Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 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 | McDONALD’S CORPORATION | ||
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 Street, | ||
Entity Address, City or Town | Chicago, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60607 | ||
City Area Code | (630) | ||
Local Phone Number | 623-3000 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | MCD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 157,661,991,693 | ||
Entity Common Stock, Shares Outstanding | 745,446,655 | ||
Documents Incorporated by Reference [Text Block] | Part III of this Form 10-K incorporates information by reference from the registrant’s 2020 definitive proxy statement, which will be filed no later than 120 days after December 31, 2019 . |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | |||
Sales by Company-operated restaurants | $ 9,420.8 | $ 10,012.7 | $ 12,718.9 |
Revenues from franchised restaurants | 11,655.7 | 11,012.5 | 10,101.5 |
Total revenues | 21,076.5 | 21,025.2 | 22,820.4 |
OPERATING COSTS AND EXPENSES | |||
Food & paper | 2,980.3 | 3,153.8 | 4,033.5 |
Payroll & employee benefits | 2,704.4 | 2,937.9 | 3,528.5 |
Occupancy & other operating expenses | 2,075.9 | 2,174.2 | 2,847.6 |
Franchised restaurants occupancy expenses | 2,200.6 | 1,973.3 | 1,790 |
Selling, general & administrative expenses | 2,229.4 | 2,200.2 | 2,231.3 |
Other operating (income) expense, net | (183.9) | (236.8) | (1,163.2) |
Total operating costs and expenses | 12,006.7 | 12,202.6 | 13,267.7 |
Operating income | 9,069.8 | 8,822.6 | 9,552.7 |
Interest expense-net of capitalized interest of $7.4, $5.6 and $5.3 | 1,121.9 | 981.2 | 921.3 |
Nonoperating (income) expense, net | (70.2) | 25.3 | 57.9 |
Income before provision for income taxes | 8,018.1 | 7,816.1 | 8,573.5 |
Provision for income taxes | 1,992.7 | 1,891.8 | 3,381.2 |
Net income | $ 6,025.4 | $ 5,924.3 | $ 5,192.3 |
Earnings per common share–basic | $ 7.95 | $ 7.61 | $ 6.43 |
Earnings per common share–diluted | 7.88 | 7.54 | 6.37 |
Dividends declared per common share | $ 4.73 | $ 4.19 | $ 3.83 |
Weighted-average shares outstanding–basic | 758.1 | 778.2 | 807.4 |
Weighted-average shares outstanding–diluted | 764.9 | 785.6 | 815.5 |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest expense, capitalized interest | $ 7.4 | $ 5.6 | $ 5.3 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net income | $ 6,025.4 | $ 5,924.3 | $ 5,192.3 |
Foreign currency translation adjustments: | |||
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | 127.5 | (453.6) | 827.7 |
Reclassification of (gain) loss to net income | 46.8 | 0 | 109.3 |
Foreign currency translation adjustments-net of tax benefit (expense) of $(55.4), $(90.7), and $453.1 | 174.3 | (453.6) | 937 |
Cash flow hedges: | |||
Gain (loss) recognized in AOCI | 17.3 | 46.5 | (48.4) |
Reclassification of (gain) loss to net income | (37.7) | 2.4 | 9 |
Cash flow hedges-net of tax benefit (expense) of $6.1, $(14.5), and $22.4 | (20.4) | 48.9 | (39.4) |
Defined benefit pension plans: | |||
Gain (loss) recognized in AOCI | (24.5) | (27) | 16.3 |
Reclassification of (gain) loss to net income | (2.6) | 0.6 | 0.6 |
Defined benefit pension plans-net of tax benefit (expense) of $5.2, $4.3, and $(3.9) | (27.1) | (26.4) | 16.9 |
Total other comprehensive income (loss), net of tax | 126.8 | (431.1) | 914.5 |
Comprehensive income | $ 6,152.2 | $ 5,493.2 | $ 6,106.8 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash and equivalents | $ 898.5 | $ 866 |
Accounts and notes receivable | 2,224.2 | 2,441.5 |
Inventories, at cost, not in excess of market | 50.2 | 51.1 |
Prepaid expenses and other current assets | 385 | 694.6 |
Total current assets | 3,557.9 | 4,053.2 |
Other assets | ||
Investments in and advances to affiliates | 1,270.3 | 1,202.8 |
Goodwill | 2,677.4 | 2,331.5 |
Miscellaneous | 2,584 | 2,381 |
Total other assets | 6,531.7 | 5,915.3 |
Lease right-of-use asset, net | 13,261.2 | 0 |
Property and equipment | ||
Property and equipment, at cost | 39,050.9 | 37,193.6 |
Accumulated depreciation and amortization | (14,890.9) | (14,350.9) |
Net property and equipment | 24,160 | 22,842.7 |
Total assets | 47,510.8 | 32,811.2 |
Current liabilities | ||
Accounts payable | 988.2 | 1,207.9 |
Lease liability | 621 | 0 |
Income taxes | 331.7 | 228.3 |
Other taxes | 247.5 | 253.7 |
Accrued interest | 337.8 | 297 |
Accrued payroll and other liabilities | 1,035.7 | 986.6 |
Current maturities of long term debt | 59.1 | 0 |
Total current liabilities | 3,621 | 2,973.5 |
Long-term debt | 34,118.1 | 31,075.3 |
Long-term lease liability | 12,757.8 | 0 |
Long-term income taxes | 2,265.9 | 2,081.2 |
Deferred revenues - initial franchise fees | 660.6 | 627.8 |
Other long-term liabilities | 979.6 | 1,096.3 |
Deferred income taxes | 1,318.1 | 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 | 7,653.9 | 7,376 |
Retained earnings | 52,930.5 | 50,487 |
Accumulated other comprehensive income (loss) | (2,482.7) | (2,609.5) |
Common stock in treasury, at cost; 914.3 and 893.5 million shares | (66,328.6) | (61,528.5) |
Total shareholders' equity (deficit) | (8,210.3) | (6,258.4) |
Total liabilities and shareholders' equity (deficit) | $ 47,510.8 | $ 32,811.2 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 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 | 914,300,000 | 893,500,000 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating activities | |||
Net income | $ 6,025.4 | $ 5,924.3 | $ 5,192.3 |
Charges and credits: | |||
Depreciation and amortization | 1,617.9 | 1,482 | 1,363.4 |
Deferred income taxes | 149.7 | 102.6 | (36.4) |
Share-based compensation | 109.6 | 125.1 | 117.5 |
Net gain on sale of restaurant businesses | (128.2) | (308.8) | (1,155.8) |
Other | 49.2 | 114.2 | 1,050.7 |
Changes in working capital items: | |||
Accounts receivable | 27 | (479.4) | (340.7) |
Inventories, prepaid expenses and other current assets | 128.8 | (1.9) | (37.3) |
Accounts payable | (26.8) | 129.4 | (59.7) |
Income taxes | 173.4 | (33.4) | (396.4) |
Other accrued liabilities | (3.9) | (87.4) | (146.4) |
Cash provided by operations | 8,122.1 | 6,966.7 | 5,551.2 |
Investing activities | |||
Capital expenditures | (2,393.7) | (2,741.7) | (1,853.7) |
Purchases of restaurant and other businesses | (540.9) | (101.7) | (77) |
Sales of restaurant businesses | 340.8 | 530.8 | 974.8 |
Proceeds from sale of businesses in China and Hong Kong | 0 | 0 | 1,597 |
Sales of property | 151.2 | 160.4 | 166.8 |
Other | (628.5) | (302.9) | (245.9) |
Cash provided by (used for) investing activities | (3,071.1) | (2,455.1) | 562 |
Financing activities | |||
Net short-term borrowings | 799.2 | 95.9 | (1,050.3) |
Long-term financing issuances | 4,499 | 3,794.5 | 4,727.5 |
Long-term financing repayments | (2,061.9) | (1,759.6) | (1,649.4) |
Treasury stock purchases | (4,976.2) | (5,207.7) | (4,685.7) |
Common stock dividends | (3,581.9) | (3,255.9) | (3,089.2) |
Proceeds from stock option exercises | 350.5 | 403.2 | 456.8 |
Other | (23.5) | (20) | (20.5) |
Cash (used for) financing activities | (4,994.8) | (5,949.6) | (5,310.8) |
Effect of exchange rates on cash and equivalents | (23.7) | (159.8) | 264 |
Cash and equivalents increase (decrease) | 32.5 | (1,597.8) | 1,066.4 |
Change in cash balances of businesses held for sale | 0 | 0 | 174 |
Cash and equivalents at beginning of year | 866 | 2,463.8 | 1,223.4 |
Cash and equivalents at end of year | 898.5 | 866 | 2,463.8 |
Supplemental cash flow disclosures | |||
Interest Paid | 1,066.5 | 959.6 | 885.2 |
Income taxes paid | $ 1,589.7 | $ 1,734.4 | $ 2,786.3 |
Consolidated Statement of Share
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, 2016 | 1,660.6 | (841.3) | ||||||
Beginning Balance at Dec. 31, 2016 | $ (2,204.3) | $ 16.6 | $ 6,757.9 | $ 46,222.7 | $ (207.1) | $ 22.9 | $ (2,908.7) | $ (52,108.6) |
Net income | 5,192.3 | 5,192.3 | ||||||
Other comprehensive income (loss), net of tax | 914.5 | 16.9 | (39.4) | 937 | ||||
Comprehensive income | 6,106.8 | |||||||
Common stock cash dividends | (3,089.2) | (3,089.2) | ||||||
Treasury stock purchases (in shares) | (31.4) | |||||||
Treasury stock purchases | (4,650.5) | $ (4,650.5) | ||||||
Share-based compensation | 117.5 | 117.5 | ||||||
Stock option exercises and other (in shares) | 6.2 | |||||||
Stock option exercises and other | 451.7 | 197 | $ 254.7 | |||||
Ending Balance (in shares) at Dec. 31, 2017 | 1,660.6 | (866.5) | ||||||
Ending 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 | 5,924.3 | 5,924.3 | ||||||
Other comprehensive income (loss), net of tax | (431.1) | (26.4) | 48.9 | (453.6) | ||||
Comprehensive income | 5,493.2 | |||||||
Adoption of ASC 606 | (450.2) | (450.2) | ||||||
Adoption of ASU 2016-16 | (57) | (57) | ||||||
Common stock cash dividends | (3,255.9) | (3,255.9) | ||||||
Treasury stock purchases (in shares) | (32.2) | |||||||
Treasury stock purchases | (5,247.5) | $ (5,247.5) | ||||||
Share-based compensation | 125.1 | 125.1 | ||||||
Stock option exercises and other (in shares) | 5.2 | |||||||
Stock option exercises and other | 401.9 | 178.5 | $ 223.4 | |||||
Ending Balance (in shares) at Dec. 31, 2018 | 1,660.6 | (893.5) | ||||||
Ending 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 | 6,025.4 | 6,025.4 | ||||||
Other comprehensive income (loss), net of tax | 126.8 | (27.1) | (20.4) | 174.3 | ||||
Comprehensive income | 6,152.2 | |||||||
Common stock cash dividends | (3,581.9) | (3,581.9) | ||||||
Treasury stock purchases (in shares) | (25) | |||||||
Treasury stock purchases | (4,980.5) | $ (4,980.5) | ||||||
Share-based compensation | 109.6 | 109.6 | ||||||
Stock option exercises and other (in shares) | 4.2 | |||||||
Stock option exercises and other | 348.7 | 168.3 | $ 180.4 | |||||
Ending Balance (in shares) at Dec. 31, 2019 | 1,660.6 | (914.3) | ||||||
Ending Balance at Dec. 31, 2019 | $ (8,210.3) | $ 16.6 | $ 7,653.9 | $ 52,930.5 | $ (243.7) | $ 12 | $ (2,251) | $ (66,328.6) |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders Equity (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2019 | [1] | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | [1] | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common stock cash dividends (in dollars per share) | $ 2.41 | $ 1.16 | $ 1.16 | $ 2.17 | $ 1.01 | $ 1.01 | $ 4.73 | $ 4.19 | $ 3.83 | ||
Stock option exercises and other, tax benefits | $ 0 | $ 0 | $ 0 | ||||||||
[1] | Includes a $1.16 and $1.01 per share dividend declared and paid in third quarter of 2019 and 2018, respectively, and a $1.25 and $1.16 per share dividend declared in the third quarter and paid in fourth quarter of 2019 and 2018, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchised arrangements, and developmental licensees or affiliates under license agreements. The following table presents restaurant information by ownership type: Restaurants at December 31, 2019 2018 2017 Conventional franchised 21,837 21,685 21,366 Developmental licensed 7,648 7,225 6,945 Foreign affiliated 6,574 6,175 5,797 Total Franchised 36,059 35,085 34,108 Company-operated 2,636 2,770 3,133 Total Systemwide restaurants 38,695 37,855 37,241 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 consolidated financial statements for periods prior to purchase and sale. CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s China and Japan) are accounted for by the equity method. On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. ESTIMATES IN FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. FOREIGN CURRENCY TRANSLATION Generally, the functional currency of operations outside the U.S. is the respective local currency. RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Lease Accounting The Company adopted ASC Topic 842, "Leases" ("ASC 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 ASC 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 upon adoption. The Lease Liability reflects the present value of the Company's estimated future minimum lease payments over the lease term, which includes options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. The impact of the new lease guidance is non-cash in nature, therefore, it does not affect the Company’s cash flows. Recent Accounting Pronouncements Not Yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", that modifies the measurement and recognition of expected credit losses on financial assets. The Company will adopt this guidance effective January 1, 2020, prospectively. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. REVENUE RECOGNITION The Company's revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees, developmental licensees and affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to developmental licensees and affiliates include a royalty based on a percent of sales, and generally include initial fees. Sales by Company-operated restaurants are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. Royalty revenues are based on a percent of sales and recognized at the time the underlying sales occur. Rental income includes both minimum rent payments, which are recognized straight-line over the franchise term, and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. The Company's accounting policy through December 31, 2017, was to recognize initial franchise fees when received, upon a new restaurant opening and at the start of a new franchise term. Beginning in January 2018, initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. PROPERTY AND EQUIPMENT Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements– the lesser of useful lives of assets or lease terms , which generally include certain option periods; and equipment– 3 to 12 years. CAPITALIZED SOFTWARE Capitalized software is stated at cost and amortized using the straight-line method over the estimated useful life of the software, which primarily ranges from 2 to 7 years. Customer facing software is typically amortized over a shorter useful life, while back office and Corporate systems may have a longer useful life. Capitalized software less accumulated amortization is recorded within Miscellaneous Other Assets on the Consolidated Balance Sheet and was (in millions): 2019 - $665.4 ; 2018 - $609.7 ; 2017 - $535.6 . LONG-LIVED ASSETS Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together in the U.S. at a field office level, and internationally, at a market level. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. Losses on assets held for disposal are recognized when management and the Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal and the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses are related to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “available for sale." GOODWILL Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurants and other businesses. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees and ownership increases in subsidiaries or affiliates, and it is generally assigned to the reporting unit (defined as each individual market) expected to benefit from the synergies of the combination. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit. The following table presents the 2019 activity in goodwill by segment: In millions U.S. International Operated Markets International Developmental Licensed Markets & Corporate Consolidated Balance at December 31, 2018 $ 1,276.5 $ 1,055.0 $ — $ 2,331.5 Business acquisitions 348.8 — — 348.8 Net restaurant purchases (sales) (9.5 ) 5.7 99.4 95.6 Impairment losses — — (99.4 ) (99.4 ) Currency translation — 0.9 — 0.9 Balance at December 31, 2019 $ 1,615.8 $ 1,061.6 $ — $ 2,677.4 The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever an indicator of impairment exists. If an indicator of impairment exists (e.g., estimated earnings multiple value of a reporting unit is less than its carrying value), the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit's goodwill and the carrying amount of goodwill. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. Goodwill on the Consolidated Balance Sheet reflects accumulated impairment losses of $113.9 million and $15.6 million as of December 31, 2019 and 2018, respectively. ADVERTISING COSTS Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2019 – $365.8 ; 2018 – $388.8 ; 2017 – $532.9 . Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses are included in Selling, general & administrative expenses and were (in millions): 2019 – $81.5 ; 2018 – $88.0 ; 2017 – $100.2 . Costs related to the Olympics sponsorship are included in the expenses for 2018. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets. The costs incurred by these advertising cooperatives are approved and managed jointly by vote of both Company-operated restaurants and franchisees. INCOME TAXES Income Tax Uncertainties The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Accounting for Global Intangible Low-Taxed Income ("GILTI") FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: ▪ Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. ▪ Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ▪ Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. ▪ Certain Financial Assets and Liabilities Measured at Fair Value The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: 12/31/2019 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 179.1 $ 45.6 $ 224.7 Derivative liabilities $ (11.3 ) $ (11.3 ) 12/31/2018 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 167.1 $ 39.2 $ 206.3 Derivative liabilities $ (16.6 ) $ (16.6 ) (1) Level 1 is comprised of derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. ▪ Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the year ended December 31, 2019, the Company recorded fair value adjustments to its long-lived assets, primarily to goodwill, based on Level 3 inputs which includes the use of a discounted cash flow valuation approach. ▪ Certain Financial Assets and Liabilities not Measured at Fair Value At December 31, 2019, the fair value of the Company’s debt obligations was estimated at $37.6 billion , compared to a carrying amount of $34.2 billion . The fair value was based on quoted market prices, Level 2 within the valuation hierarchy. The carrying amount for both cash equivalents and notes receivable approximate fair value. 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 Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated for hedge accounting consist mainly of interest rate swaps, foreign currency forwards, and cross-currency interest rate swaps, and are classified as either fair value, cash flow or net investment hedges. Further details are explained in the "Fair Value," "Cash Flow" and "Net Investment" hedge sections. The Company also enters into certain derivatives that are not designated for hedge accounting. The Company has entered into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its 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. Further details are explained in the “Undesignated Derivatives” section. All derivatives (including those not designated for hedge accounting) are recognized on the Consolidated Balance Sheet at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to AOCI and/or current earnings. The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2019 and 2018 : Derivative Assets Derivative Liabilities In millions Balance Sheet Classification 2019 2018 Balance Sheet Classification 2019 2018 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 10.0 $ 30.9 Accrued payroll and other liabilities $ (5.2 ) $ (0.7 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities — (0.1 ) Foreign currency Miscellaneous other assets 9.5 3.8 Other long-term liabilities (1.2 ) (1.3 ) Interest rate Miscellaneous other assets 12.1 — Other long-term liabilities — (11.8 ) Total derivatives designated as hedging instruments $ 31.6 $ 34.7 $ (6.4 ) $ (13.9 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 1.6 $ 167.1 Accrued payroll and other liabilities $ (0.1 ) $ (2.7 ) Foreign currency Prepaid expenses and other current assets 12.4 4.5 Accrued payroll and other liabilities (4.8 ) — Equity Miscellaneous other assets 179.1 — Total derivatives not designated as hedging instruments $ 193.1 $ 171.6 (4.9 ) $ (2.7 ) Total derivatives $ 224.7 $ 206.3 $ (11.3 ) $ (16.6 ) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 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 $ 22.5 $ 60.0 $ 50.3 $ (2.2 ) Interest rate Interest expense (1.3 ) (1.2 ) Cash flow hedges $ 22.5 $ 60.0 $ 49.0 $ (3.4 ) Foreign currency denominated debt Nonoperating income/expense $ 317.3 $ 682.9 Foreign currency derivatives Nonoperating income/expense 11.8 1.3 Foreign currency derivatives (1) Interest expense $ 11.7 $ 4.0 Net investment hedges $ 329.1 $ 684.2 $ 11.7 $ 4.0 Foreign currency Nonoperating income/expense $ 14.2 $ 22.1 Equity Selling, general & administrative expenses 71.8 0.4 Undesignated derivatives $ 86.0 $ 22.5 (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 December 31, 2019 , the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $998.5 million , which included an increase of $ 12.1 million of cumulative hedging adjustments. For the year ended December 31, 2019 , the Company recognized a $24.0 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 December 31, 2019 , the Company had derivatives outstanding with an equivalent notional amount of $ 754.7 million that hedged a portion of forecasted foreign currency denominated cash flows. Based on market conditions at December 31, 2019 , the $ 12.0 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 December 31, 2019 , $ 11.9 billion of the Company's third party foreign currency denominated debt and $ 642.6 million of intercompany foreign currency denominated debt were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. 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 December 31, 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 December 31, 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. SHARE-BASED COMPENSATION Share-based compensation includes the portion vesting of all share-based awards granted based on the grant date fair value. Share-based compensation expense and the effect on diluted earnings per common share were as follows: In millions, except per share data 2019 2018 2017 Share-based compensation expense $ 109.6 $ 125.1 $ 117.5 After tax $ 94.2 $ 108.1 $ 82.0 Earnings per common share-diluted $ 0.12 $ 0.14 $ 0.10 Compensation expense related to share-based awards is generally amortized on a straight-line basis over the vesting period in Selling, general & administrative expenses. As of December 31, 2019, there was $107.5 million of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.1 years. The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The following table presents the weighted-average assumptions used in the option pricing model for the 2019 , 2018 and 2017 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. Weighted-average assumptions 2019 2018 2017 Expected dividend yield 2.7 % 2.6 % 3.1 % Expected stock price volatility 18.9 % 18.7 % 18.4 % Risk-free interest rate 2.5 % 2.7 % 2.2 % Expected life of options (in years) 5.8 5.8 5.9 Fair value per option granted $ 25.60 $ 23.80 $ 16.10 The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant, and prior to 2018 included a reduction for the present value of expected dividends over the vesting period. For performance-based RSUs, the Company includes a relative TSR modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. 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 (in millions of shares): 2019 – 6.8 ; 2018 – 7.3 ; 2017 – 8.1 . Share-based compensation awards that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2019 – 0.1 ; 2018 – 0.5 ; 2017 – 0.1 . CASH AND EQUIVALENTS The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic 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. Effective January 1, 2019, McDonald’s operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance: • U.S. - the Company’s largest market. The segment is 95% franchised as of December 31, 2019. • International Operated Markets - comprised of markets, or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K. The segment is 84% franchised as of December 31, 2019. • International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald’s system. Corporate activities are also reported in this segment. The segment is 98% franchised as of December 31, 2019. In April and October 2019, the Company completed the acquisitions of Dynamic Yield and Apprente, respectively. The related financial performance is reflected within the International Developmental Licensed Markets & Corporate segment from the dates of acquisition. All intercompany revenues and expenses are eliminated in computing revenues and operating income. Corporate general and administrative expenses consist of home office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training. Corporate assets include corporate cash and equivalents, asset portions of financial instruments and home office facilities. In millions 2019 2018 2017 U.S. $ 7,842.7 $ 7,665.8 $ 8,006.4 International Operated Markets 11,398.6 11,506.7 11,115.9 International Developmental Licensed Markets & Corporate 1,835.2 1,852.7 3,698.1 Total revenues $ 21,076.5 $ 21,025.2 $ 22,820.4 U.S. $ 4,068.7 $ 4,015.6 $ 4,022.4 International Operated Markets 4,789.0 4,643.2 4,173.6 International Developmental Licensed Markets & Corporate 212.1 163.8 1,356.7 Total operating income $ 9,069.8 $ 8,822.6 $ 9,552.7 U.S. $ 21,376.9 $ 14,483.8 $ 12,648.6 International Operated Markets 22,847.5 17,302.3 16,254.8 International Developmental Licensed Markets & Corporate 3,286.4 1,025.1 4,900.3 Total assets * $ 47,510.8 $ 32,811.2 $ 33,803.7 U.S. $ 1,480.5 $ 1,849.8 $ 861.2 International Operated Markets 886.6 762.4 808.0 International Developmental Licensed Markets & Corporate 26.6 129.5 184.5 Total capital expenditures $ 2,393.7 $ 2,741.7 $ 1,853.7 U.S. $ 730.2 $ 598.4 $ 524.1 International Operated Markets 669.3 703.9 687.1 International Developmental Licensed Markets & Corporate 218.4 179.7 152.2 Total depreciation and amortization $ 1,617.9 $ 1,482.0 $ 1,363.4 * Total assets increased from 2018 to 2019 primarily due to the Company's right-of-use asset recorded as a result of the adoption of ASC 842. Total long-lived assets, primarily property and equipment and beginning in 2019, the Company's lease right-of-use asset, were (in millions)–Consolidated: 2019 – $38,291.5 ; 2018 – $23,671.1 ; U.S. based: 2019 – $19,487.6 ; 2018 – $12,250.3 . |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Net property and equipment consisted of: In millions December 31, 2019 2018 Land $ 6,026.4 $ 5,521.4 Buildings and improvements on owned land 17,003.7 15,377.4 Buildings and improvements on leased land 12,605.9 12,863.6 Equipment, signs and seating 2,994.5 2,942.6 Other 420.4 488.6 Property and equipment, at cost 39,050.9 37,193.6 Accumulated depreciation and amortization (14,890.9 ) (14,350.9 ) Net property and equipment $ 24,160.0 $ 22,842.7 Depreciation and amortization expense for property and equipment was (in millions): 2019 – $1,392.2 ; 2018 – $1,302.9 ; 2017 – $1,227.5 . |
Franchise Arrangements
Franchise Arrangements | 12 Months Ended |
Dec. 31, 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 generally 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: In millions 2019 2018 2017 Rents $ 7,500.2 $ 7,082.2 $ 6,496.3 Royalties 4,107.1 3,886.3 3,518.7 Initial fees 48.4 44.0 86.5 Revenues from franchised restaurants $ 11,655.7 $ 11,012.5 $ 10,101.5 Future gross minimum rent payments due to the Company under existing conventional franchise arrangements are: In millions Owned sites Leased sites Total 2020 $ 1,558.5 $ 1,449.8 $ 3,008.3 2021 1,501.4 1,382.5 2,883.9 2022 1,439.3 1,310.5 2,749.8 2023 1,384.8 1,246.4 2,631.2 2024 1,344.4 1,196.7 2,541.1 Thereafter 11,155.2 9,354.5 20,509.7 Total minimum payments $ 18,383.6 $ 15,940.4 $ 34,324.0 At December 31, 2019 , net property and equipment under franchise arrangements totaled $19.2 billion (including land of $5.4 billion ) after deducting accumulated depreciation and amortization of $10.9 billion |
Leasing Arrangements
Leasing Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leasing Arrangements | Leasing Arrangements The Company is the lessee in a significant real estate portfolio, primarily through ground leases (the Company leases the land and generally owns the building) and through improved leases (the Company leases the 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: In millions 2019 2018 2017 Restaurants $ 1,530.4 $ 1,433.9 $ 1,562.5 Other 76.4 87.9 82.0 Total rent expense $ 1,606.8 $ 1,521.8 $ 1,644.5 Rent expense included percent rents in excess of minimum rents (in millions) as follows–Company-operated restaurants: 2019 – $74.4 ; 2018 – $82.1 ; 2017 – $115.6 . Franchised restaurants: 2019 – $200.7 ; 2018 – $200.8 ; 2017 – $204.9 . 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 December 31, 2019 . As of December 31, 2019, maturities of lease liabilities for our operating leases were as follows: In millions Total * 2020 $ 1,161.9 2021 1,132.8 2022 1,091.4 2023 1,052.6 2024 1,010.3 Thereafter 13,573.6 Total lease payments 19,022.6 Less: imputed interest (5,643.8 ) Present value of lease liability $ 13,378.8 * Total lease payments include option periods that are reasonably assured of being exercised. See contractual cash outflows for operating leases within the Contractual Obligations and Commitments section on page 19. The increase in the present value of the lease liability since adoption of ASC 842 is approximately $0.9 billion . The lease liability will continue to be impacted by new leases, lease modifications, lease terminations, reevaluation of likely-term due to new facts and circumstances, and foreign currency. As of December 31, 2019 , the Weighted Average Lease Term remaining that is included in the maturities of lease liabilities was 20 years. As of December 31, 2018, prior to the adoption of ASC 842, 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. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies In the ordinary course of business, the Company is subject to proceedings, lawsuits and other claims primarily related to competitors, customers, employees, franchisees, government agencies, intellectual property, shareholders and suppliers. The Company is required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable losses. A determination of the amount of accrual required, if any, for these contingencies is made after careful analysis of each matter. The required accrual may change in the future due to new developments in a particular matter or changes in approach such as a change in settlement strategy in dealing with these matters. The Company does not believe that any such matter currently being reviewed will have a material adverse effect on its financial condition or results of operations. |
Other Operating (Income) Expens
