Cover
Cover | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
Document Transition Report | false |
Entity File Number | 1-5231 |
Entity Registrant Name | McDONALD’S CORPORATION |
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, $0.01 par value |
Trading Symbol | MCD |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 725,342,030 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Current Fiscal Year End Date | --12-31 |
Entity Central Index Key | 0000063908 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and equivalents | $ 3,496.3 | $ 2,583.8 |
Accounts and notes receivable | 2,247.1 | 2,115 |
Inventories, at cost, not in excess of market | 47.6 | 52 |
Prepaid expenses and other current assets | 1,059 | 673.4 |
Total current assets | 6,850 | 5,424.2 |
Other assets | ||
Investments in and advances to affiliates | 1,037.9 | 1,064.5 |
Goodwill | 2,965.2 | 2,900.4 |
Miscellaneous | 5,062.6 | 4,707.2 |
Total other assets | 9,065.7 | 8,672.1 |
Lease right-of-use asset, net | 12,249.5 | 12,565.7 |
Property and equipment | ||
Property and equipment, at cost | 41,967 | 41,037.6 |
Accumulated depreciation and amortization | (18,042.9) | (17,264) |
Net property and equipment | 23,924.1 | 23,773.6 |
Total assets | 52,089.3 | 50,435.6 |
Current liabilities | ||
Accounts payable | 862.4 | 980.2 |
Lease liability | 668.1 | 661.1 |
Income taxes | 535.3 | 274.9 |
Other taxes | 242.2 | 255.1 |
Accrued interest | 346.4 | 393.4 |
Accrued payroll and other liabilities | 1,348.3 | 1,237.4 |
Total current liabilities | 4,002.7 | 3,802.1 |
Long-term debt | 37,274.6 | 35,903.5 |
Long-term lease liability | 11,807.2 | 12,134.4 |
Long-term income taxes | 490.6 | 791.9 |
Deferred revenues - initial franchise fees | 767.6 | 757.8 |
Other long-term liabilities | 984.2 | 1,051.8 |
Deferred income taxes | 1,617.2 | 1,997.5 |
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 | 8,824.5 | 8,547.1 |
Retained earnings | 62,649 | 59,543.9 |
Accumulated other comprehensive income (loss) | (2,545.7) | (2,486.6) |
Common stock in treasury, at cost; 931.9 and 929.3 million shares | (73,799.2) | (71,624.4) |
Total shareholders' equity (deficit) | (4,854.8) | (6,003.4) |
Total liabilities and shareholders' equity (deficit) | $ 52,089.3 | $ 50,435.6 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred Stock, Par or Stated Value Per Share | $ 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 | 935,300,000 | 929,300,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statement of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues | ||||
Sales by Company-operated restaurants | $ 2,556.2 | $ 2,124.8 | $ 7,267.5 | $ 6,540 |
Revenues from franchised restaurants | 4,047.1 | 3,671.2 | 11,567.9 | 10,460.8 |
Other Revenues | 88.9 | 76.1 | 252.1 | 255.3 |
Total revenues | 6,692.2 | 5,872.1 | 19,087.5 | 17,256.1 |
Operating costs and expenses | ||||
Company-operated restaurant expenses | 2,135 | 1,779.6 | 6,149.4 | 5,508.6 |
Franchised restaurants-occupancy expenses | 625.4 | 589 | 1,841.9 | 1,761.6 |
Other Restaurant Expenses | 68.1 | 57.4 | 187.9 | 187.6 |
Selling, general & administrative expenses | ||||
Depreciation and Amortization | 96.7 | 93.3 | 291.2 | 279 |
Other Selling, General and Administrative Expense | 583.5 | 576.4 | 1,704.3 | 1,771.9 |
Other operating (income) expense, net | (24.8) | 12.5 | 68 | 959.1 |
Total operating costs and expenses | 3,483.9 | 3,108.2 | 10,242.7 | 10,467.8 |
Operating income | 3,208.3 | 2,763.9 | 8,844.8 | 6,788.3 |
Interest expense | 340.7 | 306.2 | 1,000.6 | 884.1 |
Nonoperating (income) expense, net | (55.9) | (78.5) | (163) | 417.7 |
Income before provision for income taxes | 2,923.5 | 2,536.2 | 8,007.2 | 5,486.5 |
Provision for income taxes | 606.4 | 554.6 | 1,577.4 | 1,212.5 |
Net income | $ 2,317.1 | $ 1,981.6 | $ 6,429.8 | $ 4,274 |
Earnings per common share-basic | $ 3.19 | $ 2.70 | $ 8.82 | $ 5.79 |
Earnings per common share-diluted | 3.17 | 2.68 | 8.76 | 5.75 |
Dividends declared per common share | $ 1.52 | $ 1.38 | $ 4.56 | $ 4.14 |
Weighted average shares outstanding-basic | 727.2 | 734.9 | 729.2 | 738.3 |
Weighted average shares outstanding-diluted | 731.6 | 739.5 | 733.8 | 743 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Comprehensive Income - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,317,100,000 | $ 1,981,600,000 | $ 6,429,800,000 | $ 4,274,000,000 |
Foreign currency translation adjustments: | ||||
Gain (loss) recognized in accumulated other comprehensive income (AOCI), including net investment hedges | (145,300,000) | (369,500,000) | (90,500,000) | (644,300,000) |
Reclassification of (gain) loss to net income | 0 | 0 | 0 | 504,100,000 |
Foreign currency translation adjustments-net of tax benefit (expense) of $18.2, $(178.0), $53.8 and $(237.0) | (145,300,000) | (369,500,000) | (90,500,000) | (140,200,000) |
Cash flow hedges: | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 50,000,000 | 101,400,000 | 43,100,000 | 231,800,000 |
Reclassification of (gain) loss to net income | 500,000 | (42,500,000) | (12,100,000) | (70,900,000) |
Cash flow hedges-net of tax benefit (expense) of 0.8, (24.3), 5.3 and (29.3) | 50,500,000 | 58,900,000 | 31,000,000 | 160,900,000 |
