Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Fiscal Period Focus | Q1 |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Current Fiscal Year End Date | --12-31 |
Entity File Number | 1-5231 |
Entity Registrant Name | MCDONALDS CORP |
Entity Central Index Key | 0000063908 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 36-2361282 |
Entity Address, Address Line One | 110 North Carpenter StreetChicago, Illinois |
Entity Address, City or Town | Chicago |
Entity Address, State or Province | IL |
Entity Address, Postal Zip Code | 60607 |
City Area Code | 630 |
Local Phone Number | 623-3000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Title of 12(b) Security | Common Stock, $0.01 par value |
Trading Symbol | MCD |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 743,556,182 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current assets | ||
Cash and equivalents | $ 5,379.8 | $ 898.5 |
Accounts and notes receivable | 1,695.3 | 2,224.2 |
Inventories, at cost, not in excess of market | 39.1 | 50.2 |
Prepaid expenses and other current assets | 442.7 | 385 |
Total current assets | 7,556.9 | 3,557.9 |
Other assets | ||
Investments in and advances to affiliates | 1,276.8 | 1,270.3 |
Goodwill | 2,627.4 | 2,677.4 |
Miscellaneous | 2,481.4 | 2,584 |
Total other assets | 6,385.6 | 6,531.7 |
Lease right-of-use asset, net | 13,029.6 | 13,261.2 |
Property and equipment | ||
Property and equipment, at cost | 38,351.5 | 39,050.9 |
Accumulated depreciation and amortization | (14,755.6) | (14,890.9) |
Net property and equipment | 23,595.9 | 24,160 |
Total assets | 50,568 | 47,510.8 |
Current liabilities | ||
Short-term borrowings | 1,000 | 0 |
Accounts payable | 671.9 | 988.2 |
Lease liability | 688.6 | 621 |
Income taxes | 234.6 | 331.7 |
Other taxes | 208.9 | 247.5 |
Accrued interest | 308 | 337.8 |
Accrued payroll and other liabilities | 769.8 | 1,035.7 |
Current maturities of long-term debt | 106 | 59.1 |
Total current liabilities | 3,987.8 | 3,621 |
Long-term debt | 38,046.6 | 34,118.1 |
Long-term lease liability | 12,470.3 | 12,757.8 |
Long-term income taxes | 2,158.1 | 2,265.9 |
Deferred revenues - initial franchise fees | 655 | 660.6 |
Other long-term liabilities | 893.9 | 979.6 |
Deferred income taxes | 1,649.7 | 1,318.1 |
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 | 7,713.5 | 7,653.9 |
Retained earnings | 53,106.7 | 52,930.5 |
Accumulated other comprehensive income (loss) | (2,996.4) | (2,482.7) |
Common stock in treasury, at cost; 917.1 and 914.3 million shares | (67,133.8) | (66,328.6) |
Total shareholders' equity (deficit) | (9,293.4) | (8,210.3) |
Total liabilities and shareholders' equity (deficit) | $ 50,568 | $ 47,510.8 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
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 | 917,100,000 | 914,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Sales by Company-operated restaurants | $ 2,025.8 | $ 2,240.5 |
Revenues from franchised restaurants | 2,608 | 2,715.1 |
Other Revenues | 80.6 | 68.5 |
Total revenues | 4,714.4 | 5,024.1 |
Operating costs and expenses | ||
Company-operated restaurant expenses | 1,752.8 | 1,886.2 |
Franchised restaurants-occupancy expenses | 554.2 | 533.1 |
Other Restaurant Expenses | 65.5 | 53.3 |
Depreciation and Amortization | 73.5 | 61.4 |
Other Selling, General and Administrative Expense | 516.3 | 437.7 |
Other operating (income) expense, net | 58.5 | (41.6) |
Total operating costs and expenses | 3,020.8 | 2,930.1 |
Operating income | 1,693.6 | 2,094 |
Interest expense | 280 | 274.1 |
Nonoperating (income) expense, net | (31.3) | (11.4) |
Income before provision for income taxes | 1,444.9 | 1,831.3 |
Provision for income taxes | 338 | 502.9 |
Net income | $ 1,106.9 | $ 1,328.4 |
Earnings per common share-basic | $ 1.49 | $ 1.74 |
Earnings per common share-diluted | 1.47 | 1.72 |
Dividends declared per common share | $ 1.25 | $ 1.16 |
Weighted average shares outstanding-basic | 744.8 | 764.9 |
Weighted average shares outstanding-diluted | 750.7 | 771.6 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2020 | |
Net income | $ 1,106.9 | $ 1,328.4 |
Foreign currency translation adjustments: | ||
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | (466.2) | 43.4 |
Reclassification of (gain) loss to net income | 0 | 45.6 |
Foreign currency translation adjustments-net of tax benefit (expense) of $(115.3) and $(60.0) | (466.2) | 89 |
Cash flow hedges: | ||
Gain (loss) recognized in AOCI | (39.6) | 8.3 |
Reclassification of (gain) loss to net income | (9.1) | (9.1) |
Cash flow hedges-net of tax benefit (expense) of $14.7 and $0.2 | (48.7) | (0.8) |
Defined benefit pension plans: | ||
Gain (loss) recognized in AOCI | (1.9) | 0 |
Reclassification of (gain) loss to net income | 3.1 | 1.2 |