Other Operating (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense, Net | Other Operating (Income) Expense, Net In millions 2019 2018 2017 Gains on sales of restaurant businesses $ (127.5 ) $ (304.1 ) $ (295.4 ) Equity in earnings of unconsolidated affiliates (153.8 ) (151.5 ) (183.7 ) Asset dispositions and other (income) expense, net 23.1 (12.9 ) 18.7 Impairment and other charges (gains), net 74.3 231.7 (702.8 ) Total $ (183.9 ) $ (236.8 ) $ (1,163.2 ) ▪ Gains on sales of restaurant businesses The Company’s purchases and sales of businesses with its franchisees are aimed at achieving an optimal ownership mix in each market. Resulting gains or losses on sales of restaurant businesses are recorded in operating income because these transactions are a recurring part of our business. ▪ Equity in earnings of unconsolidated affiliates Unconsolidated affiliates and partnerships are businesses in which the Company actively participates but does not control. The Company records equity in (earnings) losses from these entities representing McDonald’s share of results. For foreign affiliated markets—primarily China and Japan—results are reported after interest expense and income taxes. ▪ Asset dispositions and other (income) expense, net Asset dispositions and other (income) expense, net consists of gains or losses on excess property and other asset dispositions, provisions for restaurant closings and uncollectible receivables, asset write-offs due to restaurant reinvestment (including investment in EOTF), strategic sale of properties, and other miscellaneous income and expenses. ▪ Impairment and other charges (gains), net Impairment and other charges (gains), net includes losses that result from the write down of goodwill and long-lived assets from their carrying value to their fair value, as well as charges associated with strategic initiatives, such as refranchising and restructuring activities. The realized gains/losses from the sale of McDonald's businesses in certain markets are reflected in this category, including the 2017 gain on the sale of the Company's businesses in China and Hong Kong. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes, classified by source of income, was as follows: In millions 2019 2018 2017 U.S. $ 2,159.1 $ 2,218.0 $ 2,242.0 Outside the U.S. 5,859.0 5,598.1 6,331.5 Income before provision for income taxes $ 8,018.1 $ 7,816.1 $ 8,573.5 In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The goal of this update was to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. The Company adopted this standard on January 1, 2018 using a modified retrospective method, resulting in a cumulative catch up adjustment of $57 million, the majority of which was recorded within Miscellaneous other assets on the Consolidated Balance Sheet. The adoption of this standard did not have a material impact on the consolidated statements of income and cash flows. The Tax Act was enacted in the U.S. on December 22, 2017. The Tax Act reduced the U.S. federal corporate income tax rate to 21% from 35% and required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred. In 2017, the Company recorded provisional amounts for certain enactment-date effects of the Tax Act by applying the guidance in SAB 118. In 2018, the Company recorded adjustments to the provisional amounts and completed its accounting for all of the enactment-date income tax effects of the Tax Act. SAB 118 measurement period At December 31, 2017, the Company had not completed its accounting for all of the enactment-date income tax effects of the Act under ASC 740, Income Taxes , primarily for the following aspects: remeasurement of deferred tax assets and liabilities, one-time transition tax, and its accounting position related to indefinite reinvestment of unremitted foreign earnings. One-time transition tax: The one-time transition tax is based on the Company's total post-1986 earnings and profits ("E&P"), the tax on which it previously deferred from U.S. income taxes under U.S. law. The Company recorded a provisional amount for its one-time transition tax liability of approximately $1.2 billion at December 31, 2017. Upon further analysis of the Tax Act and notices and regulations issued and proposed by the U.S. Department of the Treasury and the IRS, the Company increased its December 31, 2017 provisional amount by approximately $75 million during 2018. The Company has elected to pay its transition tax over the eight-year period provided in the Tax Act. Deferred tax assets and liabilities: As of December 31, 2017, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future (generally 21%), by recording a provisional amount of approximately $500 million . No adjustment to the provisional amount was made in 2018. The provision for income taxes, classified by the timing and location of payment, was as follows: In millions 2019 2018 2017 U.S. federal $ 521.8 $ 292.9 $ 2,030.8 U.S. state 194.7 183.9 169.8 Outside the U.S. 1,126.5 1,312.4 1,217.0 Current tax provision 1,843.0 1,789.2 3,417.6 U.S. federal 38.5 145.7 (120.1 ) U.S. state 20.0 18.7 12.8 Outside the U.S. 91.2 (61.8 ) 70.9 Deferred tax provision 149.7 102.6 (36.4 ) Provision for income taxes $ 1,992.7 $ 1,891.8 $ 3,381.2 Net deferred tax liabilities consisted of: In millions December 31, 2019 2018 Lease right-of-use asset $ 3,296.8 $ — Property and equipment 1,316.4 1,288.9 Intangible assets 334.8 312.3 Other 511.1 347.9 Total deferred tax liabilities 5,459.1 1,949.1 Lease liability (3,331.1 ) — Intangible assets (1,051.0 ) (1,081.5 ) Property and equipment (585.6 ) (658.9 ) Deferred foreign tax credits (311.2 ) (216.6 ) Employee benefit plans (192.3 ) (213.3 ) Deferred revenue (145.5 ) (138.9 ) Operating loss carryforwards (81.5 ) (45.7 ) Other (323.6 ) (269.2 ) Total deferred tax assets before valuation allowance (6,021.8 ) (2,624.1 ) Valuation allowance 741.9 671.1 Net deferred tax (assets) liabilities $ 179.2 $ (3.9 ) Balance sheet presentation: Deferred income taxes $ 1,318.1 $ 1,215.5 Other assets-miscellaneous (1,138.9 ) (1,219.4 ) Net deferred tax (assets) liabilities $ 179.2 $ (3.9 ) At December 31, 2019, the Company had net operating loss carryforwards of $360.3 million , of which $232.7 million has an indefinite carryforward. The remainder will expire at various dates from 2020 to 2038. Prior to 2018, the Company's effective income tax rate was generally lower than the U.S. statutory tax rate primarily because foreign income was generally subject to local statutory country tax rates that were below the 35% U.S. statutory tax rate and reflected the impact of global transfer pricing. Beginning in 2018, the Tax Act reduced the U.S. statutory tax rate to 21% . As a result, the Company’s 2019 and 2018 effective income tax rates are higher than the U.S. statutory tax rate of 21% primarily due to the impact of state income taxes and foreign income that is subject to local statutory country tax rates that are above the 21% U.S. statutory tax rate. The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of related federal income tax benefit 1.8 1.8 1.2 Foreign income taxed at different rates 1.6 1.5 (4.6 ) Transition tax — 1.0 13.7 US net deferred tax liability remeasurement — — (6.0 ) Foreign tax credit redetermination regulations (1.0 ) — — Other, net 1.5 (1.1 ) 0.1 Effective income tax rates 24.9 % 24.2 % 39.4 % As of December 31, 2019 and 2018 , the Company’s gross unrecognized tax benefits totaled $1,439.1 million and $1,342.8 million , respectively. After considering the deferred tax accounting impact, it is expected that about $880 million of the total as of December 31, 2019 would favorably affect the effective tax rate if resolved in the Company’s favor. The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2019 2018 Balance at January 1 $ 1,342.8 $ 1,180.4 Decreases for positions taken in prior years (18.3 ) (64.1 ) Increases for positions taken in prior years 107.1 180.8 Increases for positions related to the current year 88.3 75.1 Settlements with taxing authorities (68.6 ) (24.1 ) Lapsing of statutes of limitations (12.2 ) (5.3 ) Balance at December 31 (1) $ 1,439.1 $ 1,342.8 (1) Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018 , respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet. In 2015, the Internal Revenue Service (“IRS”) issued a Revenue Agent Report (“RAR”) that included certain disagreed transfer pricing adjustments related to the Company’s U.S. Federal income tax returns for 2009 and 2010. Also in 2015, the Company filed a protest with the IRS related to these disagreed transfer pricing matters. During 2017, the Company received a response to its protest. In December 2018, the Company met with the IRS Appeals team and, during 2019, the Company and the IRS Appeals team continued to have a dialogue regarding these disagreed transfer pricing matters. As of December 31, 2019, the Company does not yet have a signed closing agreement with the IRS related to the settlement of these issues. In 2017, the IRS completed its examination of the Company’s U.S. Federal income tax returns for 2011 and 2012. In 2018, the IRS issued a RAR for these years. As expected, the RAR included the same disagreed transfer pricing matters as the 2009 and 2010 RAR. Also in 2018, the Company filed a protest with the IRS related to these disagreed transfer pricing matters. The transfer pricing matters for 2011 and 2012 are being addressed along with the 2009 and 2010 transfer pricing matters as part of the 2009-2010 appeals process. The Company is also under audit in multiple foreign tax jurisdictions for matters primarily related to transfer pricing, and the Company is under audit in multiple state tax jurisdictions. It is reasonably possible that the total amount of unrecognized tax benefits could decrease up to $980 million within the next 12 months, of which only an immaterial amount would favorably affect the effective tax rate. This would be due to the possible settlement of the IRS transfer pricing matters, completion of the aforementioned foreign and state tax audits and the expiration of the statute of limitations in multiple tax jurisdictions. In addition, it is reasonably possible that, as a result of audit progression in both the U.S. and foreign tax audits within the next 12 months, there may be new information that causes the Company to reassess the total amount of unrecognized tax benefits recorded. While the Company cannot estimate the impact that new information may have on our unrecognized tax benefit balance, it believes that the liabilities recorded are appropriate and adequate. The Company operates within multiple tax jurisdictions and is subject to audit in these jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations for years before 2009. The Company had $174.4 million and $152.0 million accrued for interest and penalties at December 31, 2019 and 2018 , respectively. The Company recognized interest and penalties related to tax matters of $39.9 million in 2019 , $13.9 million in 2018, and $34.9 million in 2017 , which are included in the provision for income taxes. As of December 31, 2019, the Company has accumulated undistributed earnings generated by our foreign subsidiaries, which were predominantly taxed in the U.S. as a result of the transition tax provisions enacted under the Tax Act. Management does not assert that these previously-taxed unremitted earnings are indefinitely reinvested in operations outside the U.S. Accordingly, the Company has provided deferred taxes for the tax effects incremental to the transition tax. We have not provided for deferred taxes on outside basis differences in our investments in our foreign subsidiaries that are unrelated to these accumulated undistributed earnings, as these outside basis differences are indefinitely reinvested. A determination of the unrecognized deferred taxes related to these other components of our outside basis differences is not practicable. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The Company's 401k Plan is maintained for U.S.-based employees and includes a 401(k) feature, as well as an employer match. The 401(k) feature allows participants to make pre-tax contributions that are matched each pay period (with an annual true-up) from cash contributions and through July 31, 2018 from shares released under the Employee Stock Ownership Plan. Effective August 1, 2018, the contributions are matched only through cash contributions. All current account balances, future contributions and related earnings can be invested in eight investment alternatives as well as McDonald’s stock in accordance with each participant’s investment elections. Future participant contributions are limited to 20% investment in McDonald’s stock. Participants may choose to make separate investment choices for current account balances and future contributions. The Company also maintains certain nonqualified supplemental benefit plans that allow participants to (i) make tax-deferred contributions and (ii) receive Company-provided allocations that cannot be made under the 401k Plan because of IRS limitations. The investment alternatives and returns are based on certain market-rate investment alternatives under the 401k Plan. Total liabilities were $435.0 million at December 31, 2019 and $437.4 million at December 31, 2018 , and were primarily included in other long-term liabilities on the Consolidated Balance Sheet. The Company has entered into derivative contracts to hedge market-driven changes in certain of the liabilities. At December 31, 2019 , derivatives with a fair value of $179.1 million indexed to the Company's stock and a total return swap with a notional amount of $187.7 million indexed to certain market indices were included at their fair value in Miscellaneous other assets and Prepaid expenses and other current assets, respectively, on the Consolidated Balance Sheet. Changes in liabilities for these nonqualified plans and in the fair value of the derivatives are recorded primarily in Selling, general & administrative expenses. Changes in fair value of the derivatives indexed to the Company’s stock are recorded in the income statement because the contracts provide the counterparty with a choice to settle in cash or shares. Total U.S. costs for the 401k Plan, including nonqualified benefits and related hedging activities, were (in millions): 2019 – $30.4 ; 2018 – $18.0 ; 2017 – $19.3 . Certain subsidiaries outside the U.S. also offer profit sharing, stock purchase or other similar benefit plans. Total plan costs outside the U.S. were (in millions): 2019 – $35.3 ; 2018 – $33.7 ; 2017 – $43.3 . The total combined liabilities for international retirement plans were $42.3 million and $40.6 million at December 31, 2019 and 2018 , respectively. Other post-retirement benefits and post-employment benefits were immaterial to the Consolidated Income Statement. |
Debt Financing