Defined benefit pension plans: | ||||
Gain (loss) recognized in AOCI | 4,700,000 | (700,000) | 9,900,000 | (600,000) |
Reclassification of (gain) loss to net income | 0 | (2,000,000) | (9,500,000) | (6,100,000) |
Defined benefit pension plans-net of tax benefit (expense) of $0.0, $0.1, $1.1 and $0.1 | 4,700,000 | (2,700,000) | 400,000 | (6,700,000) |
Total other comprehensive income (loss), net of tax | (90,100,000) | (313,300,000) | (59,100,000) | 14,000,000 |
Comprehensive income (loss) | $ 2,227,000,000 | $ 1,668,300,000 | $ 6,370,700,000 | $ 4,288,000,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | $ (13.7) | $ (16.9) | $ (8.4) | $ (46.2) |
Other comprehensive income (loss), pension and other postretirement benefit plans, tax | 0.1 | 0 | 1.2 | 0.1 |
Other comprehensive income (loss), foreign currency translation adjustment, tax | $ (97.5) | $ (198.7) | $ (43.7) | $ (435.7) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||||
Net income | $ 2,317.1 | $ 1,981.6 | $ 6,429.8 | $ 4,274 |
Charges and credits: | ||||
Depreciation and amortization | 498 | 465.6 | 1,480.7 | 1,407.5 |
Deferred income taxes | (176.2) | (196.3) | (414.8) | (383.1) |
Share-based compensation | 42.9 | 38.3 | 137.8 | 130.9 |
Other | (105.9) | (45.6) | (183.1) | 260.6 |
Changes in working capital items | 453.1 | 190.3 | (327.4) | (504.6) |
Cash provided by (used for) operations | 3,029 | 2,433.9 | 7,123 | 5,185.3 |
Investing activities | ||||
Capital expenditures | (570.3) | (531.2) | (1,600.1) | (1,370.3) |
Purchases of restaurant businesses | (91.9) | (152.3) | (303.5) | (349.5) |
Sales of restaurant businesses | 15.8 | 33.1 | 95.8 | 401.3 |
Sales of property | 13.6 | 11.1 | 35.3 | 22.3 |
Other | (300.5) | (93.8) | (572.6) | (310.6) |
Cash used for investing activities | (933.3) | (733.1) | (2,345.1) | (1,606.8) |
Financing activities | ||||
Net short-term borrowings | 6.9 | (305.4) | (137.4) | 10.7 |
Long-term financing issuances | 1,996.1 | 1,500 | 3,050.4 | 3,374.5 |
Long-term financing repayments | (0.5) | (0.4) | (1,377.4) | (2,201.8) |
Treasury stock purchases | (1,054.4) | (869.2) | (2,202.5) | (3,406.9) |
Common stock dividends | (1,104.7) | (1,014.7) | (3,324.7) | (3,056.7) |
Proceeds from stock option exercises | 62.2 | 62.4 | 210.9 | 168.3 |
Other | (41.8) | 80.9 | (7.7) | 48.7 |
Cash provided by (used for) financing activities | (136.2) | (546.4) | (3,788.4) | (5,063.2) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | (88.8) | (198.6) | (77) | (396.2) |
Cash and equivalents increase (decrease) | 1,870.7 | 955.8 | 912.5 | (1,880.9) |
Cash and equivalents at beginning of period | 1,625.6 | 1,872.5 | 2,583.8 | 4,709.2 |
Cash and equivalents at end of period | $ 3,496.3 | $ 2,828.3 | $ 3,496.3 | $ 2,828.3 |
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, 2021 | 1,660.6 | 915.8 | ||||||
Beginning balance at Dec. 31, 2021 | $ (4,601) | $ 16.6 | $ 8,231.6 | $ 57,534.7 | $ (179.5) | $ (24.8) | $ (2,369.4) | $ (67,810.2) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 4,274 | 4,274 | ||||||
Other comprehensive income (loss), net of tax | 14 | (6.7) | 160.9 | (140.2) | ||||
Comprehensive income | 4,288 | |||||||
Common stock cash dividends | (3,056.7) | (3,056.7) | ||||||
Treasury stock purchases (in shares) | (14.1) | |||||||
Treasury stock purchases | (3,486.8) | $ (3,486.8) | ||||||
Share-based compensation | 130.9 | 130.9 | ||||||
Stock option exercises and other (in shares) | 1.7 | |||||||
Stock option exercises and other | 159.4 | 97.6 | $ 61.8 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 1,660.6 | 928.2 | ||||||
Ending balance at Sep. 30, 2022 | (6,566.2) | $ 16.6 | 8,460.1 | 58,752 | (186.2) | 136.1 | (2,509.6) | $ (71,235.2) |
Beginning balance (in shares) at Jun. 30, 2022 | 1,660.6 | 924.9 | ||||||
Beginning balance at Jun. 30, 2022 | (6,369.8) | $ 16.6 | 8,378.7 | 57,785.1 | (183.5) | 77.2 | (2,140.1) | $ (70,303.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 1,981.6 | 1,981.6 | ||||||
Other comprehensive income (loss), net of tax | (313.3) | (2.7) | 58.9 | (369.5) | ||||
Comprehensive income | 1,668.3 | |||||||
Common stock cash dividends | (1,014.7) | (1,014.7) | ||||||
Treasury stock purchases (in shares) | (3.7) | |||||||
Treasury stock purchases | (949.1) | $ (949.1) | ||||||
Share-based compensation | 38.3 | 38.3 | ||||||
Stock option exercises and other (in shares) | 0.4 | |||||||
Stock option exercises and other | 60.8 | 43.1 | $ 17.7 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 1,660.6 | 928.2 | ||||||
Ending balance at Sep. 30, 2022 | (6,566.2) | $ 16.6 | 8,460.1 | 58,752 | (186.2) | 136.1 | (2,509.6) | $ (71,235.2) |
Beginning balance (in shares) at Dec. 31, 2022 | 1,660.6 | 929.3 | ||||||
Beginning balance at Dec. 31, 2022 | (6,003.4) | $ 16.6 | 8,547.1 | 59,543.9 | (298.2) | 30.7 | (2,219.1) | $ (71,624.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 6,429.8 | 6,429.8 | ||||||
Other comprehensive income (loss), net of tax | (59.1) | 0.4 | 31 | (90.5) | ||||
Comprehensive income | 6,370.7 | |||||||
Common stock cash dividends | (3,324.7) | (3,324.7) | ||||||
Treasury stock purchases (in shares) | (7.8) | |||||||