Defined benefit pension plans-net of tax benefit (expense) of $0.4 and $0.0 | 1.2 | 1.2 |
Total other comprehensive income (loss), net of tax | (513.7) | 89.4 |
Comprehensive income (loss) | $ 593.2 | $ 1,417.8 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ (115.3) | $ (60) |
Other comprehensive income (loss), derivatives qualifying as hedges, tax | 14.7 | 0.2 |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | $ 0.4 | $ 0 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 1,106.9 | $ 1,328.4 |
Charges and credits: | ||
Depreciation and amortization | 421.3 | 392.6 |
Deferred income taxes | 276.4 | 54.3 |
Share-based compensation | 25.9 | 31.6 |
Other | (87.9) | 51.5 |
Changes in working capital items | (196.6) | 162.2 |
Cash provided by operations | 1,546 | 2,020.6 |
Investing activities | ||
Capital expenditures | (482.5) | (515.3) |
Purchases of restaurant businesses | (19.6) | (9) |
Sales of restaurant businesses | 25.7 | 131.9 |
Sales of property | 15.8 | 22.3 |
Other | (57.8) | (401.2) |
Cash (used for) investing activities | (518.4) | (771.3) |
Financing activities | ||
Net short-term borrowings | 111.8 | (94) |
Long-term financing issuances | 5,539.4 | 2,513.3 |
Long-term financing repayments | (262.7) | (415) |
Treasury stock purchases | (902.6) | (996.1) |
Common stock dividends | (930.7) | (886.8) |
Proceeds from stock option exercises | 99.3 | 110.6 |
Other | (121.5) | (11.3) |
Cash provided by financing activities | 3,533 | 220.7 |
Effect of exchange rates on cash and cash equivalents | (79.3) | (46.9) |
Cash and equivalents increase | 4,481.3 | 1,423.1 |
Cash and equivalents at beginning of period | 898.5 | 866 |
Cash and equivalents at end of period | $ 5,379.8 | $ 2,289.1 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common stock issued | Additional paid-in capital | Retained earnings | Pensions | Cash Flow Hedges | Foreign currency translation | Common stock in treasury |
Beginning Balance (in shares) at Dec. 31, 2018 | 1,660.6 | (893.5) | ||||||
Beginning Balance at Dec. 31, 2018 | $ (6,258.4) | $ 16.6 | $ 7,376 | $ 50,487 | $ (216.6) | $ 32.4 | $ (2,425.3) | $ (61,528.5) |
Net income | 1,328.4 | 1,328.4 | ||||||
Other comprehensive income (loss), net of tax | 89.4 | 1.2 | (0.8) | 89 | ||||
Comprehensive income | 1,417.8 | |||||||
Common stock cash dividends | (886.8) | (886.8) | ||||||
Treasury stock purchases (in shares) | (5.4) | |||||||
Treasury stock purchases | (963.7) | $ (963.7) | ||||||
Share-based compensation | 31.6 | 31.6 | ||||||
Stock option exercises and other (in shares) | 1.8 | |||||||
Stock option exercises and other | 108.6 | 30.9 | $ 77.7 | |||||
Ending Balance (in shares) at Mar. 31, 2019 | 1,660.6 | (897.1) | ||||||
Ending Balance at Mar. 31, 2019 | (6,550.9) | $ 16.6 | 7,438.5 | 50,928.6 | (215.4) | 31.6 | (2,336.3) | $ (62,414.5) |
Beginning Balance (in shares) at Dec. 31, 2019 | 1,660.6 | (914.3) | ||||||
Beginning Balance at Dec. 31, 2019 | (8,210.3) | $ 16.6 | 7,653.9 | 52,930.5 | (243.7) | 12 | (2,251) | $ (66,328.6) |
Net income | 1,106.9 | 1,106.9 | ||||||
Other comprehensive income (loss), net of tax | (513.7) | 1.2 | (48.7) | (466.2) | ||||
Comprehensive income | 593.2 | |||||||
Common stock cash dividends | (930.7) | (930.7) | ||||||
Treasury stock purchases (in shares) | (4.2) | |||||||
Treasury stock purchases | (868.9) | $ (868.9) | ||||||
Share-based compensation | 25.9 | 25.9 | ||||||
Stock option exercises and other (in shares) | 1.4 | |||||||
Stock option exercises and other | 97.4 | 33.7 | $ 63.7 | |||||
Ending Balance (in shares) at Mar. 31, 2020 | 1,660.6 | (917.1) | ||||||
Ending Balance at Mar. 31, 2020 | $ (9,293.4) | $ 16.6 | $ 7,713.5 | $ 53,106.7 | $ (242.5) | $ (36.7) | $ (2,717.2) | $ (67,133.8) |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareholders' Equity Consolidated Statement of Shareholders Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per common share | $ 1.25 | $ 1.16 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | McDonald’s Corporation, the registrant, together with its subsidiaries, is referred to herein as the "Company." The Company, its franchisees and suppliers, are referred to herein as the "System." Basis of Presentation The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements contained in the Company’s December 31, 2019 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter ended March 31, 2020 , do not necessarily indicate the results that may be expected for the full year. Prior to January 1, 2020, the Company presented both expenditures and receipts related to technology fees charged to franchisees and revenues related to certain licensing arrangements within Other operating (income) expense, net, because these activities were not part of the Company’s ongoing major or central operations. Effective January 1, 2020, the Company is presenting the revenues and expenses related to these activities within Other revenues and Other restaurant expenses, respectively, in the Condensed Consolidated Statement of Income. The change in presentation was applied retrospectively to all periods presented and had no effect on Operating income, Net income, or Earnings per share. |