Debt Financing | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Financing | Debt Financing LINE OF CREDIT AGREEMENTS At December 31, 2019 , the Company had a line of credit agreement, of which $3.5 billion expires in December 2023 . The Company incurs fees of 0.080% per annum on the total commitment, which remained unused. Fees and interest rates on this line are primarily based on the Company’s long-term credit rating assigned by Moody’s and Standard & Poor’s . In addition, the Company's subsidiaries had unused lines of credit that were primarily uncommitted, short-term and denominated in various currencies at local market rates of interest . The weighted-average interest rate of short-term borrowings was 1.9% at December 31, 2019 (based on $242.4 million of foreign currency bank line borrowings and $899.3 million of commercial paper outstanding) and 2.6% at December 31, 2018 (based on $253.5 million of foreign currency bank line borrowings and $99.9 million of commercial paper outstanding). DEBT OBLIGATIONS The Company has incurred debt obligations principally through public and private offerings and bank loans. There are no provisions in the Company’s debt obligations that would accelerate repayment of debt as a result of a change in credit ratings or a material adverse change in the Company’s business. Certain of the Company’s debt obligations contain cross-acceleration provisions, and restrictions on Company and subsidiary mortgages and the long-term debt of certain subsidiaries. Under certain agreements, the Company has the option to retire debt prior to maturity, either at par or at a premium over par. The Company has no current plans to retire a significant amount of its debt prior to maturity. The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps used to hedge debt). Interest rates (1) December 31 Amounts outstanding December 31 In millions of U.S. Dollars Maturity dates 2019 2018 2019 2018 Fixed 4.0 % 4.0 % $ 19,340.2 $ 18,075.8 Floating 2.2 3.4 2,049.3 1,349.9 Total U.S. Dollar 2020-2049 21,389.5 19,425.7 Fixed 1.5 1.6 8,671.8 8,069.1 Floating 2.3 — 337.0 1,264.1 Total Euro 2020-2031 9,008.8 9,333.2 Fixed 3.4 — 771.0 — Floating 2.0 — 210.6 — Total Australian Dollar 2024-2029 981.6 — Total British Pounds Sterling - Fixed 2020-2054 4.6 5.3 1,386.3 952.3 Total Canadian Dollar - Fixed 2021-2025 3.1 3.1 768.6 732.0 Total Japanese Yen - Fixed 2030 2.9 2.9 115.1 114.0 Fixed 0.2 0.3 413.8 414.9 Floating 2.2 2.6 241.8 244.2 Total other currencies (2) 2020-2024 655.6 659.1 Debt obligations before fair value adjustments and deferred debt costs (3) 34,305.5 31,216.3 Fair value adjustments (4) 12.1 (12.0 ) Deferred debt costs (140.4 ) (129.0 ) Total debt obligations $ 34,177.2 $ 31,075.3 (1) Weighted-average effective rate, computed on a semi-annual basis. (2) Consists of Swiss Francs and Korean Won. (3) Aggregate maturities for 2019 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2020 – $59.1 ; 2021 – $2,132.2 ; 2022 – $2,250.1 ; 2023 – $6,007.0 ; 2024 – $2,819.0 ; Thereafter– $21,038.1 . These amounts include a reclassification of short-term obligations totaling $3.5 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in December 2023 . (4) The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | Share-based Compensation The Company maintains a share-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted stock units to employees and nonemployee directors. The number of shares of common stock reserved for issuance under the plans was 42.5 million at December 31, 2019 , including 26.5 million available for future grants. STOCK OPTIONS Stock options to purchase common stock are granted with an exercise price equal to the closing market price of the Company’s stock on the date of grant. Substantially all of the options become exercisable in four equal installments, beginning a year from the date of the grant, and generally expire 10 years from the grant date. Intrinsic value for stock options is defined as the difference between the current market value of the Company’s stock and the exercise price. During 2019 , 2018 and 2017 , the total intrinsic value of stock options exercised was $356.1 million , $364.4 million and $353.6 million , respectively. Cash received from stock options exercised during 2019 was $350.5 million and the tax benefit realized from stock options exercised totaled $70.5 million . The Company uses treasury shares purchased under the Company’s share repurchase program to satisfy share-based exercises. A summary of the status of the Company’s stock option grants as of December 31, 2019 , 2018 and 2017 , and changes during the years then ended, is presented in the following table: 2019 2018 2017 Options Shares in millions Weighted- average exercise price Weighted- average remaining contractual life in years Aggregate intrinsic value in millions Shares in millions Weighted- average exercise price Shares in millions Weighted- average exercise price Outstanding at beginning of year 16.6 $ 113.06 18.9 $ 101.55 21.5 $ 92.25 Granted 2.0 175.17 2.7 157.95 4.0 128.74 Exercised (3.6 ) 97.70 (4.5 ) 89.31 (5.6 ) 81.77 Forfeited/expired (0.4 ) 154.65 (0.5 ) 137.08 (1.0 ) 118.38 Outstanding at end of year 14.6 $ 124.21 5.9 $ 1,074.6 16.6 $ 113.06 18.9 $ 101.55 Exercisable at end of year 9.2 $ 107.51 4.7 $ 826.4 10.0 11.3 RSUs RSUs generally vest 100% on the third anniversary of the grant and are payable in either shares of McDonald’s common stock or cash, at the Company’s discretion. The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant, and prior to 2018 included a reduction for the present value of expected dividends over the vesting period. Separately, Company executives have been awarded RSUs that vest based on Company performance. For performance-based RSUs, the Company includes a relative TSR modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. A summary of the Company’s RSU activity during the years ended December 31, 2019 , 2018 and 2017 is presented in the following table: 2019 2018 2017 RSUs Shares in millions Weighted- average grant date fair value Shares in millions Weighted- average grant date fair value Shares in millions Weighted- average grant date fair value Nonvested at beginning of year 1.5 $ 132.56 1.6 $ 107.34 1.9 $ 94.13 Granted 0.6 171.48 0.6 158.28 0.6 123.98 Vested (0.6 ) 116.42 (0.6 ) 91.20 (0.7 ) 87.18 Forfeited (0.1 ) 153.58 (0.1 ) 132.14 (0.2 ) 117.24 Nonvested at end of year 1.4 $ 150.95 1.5 $ 132.56 1.6 $ 107.34 The total fair value of RSUs vested during 2019 , 2018 and 2017 was $111.0 million , $117.9 million and $87.6 million , respectively. The tax benefit realized from RSUs vested during 2019 was $21.3 million |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS In December 2019, a novel strain of coronavirus was reported to have surfaced in China. The spread of this virus has caused business disruption beginning in January 2020, due to the closure of some restaurants, modified operating hours in certain restaurants that remain open, and resulting traffic declines in our China market. While the disruption is currently expected to be temporary, there is uncertainty around the duration. Therefore, while we expect this matter to negatively impact our results, the related financial impact cannot be reasonably estimated at this time. For the year ended December 31, 2019, the China market represented approximately 5% of Systemwide sales, 1% of consolidated revenues and 3% of consolidated operating income. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results (Unaudited) | Quarterly Results (Unaudited) Quarters ended December 31 Quarters ended September 30 Quarters ended June 30 Quarters ended March 31 In millions, except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Revenues Sales by Company-operated restaurants $ 2,363.3 $ 2,371.2 $ 2,416.6 $ 2,511.0 $ 2,400.4 $ 2,594.9 $ 2,240.5 $ 2,535.6 Revenues from franchised restaurants 2,985.7 2,791.8 3,014.0 2,858.4 2,940.9 2,759.0 2,715.1 2,603.3 Total revenues 5,349.0 5,163.0 5,430.6 5,369.4 5,341.3 5,353.9 4,955.6 5,138.9 Company-operated margin 423.7 414.6 448.9 463.1 433.3 464.4 354.3 404.7 Franchised margin 2,422.4 2,282.1 2,454.5 2,359.0 2,396.2 2,275.1 2,182.0 2,123.0 Operating income 2,292.6 1,999.5 2,409.3 2,417.7 2,273.9 2,262.3 2,094.0 2,143.1 Net income $ 1,572.2 $ 1,415.3 $ 1,607.9 $ 1,637.3 $ 1,516.9 $ 1,496.3 $ 1,328.4 $ 1,375.4 Earnings per common share—basic $ 2.10 $ 1.84 $ 2.13 $ 2.12 $ 1.99 $ 1.92 $ 1.74 $ 1.74 Earnings per common share—diluted $ 2.08 $ 1.82 $ 2.11 $ 2.10 $ 1.97 $ 1.90 $ 1.72 $ 1.72 Dividends declared per common share $ — $ — $ 2.41 (1) $ 2.17 (1) $ 1.16 $ 1.01 $ 1.16 $ 1.01 Weighted-average common shares—basic 749.2 769.5 756.6 772.8 761.8 780.0 764.9 790.9 Weighted-average common shares—diluted 755.6 776.6 763.9 779.6 768.7 787.1 771.6 798.7 (1) Includes a $1.16 and $1.01 per share dividend declared and paid in third quarter of 2019 and 2018, respectively, and a $1.25 and $1.16 per share dividend declared in the third quarter and paid in fourth quarter of 2019 and 2018, respectively. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
NATURE OF BUSINESS | NATURE OF BUSINESS The Company franchises and operates McDonald’s restaurants in the global restaurant industry. All restaurants are operated either by the Company or by franchisees, including conventional franchisees under franchised arrangements, and developmental licensees or affiliates under license agreements. The following table presents restaurant information by ownership type: Restaurants at December 31, 2019 2018 2017 Conventional franchised 21,837 21,685 21,366 Developmental licensed 7,648 7,225 6,945 Foreign affiliated 6,574 6,175 5,797 Total Franchised 36,059 35,085 34,108 Company-operated 2,636 2,770 3,133 Total Systemwide restaurants 38,695 37,855 37,241 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 consolidated financial statements for periods prior to purchase and sale. |
CONSOLIDATION | CONSOLIDATION The consolidated financial statements include the accounts of the Company and its subsidiaries. Investments in affiliates owned 50% or less (primarily McDonald’s China and Japan) are accounted for by the equity method. On an ongoing basis, the Company evaluates its business relationships such as those with franchisees, joint venture partners, developmental licensees, suppliers and advertising cooperatives to identify potential variable interest entities. Generally, these businesses qualify for a scope exception under the variable interest entity consolidation guidance. The Company has concluded that consolidation of any such entity is not appropriate for the periods presented. |
ESTIMATES IN FINANCIAL STATEMENTS | ESTIMATES IN FINANCIAL STATEMENTS The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION Generally, the functional currency of operations outside the U.S. is the respective local currency. |
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted Accounting Pronouncements Lease Accounting The Company adopted ASC Topic 842, "Leases" ("ASC 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 ASC 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 upon adoption. The Lease Liability reflects the present value of the Company's estimated future minimum lease payments over the lease term, which includes options that are reasonably assured of being exercised, discounted using a collateralized incremental borrowing rate. The impact of the new lease guidance is non-cash in nature, therefore, it does not affect the Company’s cash flows. Recent Accounting Pronouncements Not Yet Adopted Financial Instruments - Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", that modifies the measurement and recognition of expected credit losses on financial assets. The Company will adopt this guidance effective January 1, 2020, prospectively. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements. |
REVENUES | REVENUE RECOGNITION The Company's revenues consist of sales by Company-operated restaurants and fees from restaurants operated by franchisees, developmental licensees and affiliates. Revenues from conventional franchised restaurants include rent and royalties based on a percent of sales with minimum rent payments, and initial fees. Revenues from restaurants licensed to developmental licensees and affiliates include a royalty based on a percent of sales, and generally include initial fees. Sales by Company-operated restaurants are recognized on a cash basis at the time of the underlying sale and are presented net of sales tax and other sales-related taxes. Royalty revenues are based on a percent of sales and recognized at the time the underlying sales occur. Rental income includes both minimum rent payments, which are recognized straight-line over the franchise term, and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. The Company's accounting policy through December 31, 2017, was to recognize initial franchise fees when received, upon a new restaurant opening and at the start of a new franchise term. Beginning in January 2018, initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment are stated at cost, with depreciation and amortization provided using the straight-line method over the following estimated useful lives: buildings–up to 40 years; leasehold improvements– the lesser of useful lives of assets or lease terms , which generally include certain option periods; and equipment– 3 to 12 years. |
CAPITALIZED SOFTWARE | CAPITALIZED SOFTWARE Capitalized software is stated at cost and amortized using the straight-line method over the estimated useful life of the software, which primarily ranges from 2 to 7 years. Customer facing software is typically amortized over a shorter useful life, while back office and Corporate systems may have a longer useful life. Capitalized software less accumulated amortization is recorded within Miscellaneous Other Assets on the Consolidated Balance Sheet and was (in millions): 2019 - $665.4 ; 2018 - $609.7 ; 2017 - $535.6 . |
LONG-LIVED ASSETS | LONG-LIVED ASSETS Long-lived assets are reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of annually reviewing McDonald’s restaurant assets for potential impairment, assets are initially grouped together in the U.S. at a field office level, and internationally, at a market level. The Company manages its restaurants as a group or portfolio with significant common costs and promotional activities; as such, an individual restaurant’s cash flows are not generally independent of the cash flows of others in a market. If an indicator of impairment exists for any grouping of assets, an estimate of undiscounted future cash flows produced by each individual restaurant within the asset grouping is compared to its carrying value. If an individual restaurant is determined to be impaired, the loss is measured by the excess of the carrying amount of the restaurant over its fair value as determined by an estimate of discounted future cash flows. Losses on assets held for disposal are recognized when management and the Board of Directors, as required, have approved and committed to a plan to dispose of the assets, the assets are available for disposal and the disposal is probable of occurring within 12 months, and the net sales proceeds are expected to be less than its net book value, among other factors. Generally, such losses are related to restaurants that have closed and ceased operations as well as other assets that meet the criteria to be considered “available for sale." |
GOODWILL | GOODWILL Goodwill represents the excess of cost over the net tangible assets and identifiable intangible assets of acquired restaurants and other businesses. The Company's goodwill primarily results from purchases of McDonald's restaurants from franchisees and ownership increases in subsidiaries or affiliates, and it is generally assigned to the reporting unit (defined as each individual market) expected to benefit from the synergies of the combination. If a Company-operated restaurant is sold within 24 months of acquisition, the goodwill associated with the acquisition is written off in its entirety. If a restaurant is sold beyond 24 months from the acquisition, the amount of goodwill written off is based on the relative fair value of the business sold compared to the reporting unit. The following table presents the 2019 activity in goodwill by segment: In millions U.S. International Operated Markets International Developmental Licensed Markets & Corporate Consolidated Balance at December 31, 2018 $ 1,276.5 $ 1,055.0 $ — $ 2,331.5 Business acquisitions 348.8 — — 348.8 Net restaurant purchases (sales) (9.5 ) 5.7 99.4 95.6 Impairment losses — — (99.4 ) (99.4 ) Currency translation — 0.9 — 0.9 Balance at December 31, 2019 $ 1,615.8 $ 1,061.6 $ — $ 2,677.4 The Company conducts goodwill impairment testing in the fourth quarter of each year or whenever an indicator of impairment exists. If an indicator of impairment exists (e.g., estimated earnings multiple value of a reporting unit is less than its carrying value), the goodwill impairment test compares the fair value of a reporting unit, generally based on discounted future cash flows, with its carrying amount including goodwill. If the carrying amount of a reporting unit exceeds its fair value, an impairment loss is measured as the difference between the implied fair value of the reporting unit's goodwill and the carrying amount of goodwill. Historically, goodwill impairment has not significantly impacted the consolidated financial statements. Goodwill on the Consolidated Balance Sheet reflects accumulated impairment losses of $113.9 million and $15.6 million as of December 31, 2019 and 2018, respectively. |