Treasury stock purchases | (2,246.1) | $ (2,246.1) | ||||||
Share-based compensation | 137.8 | 137.8 | ||||||
Stock option exercises and other (in shares) | 1.8 | |||||||
Stock option exercises and other | 210.9 | 139.6 | $ 71.3 | |||||
Ending balance (in shares) at Sep. 30, 2023 | 1,660.6 | 935.3 | ||||||
Ending balance at Sep. 30, 2023 | (4,854.8) | $ 16.6 | 8,824.5 | 62,649 | (297.8) | 61.7 | (2,309.6) | $ (73,799.2) |
Beginning balance (in shares) at Jun. 30, 2023 | 1,660.6 | 931.9 | ||||||
Beginning balance at Jun. 30, 2023 | (4,999.1) | $ 16.6 | 8,735.8 | 61,436.6 | (302.5) | 11.2 | (2,164.3) | $ (72,732.5) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 2,317.1 | 2,317.1 | ||||||
Other comprehensive income (loss), net of tax | (90.1) | 4.7 | 50.5 | (145.3) | ||||
Comprehensive income | 2,227 | |||||||
Common stock cash dividends | (1,104.7) | (1,104.7) | ||||||
Treasury stock purchases (in shares) | (3.6) | |||||||
Treasury stock purchases | (1,083.1) | $ (1,083.1) | ||||||
Share-based compensation | 42.9 | 42.9 | ||||||
Stock option exercises and other (in shares) | 0.2 | |||||||
Stock option exercises and other | 62.2 | 45.8 | $ 16.4 | |||||
Ending balance (in shares) at Sep. 30, 2023 | 1,660.6 | 935.3 | ||||||
Ending balance at Sep. 30, 2023 | $ (4,854.8) | $ 16.6 | $ 8,824.5 | $ 62,649 | $ (297.8) | $ 61.7 | $ (2,309.6) | $ (73,799.2) |
Condensed Consolidated Statem_6
Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common stock cash dividends (in dollars per share) | $ 1.52 | $ 1.38 | $ 4.56 | $ 4.14 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
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, 2022 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and nine months ended September 30, 2023 do not necessarily indicate the results that may be expected for the full year. |
Restaurant Information
Restaurant Information | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant Information | Restaurant Information The following table presents restaurant information by ownership type: Restaurants at September 30, 2023 2022 Conventional franchised 21,761 21,641 Developmental licensed 8,450 8,144 Foreign affiliated 8,843 8,145 Total Franchised 39,054 37,930 Company-operated 2,144 2,050 Total Systemwide restaurants 41,198 39,980 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 accompanying condensed consolidated financial statements for the periods prior to purchase and sale. |
Per Common Share Information
Per Common Share Information | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Per Common Share Information | Per Common Share InformationDiluted earnings per common share is calculated as 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 4.4 million shares and 4.6 million shares for the quarters ended 2023 and 2022, respectively, and 4.6 million shares and 4.7 million shares for the nine months ended 2023 and 2022, respectively. Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 1.2 million shares and 1.5 million shares for the quarters ended 2023 and 2022, respectively, and 2.1 million shares and 1.5 million shares for the nine months ended 2023 and 2022, respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements There have been no recent accounting pronouncements or changes in accounting pronouncements during the quarter and nine months ended September 30, 2023 that are of significance or potential significance to the Company. |
Restructuring
Restructuring | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Accelerating the Organization In January 2023, the Company announced an evolution of its successful Accelerating the Arches strategy. Enhancements to the strategy include the addition of Restaurant Development to the Company’s growth pillars and an internal effort to modernize ways of working, Accelerating the Organization , both of which are aimed at elevating the Company’s performance. Accelerating the Organization is designed to unlock further growth as the Company focuses on becoming faster, more innovative and more efficient for the benefit of our customers and people. The Company expects to incur about $250 million of costs related to Accelerating the Organization in 2023, of which $220 million was incurred in the nine months ended September 30, 2023. These costs were recorded in the Other operating (income) expense, net line within the consolidated statement of income. Restructuring costs primarily consist of employee termination benefits, costs to terminate contracts, including lease terminations, and professional services and other costs. Professional services and other costs primarily relate to expenses incurred for legal and consulting activities. There were no significant non-cash impairment charges included in the amounts listed in the table below. The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions): Employee Termination Benefits Costs to Terminate Contracts Other Related Costs Total 2023 Beginning Balance $ — $ — $ — $ — Restructuring Costs Incurred 110.3 26.9 43.3 180.5 Cash Payments (1.5) (1.4) (0.3) (3.2) Other Non-Cash Items — — (14.1) (14.1) Accrued Balance at March 31, 2023 $ 108.8 $ 25.5 $ 28.9 $ 163.2 Restructuring Costs