchise arrangement. In addition, the Company is the lessee under non-restaurant related leases such as office buildings, vehicles and office equipment. These leases are not a material subset of the Company’s lease portfolio. As the rate implicit in each lease is not readily determinable, the Company uses an incremental borrowing rate to calculate the lease liability that represents an estimate of the interest rate the Company would incur to borrow on a collateralized basis over the term of a lease within a particular currency environment. The weighted average discount rate used for operating leases was 4.0% as of June 30, 2019 . As of June 30, 2019 , maturities of lease liabilities for our operating leases were as follows: In millions Total * 2019 $ 572.9 2020 1,114.6 2021 1,070.3 2022 1,025.2 2023 990.0 Thereafter 13,771.5 Total lease payments $ 18,544.5 Less: imputed interest (5,905.7 ) Present value of lease liability $ 12,638.8 * Total lease payments include option periods that are reasonably assured of being exercised. As of June 30, 2019 , Weighted Average Lease Term remaining that is included in the maturities of lease liabilities was 20 years. As of December 31, 2018, future minimum payments required under existing operating leases with initial terms of one year or more were: In millions Restaurant Other Total * 2019 $ 1,093.4 $ 51.3 $ 1,144.7 2020 1,032.1 51.0 1,083.1 2021 955.5 45.7 1,001.2 2022 873.8 35.7 909.5 2023 806.0 24.6 830.6 Thereafter 7,132.3 164.9 7,297.2 Total minimum payments $ 11,893.1 $ 373.2 $ 12,266.3 * Future minimum payments exclude option periods that have not yet been exercised. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information On February 25, 2019, the Company provided investors with segment summary financial information and other data in accordance with its new organizational structure for the previously reported years ended December 31, 2016 through 2018 and quarters ended March 31, 2018 through December 31, 2018. Effective January 1, 2019, the Company operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance: • U.S. - the Company's largest market. • International Operated Markets - comprised of wholly-owned markets, or countries in which the Company operates restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K. • International Developmental Licensed Markets & Corporate - comprised of primarily developmental licensee and affiliate markets in the McDonald’s system. Corporate activities are also reported within this segment. In April 2019, the Company completed the acquisition of Dynamic Yield and the related financial performance which is reflected within the International Developmental Licensed Markets & Corporate segment from the date of acquisition. The following table presents the Company’s revenues and operating income by segment: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Revenues U.S. $ 2,007.6 $ 1,961.2 $ 3,853.8 $ 3,828.4 International Operated Markets 2,884.3 2,936.4 5,547.3 5,746.4 International Developmental Licensed Markets & Corporate 449.4 456.3 895.8 918.0 Total revenues $ 5,341.3 $ 5,353.9 $ 10,296.9 $ 10,492.8 Operating Income U.S. $ 1,048.8 $ 999.2 2,000.7 1,997.2 International Operated Markets 1,218.8 1,189.0 2,266.8 2,238.1 International Developmental Licensed Markets & Corporate 6.3 74.1 100.4 170.1 Total operating income $ 2,273.9 $ 2,262.3 4,367.9 4,405.4 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure. |
Restaurant Information (Tables)
Restaurant Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure Restaurant Information By Ownership Type [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at June 30, 2019 2018 Conventional franchised 21,717 21,535 Developmental licensed 7,413 7,013 Foreign affiliated 6,331 5,973 Total Franchised 35,461 34,521 Company-operated 2,647 2,885 Total Systemwide restaurants 38,108 37,406 |
Financial Instruments and Hed_2
Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | The following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification June 30, 2019 December 31, 2018 Balance Sheet Classification June 30, 2019 December 31, 2018 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 21.2 $ 30.9 Accrued payroll and other liabilities $ (1.3 ) $ (0.7 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities — (0.1 ) Foreign currency Miscellaneous other assets 4.1 3.8 Other long-term liabilities (1.4 ) (1.3 ) Interest rate Miscellaneous other assets 14.0 — Other long-term liabilities — (11.8 ) Total derivatives designated as hedging instruments $ 39.3 $ 34.7 $ (2.7 ) $ (13.9 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 198.2 $ 167.1 Accrued payroll and other liabilities $ (0.1 ) $ (2.7 ) Foreign currency Prepaid expenses and other current assets 6.2 4.5 Accrued payroll and other liabilities (0.2 ) — Total derivatives not designated as hedging instruments $ 204.4 $ 171.6 $ (0.3 ) $ (2.7 ) Total derivatives $ 243.7 $ 206.3 $ (3.0 ) $ (16.6 ) |