Restaurant Information
Restaurant Information | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Restaurant Information By Ownership Type [Abstract] | |
Restaurant Information | Restaurant Information The following table presents restaurant information by ownership type: Restaurants at March 31, 2020 2019 Conventional franchised 21,838 21,662 Developmental licensed 7,678 7,362 Foreign affiliated 6,831 6,254 Total Franchised 36,347 35,278 Company-operated 2,637 2,693 Total Systemwide restaurants 38,984 37,971 The results of operations of restaurant businesses purchased and sold in transactions with franchisees were not material either individually or in the aggregate to the Condensed Consolidated Financial Statements for the periods prior to purchase and sale. |
Per Common Share Information
Per Common Share Information | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Per Common Share Information | Per Common Share Information Diluted earnings per common share is calculated using net income divided by diluted weighted-average shares. Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 5.9 million shares and 6.7 million shares for the quarters 2020 and 2019 , respectively. Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 2.0 million shares for each of the quarters 2020 and 2019 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements Financial Instruments - Credit Losses In June 2016, the FASB issued guidance codified in Accounting Standards Codification Topic 326, "Financial Instruments – Credit Losses: Measurements of Credit Losses on Financial Instruments". The standard replaces the incurred loss impairment methodology in prior GAAP with a methodology that instead reflects a current estimate of all expected credit losses on financial assets, including receivables. The guidance requires that an entity measure and recognize expected credit losses at the time the asset is recorded, while considering a broader range of information to estimate credit losses including macroeconomic conditions that correlate with historical loss experience, delinquency trends and aging behavior of receivables, among others. The Company has adopted this guidance effective January 1, 2020, prospectively, and the adoption and application of this standard did not have a material impact to the consolidated financial statements during the first quarter. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected losses. Recent Accounting Pronouncements Not Yet Adopted Income Taxes In December 2019, the FASB issued Accounting Standard Update (“ASU”) No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” ("ASU 2019-12"), which simplifies the accounting for income taxes. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020, including applicable interim periods. The Company is currently evaluating the impact the adoption of ASU 2019-12 will have on its consolidated financial statements. Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"). The pronouncement provides temporary optional expedients and exceptions to the current guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. The Company is currently evaluating the impact the adoption of ASU 2020-04 will have on its consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company measures certain financial assets and liabilities at fair value. Fair value disclosures are reflected in a three-level hierarchy, maximizing the use of observable inputs and minimizing the use of unobservable inputs. The Company did not have any significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2019 Annual Report on Form 10-K. At March 31, 2020 , the fair value of the Company’s debt obligations was estimated at $41.5 billion , compared to a carrying amount of $39.2 billion , which reflects the new financings during the first quarter of a $1 billion line of credit and $5.5 billion of debt issuances under the Company's existing registration statement on Form S-3 with maturities ranging from 2025 to 2050 and interests rates ranging from 1.45% to 4.20% . The fair value was based upon quoted market prices, Level 2 within the valuation hierarchy. The carrying amounts of cash and equivalents, short-term investments and notes receivable approximate fair value. |
Financial Instruments and Hedgi
Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Hedging Activities | Financial Instruments and Hedging Activities The Company is exposed to global market risks, including the effect of changes in interest rates and foreign currency fluctuations. The Company uses foreign currency denominated debt and derivative instruments to mitigate the impact of these changes. The Company does not hold or issue derivatives for trading purposes. The following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification March 31, 2020 December 31, 2019 Balance Sheet Classification March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 31.9 $ 10.0 Accrued payroll and other liabilities $ (0.5 ) $ (5.2 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities Foreign currency Miscellaneous other assets 25.4 9.5 Other long-term liabilities (0.3 ) (1.2 ) Interest rate Miscellaneous other assets 36.0 12.1 Other long-term liabilities Total derivatives designated as hedging instruments $ 93.3 $ 31.6 $ (0.8 ) $ (6.4 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 10.4 $ 1.6 Accrued payroll and other liabilities $ (0.1 ) $ (0.1 ) Foreign currency Prepaid expenses and other current assets 17.8 12.4 Accrued payroll and other liabilities — (4.8 ) Equity Miscellaneous other assets 149.8 179.1 Total derivatives not designated as hedging instruments $ 178.0 $ 193.1 $ (0.1 ) $ (4.9 ) Total derivatives $ 271.3 $ 224.7 $ (0.9 ) $ (11.3 ) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the quarters ended March 31, 2020 and 2019 , 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 2020 2019 2020 2019 2020 2019 Foreign currency Nonoperating income/expense $ 39.3 $ 10.7 $ 12.6 $ 12.0 Interest rate Interest expense (90.8 ) (0.7 ) (0.3 ) Cash flow hedges $ (51.5 ) $ 10.7 $ 11.9 $ 11.7 Foreign currency denominated debt Nonoperating income/expense $ 350.4 $ 245.2 Foreign currency derivatives Nonoperating income/expense 11.9 9.0 Foreign currency derivatives (1) Interest expense $ 3.7 $ 2.5 Net investment hedges $ 362.3 $ 254.2 $ 3.7 $ 2.5 Foreign currency Nonoperating income/expense $ 7.5 $ (5.6 ) Equity Selling, general & administrative expenses (66.3 ) 35.3 Undesignated derivatives $ (58.8 ) $ 29.7 (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 March 31, 2020 , the carrying amount of fixed-rate debt that was effectively converted was $1.0 billion , which included an increase of $36.0 million of cumulative hedging adjustments. For the first quarter 2020, the Company recognized a $23.9 million gain on the fair value of interest rate swaps, and a corresponding loss on the fair value of the related hedged debt instrument to interest expense. Cash Flow Hedges The Company enters into cash flow hedges to reduce the exposure to variability in certain expected future cash flows. To protect against the reduction in value of forecasted foreign currency cash flows (such as royalties denominated in foreign currencies), the Company uses foreign currency forwards to hedge a portion of anticipated exposures. The hedges cover the next 18 months for certain exposures and are denominated in various currencies. To protect against the variability of interest rates of an anticipated bond issuance, the Company may use treasury locks to hedge a portion of the expected future cash flows. As of March 31, 2020 , the Company had derivatives outstanding with an equivalent notional amount of $734.9 million that hedged a portion of forecasted foreign currency denominated cash flows. Based on market conditions at March 31, 2020 , the $36.7 million in cumulative cash flow hedging losses , 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 March 31, 2020 , $10.1 billion of the Company's third party foreign currency denominated debt and $694.6 million of intercompany foreign currency denominated debt was designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Derivatives The Company enters into certain derivatives that are not designated for hedge accounting, therefore the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position. As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities. Changes in the fair value of these derivatives are recorded in selling, general & administrative expenses together with the changes in the supplemental benefit plan liabilities. In addition, the Company uses foreign currency forwards to mitigate the change in fair value of certain foreign currency denominated assets and liabilities. The changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, along with the currency gain or loss from the hedged balance sheet position. Credit Risk The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties. The Company did not have significant exposure to any individual counterparty at March 31, 2020 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 March 31, 2020 , neither the Company nor its counterparties were 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. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance: • U.S. - the Company's largest market. The segment is 95% franchised as of March 31, 2020. • International Operated Markets - comprised of wholly-owned markets, or countries in which the Company operates restaurants, including Australia, Canada, France, Germany, Italy, the Netherlands, Russia, Spain and the U.K. The segment is 84% franchised as of March 31, 2020. • International Developmental Licensed Markets & Corporate - comprised of primarily developmental licensee and affiliate markets in the McDonald’s system. Corporate activities are also reported within this segment. The segment is 98% franchised as of March 31, 2020. The following table presents the Company’s revenues and operating income by segment: Quarters Ended March 31, In millions 2020 2019 Revenues U.S. $ 1,871.0 $ 1,887.6 International Operated Markets 2,404.3 2,682.7 International Developmental Licensed Markets & Corporate 439.1 453.8 Total revenues $ 4,714.4 $ 5,024.1 Operating Income U.S. $ 892.4 $ 951.9 International Operated Markets 879.1 1,048.0 International Developmental Licensed Markets & Corporate (77.9 ) 94.1 Total operating income $ 1,693.6 $ 2,094.0 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission. There were no subsequent events that required recognition or disclosure. |
Updates to Significant Accounti
Updates to Significant Accounting Policies (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Updates to Significant Accounting Policies 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. The Company’s Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology platforms, revenues from brand licensing arrangements to market and sell consumer packaged goods using the McDonald’s brand, and third party revenues for the Dynamic Yield business. 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 (with the exception of rent concessions as a result of COVID-19 – refer to the Leasing policy update on page 10), and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. Initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. The Company provides goods or services related to various technology platforms to certain franchisees that are distinct from the franchise agreement because they do not require integration with other goods or services we provide. The Company has determined that it is the principal in these arrangements. Accordingly, the related revenue is presented on a gross basis on the Condensed Consolidated Statement of Income. These revenues are recognized as the goods or services are transferred to the franchisee, and related expenses are recognized as incurred. Brand licensing arrangement revenues are based on a percent of sales and are recognized at the time the underlying sales occur. Dynamic Yield third party revenues are generated from providing software as a service solutions to customers and are recognized over the applicable subscription period as the service is performed. Long-lived assets and Goodwill Long-lived assets and Goodwill are typically reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists. The Company has continued to monitor the significant global economic uncertainty as a result of COVID-19 to assess the outlook for restaurant operations and the impact that any disruption may have on the Company's business and overall financial performance. As a result of the Company's analysis, and in consideration of the totality of events and circumstances, including the potential impact of COVID-19 related disruptions on the Company’s operating results, there were no indicators of impairment during the first quarter of 2020. Leasing The FASB has issued additional guidance for how companies may account for COVID-19 related rent concessions in the form of FASB staff and Board members’ remarks at the April 8, 2020 public meeting and the FASB Staff Q&A issued on April 10, 2020. The Company has elected the practical expedient to account for COVID-19 related rent concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. This has been elected for the Company’s entire lessee and lessor portfolio for any rent deferrals or rent abatements. For the lessee portfolio, the Company has elected not to remeasure the lease liability and right-of-use asset if a rent deferral or a rent abatement is granted. For the first quarter 2020, the Company deferred collection of approximately $300 million of rental income on revenue that was recognized in the first quarter. Rental income includes both minimum rent payments and variable rent payments based on a percent of sales. The extent of the deferrals differ in length by market, but the deferrals primarily impact cash collection in the second quarter of 2020, a large portion of which is expected to be collected in the third and fourth quarters of 2020. |