Incurred (8.8) 5.6 21.9 18.7 Cash Payments (27.7) (11.7) (46.8) (86.2) Other Non-Cash Items — — (2.5) (2.5) Accrued Balance at June 30, 2023 $ 72.3 $ 19.4 $ 1.5 $ 93.2 Restructuring Costs Incurred (0.9) — 21.4 20.5 Cash Payments (13.0) (7.4) (15.3) (35.7) Other Non-Cash Items (2.5) — 0.1 (2.4) Accrued Balance at September 30, 2023 $ 55.9 $ 12.0 $ 7.7 $ 75.6 Of the $220 million of restructuring costs incurred in the nine months ended September 30, 2023, $62 million was recorded in the U.S., $71 million was recorded in the International Operated Markets segment and $87 million was recorded in the International Developmental Licensed Markets & Corporate segment, the majority of which was recorded at Corporate. Substantially all of the accrued restructuring balance recorded at September 30, 2023, related to the Company’s Accelerating the Organization initiative, is expected to be paid out over the next twelve months. As part of Accelerating the Organization, the Company is also in the initial stages of developing a strategy that will utilize an enterprise-wide Global Business Services model to deliver business services at scale with greater efficiency. The Company has started to incur costs associated with this strategy and additional costs will be incurred as the strategy progresses; however, at this point in time these future costs cannot be estimated. The expectation is that the Company will complete the majority of its Global Business Services strategy by the end of 2027. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The effective income tax rate was 20.7% and 21.9% for the quarters ended 2023 and 2022, respectively, and 19.7% and 22.1% for the nine months ended 2023 and 2022, respectively. The effective tax rate for the nine months 2022 reflected $239 million of net tax benefits related to the sale of the Company’s Russia and Dynamic Yield businesses and the unfavorable impact of the non-deductible $537 million of nonoperating expense related to the settlement of a tax audit in France. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
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. There were no significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2022 Annual Report on Form 10-K. At September 30, 2023, the fair value of the Company’s debt obligations was estimated at $34.0 billion, compared to a carrying amount of $37.3 billion. The fair value of debt obligations is based upon quoted market prices, classified as Level 2 within the valuation hierarchy. The carrying amount of cash and equivalents and notes receivable approximate fair value. |
Financial Instruments and Hedgi
Financial Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 December 31, 2022 Balance Sheet Classification September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 47.2 $ 53.3 Accrued payroll and other liabilities $ (4.9) $ (17.9) Interest rate Prepaid expenses and other current assets 11.7 — Accrued payroll and other liabilities (5.8) — Foreign currency Miscellaneous other assets 19.7 28.7 Other long-term liabilities (0.1) (30.7) Interest rate Miscellaneous other assets — — Other long-term liabilities (80.0) (91.5) Total derivatives designated as hedging instruments $ 78.6 $ 82.0 $ (90.8) $ (140.1) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ — $ 200.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets 5.1 — Accrued payroll and other liabilities — (1.6) Equity Miscellaneous other assets 166.5 — Total derivatives not designated as hedging instruments $ 171.6 $ 200.5 $ — $ (1.6) Total derivatives $ 250.2 $ 282.5 $ (90.8) $ (141.7) The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the nine months ended September 30, 2023 and 2022, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2023 2022 2023 2022 2023 2022 Foreign currency Nonoperating income/expense $ 32.8 $ 214.5 $ 14.9 $ 94.4 Interest rate Interest expense 22.0 83.9 0.5 (3.0) Cash flow hedges $ 54.8 $ 298.4 $ 15.4 $ 91.4 Foreign currency denominated debt Nonoperating income/expense $ 157.2 $ 1,917.0 Foreign currency derivatives Nonoperating income/expense 64.9 37.1 Foreign currency derivatives (1) Interest expense $ 18.4 $ 6.6 Net investment hedges $ 222.1 $ 1,954.1 $ 18.4 $ 6.6 Foreign currency Nonoperating income/expense $ 6.7 $ 15.9 Equity Selling, general & administrative expenses $ 4.6 $ (50.4) Undesignated derivatives $ 11.3 $ (34.5) (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 the use of interest rate swaps. At September 30, 2023, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $1.0 billion, which included a decrease of $85.8 million of cumulative hedging adjustments. For the nine months ended September 30, 2023, the Company recognized a $5.7 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 up to the next 18 months for certain exposures and are denominated in various currencies. As of September 30, 2023, the Company had foreign currency derivatives outstanding with an equivalent notional amount of $1.6 billion that hedged a portion of forecasted foreign currency denominated cash flows. To protect against the variability of interest rates on anticipated bond issuances, the Company may use treasury