ADVERTISING COSTS | ADVERTISING COSTS Advertising costs included in operating expenses of Company-operated restaurants primarily consist of contributions to advertising cooperatives and were (in millions): 2019 – $365.8 ; 2018 – $388.8 ; 2017 – $532.9 . Production costs for radio and television advertising are expensed when the commercials are initially aired. These production costs, primarily in the U.S., as well as other marketing-related expenses are included in Selling, general & administrative expenses and were (in millions): 2019 – $81.5 ; 2018 – $88.0 ; 2017 – $100.2 . Costs related to the Olympics sponsorship are included in the expenses for 2018. In addition, significant advertising costs are incurred by franchisees through contributions to advertising cooperatives in individual markets. The costs incurred by these advertising cooperatives are approved and managed jointly by vote of both Company-operated restaurants and franchisees. |
INCOME TAXES | INCOME TAXES Income Tax Uncertainties The Company, like other multi-national companies, is regularly audited by federal, state and foreign tax authorities, and tax assessments may arise several years after tax returns have been filed. Accordingly, tax liabilities are recorded when, in management’s judgment, a tax position does not meet the more likely than not threshold for recognition. For tax positions that meet the more likely than not threshold, a tax liability may still be recorded depending on management’s assessment of how the tax position will ultimately be settled. The Company records interest and penalties on unrecognized tax benefits in the provision for income taxes. Accounting for Global Intangible Low-Taxed Income ("GILTI") |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company measures certain financial assets and liabilities at fair value on a recurring basis, and certain non-financial assets and liabilities on a nonrecurring basis. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability on the measurement date. The three levels are defined as follows: ▪ Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for an identical asset or liability in an active market. ▪ Level 2 – inputs to the valuation methodology include quoted prices for a similar asset or liability in an active market or model-derived valuations in which all significant inputs are observable for substantially the full term of the asset or liability. ▪ Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement of the asset or liability. Certain of the Company’s derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market parameters, such as interest rate yield curves, option volatilities and currency rates, classified as Level 2 within the valuation hierarchy. Derivative valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or the Company. ▪ Certain Financial Assets and Liabilities Measured at Fair Value The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: 12/31/2019 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 179.1 $ 45.6 $ 224.7 Derivative liabilities $ (11.3 ) $ (11.3 ) 12/31/2018 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 167.1 $ 39.2 $ 206.3 Derivative liabilities $ (16.6 ) $ (16.6 ) (1) Level 1 is comprised of derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. ▪ Non-Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). For the year ended December 31, 2019, the Company recorded fair value adjustments to its long-lived assets, primarily to goodwill, based on Level 3 inputs which includes the use of a discounted cash flow valuation approach. ▪ Certain Financial Assets and Liabilities not Measured at Fair Value At December 31, 2019, the fair value of the Company’s debt obligations was estimated at $37.6 billion , compared to a carrying amount of $34.2 billion . The fair value was based on quoted market prices, Level 2 within the valuation hierarchy. The carrying amount for both cash equivalents and notes receivable approximate fair value. |
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 Company documents its risk management objective and strategy for undertaking hedging transactions, as well as all relationships between hedging instruments and hedged items. The Company’s derivatives that are designated for hedge accounting consist mainly of interest rate swaps, foreign currency forwards, and cross-currency interest rate swaps, and are classified as either fair value, cash flow or net investment hedges. Further details are explained in the "Fair Value," "Cash Flow" and "Net Investment" hedge sections. The Company also enters into certain derivatives that are not designated for hedge accounting. The Company has entered into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its 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. Further details are explained in the “Undesignated Derivatives” section. All derivatives (including those not designated for hedge accounting) are recognized on the Consolidated Balance Sheet at fair value and classified based on the instruments’ maturity dates. Changes in the fair value measurements of the derivative instruments are reflected as adjustments to AOCI and/or current earnings. The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2019 and 2018 : Derivative Assets Derivative Liabilities In millions Balance Sheet Classification 2019 2018 Balance Sheet Classification 2019 2018 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 10.0 $ 30.9 Accrued payroll and other liabilities $ (5.2 ) $ (0.7 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities — (0.1 ) Foreign currency Miscellaneous other assets 9.5 3.8 Other long-term liabilities (1.2 ) (1.3 ) Interest rate Miscellaneous other assets 12.1 — Other long-term liabilities — (11.8 ) Total derivatives designated as hedging instruments $ 31.6 $ 34.7 $ (6.4 ) $ (13.9 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 1.6 $ 167.1 Accrued payroll and other liabilities $ (0.1 ) $ (2.7 ) Foreign currency Prepaid expenses and other current assets 12.4 4.5 Accrued payroll and other liabilities (4.8 ) — Equity Miscellaneous other assets 179.1 — Total derivatives not designated as hedging instruments $ 193.1 $ 171.6 (4.9 ) $ (2.7 ) Total derivatives $ 224.7 $ 206.3 $ (11.3 ) $ (16.6 ) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the year ended December 31, 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 $ 22.5 $ 60.0 $ 50.3 $ (2.2 ) Interest rate Interest expense (1.3 ) (1.2 ) Cash flow hedges $ 22.5 $ 60.0 $ 49.0 $ (3.4 ) Foreign currency denominated debt Nonoperating income/expense $ 317.3 $ 682.9 Foreign currency derivatives Nonoperating income/expense 11.8 1.3 Foreign currency derivatives (1) Interest expense $ 11.7 $ 4.0 Net investment hedges $ 329.1 $ 684.2 $ 11.7 $ 4.0 Foreign currency Nonoperating income/expense $ 14.2 $ 22.1 Equity Selling, general & administrative expenses 71.8 0.4 Undesignated derivatives $ 86.0 $ 22.5 (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 December 31, 2019 , the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $998.5 million , which included an increase of $ 12.1 million of cumulative hedging adjustments. For the year ended December 31, 2019 , the Company recognized a $24.0 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 December 31, 2019 , the Company had derivatives outstanding with an equivalent notional amount of $ 754.7 million that hedged a portion of forecasted foreign currency denominated cash flows. Based on market conditions at December 31, 2019 , the $ 12.0 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 December 31, 2019 , $ 11.9 billion of the Company's third party foreign currency denominated debt and $ 642.6 million of intercompany foreign currency denominated debt were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. 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 December 31, 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 December 31, 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. |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-based compensation includes the portion vesting of all share-based awards granted based on the grant date fair value. Share-based compensation expense and the effect on diluted earnings per common share were as follows: In millions, except per share data 2019 2018 2017 Share-based compensation expense $ 109.6 $ 125.1 $ 117.5 After tax $ 94.2 $ 108.1 $ 82.0 Earnings per common share-diluted $ 0.12 $ 0.14 $ 0.10 Compensation expense related to share-based awards is generally amortized on a straight-line basis over the vesting period in Selling, general & administrative expenses. As of December 31, 2019, there was $107.5 million of total unrecognized compensation cost related to nonvested share-based compensation that is expected to be recognized over a weighted-average period of 2.1 years. The fair value of each stock option granted is estimated on the date of grant using a closed-form pricing model. The following table presents the weighted-average assumptions used in the option pricing model for the 2019 , 2018 and 2017 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. Weighted-average assumptions 2019 2018 2017 Expected dividend yield 2.7 % 2.6 % 3.1 % Expected stock price volatility 18.9 % 18.7 % 18.4 % Risk-free interest rate 2.5 % 2.7 % 2.2 % Expected life of options (in years) 5.8 5.8 5.9 Fair value per option granted $ 25.60 $ 23.80 $ 16.10 The fair value of each RSU granted is equal to the market price of the Company’s stock at date of grant, and prior to 2018 included a reduction for the present value of expected dividends over the vesting period. For performance-based RSUs, the Company includes a relative TSR modifier to determine the number of shares earned at the end of the performance period. The fair value of performance-based RSUs that include the TSR modifier is determined using a Monte Carlo valuation model. |
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 (in millions of shares): 2019 – 6.8 ; 2018 – 7.3 ; 2017 – 8.1 . Share-based compensation awards that were not included in diluted weighted-average shares because they would have been antidilutive were (in millions of shares): 2019 – 0.1 ; 2018 – 0.5 ; 2017 – 0.1 . |
CASH AND EQUIVALENTS | The Company considers short-term, highly liquid investments with an original maturity of 90 days or less to be cash equivalents. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at December 31, 2019 2018 2017 Conventional franchised 21,837 21,685 21,366 Developmental licensed 7,648 7,225 6,945 Foreign affiliated 6,574 6,175 5,797 Total Franchised 36,059 35,085 34,108 Company-operated 2,636 2,770 3,133 Total Systemwide restaurants 38,695 37,855 37,241 |
Activity in Goodwill by Segment | The following table presents the 2019 activity in goodwill by segment: In millions U.S. International Operated Markets International Developmental Licensed Markets & Corporate Consolidated Balance at December 31, 2018 $ 1,276.5 $ 1,055.0 $ — $ 2,331.5 Business acquisitions 348.8 — — 348.8 Net restaurant purchases (sales) (9.5 ) 5.7 99.4 95.6 Impairment losses — — (99.4 ) (99.4 ) Currency translation — 0.9 — 0.9 Balance at December 31, 2019 $ 1,615.8 $ 1,061.6 $ — $ 2,677.4 |
Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present financial assets and liabilities measured at fair value on a recurring basis by the valuation hierarchy as defined in the fair value guidance: 12/31/2019 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 179.1 $ 45.6 $ 224.7 Derivative liabilities $ (11.3 ) $ (11.3 ) 12/31/2018 In millions Level 1 (1) Level 2 Carrying Value Derivative assets $ 167.1 $ 39.2 $ 206.3 Derivative liabilities $ (16.6 ) $ (16.6 ) (1) Level 1 is comprised of derivatives that hedge market driven changes in liabilities associated with the Company’s supplemental benefit plans. |
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | The following table presents the fair values of derivative instruments included on the Consolidated Balance Sheet as of December 31, 2019 and 2018 : Derivative Assets Derivative Liabilities In millions Balance Sheet Classification 2019 2018 Balance Sheet Classification 2019 2018 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 10.0 $ 30.9 Accrued payroll and other liabilities $ (5.2 ) $ (0.7 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities — (0.1 ) Foreign currency Miscellaneous other assets 9.5 3.8 Other long-term liabilities (1.2 ) (1.3 ) Interest rate Miscellaneous other assets 12.1 — Other long-term liabilities — (11.8 ) Total derivatives designated as hedging instruments $ 31.6 $ 34.7 $ (6.4 ) $ (13.9 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 1.6 $ 167.1 Accrued payroll and other liabilities $ (0.1 ) $ (2.7 ) Foreign currency Prepaid expenses and other current assets 12.4 4.5 Accrued payroll and other liabilities (4.8 ) — Equity Miscellaneous other assets 179.1 — Total derivatives not designated as hedging instruments $ 193.1 $ 171.6 (4.9 ) $ (2.7 ) Total derivatives $ 224.7 $ 206.3 $ (11.3 ) $ (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 year ended December 31, 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 $ 22.5 $ 60.0 $ 50.3 $ (2.2 ) Interest rate Interest expense (1.3 ) (1.2 ) Cash flow hedges $ 22.5 $ 60.0 $ 49.0 $ (3.4 ) Foreign currency denominated debt Nonoperating income/expense $ 317.3 $ 682.9 Foreign currency derivatives Nonoperating income/expense 11.8 1.3 Foreign currency derivatives (1) Interest expense $ 11.7 $ 4.0 Net investment hedges $ 329.1 $ 684.2 $ 11.7 $ 4.0 Foreign currency Nonoperating income/expense $ 14.2 $ 22.1 Equity Selling, general & administrative expenses 71.8 0.4 Undesignated derivatives $ 86.0 $ 22.5 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Share-Based Compensation Expense and Effect on Diluted Earnings Per Common Share | Share-based compensation expense and the effect on diluted earnings per common share were as follows: In millions, except per share data 2019 2018 2017 Share-based compensation expense $ 109.6 $ 125.1 $ 117.5 After tax $ 94.2 $ 108.1 $ 82.0 Earnings per common share-diluted $ 0.12 $ 0.14 $ 0.10 |