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income | The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the quarters ended June 30, 2019 and 2018 , respectively: Location of Gain or Loss Recognized in Income on Derivative Gain (Loss) Recognized in AOCI Gain (Loss) Reclassified into Income from AOCI Gain (Loss) Recognized in Income on Derivative In millions 2019 2018 2019 2018 2019 2018 Foreign currency Nonoperating income/expense $ 11.9 $ 31.8 $ 22.6 $ (19.7 ) Interest rate Interest expense (0.6 ) (0.5 ) Cash flow hedges $ 11.9 $ 31.8 $ 22.0 $ (20.2 ) Foreign currency denominated debt Nonoperating income/expense $ 104.3 $ 399.7 Foreign currency derivatives Nonoperating income/expense 9.2 1.0 Foreign currency derivatives (1) Interest expense $ 5.1 $ 0.2 Net investment hedges $ 113.5 $ 400.7 $ 5.1 $ 0.2 Foreign currency Nonoperating income/expense $ (2.9 ) $ 11.8 Equity Selling, general & administrative expenses 61.0 (8.6 ) Undesignated derivatives $ 58.1 $ 3.2 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Disclosure Franchise Arrangements Additional Information [Abstract] | ||
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Rents $ 1,898.6 $ 1,776.4 $ 3,646.2 $ 3,437.7 Royalties 1,031.8 972.7 1,988.5 1,904.7 Initial fees 10.5 9.9 21.3 19.9 Revenues from franchised restaurants $ 2,940.9 $ 2,759.0 $ 5,656.0 $ 5,362.3 | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of June 30, 2019 , future gross minimum rent payments due to the Company under existing conventional franchise arrangements were: In millions Owned sites Leased sites Total 2019 $ 788.8 $ 727.2 $ 1,516.0 2020 1,534.5 1,405.5 2,940.0 2021 1,476.9 1,335.6 2,812.5 2022 1,412.7 1,262.7 2,675.4 2023 1,357.7 1,201.1 2,558.8 Thereafter 12,161.4 9,689.3 21,850.7 Total minimum payments $ 18,732.0 $ 15,621.4 $ 34,353.4 | As of December 31, 2018, future minimum payments required under existing operating leases with initial terms of one year or more were: In millions Restaurant Other Total * 2019 $ 1,093.4 $ 51.3 $ 1,144.7 2020 1,032.1 51.0 1,083.1 2021 955.5 45.7 1,001.2 2022 873.8 35.7 909.5 2023 806.0 24.6 830.6 Thereafter 7,132.3 164.9 7,297.2 Total minimum payments $ 11,893.1 $ 373.2 $ 12,266.3 * Future minimum payments exclude option periods that have not yet been exercised. |
Leasing Arrangements (Tables)
Leasing Arrangements (Tables) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | ||
Schedule of Rent Expense | The following table provides detail of rent expense: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Restaurants $ 379.7 $ 358.3 $ 757.9 $ 718.1 Other 18.2 25.4 37.9 44.2 Total rent expense $ 397.9 $ 383.7 $ 795.8 $ 762.3 | |
Schedule of Maturities of Operating Lease Liabilities | As of June 30, 2019 , maturities of lease liabilities for our operating leases were as follows: In millions Total * 2019 $ 572.9 2020 1,114.6 2021 1,070.3 2022 1,025.2 2023 990.0 Thereafter 13,771.5 Total lease payments $ 18,544.5 Less: imputed interest (5,905.7 ) Present value of lease liability $ 12,638.8 * Total lease payments include option periods that are reasonably assured of being exercised. | |
Schedule of Future Minimum Rental Payments for Operating Leases | As of June 30, 2019 , future gross minimum rent payments due to the Company under existing conventional franchise arrangements were: In millions Owned sites Leased sites Total 2019 $ 788.8 $ 727.2 $ 1,516.0 2020 1,534.5 1,405.5 2,940.0 2021 1,476.9 1,335.6 2,812.5 2022 1,412.7 1,262.7 2,675.4 2023 1,357.7 1,201.1 2,558.8 Thereafter 12,161.4 9,689.3 21,850.7 Total minimum payments $ 18,732.0 $ 15,621.4 $ 34,353.4 | As of December 31, 2018, future minimum payments required under existing operating leases with initial terms of one year or more were: In millions Restaurant Other Total * 2019 $ 1,093.4 $ 51.3 $ 1,144.7 2020 1,032.1 51.0 1,083.1 2021 955.5 45.7 1,001.2 2022 873.8 35.7 909.5 2023 806.0 24.6 830.6 Thereafter 7,132.3 164.9 7,297.2 Total minimum payments $ 11,893.1 $ 373.2 $ 12,266.3 * Future minimum payments exclude option periods that have not yet been exercised. |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Geographic Segment | The following table presents the Company’s revenues and operating income by segment: Quarters Ended Six Months Ended June 30, June 30, In millions 2019 2018 2019 2018 Revenues U.S. $ 2,007.6 $ 1,961.2 $ 3,853.8 $ 3,828.4 International Operated Markets 2,884.3 2,936.4 5,547.3 5,746.4 International Developmental Licensed Markets & Corporate 449.4 456.3 895.8 918.0 Total revenues $ 5,341.3 $ 5,353.9 $ 10,296.9 $ 10,492.8 Operating Income U.S. $ 1,048.8 $ 999.2 2,000.7 1,997.2 International Operated Markets 1,218.8 1,189.0 2,266.8 2,238.1 International Developmental Licensed Markets & Corporate 6.3 74.1 100.4 170.1 Total operating income $ 2,273.9 $ 2,262.3 4,367.9 4,405.4 |