locks to hedge a portion of expected future cash flows. As of September 30, 2023, the Company had derivatives outstanding with a notional amount of $150.0 million that hedge a portion of forecasted cash flows. Based on market conditions at September 30, 2023, the $61.7 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on the Company's earnings over the next 12 months. Net Investment Hedges The Company uses foreign currency denominated debt (third-party and intercompany) and foreign currency derivatives 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 September 30, 2023, $12.7 billion of the Company's third-party foreign currency denominated debt, $359.6 million of the Company's intercompany foreign currency denominated debt and $572.6 million of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates. Undesignated Hedges 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. The Company may also use certain investments to hedge changes in these liabilities. Changes in the fair value of these derivatives or investments 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. Changes in the fair value of these derivatives are recognized in Nonoperating (income) expense, net, together 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 September 30, 2023 and has master agreements that contain netting arrangements. For financial reporting purposes, the Company presents gross derivative balances in its 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 September 30, 2023, the Company was required to post $103.6 million of collateral due to the negative fair value of certain derivative positions. The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions. |
Franchise Arrangements
Franchise Arrangements | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Franchise Arrangements | Franchise Arrangements Revenues from franchised restaurants consisted of: Quarters Ended Nine Months Ended September 30, September 30, In millions 2023 2022 2023 2022 Rents $ 2,569.6 $ 2,357.5 $ 7,348.2 $ 6,713.8 Royalties 1,461.9 1,300.7 4,175.2 3,709.0 Initial fees 15.6 13.0 44.5 38.0 Revenues from franchised restaurants $ 4,047.1 $ 3,671.2 $ 11,567.9 $ 10,460.8 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023. • International Operated Markets - comprised of markets or countries in which the Company operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K. The segment is 89% franchised as of September 30, 2023. During the second quarter of 2022, the Company completed the sale of its business in Russia, resulting in a total exit from the market. • 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 September 30, 2023. The following table presents the Company’s revenues and operating income by segment: Quarters Ended Nine Months Ended September 30, September 30, In millions 2023 2022 2023 2022 Revenues U.S. $ 2,704.0 $ 2,456.6 $ 7,892.9 $ 7,042.2 International Operated Markets 3,300.5 2,817.8 9,250.8 8,487.4 International Developmental Licensed Markets & Corporate 687.7 597.7 1,943.8 1,726.5 Total revenues $ 6,692.2 $ 5,872.1 $ 19,087.5 $ 17,256.1 Operating Income U.S. $ 1,477.8 $ 1,326.6 $ 4,267.8 $ 3,797.5 International Operated Markets 1,584.5 1,374.4 4,294.7 2,639.9 International Developmental Licensed Markets & Corporate 146.0 62.9 282.3 350.9 Total operating income* $ 3,208.3 $ 2,763.9 $ 8,844.8 $ 6,788.3 * Results for the quarter and nine months 2023 reflected pre-tax charges of $26 million and $224 million, respectively, primarily related to restructuring costs associated with Accelerating the Organization . Results for the nine months 2022 reflected $1,281 million of pre-tax charges related to the sale of the Company's business in Russia and a pre-tax gain of $271 million related to the Company's sale of its Dynamic Yield business. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
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. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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, 2022 Annual Report on Form 10-K. In the opinion of management, all adjustments (consisting of normal recurring accruals) necessary for a fair presentation have been included. The results for the quarter and nine months ended September 30, 2023 do not necessarily indicate the results that may be expected for the full year. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements There have been no recent accounting pronouncements or changes in accounting pronouncements during the quarter and nine months ended September 30, 2023 that are of significance or potential significance to the Company. |
Updates to Significant Accounti
Updates to Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements There have been no recent accounting pronouncements or changes in accounting pronouncements during the quarter and nine months ended September 30, 2023 that are of significance or potential significance to the Company. |
Restaurant Information (Tables)