Weighted-Average Assumptions | The following table presents the weighted-average assumptions used in the option pricing model for the 2019 , 2018 and 2017 stock option grants. The expected life of the options represents the period of time the options are expected to be outstanding and is based on historical trends. Expected stock price volatility is generally based on the historical volatility of the Company’s stock for a period approximating the expected life. The expected dividend yield is based on the Company’s most recent annual dividend rate. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant with a term equal to the expected life. Weighted-average assumptions 2019 2018 2017 Expected dividend yield 2.7 % 2.6 % 3.1 % Expected stock price volatility 18.9 % 18.7 % 18.4 % Risk-free interest rate 2.5 % 2.7 % 2.2 % Expected life of options (in years) 5.8 5.8 5.9 Fair value per option granted $ 25.60 $ 23.80 $ 16.10 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Geographic Segment | In millions 2019 2018 2017 U.S. $ 7,842.7 $ 7,665.8 $ 8,006.4 International Operated Markets 11,398.6 11,506.7 11,115.9 International Developmental Licensed Markets & Corporate 1,835.2 1,852.7 3,698.1 Total revenues $ 21,076.5 $ 21,025.2 $ 22,820.4 U.S. $ 4,068.7 $ 4,015.6 $ 4,022.4 International Operated Markets 4,789.0 4,643.2 4,173.6 International Developmental Licensed Markets & Corporate 212.1 163.8 1,356.7 Total operating income $ 9,069.8 $ 8,822.6 $ 9,552.7 U.S. $ 21,376.9 $ 14,483.8 $ 12,648.6 International Operated Markets 22,847.5 17,302.3 16,254.8 International Developmental Licensed Markets & Corporate 3,286.4 1,025.1 4,900.3 Total assets * $ 47,510.8 $ 32,811.2 $ 33,803.7 U.S. $ 1,480.5 $ 1,849.8 $ 861.2 International Operated Markets 886.6 762.4 808.0 International Developmental Licensed Markets & Corporate 26.6 129.5 184.5 Total capital expenditures $ 2,393.7 $ 2,741.7 $ 1,853.7 U.S. $ 730.2 $ 598.4 $ 524.1 International Operated Markets 669.3 703.9 687.1 International Developmental Licensed Markets & Corporate 218.4 179.7 152.2 Total depreciation and amortization $ 1,617.9 $ 1,482.0 $ 1,363.4 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Net Property and Equipment | Net property and equipment consisted of: In millions December 31, 2019 2018 Land $ 6,026.4 $ 5,521.4 Buildings and improvements on owned land 17,003.7 15,377.4 Buildings and improvements on leased land 12,605.9 12,863.6 Equipment, signs and seating 2,994.5 2,942.6 Other 420.4 488.6 Property and equipment, at cost 39,050.9 37,193.6 Accumulated depreciation and amortization (14,890.9 ) (14,350.9 ) Net property and equipment $ 24,160.0 $ 22,842.7 |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Franchise Arrangements Additional Information [Abstract] | |
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of: In millions 2019 2018 2017 Rents $ 7,500.2 $ 7,082.2 $ 6,496.3 Royalties 4,107.1 3,886.3 3,518.7 Initial fees 48.4 44.0 86.5 Revenues from franchised restaurants $ 11,655.7 $ 11,012.5 $ 10,101.5 |
Future Minimum Payments | Future gross minimum rent payments due to the Company under existing conventional franchise arrangements are: In millions Owned sites Leased sites Total 2020 $ 1,558.5 $ 1,449.8 $ 3,008.3 2021 1,501.4 1,382.5 2,883.9 2022 1,439.3 1,310.5 2,749.8 2023 1,384.8 1,246.4 2,631.2 2024 1,344.4 1,196.7 2,541.1 Thereafter 11,155.2 9,354.5 20,509.7 Total minimum payments $ 18,383.6 $ 15,940.4 $ 34,324.0 As of December 31, 2018, prior to the adoption of ASC 842, 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) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Detail of Rent Expense | The following table provides detail of rent expense: In millions 2019 2018 2017 Restaurants $ 1,530.4 $ 1,433.9 $ 1,562.5 Other 76.4 87.9 82.0 Total rent expense $ 1,606.8 $ 1,521.8 $ 1,644.5 |
Schedule of Maturites of Operating Lease Liabilities | As of December 31, 2019, maturities of lease liabilities for our operating leases were as follows: In millions Total * 2020 $ 1,161.9 2021 1,132.8 2022 1,091.4 2023 1,052.6 2024 1,010.3 Thereafter 13,573.6 Total lease payments 19,022.6 Less: imputed interest (5,643.8 ) Present value of lease liability $ 13,378.8 * Total lease payments include option periods that are reasonably assured of being exercised. See contractual cash outflows for operating leases within the Contractual Obligations and Commitments section on page 19. |
Schedule of Future Minimum Rental Payments for Operating Leases | Future gross minimum rent payments due to the Company under existing conventional franchise arrangements are: In millions Owned sites Leased sites Total 2020 $ 1,558.5 $ 1,449.8 $ 3,008.3 2021 1,501.4 1,382.5 2,883.9 2022 1,439.3 1,310.5 2,749.8 2023 1,384.8 1,246.4 2,631.2 2024 1,344.4 1,196.7 2,541.1 Thereafter 11,155.2 9,354.5 20,509.7 Total minimum payments $ 18,383.6 $ 15,940.4 $ 34,324.0 As of December 31, 2018, prior to the adoption of ASC 842, 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. |
Other Operating (Income) Expe_2
Other Operating (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating (Income) Expense by Component | In millions 2019 2018 2017 Gains on sales of restaurant businesses $ (127.5 ) $ (304.1 ) $ (295.4 ) Equity in earnings of unconsolidated affiliates (153.8 ) (151.5 ) (183.7 ) Asset dispositions and other (income) expense, net 23.1 (12.9 ) 18.7 Impairment and other charges (gains), net 74.3 231.7 (702.8 ) Total $ (183.9 ) $ (236.8 ) $ (1,163.2 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before Provision for Income Taxes, Classified by Source of Income | Income before provision for income taxes, classified by source of income, was as follows: In millions 2019 2018 2017 U.S. $ 2,159.1 $ 2,218.0 $ 2,242.0 Outside the U.S. 5,859.0 5,598.1 6,331.5 Income before provision for income taxes $ 8,018.1 $ 7,816.1 $ 8,573.5 |
Provision for Income Taxes, Classified by Timing and Location of Payment | The provision for income taxes, classified by the timing and location of payment, was as follows: In millions 2019 2018 2017 U.S. federal $ 521.8 $ 292.9 $ 2,030.8 U.S. state 194.7 183.9 169.8 Outside the U.S. 1,126.5 1,312.4 1,217.0 Current tax provision 1,843.0 1,789.2 3,417.6 U.S. federal 38.5 145.7 (120.1 ) U.S. state 20.0 18.7 12.8 Outside the U.S. 91.2 (61.8 ) 70.9 Deferred tax provision 149.7 102.6 (36.4 ) Provision for income taxes $ 1,992.7 $ 1,891.8 $ 3,381.2 |
Net Deferred Tax Liabilities | Net deferred tax liabilities consisted of: In millions December 31, 2019 2018 Lease right-of-use asset $ 3,296.8 $ — Property and equipment 1,316.4 1,288.9 Intangible assets 334.8 312.3 Other 511.1 347.9 Total deferred tax liabilities 5,459.1 1,949.1 Lease liability (3,331.1 ) — Intangible assets (1,051.0 ) (1,081.5 ) Property and equipment (585.6 ) (658.9 ) Deferred foreign tax credits (311.2 ) (216.6 ) Employee benefit plans (192.3 ) (213.3 ) Deferred revenue (145.5 ) (138.9 ) Operating loss carryforwards (81.5 ) (45.7 ) Other (323.6 ) (269.2 ) Total deferred tax assets before valuation allowance (6,021.8 ) (2,624.1 ) Valuation allowance 741.9 671.1 Net deferred tax (assets) liabilities $ 179.2 $ (3.9 ) Balance sheet presentation: Deferred income taxes $ 1,318.1 $ 1,215.5 Other assets-miscellaneous (1,138.9 ) (1,219.4 ) Net deferred tax (assets) liabilities $ 179.2 $ (3.9 ) |
Statutory U.S. Federal Income Tax Rate Reconciliation to Effective Income Tax Rates | The statutory U.S. federal income tax rate reconciles to the effective income tax rates as follows: 2019 2018 2017 Statutory U.S. federal income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of related federal income tax benefit 1.8 1.8 1.2 Foreign income taxed at different rates 1.6 1.5 (4.6 ) Transition tax — 1.0 13.7 US net deferred tax liability remeasurement — — (6.0 ) Foreign tax credit redetermination regulations (1.0 ) — — Other, net 1.5 (1.1 ) 0.1 Effective income tax rates 24.9 % 24.2 % 39.4 % |
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits | The following table presents a reconciliation of the beginning and ending amounts of unrecognized tax benefits: In millions 2019 2018 Balance at January 1 $ 1,342.8 $ 1,180.4 Decreases for positions taken in prior years (18.3 ) (64.1 ) Increases for positions taken in prior years 107.1 180.8 Increases for positions related to the current year 88.3 75.1 Settlements with taxing authorities (68.6 ) (24.1 ) Lapsing of statutes of limitations (12.2 ) (5.3 ) Balance at December 31 (1) $ 1,439.1 $ 1,342.8 (1) Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018 , respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet. |
Debt Financing (Tables)
Debt Financing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Debt Obligations | The following table summarizes the Company’s debt obligations (interest rates and debt amounts reflected in the table include the effects of interest rate swaps used to hedge debt). Interest rates (1) December 31 Amounts outstanding December 31 In millions of U.S. Dollars Maturity dates 2019 2018 2019 2018 Fixed 4.0 % 4.0 % $ 19,340.2 $ 18,075.8 Floating 2.2 3.4 2,049.3 1,349.9 Total U.S. Dollar 2020-2049 21,389.5 19,425.7 Fixed 1.5 1.6 8,671.8 8,069.1 Floating 2.3 — 337.0 1,264.1 Total Euro 2020-2031 9,008.8 9,333.2 Fixed 3.4 — 771.0 — Floating 2.0 — 210.6 — Total Australian Dollar 2024-2029 981.6 — Total British Pounds Sterling - Fixed 2020-2054 4.6 5.3 1,386.3 952.3 Total Canadian Dollar - Fixed 2021-2025 3.1 3.1 768.6 732.0 Total Japanese Yen - Fixed 2030 2.9 2.9 115.1 114.0 Fixed 0.2 0.3 413.8 414.9 Floating 2.2 2.6 241.8 244.2 Total other currencies (2) 2020-2024 655.6 659.1 Debt obligations before fair value adjustments and deferred debt costs (3) 34,305.5 31,216.3 Fair value adjustments (4) 12.1 (12.0 ) Deferred debt costs (140.4 ) (129.0 ) Total debt obligations $ 34,177.2 $ 31,075.3 (1) Weighted-average effective rate, computed on a semi-annual basis. (2) Consists of Swiss Francs and Korean Won. (3) Aggregate maturities for 2019 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2020 – $59.1 ; 2021 – $2,132.2 ; 2022 – $2,250.1 ; 2023 – $6,007.0 ; 2024 – $2,819.0 ; Thereafter– $21,038.1 . These amounts include a reclassification of short-term obligations totaling $3.5 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in December 2023 . (4) The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Stock Option Grants | A summary of the status of the Company’s stock option grants as of December 31, 2019 , 2018 and 2017 , and changes during the years then ended, is presented in the following table: 2019 2018 2017 Options Shares in millions Weighted- average exercise price Weighted- average remaining contractual life in years Aggregate intrinsic value in millions Shares in millions Weighted- average exercise price Shares in millions Weighted- average exercise price Outstanding at beginning of year 16.6 $ 113.06 18.9 $ 101.55 21.5 $ 92.25 Granted 2.0 175.17 2.7 157.95 4.0 128.74 Exercised (3.6 ) 97.70 (4.5 ) 89.31 (5.6 ) 81.77 Forfeited/expired (0.4 ) 154.65 (0.5 ) 137.08 (1.0 ) 118.38 Outstanding at end of year 14.6 $ 124.21 5.9 $ 1,074.6 16.6 $ 113.06 18.9 $ 101.55 Exercisable at end of year 9.2 $ 107.51 4.7 $ 826.4 10.0 11.3 |
Summary of Restricted Stock Unit Activity | A summary of the Company’s RSU activity during the years ended December 31, 2019 , 2018 and 2017 is presented in the following table: 2019 2018 2017 RSUs Shares in millions Weighted- average grant date fair value Shares in millions Weighted- average grant date fair value Shares in millions Weighted- average grant date fair value Nonvested at beginning of year 1.5 $ 132.56 1.6 $ 107.34 1.9 $ 94.13 Granted 0.6 171.48 0.6 158.28 0.6 123.98 Vested (0.6 ) 116.42 (0.6 ) 91.20 (0.7 ) 87.18 Forfeited (0.1 ) 153.58 (0.1 ) 132.14 (0.2 ) 117.24 Nonvested at end of year 1.4 $ 150.95 1.5 $ 132.56 1.6 $ 107.34 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | Quarterly Results (Unaudited) Quarters ended December 31 Quarters ended September 30 Quarters ended June 30 Quarters ended March 31 In millions, except per share data 2019 2018 2019 2018 2019 2018 2019 2018 Revenues Sales by Company-operated restaurants $ 2,363.3 $ 2,371.2 $ 2,416.6 $ 2,511.0 $ 2,400.4 $ 2,594.9 $ 2,240.5 $ 2,535.6 Revenues from franchised restaurants 2,985.7 2,791.8 3,014.0 2,858.4 2,940.9 2,759.0 2,715.1 2,603.3 Total revenues 5,349.0 5,163.0 5,430.6 5,369.4 5,341.3 5,353.9 4,955.6 5,138.9 Company-operated margin 423.7 414.6 448.9 463.1 433.3 464.4 354.3 404.7 Franchised margin 2,422.4 2,282.1 2,454.5 2,359.0 2,396.2 2,275.1 2,182.0 2,123.0 Operating income 2,292.6 1,999.5 2,409.3 2,417.7 2,273.9 2,262.3 2,094.0 2,143.1 Net income $ 1,572.2 $ 1,415.3 $ 1,607.9 $ 1,637.3 $ 1,516.9 $ 1,496.3 $ 1,328.4 $ 1,375.4 Earnings per common share—basic $ 2.10 $ 1.84 $ 2.13 $ 2.12 $ 1.99 $ 1.92 $ 1.74 $ 1.74 Earnings per common share—diluted $ 2.08 $ 1.82 $ 2.11 $ 2.10 $ 1.97 $ 1.90 $ 1.72 $ 1.72 Dividends declared per common share $ — $ — $ 2.41 (1) $ 2.17 (1) $ 1.16 $ 1.01 $ 1.16 $ 1.01 Weighted-average common shares—basic 749.2 769.5 756.6 772.8 761.8 780.0 764.9 790.9 Weighted-average common shares—diluted 755.6 776.6 763.9 779.6 768.7 787.1 771.6 798.7 (1) Includes a $1.16 and $1.01 per share dividend declared and paid in third quarter of 2019 and 2018, respectively, and a $1.25 and $1.16 per share dividend declared in the third quarter and paid in fourth quarter of 2019 and 2018, respectively. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Restaurant Information by Ownership Type (Detail) | Dec. 31, 2019Restaurant | Dec. 31, 2018Restaurant | Dec. 31, 2017Restaurant |
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 38,695 | 37,855 | 37,241 |
Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 36,059 | 35,085 | 34,108 |
Company-operated restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 2,636 | 2,770 | 3,133 |
Conventional franchised | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 21,837 | 21,685 | 21,366 |
Developmental licensed | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 7,648 | 7,225 | 6,945 |
Affiliated | Franchised restaurants: | |||
Segment Reporting Information [Line Items] | |||
Number of Restaurants | 6,574 | 6,175 | 5,797 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Lease Accounting (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right-of-use asset, net | $ 13,261.2 | $ 12,500 | $ 0 |
Operating Lease, Liability | $ 13,378.8 | $ 12,500 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Property and Equipment Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Estimated Useful Lives | the lesser of useful lives of assets or lease terms |
Equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies Capitalized Software (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounting Policies [Abstract] | |||
Capitalized Computer Software, Net | $ 665.4 | $ 609.7 | $ 535.6 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies Long-Lived Assets Narrative (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Long Lived Assets Impairment Test Period | 12 months |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies Goodwill Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | ||
Impairment losses | $ (99.4) | |
GoodiwillWrittenOffRelatedToSaleOfCompanyRestaurantMonthsFromAcquisition | 24 months | |
Fair Value Goodwill Written Off Related To Sale Of Restaurant Minimum Months Company Operated | 24 months | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 113.9 | $ 15.6 |
U.S. | ||
Goodwill [Line Items] | ||
Impairment losses | $ 0 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies Activity in Goodwill by Segment (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |
Beginning balance | $ 2,331.5 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 348.8 |
Net restaurant purchases (sales) | 95.6 |
Impairment losses | (99.4) |
Currency translation | 0.9 |
Ending balance | 2,677.4 |
U.S. | |
Goodwill [Line Items] | |
Beginning balance | 1,276.5 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 348.8 |
Net restaurant purchases (sales) | (9.5) |
Impairment losses | 0 |
Currency translation | 0 |
Ending balance | 1,615.8 |
International Operated Markets [Member] | |
Goodwill [Line Items] | |
Beginning balance | 1,055 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 |
Net restaurant purchases (sales) | 5.7 |
Impairment losses | 0 |
Currency translation | 0.9 |
Ending balance | 1,061.6 |
International Developmental Licensed Markets and Corporate [Member] | |
Goodwill [Line Items] | |
Beginning balance | 0 |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 |
Net restaurant purchases (sales) | 99.4 |
Impairment losses | (99.4) |