Restaurant Information by Owner
Restaurant Information by Ownership Type (Details) - Restaurant | Jun. 30, 2019 | Jun. 30, 2018 |
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 38,108 | 37,406 |
Franchised | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 35,461 | 34,521 |
Franchised | Conventional franchised | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 21,717 | 21,535 |
Franchised | Developmental licensed | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 7,413 | 7,013 |
Franchised | Affiliated | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 6,331 | 5,973 |
Company-operated | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 2,647 | 2,885 |
Per Common Share Information (A
Per Common Share Information (Additional Information) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Dilutive effect of share-based compensation | 6.9 | 7.1 | 6.9 | 7.6 |
Stock options that were not included in diluted weighted-average shares | 1.1 | 2.6 | 2 | 2.6 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Recently Adopted Accounting Standards) (Income Taxes) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 51,562.5 | $ 50,487 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Recently Adopted Accounting Standards) (Lease Accounting) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | |||
Lease right-of-use asset, net | $ 12,522.8 | $ 12,500 | $ 0 |
Operating Lease, Liability | $ 12,638.8 | $ 12,500 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Information) (Details) $ in Billions | Jun. 30, 2019USD ($) |
Fair Value Measurements [Line Items] | |
Debt obligations, carrying amount | $ 32.7 |
Level 2 | |
Fair Value Measurements [Line Items] | |
Debt obligations, fair value | $ 35.5 |
Financial Instruments and Hed_3
Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 243.7 | $ 206.3 |
Liability Derivatives Fair Value | 3 | 16.6 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 39.3 | 34.7 |
Liability Derivatives Fair Value | 2.7 | 13.9 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 204.4 | 171.6 |
Liability Derivatives Fair Value | 0.3 | 2.7 |
Interest Rate Contract [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0 | 0.1 |
Interest Rate Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0 | 11.8 |
Interest Rate Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 14 | 0 |
Equity [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0.1 | 2.7 |
Equity [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 198.2 | 167.1 |
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 1.3 | 0.7 |
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0.2 | 0 |
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 21.2 | 30.9 |
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 6.2 | 4.5 |
Foreign Exchange [Member] | Other Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 1.4 | 1.3 |
Foreign Exchange [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 4.1 | $ 3.8 |
(Derivatives Pretax Amounts Aff
(Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | $ 22 | $ (20.2) |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 11.9 | 31.8 |
Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 113.5 | 400.7 |
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 5.1 | 0.2 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | 58.1 | 3.2 |
Foreign Exchange [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | 22.6 | (19.7) |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 11.9 | 31.8 |
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | (2.9) | 11.8 |
Foreign Exchange Forward [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 9.2 | 1 |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 5.1 | 0.2 |
Interest Rate Contract [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | (0.6) | (0.5) |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | ||
Other Foreign Currency Denominated Debt [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 104.3 | 399.7 |
Equity [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | $ 61 | $ (8.6) |
(Financial Instruments and Hedg
(Financial Instruments and Hedging Activities - Additional Information) (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Cumulative deferred hedging gain (loss), after tax, included in accumulated other comprehensive income | $ 24.6 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Derivative, notional amount | 964 |