Restaurant Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restaurant Information by Ownership Type | The following table presents restaurant information by ownership type: Restaurants at September 30, 2023 2022 Conventional franchised 21,761 21,641 Developmental licensed 8,450 8,144 Foreign affiliated 8,843 8,145 Total Franchised 39,054 37,930 Company-operated 2,144 2,050 Total Systemwide restaurants 41,198 39,980 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions): Employee Termination Benefits Costs to Terminate Contracts Other Related Costs Total 2023 Beginning Balance $ — $ — $ — $ — Restructuring Costs Incurred 110.3 26.9 43.3 180.5 Cash Payments (1.5) (1.4) (0.3) (3.2) Other Non-Cash Items — — (14.1) (14.1) Accrued Balance at March 31, 2023 $ 108.8 $ 25.5 $ 28.9 $ 163.2 Restructuring Costs Incurred (8.8) 5.6 21.9 18.7 Cash Payments (27.7) (11.7) (46.8) (86.2) Other Non-Cash Items — — (2.5) (2.5) Accrued Balance at June 30, 2023 $ 72.3 $ 19.4 $ 1.5 $ 93.2 Restructuring Costs Incurred (0.9) — 21.4 20.5 Cash Payments (13.0) (7.4) (15.3) (35.7) Other Non-Cash Items (2.5) — 0.1 (2.4) Accrued Balance at September 30, 2023 $ 55.9 $ 12.0 $ 7.7 $ 75.6 |
Financial Instruments and Hed_2
Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 December 31, 2022 Balance Sheet Classification September 30, 2023 December 31, 2022 Derivatives designated as hedging instruments Foreign currency Prepaid expenses and other current assets $ 47.2 $ 53.3 Accrued payroll and other liabilities $ (4.9) $ (17.9) Interest rate Prepaid expenses and other current assets 11.7 — Accrued payroll and other liabilities (5.8) — Foreign currency Miscellaneous other assets 19.7 28.7 Other long-term liabilities (0.1) (30.7) Interest rate Miscellaneous other assets — — Other long-term liabilities (80.0) (91.5) Total derivatives designated as hedging instruments $ 78.6 $ 82.0 $ (90.8) $ (140.1) Derivatives not designated as hedging instruments Equity Prepaid expenses and other current assets $ — $ 200.5 Accrued payroll and other liabilities $ — $ — Foreign currency Prepaid expenses and other current assets 5.1 — Accrued payroll and other liabilities — (1.6) Equity Miscellaneous other assets 166.5 — Total derivatives not designated as hedging instruments $ 171.6 $ 200.5 $ — $ (1.6) Total derivatives $ 250.2 $ 282.5 $ (90.8) $ (141.7) |
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 nine months ended September 30, 2023 and 2022, respectively: Location of gain or loss Gain (loss) Gain (loss) Gain (loss) recognized in In millions 2023 2022 2023 2022 2023 2022 Foreign currency Nonoperating income/expense $ 32.8 $ 214.5 $ 14.9 $ 94.4 Interest rate Interest expense 22.0 83.9 0.5 (3.0) Cash flow hedges $ 54.8 $ 298.4 $ 15.4 $ 91.4 Foreign currency denominated debt Nonoperating income/expense $ 157.2 $ 1,917.0 Foreign currency derivatives Nonoperating income/expense 64.9 37.1 Foreign currency derivatives (1) Interest expense $ 18.4 $ 6.6 Net investment hedges $ 222.1 $ 1,954.1 $ 18.4 $ 6.6 Foreign currency Nonoperating income/expense $ 6.7 $ 15.9 Equity Selling, general & administrative expenses $ 4.6 $ (50.4) Undesignated derivatives $ 11.3 $ (34.5) (1) The amount of gain (loss) recognized in income related to components excluded from effectiveness testing. |
Franchise Arrangements (Tables)
Franchise Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Revenues from Franchised Restaurants | Revenues from franchised restaurants consisted of: Quarters Ended Nine Months Ended September 30, September 30, In millions 2023 2022 2023 2022 Rents $ 2,569.6 $ 2,357.5 $ 7,348.2 $ 6,713.8 Royalties 1,461.9 1,300.7 4,175.2 3,709.0 Initial fees 15.6 13.0 44.5 38.0 Revenues from franchised restaurants $ 4,047.1 $ 3,671.2 $ 11,567.9 $ 10,460.8 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenues and Operating Income by Segment | The following table presents the Company’s revenues and operating income by segment: Quarters Ended Nine Months Ended September 30, September 30, In millions 2023 2022 2023 2022 Revenues U.S. $ 2,704.0 $ 2,456.6 $ 7,892.9 $ 7,042.2 International Operated Markets 3,300.5 2,817.8 9,250.8 8,487.4 International Developmental Licensed Markets & Corporate 687.7 597.7 1,943.8 1,726.5 Total revenues $ 6,692.2 $ 5,872.1 $ 19,087.5 $ 17,256.1 Operating Income U.S. $ 1,477.8 $ 1,326.6 $ 4,267.8 $ 3,797.5 International Operated Markets 1,584.5 1,374.4 4,294.7 2,639.9 International Developmental Licensed Markets & Corporate 146.0 62.9 282.3 350.9 Total operating income* $ 3,208.3 $ 2,763.9 $ 8,844.8 $ 6,788.3 * Results for the quarter and nine months 2023 reflected pre-tax charges of $26 million and $224 million, respectively, primarily related to restructuring costs associated with Accelerating the Organization . Results for the nine months 2022 reflected $1,281 million of pre-tax charges related to the sale of the Company's business in Russia and a pre-tax gain of $271 million related to the Company's sale of its Dynamic Yield business. |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Gain (loss) on disposition of business | $ 1,281 |
Restaurant Information (Details
Restaurant Information (Details) - Restaurant | Sep. 30, 2023 | Sep. 30, 2022 |
Franchisor Disclosure | ||
Number of Restaurants | 41,198 | 39,980 |
Franchised | ||
Franchisor Disclosure | ||
Number of Restaurants | 39,054 | 37,930 |
Franchised | Conventional franchised | ||
