Restaurant Brands International Inc.QSR
Restaurant Brands International Inc. Segments Disclosure
Segment Reporting and Geographical Information
As stated in Note 1, Description of Business and Organization, we manage four brands: Tim Hortons, Burger King, Popeyes, and Firehouse Subs.
Our management structure and information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker (“CODM”), reflects six operating and reportable segments. Commencing in the first quarter of 2025, results of restaurants acquired in connection with the BK China Acquisition (see Note 7, BK China) are included in net loss from discontinued operations. The reportable segments consist of the following:
1.Tim Hortons – Operations of our Tim Hortons brand in Canada and the U.S. (“TH”);
2.Burger King – Operations of our Burger King brand in the U.S. and Canada, excluding results of Burger King restaurants acquired as part of our acquisition of Carrols Restaurant Group Inc. (the “Carrols Acquisition”) (“BK”);
3.Popeyes Louisiana Kitchen – Operations of our Popeyes brand in the U.S. and Canada, including the Popeyes restaurants acquired as part of the Carrols Acquisition (“PLK”);
4.Firehouse Subs – Operations of our Firehouse Subs brand in the U.S. and Canada (“FHS”);
5.International – Operations of each of our brands outside the U.S. and Canada, excluding results of Popeyes China (“PLK China”) and Firehouse Subs Brazil (“FHS Brazil”) restaurants (“INTL”); and
6.Restaurant Holdings – Operations of Burger King restaurants acquired as part of the Carrols Acquisition and the operations of PLK China and FHS Brazil restaurants (“RH”).
Our measure of segment income is Adjusted Operating Income. Our chief operating decision maker uses Adjusted Operating Income (i) in the budgeting process and in periodic reviews of segment performance by comparing variances in actual segment income results to budget and (ii) during the annual budgeting process to make capital allocation decisions, including allocating resources to segments.
Adjusted Operating Income represents income from operations adjusted to exclude (i) franchise agreement and reacquired franchise right intangible asset amortization as a result of acquisition accounting, (ii) (income) loss from equity method investments, net of cash distributions received from equity method investments, (iii) other operating expenses (income), net and, (iv) income/expenses from non-recurring projects and non-operating activities. For the periods referenced, income/expenses from non-recurring projects and non-operating activities included (i) non-recurring fees and expenses incurred in connection with the Carrols Acquisition, the PLK China Acquisition, and the BK China Acquisition consisting primarily of professional fees, compensation-related expenses, and integration costs (“RH and BK China Transaction costs”); (ii) non-recurring fees and expenses incurred in connection with the acquisition of Firehouse Subs consisting primarily of professional fees, compensation-related expenses and integration costs (“FHS Transaction costs”); and (ii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations (“Corporate restructuring and advisory fees”).
The following tables present total segment revenues, significant segment expenses that are regularly reviewed by the CODM to manage and assess segment performance and segment income, as well as depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions). For the periods referenced, segment franchise and property expenses (“Segment F&P expenses”) for each segment exclude franchise agreement and reacquired franchise rights amortization and Segment G&A for each segment excludes RH and BK China Transaction costs, FHS Transaction costs, and Corporate restructuring and advisory fees. For segment reporting purposes, capital expenditures include payments for additions of property and equipment during the period, as well as the change in accruals for additions of property and equipment since the prior period. For 2024, capital expenditures for RH excludes $7 million of accruals for additions of property and equipment assumed in connection with the Carrols Acquisition. Totals in the following tables may not calculate exactly due to rounding.
