v3.26.1
Segment Reporting
 3 Months Ended
Mar. 31, 2026
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.
Our management structure and information regularly reviewed by the Chief Executive Officer of RBI, who is our Chief Operating Decision Maker (“CODM”), reflects six operating and reportable segments. 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 (“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 restaurants acquired as part of our acquisition of Popeyes China (“PLK China”) (“PLK China Acquisition”) 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”).
Following the establishment of a joint venture with CPE Alder Investment Limited with respect to the operations of BK China (the “BK China JV”), during the first quarter of 2026, we resumed recognizing franchise revenue from the BK China JV within our INTL segment. See Note 5, BK China, for additional information.
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, consisting primarily of professional fees, compensation-related expenses, and integration costs, incurred in connection with (a) the Carrols Acquisition, the PLK China Acquisition, and the BK China Acquisition and (b) the anticipated refranchising of restaurants held in the RH segment, primarily those acquired in the Carrols Acquisition, in connection with the sunset of the RH segment announced in February 2026 (“RH and BK China 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, 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. Totals in the following tables may not calculate exactly due to rounding.
Three Months Ended March 31, 2026
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$997 $317 $190 $60 $253 $448 $— $2,264 
Intersegment revenues (a)— 48 — — — — (48)— 
Total revenues$997 $365 $190 $60 $254 $448 $(48)$2,264 
Operating costs and expenses:
Supply chain cost of sales$564 $— $— $— $— $— $— $564 
Company restaurant expenses (b)9 43 38 10 — 401 (24)477 
Segment F&P expenses82 34 3 2 (14)— (4)103 
Advertising expenses and other services82 141 74 21 21 23 (21)341 
Segment G&A34 32 18 13 51 24 — 173 
Adjustments:
Cash distributions received from equity method investments3 — — — — — — 3 
Adjusted Operating Income (Loss)$229 $115 $57 $14 $196 $(1)$— $610 
Additional segment information:
Depreciation and amortization$27 $12 $4 $1 $7 $27 $— $78 
(Income) loss from equity method investments$(3)$— $— $— $1 $— $— $(2)
Capital expenditures$5 $5 $3 $1 $2 $16 $— $32 
(a)Consists of BK and INTL royalties, property, advertising, and other services revenues from intersegment transactions with RH.
(b)The components of Company restaurant expenses for our RH segment are included below.
Three Months Ended March 31, 2025
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$903 $308 $194 $54 $218 $432 $— $2,109 
Intersegment revenues (a)— 48 — — — — (48)— 
Total revenues$903 $356 $194 $54 $218 $432 $(48)$2,109 
Operating costs and expenses:
Supply chain cost of sales$496 $— $— $— $— $— $— $496 
Company restaurant expenses (b)9 55 39 9 — 379 (23)468 
Segment F&P expenses78 31 2 2 5 — (4)114 
Advertising expenses and other services66 132 72 17 23 21 (20)311 
Segment G&A37 36 21 14 52 24 — 184 
Adjustments:
Cash distributions received from equity method investments3 — — — — — — 3 
Adjusted Operating Income$220 $103 $60 $11 $138 $7 $— $539 
Additional segment information:
Depreciation and amortization$27 $13 $3 $1 $7 $20 $— $71 
(Income) loss from equity method investments$(3)$— $— $— $(2)$— $— $(5)
Capital expenditures$5 $5 $2 $1 $2 $16 $— $31 
The following table presents the components of Company restaurant expenses for our RH segment (in millions):
Three Months Ended
March 31,
20262025
Company restaurant expenses for RH segment
Food, beverage, and packaging costs$133 $121 
Restaurant wages and related expenses146 145 
Restaurant occupancy expense and other122 113 
             Total$401 $379 
The following tables present revenues by country (in millions):
Three Months Ended
March 31,
20262025
Revenues by country (c):
     United States$1,099 $1,073 
     Canada902 815 
     Other263 221 
Total$2,264 $2,109 
(c)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.
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):

Three Months Ended
March 31,
20262025
Income from operations$606 $435 
Franchise agreement and reacquired franchise rights amortization16 16 
RH and BK China Transaction costs6 6 
Corporate restructuring and advisory fees2 1 
Impact of equity method investments (a)1 (2)
Other operating expenses (income), net(21)83 
Adjusted Operating Income $610 $539 
(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.