Updates to Significant Accoun_2
Updates to Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Long-lived assets and Goodwill Long-lived assets and Goodwill are typically reviewed for impairment annually in the fourth quarter and whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable or if an indicator of impairment exists. The Company has continued to monitor the significant global economic uncertainty as a result of COVID-19 to assess the outlook for restaurant operations and the impact that any disruption may have on the Company's business and overall financial performance. As a result of the Company's analysis, and in consideration of the totality of events and circumstances, including the potential impact of COVID-19 related disruptions on the Company’s operating results, there were no indicators of impairment during the first quarter of 2020. |
Revenue Recognition, Sales of Goods [Policy Text Block] | 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. The Company’s Other revenues are comprised of fees paid by franchisees to recover a portion of costs incurred by the Company for various technology platforms, revenues from brand licensing arrangements to market and sell consumer packaged goods using the McDonald’s brand, and third party revenues for the Dynamic Yield business. 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 (with the exception of rent concessions as a result of COVID-19 – refer to the Leasing policy update on page 10), and variable rent payments based on a percent of sales, which are recognized at the time the underlying sales occur. Initial fees are recognized as the Company satisfies the performance obligation over the franchise term, which is generally 20 years. The Company provides goods or services related to various technology platforms to certain franchisees that are distinct from the franchise agreement because they do not require integration with other goods or services we provide. The Company has determined that it is the principal in these arrangements. Accordingly, the related revenue is presented on a gross basis on the Condensed Consolidated Statement of Income. These revenues are recognized as the goods or services are transferred to the franchisee, and related expenses are recognized as incurred. Brand licensing arrangement revenues are based on a percent of sales and are recognized at the time the underlying sales occur. Dynamic Yield third party revenues are generated from providing software as a service solutions to customers and are recognized over the applicable subscription period as the service is performed. |
Leases of Lessee Disclosure [Text Block] | Leasing The FASB has issued additional guidance for how companies may account for COVID-19 related rent concessions in the form of FASB staff and Board members’ remarks at the April 8, 2020 public meeting and the FASB Staff Q&A issued on April 10, 2020. The Company has elected the practical expedient to account for COVID-19 related rent concessions as if they were part of the enforceable rights and obligations of the parties under the existing lease contract. This has been elected for the Company’s entire lessee and lessor portfolio for any rent deferrals or rent abatements. For the lessee portfolio, the Company has elected not to remeasure the lease liability and right-of-use asset if a rent deferral or a rent abatement is granted. For the first quarter 2020, the Company deferred collection of approximately $300 million of rental income on revenue that was recognized in the first quarter. Rental income includes both minimum rent payments and variable rent payments based on a percent of sales. The extent of the deferrals differ in length by market, but the deferrals primarily impact cash collection in the second quarter of 2020, a large portion of which is expected to be collected in the third and fourth quarters of 2020. |
Restaurant Information (Tables)
Restaurant Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Restaurant Information By Ownership Type [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at March 31, 2020 2019 Conventional franchised 21,838 21,662 Developmental licensed 7,678 7,362 Foreign affiliated 6,831 6,254 Total Franchised 36,347 35,278 Company-operated 2,637 2,693 Total Systemwide restaurants 38,984 37,971 |
Financial Instruments and Hed_2
Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments Included on Consolidated Balance Sheet | The following table presents the fair values of derivative instruments included on the Condensed Consolidated Balance Sheet: Derivative Assets Derivative Liabilities In millions Balance Sheet Classification March 31, 2020 December 31, 2019 Balance Sheet Classification March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 31.9 $ 10.0 Accrued payroll and other liabilities $ (0.5 ) $ (5.2 ) Interest rate Prepaid expenses and other current assets Accrued payroll and other liabilities Foreign currency Miscellaneous other assets 25.4 9.5 Other long-term liabilities (0.3 ) (1.2 ) Interest rate Miscellaneous other assets 36.0 12.1 Other long-term liabilities Total derivatives designated as hedging instruments $ 93.3 $ 31.6 $ (0.8 ) $ (6.4 ) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ 10.4 $ 1.6 Accrued payroll and other liabilities $ (0.1 ) $ (0.1 ) Foreign currency Prepaid expenses and other current assets 17.8 12.4 Accrued payroll and other liabilities — (4.8 ) Equity Miscellaneous other assets 149.8 179.1 Total derivatives not designated as hedging instruments $ 178.0 $ 193.1 $ (0.1 ) $ (4.9 ) Total derivatives $ 271.3 $ 224.7 $ (0.9 ) $ (11.3 ) |
Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income | The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the quarters ended March 31, 2020 and 2019 , 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 2020 2019 2020 2019 2020 2019 Foreign currency Nonoperating income/expense $ 39.3 $ 10.7 $ 12.6 $ 12.0 Interest rate Interest expense (90.8 ) (0.7 ) (0.3 ) Cash flow hedges $ (51.5 ) $ 10.7 $ 11.9 $ 11.7 Foreign currency denominated debt Nonoperating income/expense $ 350.4 $ 245.2 Foreign currency derivatives Nonoperating income/expense 11.9 9.0 Foreign currency derivatives (1) Interest expense $ 3.7 $ 2.5 Net investment hedges $ 362.3 $ 254.2 $ 3.7 $ 2.5 Foreign currency Nonoperating income/expense $ 7.5 $ (5.6 ) Equity Selling, general & administrative expenses (66.3 ) 35.3 Undesignated derivatives $ (58.8 ) $ 29.7 (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Franchise Arrangements Additional Information [Abstract] | |
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of (in millions): Quarters Ended March 31, 2020 2019 Rents $ 1,668.2 $ 1,747.6 Royalties 928.8 956.7 Initial fees 11.0 10.8 Revenues from franchised restaurants $ 2,608.0 $ 2,715.1 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Geographic Segment | The following table presents the Company’s revenues and operating income by segment: Quarters Ended March 31, In millions 2020 2019 Revenues U.S. $ 1,871.0 $ 1,887.6 International Operated Markets 2,404.3 2,682.7 International Developmental Licensed Markets & Corporate 439.1 453.8 Total revenues $ 4,714.4 $ 5,024.1 Operating Income U.S. $ 892.4 $ 951.9 International Operated Markets 879.1 1,048.0 International Developmental Licensed Markets & Corporate (77.9 ) 94.1 Total operating income $ 1,693.6 $ 2,094.0 |
Restaurant Information by Owner
Restaurant Information by Ownership Type (Details) - Restaurant | Mar. 31, 2020 | Mar. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 38,984 | 37,971 |
Franchised | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 36,347 | 35,278 |
Franchised | Conventional franchised | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 21,838 | 21,662 |
Franchised | Developmental licensed | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 7,678 | 7,362 |
Franchised | Affiliated | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 6,831 | 6,254 |
Company-operated | ||
Segment Reporting Information [Line Items] | ||
Number of Restaurants | 2,637 | 2,693 |
Per Common Share Information (A
Per Common Share Information (Additional Information) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Dilutive effect of share-based compensation | 5.9 | 6.7 |
Stock options that were not included in diluted weighted-average shares | 2 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Recently Adopted Accounting Standards) (Income Taxes) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Retained earnings | $ 53,106.7 | $ 52,930.5 |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Recently Adopted Accounting Standards) (Lease Accounting) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Lease right-of-use asset, net | $ 13,029.6 | $ 13,261.2 |
Fair Value Measurements (Additi
Fair Value Measurements (Additional Information) (Details) $ in Billions | Mar. 31, 2020USD ($) |
Fair Value Measurements [Line Items] | |
Debt obligations, carrying amount | $ 39.2 |
Line of Credit, Current | 1 |
Long-term Debt | 5.5 |
Level 2 | |
Fair Value Measurements [Line Items] | |
Debt obligations, fair value | $ 41.5 |
Minimum [Member] | |
Fair Value Measurements [Line Items] | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 1.45% |
Maximum [Member] | |
Fair Value Measurements [Line Items] | |
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 4.20% |
Financial Instruments and Hed_3
Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 271.3 | $ 224.7 |
Liability Derivatives Fair Value | 0.9 | 11.3 |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 93.3 | 31.6 |