| 2025 | |||||||||||||||||||||||||||||||||||||||||||||||
| TH | BK | PLK | FHS | INTL | RH | ELIM | Total | ||||||||||||||||||||||||||||||||||||||||
| Revenues from external customers | $ | 4,247 | $ | 1,316 | $ | 800 | $ | 232 | $ | 998 | $ | 1,840 | $ | — | $ | 9,434 | |||||||||||||||||||||||||||||||
| Intersegment revenues | — | 197 | — | — | — | — | (197) | — | |||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,247 | $ | 1,514 | $ | 800 | $ | 232 | $ | 998 | $ | 1,840 | $ | (197) | $ | 9,434 | |||||||||||||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Supply chain cost of sales | $ | 2,363 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,363 | |||||||||||||||||||||||||||||||
| Company restaurant expenses (a) | 40 | 219 | 159 | 38 | — | 1,608 | (96) | 1,968 | |||||||||||||||||||||||||||||||||||||||
| Segment F&P expenses | 330 | 130 | 13 | 10 | 19 | — | (16) | 486 | |||||||||||||||||||||||||||||||||||||||
| Advertising expenses and other services | 312 | 567 | 303 | 77 | 92 | 92 | (85) | 1,358 | |||||||||||||||||||||||||||||||||||||||
| Segment G&A | 140 | 130 | 75 | 51 | 198 | 96 | — | 690 | |||||||||||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash distributions received from equity method investments | 16 | — | — | — | — | — | — | 16 | |||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 1,077 | $ | 468 | $ | 250 | $ | 56 | $ | 690 | $ | 44 | $ | — | $ | 2,584 | |||||||||||||||||||||||||||||||
| Additional segment information: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 109 | $ | 51 | $ | 14 | $ | 5 | $ | 29 | $ | 92 | $ | — | $ | 301 | |||||||||||||||||||||||||||||||
| (Income) loss from equity method investments | $ | (14) | $ | (1) | $ | — | $ | — | $ | 4 | $ | — | $ | — | $ | (11) | |||||||||||||||||||||||||||||||
| Capital expenditures | $ | 58 | $ | 32 | $ | 16 | $ | 6 | $ | 12 | $ | 145 | $ | — | $ | 268 | |||||||||||||||||||||||||||||||
(a)The components of Company restaurant expenses for our RH segment are included below.
| 2024 | |||||||||||||||||||||||||||||||||||||||||||||||
| TH | BK | PLK | FHS | INTL | RH | ELIM | Total | ||||||||||||||||||||||||||||||||||||||||
| Revenues from external customers | $ | 4,040 | $ | 1,333 | $ | 768 | $ | 214 | $ | 935 | $ | 1,116 | $ | — | $ | 8,406 | |||||||||||||||||||||||||||||||
| Intersegment revenues | — | 117 | — | — | — | — | (117) | — | |||||||||||||||||||||||||||||||||||||||
| Total revenues | $ | 4,040 | $ | 1,450 | $ | 768 | $ | 214 | $ | 935 | $ | 1,116 | $ | (117) | $ | 8,406 | |||||||||||||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
| Supply chain cost of sales | $ | 2,180 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 2,180 | |||||||||||||||||||||||||||||||
| Company restaurant expenses (a) | 37 | 221 | 129 | 36 | — | 965 | (60) | 1,328 | |||||||||||||||||||||||||||||||||||||||
| Segment F&P expenses | 330 | 122 | 9 | 8 | 31 | — | (10) | 490 | |||||||||||||||||||||||||||||||||||||||
| Advertising expenses and other services | 307 | 558 | 303 | 70 | 90 | 49 | (47) | 1,330 | |||||||||||||||||||||||||||||||||||||||
| Segment G&A | 158 | 139 | 84 | 51 | 200 | 59 | — | 691 | |||||||||||||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||
| Cash distributions received from equity method investments | 15 | — | — | — | — | — | — | 15 | |||||||||||||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 1,043 | $ | 410 | $ | 243 | $ | 48 | $ | 614 | $ | 44 | $ | — | $ | 2,402 | |||||||||||||||||||||||||||||||
| Additional segment information: | |||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 111 | $ | 49 | $ | 13 | $ | 5 | $ | 27 | $ | 59 | $ | — | $ | 264 | |||||||||||||||||||||||||||||||
| (Income) loss from equity method investments | $ | (15) | $ | (78) | $ | — | $ | — | $ | 24 | $ | — | $ | — | $ | (69) | |||||||||||||||||||||||||||||||
| Capital expenditures | $ | 47 | $ | 72 | $ | 23 | $ | 6 | $ | 11 | $ | 86 | $ | — | $ | 245 | |||||||||||||||||||||||||||||||
| 2023 | |||||||||||||||||||||||||||||||||||
| TH | BK | PLK | FHS | INTL | Total | ||||||||||||||||||||||||||||||
| Total revenues | $ | 3,972 | $ | 1,297 | $ | 692 | $ | 187 | $ | 874 | $ | 7,022 | |||||||||||||||||||||||
| Operating costs and expenses: | |||||||||||||||||||||||||||||||||||