Currency translation | 0 |
Ending balance | $ 0 |
Summary of Significant Accou_11
Summary of Significant Accounting Policies Advertising Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Company Operated Restaurant Advertising Expense | $ 365.8 | $ 388.8 | $ 532.9 |
Other Marketing Related Expenses | $ 81.5 | $ 88 | $ 100.2 |
Summary of Significant Accou_12
Summary of Significant Accounting Policies Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative Contract Indexed To Issuers Equity Fair Value | $ 179.1 | |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 224.7 | $ 206.3 |
Derivative payables | 11.3 | 16.6 |
Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 167.1 | |
Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Derivative assets | 45.6 | 39.2 |
Derivative payables | $ 11.3 | $ 16.6 |
Summary of Significant Accou_13
Summary of Significant Accounting Policies Fair Values of Derivative Instruments Included on Consolidated Balance Sheet (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | $ 224.7 | $ 206.3 | |
Liability Derivatives Fair Value | 11.3 | 16.6 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | (20.4) | 48.9 | $ (39.4) |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 12 | ||
Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 31.6 | 34.7 | |
Liability Derivatives Fair Value | 6.4 | 13.9 | |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 193.1 | 171.6 | |
Liability Derivatives Fair Value | 4.9 | 2.7 | |
Gain (Loss) Recognized in Income on Derivative | 86 | 22.5 | |
Royalty Arrangement | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | $ 754.7 | ||
Period covered by hedge | 18 months | ||
Foreign currency | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | $ 14.2 | 22.1 | |
Foreign currency | Prepaid expenses and other current assets | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 10 | 30.9 | |
Foreign currency | Prepaid expenses and other current assets | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 12.4 | 4.5 | |
Foreign currency | Accrued payroll and other liabilities | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 5.2 | 0.7 | |
Foreign currency | Accrued payroll and other liabilities | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 4.8 | 0 | |
Foreign currency | Miscellaneous other assets | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 9.5 | 3.8 | |
Foreign currency | Other long- term liabilities | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 1.2 | 1.3 | |
Interest rate | Accrued payroll and other liabilities | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 0 | 0.1 | |
Interest rate | Miscellaneous other assets | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 12.1 | 0 | |
Interest rate | Other long- term liabilities | Designated as Hedging Instrument | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 0 | 11.8 | |
Equity | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) Recognized in Income on Derivative | 71.8 | 0.4 | |
Equity | Prepaid expenses and other current assets | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 1.6 | 167.1 | |
Equity | Accrued payroll and other liabilities | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Liability Derivatives Fair Value | 0.1 | 2.7 | |
Equity | Miscellaneous other assets | Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Asset Derivatives Fair Value | 179.1 | $ 0 | |
Fair Value Hedging [Member] | Interest Rate Risk [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 12.1 | ||
Gain (Loss) Recognized in Income on Derivative | 24 | ||
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative, Notional Amount | 998.5 | ||
Intercompany Debt [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Nonderivative Instruments | 642.6 | ||
Debt [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount of Nonderivative Instruments | $ 11,900 |
Summary of Significant Accou_14
Summary of Significant Accounting Policies Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | $ 22.5 | $ 60 |
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | 49 | (3.4) |
Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | 329.1 | 684.2 |
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 11.7 | 4 |
Interest rate | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | (1.3) | (1.2) |
Foreign currency denominated debt | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | 317.3 | 682.9 |
Foreign currency | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | 22.5 | 60 |
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | 50.3 | (2.2) |
Foreign currency derivatives | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI on Derivative (Effective Portion) | 11.8 | 1.3 |
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) | 11.7 | 4 |
Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 86 | 22.5 |
Not Designated as Hedging Instrument [Member] | Foreign currency | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | 14.2 | 22.1 |
Not Designated as Hedging Instrument [Member] | Equity | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Income on Derivative | $ 71.8 | $ 0.4 |
Summary of Significant Accou_15
Summary of Significant Accounting Policies Share-Based Compensation Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 107.5 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 1 month 6 days |
Summary of Significant Accou_16
Summary of Significant Accounting Policies Share-Based Compensation Expense and Effect on Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Share-based compensation expense | $ 109.6 | $ 125.1 | $ 117.5 |
After tax | $ 94.2 | $ 108.1 | $ 82 |
Earnings per common share-diluted | $ 0.12 | $ 0.14 | $ 0.10 |
Summary of Significant Accou_17
Summary of Significant Accounting Policies Weighted-Average Assumptions (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Expected dividend yield | 2.70% | 2.60% | 3.10% |
Expected stock price volatility | 18.90% | 18.70% | 18.40% |
Risk-free interest rate | 2.50% | 2.70% | 2.20% |
Expected life of options In years | 5 years 9 months 18 days | 5 years 9 months 18 days | 5 years 10 months 24 days |
Fair value per option granted | $ 25.60 | $ 23.80 | $ 16.10 |
Summary of Significant Accou_18
Summary of Significant Accounting Policies Per Common Share Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 6.8 | 7.3 | 8.1 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0.1 | 0.5 | 0.1 |
Segment and Geographic Inform_3
Segment and Geographic Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Total revenues | $ 5,349 | $ 5,430.6 | $ 5,341.3 | $ 4,955.6 | $ 5,163 | $ 5,369.4 | $ 5,353.9 | $ 5,138.9 | $ 21,076.5 | $ 21,025.2 | $ 22,820.4 |
Total operating income | 2,292.6 | $ 2,409.3 | $ 2,273.9 | $ 2,094 | 1,999.5 | $ 2,417.7 | $ 2,262.3 | $ 2,143.1 | 9,069.8 | 8,822.6 | 9,552.7 |
Total assets | 47,510.8 | 32,811.2 | 47,510.8 | 32,811.2 | 33,803.7 | ||||||
Total capital expenditures | 2,393.7 | 2,741.7 | 1,853.7 | ||||||||
Depreciation and amortization | 1,617.9 | 1,482 | 1,363.4 | ||||||||
U.S. | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Total revenues | 7,842.7 | 7,665.8 | 8,006.4 | ||||||||
Total operating income | 4,068.7 | 4,015.6 | 4,022.4 | ||||||||
Total assets | 21,376.9 | 14,483.8 | 21,376.9 | 14,483.8 | 12,648.6 | ||||||
Total capital expenditures | 1,480.5 | 1,849.8 | 861.2 | ||||||||
Depreciation and amortization | 730.2 | 598.4 | 524.1 | ||||||||
International Operated Markets [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Total revenues | 11,398.6 | 11,506.7 | 11,115.9 | ||||||||
Total operating income | 4,789 | 4,643.2 | 4,173.6 | ||||||||
Total assets | 22,847.5 | 17,302.3 | 22,847.5 | 17,302.3 | 16,254.8 | ||||||
Total capital expenditures | 886.6 | 762.4 | 808 | ||||||||
Depreciation and amortization | 669.3 | 703.9 | 687.1 | ||||||||
International Developmental Licensed Markets and Corporate [Member] | |||||||||||
Entity Wide Revenue Major Customer [Line Items] | |||||||||||
Total revenues | 1,835.2 | 1,852.7 | 3,698.1 | ||||||||
Total operating income | 212.1 | 163.8 | 1,356.7 | ||||||||
Total assets | $ 3,286.4 | $ 1,025.1 | 3,286.4 | 1,025.1 | 4,900.3 | ||||||
Total capital expenditures | 26.6 | 129.5 | 184.5 | ||||||||
Depreciation and amortization | $ 218.4 | $ 179.7 | $ 152.2 |
Segment and Geographic Inform_4
Segment and Geographic Information - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 38,291.5 | $ 23,671.1 |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Total long lived assets | $ 19,487.6 | $ 12,250.3 |
Net Property and Equipment (Det
Net Property and Equipment (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Land | $ 6,026.4 | $ 5,521.4 |
Buildings and improvements on owned land | 17,003.7 | 15,377.4 |
Buildings and improvements on leased land | 12,605.9 | 12,863.6 |
Equipment, signs and seating | 2,994.5 | 2,942.6 |
Other | 420.4 | 488.6 |
Property and equipment, at cost | 39,050.9 | 37,193.6 |
Accumulated depreciation and amortization | (14,890.9) | (14,350.9) |
Net property and equipment | $ 24,160 | $ 22,842.7 |
Property and Equipment Property
Property and Equipment Property and Equipment - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense for property and equipment | $ 1,392.2 | $ 1,302.9 | $ 1,227.5 |
Revenues from Franchised Restau
Revenues from Franchised Restaurants (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Franchisor Disclosure [Line Items] | |||||||||||
Rents | $ 7,500.2 | $ 7,082.2 | $ 6,496.3 | ||||||||
Royalties | 4,107.1 | 3,886.3 | 3,518.7 | ||||||||
Initial Fees | 48.4 | 44 | 86.5 | ||||||||
Revenues from franchised restaurants | $ 2,985.7 | $ 3,014 | $ 2,940.9 | $ 2,715.1 | $ 2,791.8 | $ 2,858.4 | $ 2,759 | $ 2,603.3 | $ 11,655.7 | $ 11,012.5 | $ 10,101.5 |
Future Gross Minimum Rent Payme
Future Gross Minimum Rent Payments due to Company under Existing Conventional Franchise Arrangements (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Leases Disclosure [Line Items] | |
2020 | $ 3,008.3 |
2021 | 2,883.9 |
2022 | 2,749.8 |
2023 | 2,631.2 |
2024 | 2,541.1 |
Thereafter | 20,509.7 |
Total minimum payments | 34,324 |
Owned sites | |
Leases Disclosure [Line Items] | |
2020 | 1,558.5 |
2021 | 1,501.4 |
2022 | 1,439.3 |
2023 | 1,384.8 |
2024 | 1,344.4 |
Thereafter | 11,155.2 |
Total minimum payments | 18,383.6 |
Leased sites | |
Leases Disclosure [Line Items] | |
2020 | 1,449.8 |
2021 | 1,382.5 |
2022 | 1,310.5 |
2023 | 1,246.4 |
2024 | 1,196.7 |
Thereafter | 9,354.5 |
Total minimum payments | $ 15,940.4 |
Franchise Arrangements - Additi
Franchise Arrangements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Franchisor Disclosure [Line Items] | ||
Franchise arrangement period | 20 years | |
Net property and equipment | $ 24,160 | $ 22,842.7 |
Land | 6,026.4 | 5,521.4 |
Accumulated depreciation and amortization of property and equipment | 14,890.9 | $ 14,350.9 |
Franchise Arrangements | ||
Franchisor Disclosure [Line Items] | ||
Net property and equipment | 19,200 | |
Land | 5,400 | |
Accumulated depreciation and amortization of property and equipment | $ 10,900 |
Detail of Rent Expense (Detail)
Detail of Rent Expense (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases Disclosure [Line Items] | |||
Restaurants | $ 1,530.4 | $ 1,433.9 | $ 1,562.5 |
Other | 76.4 | 87.9 | 82 |
Rent Expense | $ 1,606.8 | $ 1,521.8 | $ 1,644.5 |
Leasing Arrangements Maturities
Leasing Arrangements Maturities of Operating Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2020 | $ 1,161.9 | |
2021 | 1,132.8 | |
2022 | 1,091.4 | |
2023 | 1,052.6 | |
2024 | 1,010.3 | |
Thereafter | 13,573.6 | |
Total Lease Payments | 19,022.6 | |
Imputed Interest | (5,643.8) | |
Operating Lease, Liability | $ 13,378.8 | $ 12,500 |
Future Minimum Payments Require
Future Minimum Payments Required under Existing Operating Leases (Detail) $ 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 | |
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 |
Other | |
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 |
Leasing Arrangements - Addition
Leasing Arrangements - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)Restaurant | Dec. 31, 2018USD ($)Restaurant | Dec. 31, 2017USD ($)Restaurant | |
Operating Leased Assets [Line Items] | |||
Net Investment in Lease, Change in Present Value, Expense (Reversal) | $ 900 | ||
Lease term | 20 years | ||
Weighted Average Lease Term | 20 years | ||
Number of Restaurants | Restaurant | 38,695 | 37,855 | 37,241 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | ||
Company-operated restaurants: | |||
Operating Leased Assets [Line Items] | |||
Number of Restaurants | 2,636 | 2,770 | 3,133 |
Percent rents in excess of minimum rents | $ 74.4 | $ 82.1 | $ 115.6 |
Franchised restaurants: | |||
Operating Leased Assets [Line Items] | |||
Number of Restaurants | 36,059 | 35,085 | 34,108 |
Percent rents in excess of minimum rents | $ 200.7 | $ 200.8 | $ 204.9 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Escalation timing | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Escalation timing | 5 years |
Other Operating (Income) Expe_3
Other Operating (Income) Expenses by Component (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Gains on sales of restaurant businesses | $ (127.5) | $ (304.1) | $ (295.4) |
Equity in earnings of unconsolidated affiliates | (153.8) | (151.5) | (183.7) |
Asset dispositions and other (income) expense, net | 23.1 | (12.9) | 18.7 |
Impairment and other charges (gains), net | 74.3 | 231.7 | (702.8) |
Total | $ (183.9) | $ (236.8) | $ (1,163.2) |
Income before Provision for Inc
Income before Provision for Income Taxes, Classified by Source of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2019 | ||
U.S. | $ 2,159.1 | $ 2,218 | $ 2,242 |
Outside the U.S. | 5,859 | 5,598.1 | 6,331.5 |
Income before provision for income taxes | $ 8,018.1 | $ 7,816.1 | $ 8,573.5 |
Provision for Income Taxes, Cla
Provision for Income Taxes, Classified by Timing and Location of Payment (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Document Fiscal Year Focus | 2019 | ||
U.S. federal | $ 521.8 | $ 292.9 | $ 2,030.8 |
U.S. state | 194.7 | 183.9 | 169.8 |
Outside the U.S. | 1,126.5 | 1,312.4 | 1,217 |
Current tax provision | 1,843 | 1,789.2 | 3,417.6 |
U.S. federal | 38.5 | 145.7 | (120.1) |
U.S. state | 20 | 18.7 | 12.8 |
Outside the U.S. | 91.2 | (61.8) | 70.9 |
Deferred tax provision | 149.7 | 102.6 | (36.4) |
Provision for income taxes | $ 1,992.7 | $ 1,891.8 | $ 3,381.2 |
Net Deferred Tax Liabilities (D
Net Deferred Tax Liabilities (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Deferred Income Tax Assets and Liabilities | ||
Lease right-of-use asset | $ 3,296.8 | $ 0 |
Property and equipment | 1,316.4 | 1,288.9 |
Intangible assets | 334.8 | 312.3 |
Other | 511.1 | 347.9 |
Total deferred tax liabilities | 5,459.1 | 1,949.1 |
Lease liability | (3,331.1) | 0 |
Intangible assets | (1,051) | (1,081.5) |
Property and equipment | (585.6) | (658.9) |
Deferred foreign tax credits | (311.2) | (216.6) |
Employee benefit plans | (192.3) | (213.3) |
Deferred revenue | (145.5) | (138.9) |
Operating loss carryforwards | (81.5) | (45.7) |
Other | (323.6) | (269.2) |
Total deferred tax assets before valuation allowance | (6,021.8) | (2,624.1) |
Valuation allowance | 741.9 | 671.1 |
Deferred Tax Liabilities, Net | 179.2 | (3.9) |
Balance sheet presentation: [Abstract] | ||
Deferred income taxes | 1,318.1 | 1,215.5 |
Other assets-miscellaneous | ||
Balance sheet presentation: [Abstract] | ||
Deferred tax assets | $ (1,138.9) | $ (1,219.4) |
Statutory U.S. Federal Income T
Statutory U.S. Federal Income Tax Rate Reconcilation to Effective Income Tax Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of related federal income tax benefit | 1.80% | 1.80% | 1.20% |
