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Segment Reporting
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
As stated in Note 1, Description of Business and Organization, we manage four brands: Tim Hortons, Burger King, Popeyes and Firehouse Subs. During the second quarter of 2024, we completed the Carrols Acquisition and PLK China Acquisition. As a result, our consolidated statements of operations for the three and nine months ended September 30, 2024 include Carrols and PLK China results from the respective date of acquisition.
During the fourth quarter of 2023, we revised our internal reporting structure, which resulted in a change to our operating and reportable segments. Additionally, following the Carrols Acquisition and the PLK China Acquisition, we established a new operating and reportable segment to reflect the manner in which our chief operating decision maker (“CODM”) manages and assesses performance of our segments. As a result, beginning in the second quarter of 2024, we are reporting results under six operating and reportable segments consisting 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 the Carrols Acquisition, included in our RH segment (defined below) (“BK”);
3.Popeyes Louisiana Kitchen – operations of our Popeyes brand in the U.S. and Canada (“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 PLK China restaurants included in our RH segment (“INTL”); and
6.Restaurant Holdings – operations of Burger King restaurants acquired as part of the Carrols Acquisition and the operations of PLK China restaurants (“RH”).
Prior year amounts presented have been reclassified to conform to this new segment presentation with no effect on previously reported consolidated results.
The following tables present revenues, by segment and by country (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenues by operating segment:
     TH$1,044 $1,053 $3,013 $2,954 
     BK362 328 1,076 952 
     PLK195 177 567 510 
     FHS53 51 156 136 
     INTL243 228 698 650 
RH441 — 671 — 
Elimination of intersegment revenues (a)(47)— (71)— 
Total revenues$2,291 $1,837 $6,110 $5,202 
(a)Consists of BK and INTL royalties, property revenues, advertising contribution revenues and tech fees from intersegment transactions with RH.
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Revenues by country (b):
     Canada$955 $964 $2,756 $2,703 
     United States1,092 645 2,655 1,849 
     Other244 228 699 650 
Total revenues$2,291 $1,837 $6,110 $5,202 
(b)Only Canada and the United States represented 10% or more of our total revenues in each period presented.
Our measure of segment income is Adjusted Operating Income which 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 and the PLK China Acquisition consisting primarily of professional fees, compensation related expenses and integration costs (“RH Transaction costs”); (ii) non-recurring fees and expense incurred in connection with the acquisition of Firehouse consisting primarily of professional fees, compensation-related expenses and integration costs (“FHS Transaction costs”); and (iii) 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”).
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 segment income to net income consists of the following (in millions):

Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Segment income:
     TH$284 $269 $777 $727 
     BK112 111 332 317 
     PLK62 58 182 165 
     FHS12 10 35 30 
INTL166 161 468 452 
RH16 — 30 — 
          Adjusted Operating Income652 609 1,824 1,691 
Franchise agreement and reacquired franchise rights amortization19 7 38 23 
RH Transaction costs4 — 17 — 
FHS Transaction costs— — — 19 
Corporate restructuring and advisory fees3 5 11 17 
Impact of equity method investments (a)7 5 (57)29 
Other operating expenses (income), net42 10 31 20 
          Income from operations577 582 1,784 1,583 
Interest expense, net147 143 442 430 
Loss on early extinguishment of debt1 16 33 16 
Income tax expense72 59 225 145 
          Net income$357 $364 $1,084 $992 
(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.