| Supply chain cost of sales | $ | 2,193 | $ | — | $ | — | $ | — | $ | — | $ | 2,193 | |||||||||||||||||||||||
| Company restaurant expenses | 38 | 90 | 80 | 34 | — | 242 | |||||||||||||||||||||||||||||
| Segment F&P expenses | 319 | 133 | 10 | 8 | 11 | 481 | |||||||||||||||||||||||||||||
| Advertising expenses and other services | 309 | 543 | 295 | 49 | 77 | 1,273 | |||||||||||||||||||||||||||||
| Segment G&A | 168 | 145 | 86 | 58 | 190 | 647 | |||||||||||||||||||||||||||||
| Adjustments: | |||||||||||||||||||||||||||||||||||
| Cash distributions received from equity method investments | 14 | — | — | — | — | 14 | |||||||||||||||||||||||||||||
| Adjusted Operating Income | $ | 958 | $ | 386 | $ | 221 | $ | 38 | $ | 597 | $ | 2,200 | |||||||||||||||||||||||
| Additional segment information: | |||||||||||||||||||||||||||||||||||
| Depreciation and amortization | $ | 108 | $ | 46 | $ | 11 | $ | 4 | $ | 22 | $ | 191 | |||||||||||||||||||||||
| (Income) loss from equity method investments | $ | (15) | $ | 8 | $ | — | $ | — | $ | (1) | $ | (8) | |||||||||||||||||||||||
| Capital expenditures | $ | 51 | $ | 37 | $ | 9 | $ | 4 | $ | 19 | $ | 120 | |||||||||||||||||||||||
The following table presents the components of Company restaurant expenses for our RH segment (in millions):
| 2025 | 2024 | ||||||||||
| Company restaurant expenses for RH segment | |||||||||||
| Food, beverage and packaging costs | $ | 537 | $ | 312 | |||||||
| Restaurant wages and related expenses | 595 | 358 | |||||||||
| Restaurant occupancy expense and other | 476 | 295 | |||||||||
| Total | $ | 1,608 | $ | 965 | |||||||
The following tables present revenues by country (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenues by country (b): | |||||||||||||||||
| United States | $ | 4,557 | $ | 3,783 | $ | 2,518 | |||||||||||
| Canada | 3,846 | 3,684 | 3,630 | ||||||||||||||
| Other | 1,031 | 939 | 874 | ||||||||||||||
| Total | $ | 9,434 | $ | 8,406 | $ | 7,022 | |||||||||||
(b) Only the United States and Canada represented 10% or more of our total revenues in each period presented.
Our CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to our CODM or used in his decisions to allocate resources or assess performance of the segments. Therefore, total segment assets and long-lived assets have not been disclosed.
Total long-lived assets by country are as follows (in millions):
| As of December 31, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
| By country: | ||||||||||||||
| United States | $ | 2,736 | $ | 2,684 | ||||||||||
| Canada | 1,530 | 1,435 | ||||||||||||
| Other | 77 | 52 | ||||||||||||
| Total | $ | 4,343 | $ | 4,171 | ||||||||||
Long-lived assets include property and equipment, net, finance and operating lease right of use assets, net and net investment in property leased to franchisees. Only Canada and the United States represented 10% or more of our total long-lived assets as of December 31, 2025 and December 31, 2024.
Adjusted Operating Income is used by management to measure operating performance of the business, excluding these non-cash and other specifically identified items that management believes are not relevant to management’s assessment of our operating performance. A reconciliation of Income from operations to Adjusted Operating Income consists of the following (in millions):
| 2025 | 2024 | 2023 | |||||||||||||||
| Income from operations | $ | 2,202 | $ | 2,419 | $ | 2,051 | |||||||||||
| Franchise agreement and reacquired franchise rights amortization | 65 | 53 | 31 | ||||||||||||||
| RH and BK China Transaction costs | 37 | 22 | — | ||||||||||||||
| FHS Transaction costs | — | — | 19 | ||||||||||||||
| Corporate restructuring and advisory fees | 14 | 20 | 38 | ||||||||||||||
| Impact of equity method investments (a) | 5 | (53) | 6 | ||||||||||||||
| Other operating expenses (income), net | 261 | (59) | 55 | ||||||||||||||
| Adjusted Operating Income | $ | 2,584 | $ | 2,402 | $ | 2,200 | |||||||||||
(a)Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method investments. Cash distributions received from our equity method investments are included in segment income.
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 Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.