Restaurant Brands International Inc.QSR
Restaurant Brands International Inc. Leases Disclosure
Leases
As of December 31, 2025, we leased or subleased approximately 4,700 restaurant properties to franchisees under operating leases, direct financing leases and sales-type leases where we are the lessor. Initial lease terms generally range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent escalations and renewal options. Certain leases also include provisions for variable rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes.
We lease land, buildings, equipment, office space and warehouse space from third parties. Land and building leases generally have an initial term of 10 to 20 years, while land-only lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and renewal option. Certain leases also include provisions for variable rent payments, determined as a percentage of sales, generally when annual sales exceed specified levels. Most leases also obligate us to pay, as lessee, variable lease cost related to maintenance, insurance and property taxes.
Company as Lessor
Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our property and equipment, net are as follows (in millions):
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Land | $ | 799 | $ | 779 | |||||||
| Buildings and improvements | 982 | 962 | |||||||||
| Restaurant equipment | 66 | 20 | |||||||||
| 1,847 | 1,761 | ||||||||||
| Accumulated depreciation and amortization | (628) | (582) | |||||||||
| Property and equipment leased, net | $ | 1,219 | $ | 1,179 | |||||||
Our net investment in direct financing and sales-type leases is as follows (in millions):
| As of December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| Future rents to be received: | |||||||||||
| Future minimum lease receipts | $ | 101 | $ | 105 | |||||||
| Contingent rents (a) | 1 | 2 | |||||||||
| Estimated unguaranteed residual value | 3 | 6 | |||||||||
| Unearned income | (21) | (25) | |||||||||
| 84 | 88 | ||||||||||
| Current portion included within accounts receivable | (5) | (5) | |||||||||
| Net investment in property leased to franchisees (b) | $ | 79 | $ | 83 | |||||||
(a)Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting.
(b)Included as a component of Other assets, net in our consolidated balance sheets.
Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing leases with franchisees as follows (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Rental income: | |||||||||||||||||
| Minimum lease payments | $ | 362 | $ | 367 | $ | 385 | |||||||||||
| Variable lease payments | 465 | 465 | 452 | ||||||||||||||
| Amortization of favorable and unfavorable income lease contracts, net | 1 | 1 | 2 | ||||||||||||||
| Subtotal - lease income from operating leases | 828 | 833 | 839 | ||||||||||||||
| Earned income on direct financing and sales-type leases | 4 | 4 | 12 | ||||||||||||||
| Total property revenues | $ | 832 | $ | 837 | $ | 851 | |||||||||||
Company as Lessee
Lease cost and other information associated with these lease commitments are as follows (in millions):
Lease Cost (Income)
| 2025 | 2024 | 2023 | |||||||||||||||
| Operating lease cost | $ | 322 | $ | 277 | $ | 201 | |||||||||||
| Operating lease variable lease cost | 215 | 206 | 201 | ||||||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of right-of-use assets | 31 | 31 | 26 | ||||||||||||||
| Interest on lease liabilities | 18 | 19 | 19 | ||||||||||||||
| Sublease income | (626) | (624) | (631) | ||||||||||||||
| Total lease cost (income) | $ | (40) | $ | (91) | $ | (184) | |||||||||||
Lease Term and Discount Rate as of December 31, 2025 and 2024
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| Weighted-average remaining lease term (in years): | ||||||||||||||
| Operating leases | 10.5 years | 10.6 years | ||||||||||||
| Finance leases | 10.4 years | 10.8 years | ||||||||||||
| Weighted-average discount rate: | ||||||||||||||
| Operating leases | 5.8 | % | 5.8 | % | ||||||||||
| Finance leases | 5.8 | % | 5.8 | % | ||||||||||
Other Information for 2025, 2024 and 2023
| 2025 | 2024 | 2023 | ||||||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||||||||
| Operating cash flows from operating leases | $ | 321 | $ | 267 | $ | 202 | ||||||||||||||
| Operating cash flows from finance leases | $ | 18 | $ | 19 | $ | 19 | ||||||||||||||
| Financing cash flows from finance leases | $ | 36 | $ | 36 | $ | 33 | ||||||||||||||
| Supplemental noncash information on lease liabilities arising from obtaining right-of-use assets: | ||||||||||||||||||||
| Right-of-use assets obtained in exchange for new finance lease obligations | $ | 10 | $ | 20 | $ | 32 | ||||||||||||||
| Right-of-use assets obtained in exchange for new operating lease obligations | $ | 307 | $ | 253 | $ | 168 | ||||||||||||||
As of December 31, 2025, future minimum lease receipts and commitments are as follows (in millions):
| Lease Receipts | Lease Commitments (a) | ||||||||||||||||||||||
| Direct Financing and Sales-Type Leases | Operating Leases | Finance Leases | Operating Leases | ||||||||||||||||||||
| 2026 | $ | 7 | $ | 360 | $ | 51 | $ | 314 | |||||||||||||||
| 2027 | 7 | 334 | 46 | 310 | |||||||||||||||||||
| 2028 | 7 | 303 | 44 | 294 | |||||||||||||||||||
| 2029 | 6 | 271 | 36 | 275 | |||||||||||||||||||
| 2030 | 6 | 242 | 33 | 253 | |||||||||||||||||||
| Thereafter | 68 | 1,102 | 185 | 1,416 | |||||||||||||||||||
| Total minimum receipts / payments | $ | 101 | $ | 2,612 | 395 | 2,862 | |||||||||||||||||
| Less amount representing interest | (98) | (762) | |||||||||||||||||||||
| Present value of minimum lease payments | 297 | 2,100 | |||||||||||||||||||||
| (36) | (200) | ||||||||||||||||||||||
| Long-term portion of lease obligations | $ | 261 | $ | 1,900 | |||||||||||||||||||
(a)Minimum lease payments have not been reduced by minimum sublease rentals of $1,656 million due in the future under non-cancelable subleases.
(b)Current portion of operating lease obligations included as a component of Other accrued liabilities in our consolidated balance sheets.
As of December 31, 2025, we have executed real estate leases that have not yet commenced with estimated future nominal lease payments of approximately $18 million, which are not included in the tables above. These leases are expected to commence in 2026 with lease terms of generally 8 to 20 years.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 23, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 23, 2018 | |
| 2016 | Feb 17, 2017 | |
| 2015 | Feb 26, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.