Intercompany Debt [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 4,500 |
Debt [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 13,400 |
Interest Rate Risk [Member] | Fair Value Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Derivative instruments, gain (loss) recognized in income, net | 25.9 |
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | $ 14 |
Royalty Arrangement [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Period covered by hedge | 18 months |
Derivative, notional amount | $ 770.7 |
Revenues from Franchised Restau
Revenues from Franchised Restaurants (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Franchisor Disclosure | ||||
Rental Income | $ 1,898.6 | $ 1,776.4 | $ 3,646.2 | $ 3,437.7 |
Royalties | 1,031.8 | 972.7 | 1,988.5 | 1,904.7 |
Initial Fees | 10.5 | 9.9 | 21.3 | 19.9 |
Revenues from franchised restaurants | $ 2,940.9 | $ 2,759 | $ 5,656 | $ 5,362.3 |
Future Gross Minimum Rent Payme
Future Gross Minimum Rent Payments due to Company under Existing Franchise Arrangements (Detail) $ in Millions | Jun. 30, 2019USD ($) |
Franchisor Disclosure | |
2019 | $ 1,516 |
2020 | 2,940 |
2021 | 2,812.5 |
2022 | 2,675.4 |
2023 | 2,558.8 |
Thereafter | 21,850.7 |
Total Minimum Payments | 34,353.4 |
Owned Sites | |
Franchisor Disclosure | |
2019 | 788.8 |
2020 | 1,534.5 |
2021 | 1,476.9 |
2022 | 1,412.7 |
2023 | 1,357.7 |
Thereafter | 12,161.4 |
Total Minimum Payments | 18,732 |
Leased Sites | |
Franchisor Disclosure | |
2019 | 727.2 |
2020 | 1,405.5 |
2021 | 1,335.6 |
2022 | 1,262.7 |
2023 | 1,201.1 |
Thereafter | 9,689.3 |
Total Minimum Payments | $ 15,621.4 |
Franchise Arrangements - Additi
Franchise Arrangements - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Franchisor Disclosure [Abstract] | |
Franchise Agreement Period | 20 years |
Leasing Arrangements - Narrativ
Leasing Arrangements - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases Disclosure [Line Items] | ||||||
Weighted average remaining lease term | 20 years | 20 years | ||||
Lease Term | 20 years | |||||
Percent rents in excess of minimum rents | $ 68.4 | $ 75 | $ 130.5 | $ 144.7 | ||
Lease right-of-use asset, net | $ 12,522.8 | $ 12,522.8 | $ 12,500 | $ 0 | ||
Weighted Average Discount Rate, Percent | 4.00% | 4.00% | ||||
Minimum [Member] | ||||||
Leases Disclosure [Line Items] | ||||||
Escalation Timing | 1 year | |||||
Maximum [Member] | ||||||
Leases Disclosure [Line Items] | ||||||
Escalation Timing | 5 years |
Leasing Arrangements - Schedule
Leasing Arrangements - Schedule of Rent Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Rent Expense - Restaurants | $ 379.7 | $ 358.3 | $ 757.9 | $ 718.1 |
Rent Expense - Other | 18.2 | 25.4 | 37.9 | 44.2 |
Total Rent Expense | $ 397.9 | $ 383.7 | $ 795.8 | $ 762.3 |
Leasing Arrangements - Schedu_2
Leasing Arrangements - Schedule of Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 (excluding six months) | $ 572.9 | |
2020 | 1,114.6 | |
2021 | 1,070.3 | |
2022 | 1,025.2 | |
2023 | 990 | |
Thereafter | 13,771.5 | |
Total Lease Payments | 18,544.5 | |
Imputed Interest | (5,905.7) | |
Operating Lease, Liability | $ 12,638.8 | $ 12,500 |
Leasing Arrangements - Schedu_3
Leasing Arrangements - Schedule of Future Minimum Rental Payments for Operating Leases (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases Disclosure [Line Items] | |
2019 | $ 1,144.7 |
2020 | 1,083.1 |
2021 | 1,001.2 |
2022 | 909.5 |
2023 | 830.6 |
Thereafter | 7,297.2 |
Total minimum payments | 12,266.3 |
Restaurant [Member] | |
Leases Disclosure [Line Items] | |
2019 | 1,093.4 |
2020 | 1,032.1 |
2021 | 955.5 |
2022 | 873.8 |
2023 | 806 |
Thereafter | 7,132.3 |
Total minimum payments | 11,893.1 |
All Other [Member] | |
Leases Disclosure [Line Items] | |
2019 | 51.3 |
2020 | 51 |
2021 | 45.7 |
2022 | 35.7 |
2023 | 24.6 |
Thereafter | 164.9 |
Total minimum payments | $ 373.2 |
Segment Information (Segment an
Segment Information (Segment and Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Segment Reporting Information [Line Items] | ||||
Document Fiscal Year Focus | 2019 | |||
Total revenues | $ 5,341.3 | $ 5,353.9 | $ 10,296.9 | $ 10,492.8 |
Operating Income | 2,273.9 | 2,262.3 | 4,367.9 | 4,405.4 |
United States | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,007.6 | 1,961.2 | 3,853.8 | 3,828.4 |
Operating Income | 1,048.8 | 999.2 | 2,000.7 | 1,997.2 |
International Operated Markets | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,884.3 | 2,936.4 | 5,547.3 | 5,746.4 |
Operating Income | 1,218.8 | 1,189 | 2,266.8 | 2,238.1 |
International Developmental Licensed Markets and Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 449.4 | 456.3 | 895.8 | 918 |
Operating Income | $ 6.3 | $ 74.1 | $ 100.4 | $ 170.1 |