Franchisor Disclosure | ||
Number of Restaurants | 21,761 | 21,641 |
Franchised | Developmental licensed | ||
Franchisor Disclosure | ||
Number of Restaurants | 8,450 | 8,144 |
Franchised | Affiliated | ||
Franchisor Disclosure | ||
Number of Restaurants | 8,843 | 8,145 |
Company-operated | ||
Franchisor Disclosure | ||
Number of Restaurants | 2,144 | 2,050 |
Per Common Share Information (D
Per Common Share Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Dilutive effect of share-based compensation (in shares) | 4.4 | 4.6 | 4.6 | 4.7 |
Antidilutive share-based compensation awards (in shares) | 1.2 | 1.5 | 2.1 | 1.5 |
Restructuring (Additional Infor
Restructuring (Additional Information) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Cost, Incurred Cost | $ 20,500,000 | $ 18,700,000 | $ 180,500,000 | $ 220,000,000 |
Maximum [Member] | ||||
Restructuring and Related Activities [Abstract] | ||||
Restructuring and Related Cost, Expected Cost | 250,000,000 | 250,000,000 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | $ 250,000,000 | $ 250,000,000 |
Restructuring (Summary of Accru
Restructuring (Summary of Accrued Expenses Balance) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2023 | Jan. 01, 2023 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 75,600,000 | $ 93,200,000 | $ 163,200,000 | $ 75,600,000 | $ 0 |
Restructuring and Related Cost, Incurred Cost | 20,500,000 | 18,700,000 | 180,500,000 | 220,000,000 | |
Payments for Restructuring | (35,700,000) | (86,200,000) | (3,200,000) | ||
Restructuring Reserve, Accrual Adjustment | (2,400,000) | (2,500,000) | (14,100,000) | ||
Special Termination Benefits | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 55,900,000 | 72,300,000 | 108,800,000 | 55,900,000 | |
Restructuring and Related Cost, Incurred Cost | (900,000) | (8,800,000) | 110,300,000 | ||
Payments for Restructuring | (13,000,000) | (27,700,000) | (1,500,000) | ||
Restructuring Reserve, Accrual Adjustment | (2,500,000) | 0 | 0 | ||
Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 12,000,000 | 19,400,000 | 25,500,000 | 12,000,000 | |
Restructuring and Related Cost, Incurred Cost | 0 | 5,600,000 | 26,900,000 | ||
Payments for Restructuring | (7,400,000) | (11,700,000) | (1,400,000) | ||
Restructuring Reserve, Accrual Adjustment | 0 | 0 | 0 | ||
Other Restructuring | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | 7,700,000 | 1,500,000 | 28,900,000 | 7,700,000 | |
Restructuring and Related Cost, Incurred Cost | 21,400,000 | 21,900,000 | 43,300,000 | ||
Payments for Restructuring | (15,300,000) | (46,800,000) | (300,000) | ||
Restructuring Reserve, Accrual Adjustment | $ 100,000 | $ (2,500,000) | $ (14,100,000) | ||
U.S. | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 62,000,000 | ||||
International Operated Markets | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 71,000,000 | ||||
International Developmental Licensed Markets and Corporate | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 87,000,000 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 20.70% | 21.90% | 19.70% | 22.10% |
Nonoperating expense of tax settlement | $ 537 | |||
Other Tax Expense (Benefit) | $ 239 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Billions | Sep. 30, 2023 USD ($) |
Fair Value Disclosures [Abstract] | |
Debt obligations, fair value | $ 34 |
Debt obligations, carrying amount | $ 37.3 |
Financial Instruments and Hed_3
Financial Instruments and Hedging Activities (Fair Values of Derivative Instruments Included on Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | $ 250.2 | $ 282.5 |
Liability Derivatives Fair Value | (90.8) | (141.7) |
Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 78.6 | 82 |
Liability Derivatives Fair Value | (90.8) | (140.1) |
Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 171.6 | 200.5 |
Liability Derivatives Fair Value | 0 | (1.6) |
Foreign Exchange [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 47.2 | 53.3 |
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 | 5.1 | 0 |
Foreign Exchange [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (4.9) | (17.9) |
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 | (1.6) |
Foreign Exchange [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 19.7 | 28.7 |
Foreign Exchange [Member] | Other long-term liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (0.1) | (30.7) |
Equity [Member] | Prepaid Expenses and Other Current Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 0 | 200.5 |
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 | 0 |
Equity [Member] | Other Assets [Member] | Derivatives Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 166.5 | 0 |
Interest Rate Contract [Member] | Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 11.7 | 0 |
Interest Rate Contract [Member] | Accrued Expenses And Other Current Liabilities [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | (5.8) | 0 |
Interest Rate Contract [Member] | Other Assets [Member] | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives Fair Value | 0 | 0 |
Interest Rate Contract [Member] | Other long-term liabilities | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives Fair Value | $ (80) | $ (91.5) |