Liability Derivatives Fair Value | 0.8 | 6.4 |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 178 | 193.1 |
Liability Derivatives Fair Value | 0.1 | 4.9 |
Interest Rate Contract [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | ||
Interest Rate Contract [Member] | Other Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | ||
Interest Rate Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 36 | 12.1 |
Equity [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0.1 | 0.1 |
Equity [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 10.4 | 1.6 |
Equity [Member] | Other Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 149.8 | 179.1 |
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0.5 | 5.2 |
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0 | 4.8 |
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 31.9 | 10 |
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 17.8 | 12.4 |
Foreign Exchange [Member] | Other Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | 0.3 | 1.2 |
Foreign Exchange [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 25.4 | $ 9.5 |
(Derivatives Pretax Amounts Aff
(Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | $ 11.9 | $ 11.7 |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | (51.5) | 10.7 |
Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 362.3 | 254.2 |
Gain (Loss) Recognized in Income on Derivative (Amount Excluded from Effectiveness Testing and Ineffective Portion) | 3.7 | 2.5 |
Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | (58.8) | 29.7 |
Foreign Exchange [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | 12.6 | 12 |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 39.3 | 10.7 |
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | 7.5 | (5.6) |
Foreign Exchange Forward [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 11.9 | 9 |
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) | 3.7 | 2.5 |
Interest Rate Contract [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified into Income from Accumulated OCI (Effective Portion) | (0.7) | (0.3) |
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | (90.8) | |
Other Foreign Currency Denominated Debt [Member] | Net Investment Hedging Relationships | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion) | 350.4 | 245.2 |
Equity [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative instruments, gain (loss) recognized in income, net | $ (66.3) | $ 35.3 |
(Financial Instruments and Hedg
(Financial Instruments and Hedging Activities - Additional Information) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Cumulative deferred hedging gain (loss), after tax, included in accumulated other comprehensive income | $ 36.7 |
Interest Rate Swap | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Derivative, Notional Amount | 1,000 |
Intercompany Debt [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 694.6 |
Debt [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 10,100 |
Interest Rate Risk [Member] | Fair Value Hedging [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Derivative instruments, gain (loss) recognized in income, net | 23.9 |
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | 36 |
Royalty Arrangement [Member] | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |
Derivative, Notional Amount | $ 734.9 |
Period covered by hedge | 18 months |
Revenues from Franchised Restau
Revenues from Franchised Restaurants (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Franchisor Disclosure | ||
Rents | $ 1,668.2 | $ 1,747.6 |
Royalties | 928.8 | 956.7 |
Initial Fees | 11 | 10.8 |
Revenues from franchised restaurants | $ 2,608 | $ 2,715.1 |
Franchise Arrangements - Additi
Franchise Arrangements - Additional Information (Detail) | 3 Months Ended |
Mar. 31, 2020 | |
Franchisor Disclosure [Abstract] | |
Franchise Agreement Period | 20 years |
Segment Information (Segment an
Segment Information (Segment and Geographic Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Document Fiscal Year Focus | 2020 | |
Total revenues | $ 4,714.4 | $ 5,024.1 |
Operating Income | 1,693.6 | 2,094 |
United States | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,871 | 1,887.6 |
Operating Income | 892.4 | 951.9 |
International Operated Markets | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 2,404.3 | 2,682.7 |
Operating Income | 879.1 | 1,048 |
International Developmental Licensed Markets and Corporate | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 439.1 | 453.8 |
Operating Income | $ (77.9) | $ 94.1 |
Updates to Significant Accoun_3
Updates to Significant Accounting Policies (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Accounting Policies [Abstract] | |
Deferred collection amount of rental income | $ 300 |
Franchise Agreement Period | 20 years |