v3.26.1
Segment Reporting (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment Totals in the following tables may not calculate exactly due to rounding.
Three Months Ended June 30, 2026
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$1,137 $342 $199 $62 $274 $506 $— $2,520 
Intersegment revenues (a)— 54 — — — — (55)— 
Total revenues$1,137 $397 $199 $62 $274 $506 $(55)$2,520 
Operating costs and expenses:
Supply chain cost of sales$635 $— $— $— $— $— $— $635 
Company restaurant expenses (b)9 39 41 10 — 435 (27)508 
Segment F&P expenses86 33 3 2 3 — (3)123 
Advertising expenses and other services90 156 74 21 24 27 (24)369 
Segment G&A34 31 18 12 52 27 — 175 
Adjustments:
Cash distributions received from equity method investments4 — — — — — — 4 
Adjusted Operating Income$287 $137 $63 $17 $194 $17 $— $715 
Additional segment information:
Depreciation and amortization$27 $12 $4 $1 $7 $26 $— $77 
(Income) loss from equity method investments$(4)$— $— $— $2 $— $— $(2)
Capital expenditures$9 $4 $4 $1 $2 $21 $— $42 
(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.
Six Months Ended June 30, 2026
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$2,134 $659 $389 $121 $527 $953 $— $4,784 
Intersegment revenues (a)— 102 — — 1 — (103)— 
Total revenues$2,134 $762 $389 $121 $528 $953 $(103)$4,784 
Operating costs and expenses:
Supply chain cost of sales$1,199 $— $— $— $— $— $— $1,199 
Company restaurant expenses (b)18 82 79 20 — 836 (51)985 
Segment F&P expenses168 66 6 4 (11)— (7)226 
Advertising expenses and other services172 297 148 42 46 50 (45)710 
Segment G&A68 64 36 25 103 51 — 347 
Adjustments:
Cash distributions received from equity method investments7 — — — — — — 7 
Adjusted Operating Income$516 $252 $119 $31 $390 $16 $— $1,324 
Additional segment information:
Depreciation and amortization$54 $24 $7 $3 $15 $53 $— $155 
(Income) loss from equity method investments$(7)$— $— $— $4 $— $— $(4)
Capital expenditures$14 $9 $7 $2 $5 $37 $— $75 
Three Months Ended June 30, 2025
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$1,083 $338 $210 $59 $250 $469 $— $2,410 
Intersegment revenues (a)— 49 — — — — (49)— 
Total revenues$1,083 $388 $210 $59 $250 $469 $(49)$2,410 
Operating costs and expenses:
Supply chain cost of sales$589 $— $— $— $— $— $— $589 
Company restaurant expenses (b)10 57 40 9 — 406 (23)498 
Segment F&P expenses83 33 6 2 9 — (4)128 
Advertising expenses and other services93 147 80 20 23 24 (22)364 
Segment G&A34 31 19 13 47 23 — 166 
Adjustments:
Cash distributions received from equity method investments4 — — — — — — 4 
Adjusted Operating Income$278 $121 $66 $15 $172 $16 $— $668 
Additional segment information:
Depreciation and amortization$28 $13 $4 $1 $7 $24 $— $77 
(Income) loss from equity method investments$(4)$— $— $— $(1)$— $— $(5)
Capital expenditures$9 $6 $2 $1 $4 $21 $— $42 
Six Months Ended June 30, 2025
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$1,987 $647 $404 $113 $468 $901 $— $4,519 
Intersegment revenues (a)— 97 — — — — (97)— 
Total revenues$1,987 $744 $404 $113 $468 $901 $(97)$4,519 
Operating costs and expenses:
Supply chain cost of sales$1,085 $— $— $— $— $— $— $1,085 
Company restaurant expenses (b)19 111 79 19 — 785 (47)966 
Segment F&P expenses161 64 8 3 14 — (8)242 
Advertising expenses and other services159 278 152 38 45 45 (42)675 
Segment G&A71 67 40 27 98 48 — 351 
Adjustments:
Cash distributions received from equity method investments7 — — — — — — 7 
Adjusted Operating Income$499 $224 $126 $26 $310 $23 $— $1,208 
Additional segment information:
Depreciation and amortization$55 $26 $7 $3 $14 $44 $— $148 
(Income) loss from equity method investments$(7)$— $— $— $(3)$— $— $(10)
Capital expenditures$13 $11 $3 $2 $6 $37 $— $73 
The following table presents the components of Company restaurant expenses for our RH segment (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Company restaurant expenses for RH segment
Food, beverage, and packaging costs$154 $134 $287 $255 
Restaurant wages and related expenses154 152 300 297 
Restaurant occupancy expense and other128 120 250 233 
             Total$435 $406 $836 $785 
Schedule of Revenues by Operating Segment and Country
The following tables present revenues by country (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenues by country (c):
     United States$1,197 $1,165 $2,296 $2,238 
     Canada1,037 992 1,939 1,807 
     Other286 253 549 474 
Total$2,520 $2,410 $4,784 $4,519 
(c)Only the United States and Canada represented 10% or more of our total revenues in each period presented.
Schedule of Reconciliation of Segment Income to Net Income (Loss)
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
June 30,		Six Months Ended
June 30,
2026202520262025
Income from operations$716 $483 $1,322 $918 
Franchise agreement and reacquired franchise rights amortization16 17 32 33 
RH and BK China Transaction costs3 16 9 22 
Corporate restructuring and advisory fees2 5 4 6 
Impact of equity method investments (a)3 (1)4 (3)
Other operating expenses (income), net(26)149 (47)232 
Adjusted Operating Income $715 $668 $1,324 $1,208 
(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.