Financial Instruments and Hed_4
Financial Instruments and Hedging Activities (Derivatives Pretax Amounts Affecting Income and Other Comprehensive Income) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivatives in Cash Flow Hedging Relationships | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | $ 54.8 | $ 298.4 |
Gain (loss) reclassified into income from AOCI | 15.4 | 91.4 |
Net Investment Hedging Relationships | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 222.1 | 1,954.1 |
Gain (loss) reclassified into income from AOCI | ||
Derivative instruments, gain (loss) recognized in income, net | 18.4 | 6.6 |
Derivatives Not Designated as Hedging Instruments | ||
Net investment hedges | ||
Derivative instruments, gain (loss) recognized in income, net | 11.3 | (34.5) |
Foreign Exchange [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | 32.8 | 214.5 |
Gain (loss) reclassified into income from AOCI | 14.9 | 94.4 |
Foreign Exchange [Member] | Derivatives Not Designated as Hedging Instruments | ||
Net investment hedges | ||
Derivative instruments, gain (loss) recognized in income, net | 6.7 | 15.9 |
Interest Rate Contract [Member] | Derivatives in Cash Flow Hedging Relationships | ||
Cash flow hedges | ||
Gain (loss) recognized in AOCI | 22 | 83.9 |
Gain (loss) reclassified into income from AOCI | 0.5 | (3) |
Other Foreign Currency Denominated Debt [Member] | Net Investment Hedging Relationships | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 157.2 | 1,917 |
Gain (loss) reclassified into income from AOCI | ||
Foreign Exchange Forward [Member] | Net Investment Hedging Relationships | ||
Net investment hedges | ||
Gain (loss) recognized in AOCI | 64.9 | 37.1 |
Cross Currency Interest Rate Contract [Member] | Net Investment Hedging Relationships | ||
Net investment hedges | ||
Derivative instruments, gain (loss) recognized in income, net | 18.4 | 6.6 |
Equity [Member] | Derivatives Not Designated as Hedging Instruments | ||
Net investment hedges | ||
Derivative instruments, gain (loss) recognized in income, net | $ 4.6 | $ (50.4) |
Financial Instruments and Hed_5
Financial Instruments and Hedging Activities (Additional Information) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Cumulative cash flow hedging gain (losses), after tax | $ 61,700,000 | |
Debt [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Foreign currency denominated debt designated to hedge investments in certain foreign subsidiaries and affiliates | 12,700,000,000 | |
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 | 359,600,000 | |
Net Investment Hedging Relationships | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | 572,600,000 | |
Gain (loss) on the fair value of interest rate swaps | 18,400,000 | $ 6,600,000 |
Interest Rate Risk [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Increase (Decrease) in Fair Value of Interest Rate Fair Value Hedging Instruments | (85,800,000) | |
Gain (loss) on the fair value of interest rate swaps | (5,700,000) | |
Royalty Arrangement [Member] | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | $ 1,600,000,000 | |
Period covered by hedge | 18 months | |
Interest Rate Swap | ||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | ||
Derivative, Notional Amount | $ 1,000,000,000 |
Franchise Arrangements (Detail)
Franchise Arrangements (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Rents | $ 2,569.6 | $ 2,357.5 | $ 7,348.2 | $ 6,713.8 |
Royalties | 1,461.9 | 1,300.7 | 4,175.2 | 3,709 |
Initial Fees | 15.6 | 13 | 44.5 | 38 |
Revenues from franchised restaurants | $ 4,047.1 | $ 3,671.2 | $ 11,567.9 | $ 10,460.8 |
Segment Information (Additional
Segment Information (Additional Information) (Details) | Sep. 30, 2023 |
U.S. | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 95% |
International Operated Markets | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 89% |
International Developmental Licensed Markets and Corporate | |
Noncontrolling Interest [Line Items] | |
Percentage of segment franchised | 98% |
Segment Information (Revenues a
Segment Information (Revenues and Operating Income by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total revenues | $ 6,692.2 | $ 5,872.1 | $ 19,087.5 | $ 17,256.1 |
Operating Income | 3,208.3 | 2,763.9 | 8,844.8 | 6,788.3 |
Restructuring, Settlement and Impairment Provisions | 26 | 224 | ||
Gain (loss) on disposition of business | 1,281 | |||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Dynamic Yield | ||||
Segment Reporting Information [Line Items] | ||||
Pre-tax gain (loss) on disposal | 271 | |||
U.S. | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 2,704 | 2,456.6 | 7,892.9 | 7,042.2 |
Operating Income | 1,477.8 | 1,326.6 | 4,267.8 | 3,797.5 |
International Operated Markets | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 3,300.5 | 2,817.8 | 9,250.8 | 8,487.4 |
Operating Income | 1,584.5 | 1,374.4 | 4,294.7 | 2,639.9 |
International Developmental Licensed Markets and Corporate | ||||
Segment Reporting Information [Line Items] | ||||
Total revenues | 687.7 | 597.7 | 1,943.8 | 1,726.5 |
Operating Income | $ 146 | $ 62.9 | $ 282.3 | $ 350.9 |