Foreign income taxed at different rates | 1.60% | 1.50% | (4.60%) |
Transition Tax | 0.00% | 1.00% | 13.70% |
US net deferred tax liability remeasurement | 0.00% | 0.00% | (6.00%) |
Foreign tax credit redetermination regulations | (1.00%) | 0.00% | 0.00% |
Other, net | 1.50% | (1.10%) | 0.10% |
Effective income tax rates | 24.90% | 24.20% | 39.40% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Income Taxes [Line Items] | |||||
Document Period End Date | Dec. 31, 2019 | ||||
Operating loss carryforwards | $ 360.3 | ||||
Unrecognized tax benefits | 1,439.1 | [1] | $ 1,342.8 | [1] | $ 1,180.4 |
Reasonably possible amount of unrecognized tax benefits decrease within the next 12 months - minimum | 980 | ||||
Effective tax rate adjustment | 880 | ||||
Accrued interest and penalties related to income tax matters | 174.4 | 152 | |||
Provision for income taxes, interest and penalties expense related to tax matters | $ 39.9 | 13.9 | 34.9 | ||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent | 1,200 | ||||
Adjustments to Provisional Amounts Recorded at December 31, 2017 (Tax Cuts and Jobs Act of 2017) | $ 75 | ||||
US net deferred tax liability remeasurement, amount | $ 500 | ||||
Statutory U.S. federal income tax rate | 21.00% | 21.00% | 35.00% | ||
Indefinite [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | $ 232.7 | ||||
[1] | Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018 , respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet. |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Income Tax Disclosure [Abstract] | ||||
Unrecognized tax benefits, beginning balance | $ 1,342.8 | [1] | $ 1,180.4 | |
Decreases for positions taken in prior years | (18.3) | (64.1) | ||
Increases for positions taken in prior years | 107.1 | 180.8 | ||
Increases for positions related to the current year | 88.3 | 75.1 | ||
Settlements with taxing authorities | (68.6) | (24.1) | ||
Lapsing of statutes of limitations | (12.2) | (5.3) | ||
Unrecognized tax benefits | [1] | $ 1,439.1 | $ 1,342.8 | |
[1] | Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018 , respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet. |
Reconciliation of Beginning a_2
Reconciliation of Beginning and Ending Amounts of Unrecognized Tax Benefits (Table Footnotes) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Income Taxes [Line Items] | |||||
Unrecognized tax benefits | $ 1,439.1 | [1] | $ 1,342.8 | [1] | $ 1,180.4 |
Long-term income taxes | |||||
Income Taxes [Line Items] | |||||
Unrecognized tax benefits | 1,285.3 | 1,313.7 | |||
Prepaid expenses and other current assets | |||||
Income Taxes [Line Items] | |||||
Unrecognized tax benefits | $ 138.8 | $ 12.5 | |||
[1] | Of this amount, $1,285.3 million and $1,313.7 million are included in Long-term income taxes for 2019 and 2018 , respectively, and $138.8 million and $12.5 million are included in Prepaid expenses and other current assets for 2019 and 2018, respectively, on the Consolidated Balance Sheet. The remainder is included in Deferred income taxes on the Consolidated Balance Sheet. |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Employee Benefit Plans [Line Items] | |||
Tax-deferred contributions, description of plan | The Company also maintains certain nonqualified supplemental benefit plans that allow participants to (i) make tax-deferred contributions and (ii) receive Company-provided allocations that cannot be made under the 401k Plan because of IRS limitations. The investment alternatives and returns are based on certain market-rate investment alternatives under the 401k Plan. | ||
Supplemental benefit plan liabilities | $ 435 | $ 437.4 | |
Derivative contracts, reasons for holding derivative instruments | The Company has entered into derivative contracts to hedge market-driven changes in certain of the liabilities. | ||
Derivative Contract Indexed To Issuers Equity Fair Value | $ 179.1 | ||
Investment, indexed to Market Indices Fair Value | $ 187.7 | ||
Derivative contracts, disclosure of the effect on the results of operations | Changes in liabilities for these nonqualified plans and in the fair value of the derivatives are recorded primarily in Selling, general & administrative expenses. Changes in fair value of the derivatives indexed to the Company’s stock are recorded in the income statement because the contracts provide the counterparty with a choice to settle in cash or shares. | ||
Maximum | |||
Schedule Of Employee Benefit Plans [Line Items] | |||
Participants' future contributions to the 401(k) feature and the discretionary employer matching contribution feature | 20.00% | ||
U.S. | |||
Schedule Of Employee Benefit Plans [Line Items] | |||
Profit sharing and savings plan costs | $ 30.4 | 18 | $ 19.3 |
Outside the U.S. | |||
Schedule Of Employee Benefit Plans [Line Items] | |||
Profit sharing and savings plan costs | 35.3 | 33.7 | $ 43.3 |
Total liabilities for international retirement plans | $ 42.3 | $ 40.6 |
Debt Financing - Additional Inf
Debt Financing - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Disclosure [Line Items] | |||
Weighted-average interst rate on short-term borrowings | 1.90% | 2.60% | |
Debt, face amount | $ 4,499 | $ 3,794.5 | $ 4,727.5 |
Additional paid-in capital | 7,653.9 | 7,376 | |
Revolving Credit Facility Expiring In Twenty Nineteen | Unused lines of Credit [Member] | |||
Debt Disclosure [Line Items] | |||
Unused Line of credit | $ 3,500 | ||
Unused Line of credit agreement, fees | 0.08% | ||
Line of Credit Facility, Commitment Fee Description | Fees and interest rates on this line are primarily based on the Company’s long-term credit rating assigned by Moody’s and Standard & Poor’s | ||
Outside the U.S. | |||
Debt Disclosure [Line Items] | |||
Foreign currency bank line borrowings | $ 242.4 | 253.5 | |
Outside the U.S. | Unused lines of Credit [Member] | |||
Debt Disclosure [Line Items] | |||
Line of Credit Facility, Currency | denominated in various currencies | ||
Line of Credit Facility, Interest Rate Description | local market rates of interest | ||
U.S. | |||
Debt Disclosure [Line Items] | |||
Commercial Paper | $ 899.3 | $ 99.9 |
Summary of Debt Obligations (De
Summary of Debt Obligations (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 34,177.2 | $ 31,075.3 | ||
Deferred Finance Costs, Own-share Lending Arrangement, Issuance Costs, Net | 140.4 | 129 | ||
Debt Obligations Before Fair Value Adjustments | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | 34,305.5 | [1] | 31,216.3 | |
Fair Value Hedging [Member] | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | [2] | 12.1 | (12) | |
Currency US Dollar | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 21,389.5 | $ 19,425.7 | ||
Currency US Dollar | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 4.00% | 4.00% | |
Amounts outstanding | $ 19,340.2 | $ 18,075.8 | ||
Currency US Dollar | Floating Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.20% | 3.40% | |
Amounts outstanding | $ 2,049.3 | $ 1,349.9 | ||
Currency Euro | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 9,008.8 | $ 9,333.2 | ||
Currency Euro | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 1.50% | 1.60% | |
Amounts outstanding | $ 8,671.8 | $ 8,069.1 | ||
Currency Euro | Floating Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.30% | 0.00% | |
Amounts outstanding | $ 337 | $ 1,264.1 | ||
Currency Australian Dollars | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | $ 981.6 | $ 0 | ||
Currency Australian Dollars | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 3.40% | 0.00% | |
Amounts outstanding | $ 771 | $ 0 | ||
Currency Australian Dollars | Floating Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.00% | 0.00% | |
Amounts outstanding | $ 210.6 | $ 0 | ||
Currency Japanese Yen | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 2.90% | 2.90% | |
Amounts outstanding | $ 115.1 | $ 114 | ||
Currency British Pound Sterling [Member] | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 4.60% | 5.30% | |
Amounts outstanding | $ 1,386.3 | $ 952.3 | ||
Currency Canadian Dollar [Member] | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | [3] | 3.10% | 3.10% | |
Amounts outstanding | $ 768.6 | $ 732 | ||
Foreign currency denominated debt | ||||
Debt Disclosure [Line Items] | ||||
Amounts outstanding | [4] | $ 655.6 | $ 659.1 | |
Foreign currency denominated debt | Fixed Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | 0.20% | 0.30% | ||
Amounts outstanding | $ 413.8 | $ 414.9 | ||
Foreign currency denominated debt | Floating Rate Debt | ||||
Debt Disclosure [Line Items] | ||||
Interest rates | 2.20% | 2.60% | ||
Amounts outstanding | $ 241.8 | $ 244.2 | ||
[1] | Aggregate maturities for 2019 debt balances, before fair value adjustments and deferred debt costs, are as follows (in millions): 2020 – $59.1 ; 2021 – $2,132.2 ; 2022 – $2,250.1 ; 2023 – $6,007.0 ; 2024 – $2,819.0 ; Thereafter– $21,038.1 . These amounts include a reclassification of short-term obligations totaling $3.5 billion to long-term obligations as they are supported by a long-term line of credit agreement expiring in December 2023 | |||
[2] | The carrying value of underlying items in fair value hedges, in this case debt obligations, are adjusted for fair value changes to the extent they are attributable to the risk designated as being hedged. The related hedging instruments are also recorded at fair value on the Consolidated Balance Sheet. | |||
[3] | Weighted-average effective rate, computed on a semi-annual basis. | |||
[4] | onsists of Swiss Francs and Korean Won. |
Summary of Debt Obligations (Ta
Summary of Debt Obligations (Table Footnotes) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Line Items] | ||
2018 | $ 59.1 | |
2019 | 2,132.2 | |
2020 | 2,250.1 | |
2021 | 6,007 | |
2021 | 2,819 | |
Thereafter | 21,038.1 | |
Reclassification to Long Term Debt | 3,500 | |
Amounts outstanding | $ 34,177.2 | $ 31,075.3 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ||||
Description of share based compensation plan | The Company maintains a share-based compensation plan which authorizes the granting of various equity-based incentives including stock options and restricted stock units to employees and nonemployee directors. | |||
Share-based compensation plan, number of shares of common stock reserved for issuance | 42.5 | |||
Stock options, number of years to expire | 10 years | |||
Outstanding stock options | 14.6 | 16.6 | 18.9 | 21.5 |
Proceeds from stock option exercises | $ 350.5 | $ 403.2 | $ 456.8 | |
Tax benefit on stock option exercises and other | 0 | 0 | 0 | |
RSUs vested, total fair value | $ 111 | 117.9 | 87.6 | |
Stock Compensation Plan | ||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ||||
Outstanding stock options | 26.5 | |||
Stock Option | ||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ||||
Stock options exercised total intrinsic value | $ 356.1 | $ 364.4 | $ 353.6 | |
Tax benefit on stock option exercises and other | 70.5 | |||
Restricted Stock Units (RSUs) | ||||
Schedule Of Share Based Compensation Arrangements By Share Based Payment Award Equity Instruments Other Than Options Performance Share Units [Line Items] | ||||
Tax benefit on stock option exercises and other | $ 21.3 | |||
Vesting percentage | 100.00% | |||
Vesting period | 3 years |
Summary of Stock Option Grants
Summary of Stock Option Grants (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options grant shares | |||
Outstanding at beginning of year | 16.6 | 18.9 | 21.5 |
Granted | 2 | 2.7 | 4 |
Exercised | (3.6) | (4.5) | (5.6) |
Forfeited/expired | (0.4) | (0.5) | (1) |
Outstanding at end of year | 14.6 | 16.6 | 18.9 |
Exercisable at end of year | 9.2 | 10 | 11.3 |
Stock options grant weighted-average exercise price | |||
Outstanding at beginning of year | $ 113.06 | $ 101.55 | $ 92.25 |
Granted | 175.17 | 157.95 | 128.74 |
Exercised | 97.70 | 89.31 | 81.77 |
Forfeited/expired | 154.65 | 137.08 | 118.38 |
Outstanding at end of year | 124.21 | $ 113.06 | $ 101.55 |
Exercisable at end of year | $ 107.51 | ||
Stock options grant Weighted-average remaining contractual life | |||
Outstanding at end of year | 5 years 10 months 24 days | ||
Exercisable at end of year | 4 years 8 months 12 days | ||
Stock options grant aggregate intrinsic value | |||
Outstanding at end of year | $ 1,074.6 | ||
Exercisable at end of year | $ 826.4 |
Summary of Restricted Stock Uni
Summary of Restricted Stock Unit Activity (Detail) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RSUs shares | |||
Nonvested at beginning of year | 1.5 | 1.6 | 1.9 |
Granted | 0.6 | 0.6 | 0.6 |
Vested | (0.6) | (0.6) | (0.7) |
Forfeited | (0.1) | (0.1) | (0.2) |
Nonvested at end of year | 1.4 | 1.5 | 1.6 |
RSUs weighted-average grant date fair value | |||
Nonvested at beginning of year | $ 132.56 | $ 107.34 | $ 94.13 |
Granted | 171.48 | 158.28 | 123.98 |
Vested | 116.42 | 91.20 | 87.18 |
Forfeited | 153.58 | 132.14 | 117.24 |
Nonvested at end of year | $ 150.95 | $ 132.56 | $ 107.34 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Event [Line Items] | |
China Percent of Systemwide Sales | 5.00% |
China Percent of Consolidated Revenues | 1.00% |
China Percent of Consolidated Operating Income | 3.00% |
Quarterly Results (Detail)
Quarterly Results (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Quarterly Financial Information [Line Items] | |||||||||||||
Sales by Company-operated restaurants | $ 2,363.3 | $ 2,416.6 | $ 2,400.4 | $ 2,240.5 | $ 2,371.2 | $ 2,511 | $ 2,594.9 | $ 2,535.6 | $ 9,420.8 | $ 10,012.7 | $ 12,718.9 | ||
Revenues from franchised restaurants | 2,985.7 | 3,014 | 2,940.9 | 2,715.1 | 2,791.8 | 2,858.4 | 2,759 | 2,603.3 | 11,655.7 | 11,012.5 | 10,101.5 | ||
Total revenues | 5,349 | 5,430.6 | 5,341.3 | 4,955.6 | 5,163 | 5,369.4 | 5,353.9 | 5,138.9 | 21,076.5 | 21,025.2 | 22,820.4 | ||
Total operating income | 2,292.6 | 2,409.3 | 2,273.9 | 2,094 | 1,999.5 | 2,417.7 | 2,262.3 | 2,143.1 | 9,069.8 | 8,822.6 | 9,552.7 | ||
Net income | $ 1,572.2 | $ 1,607.9 | $ 1,516.9 | $ 1,328.4 | $ 1,415.3 | $ 1,637.3 | $ 1,496.3 | $ 1,375.4 | $ 6,025.4 | $ 5,924.3 | $ 5,192.3 | ||
Earnings per common share–basic | $ 2.10 | $ 2.13 | $ 1.99 | $ 1.74 | $ 1.84 | $ 2.12 | $ 1.92 | $ 1.74 | $ 7.95 | $ 7.61 | $ 6.43 | ||
Earnings per common share–diluted | $ 2.08 | 2.11 | 1.97 | 1.72 | $ 1.82 | 2.10 | 1.90 | 1.72 | 7.88 | 7.54 | 6.37 | ||
Dividends declared per common share | $ 2.41 | [1] | $ 1.16 | $ 1.16 | $ 2.17 | [1] | $ 1.01 | $ 1.01 | $ 4.73 | $ 4.19 | $ 3.83 | ||
Weighted-averaged common shares–basic | 749.2 | 756.6 | 761.8 | 764.9 | 769.5 | 772.8 | 780 | 790.9 | 758.1 | 778.2 | 807.4 | ||
Weighted-averaged common shares–diluted | 755.6 | 763.9 | 768.7 | 771.6 | 776.6 | 779.6 | 787.1 | 798.7 | 764.9 | 785.6 | 815.5 | ||
Company-operated | |||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||
Margin | $ 423.7 | $ 448.9 | $ 433.3 | $ 354.3 | $ 414.6 | $ 463.1 | $ 464.4 | $ 404.7 | |||||
Franchised restaurants: | |||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||
Margin | $ 2,422.4 | $ 2,454.5 | $ 2,396.2 | $ 2,182 | $ 2,282.1 | $ 2,359 | $ 2,275.1 | $ 2,123 | |||||
[1] | Includes a $1.16 and $1.01 per share dividend declared and paid in third quarter of 2019 and 2018, respectively, and a $1.25 and $1.16 per share dividend declared in the third quarter and paid in fourth quarter of 2019 and 2018, respectively. |
Quarterly Results (Table Footno
Quarterly Results (Table Footnotes) (Detail) - $ / shares | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | ||
Dividends declared per common share, amount declared and paid in third quarter | $ 1.16 | $ 1.01 |
Dividends declared per common share, amount declared in third quarter and paid in fourth quarter | $ 1.25 | $ 1.16 |