Fair Value Measurements and Disclosures (Tables)

6 Months Ended

Jun. 30, 2026

Assets Measured on Recurring Basis or Disclosed at Fair Value

The following table is a summary of our financial assets measured on a recurring basis or disclosed at fair value and the level within the fair value hierarchy in which the measurement falls. The Company classifies its cash equivalents, short-term investments, long-term bank deposits and notes, and investment in equity securities within Level 1 or Level 2 in the fair value hierarchy because it uses quoted market prices or alternative pricing sources and models utilizing market observable inputs to determine their fair value, respectively. The Company classifies its investment in available-for-sale debt securities in Level 3 in the fair value hierarchy because it is valued based on unobservable inputs. No transfers among the levels within the fair value hierarchy occurred during the quarters and years to date ended June 30, 2026 and 2025.


			Fair Value Measurement or Disclosure at June 30, 2026
	Balance at June 30, 2026		Level 1		Level 2		Level 3
Cash equivalents:
Fixed income debt securities(a)	$	149			$	149
Money market funds		46		46
Time deposits		38				38
Total cash equivalents		233		46		187		—
Short-term investments:
Variable return investments		483		483
Fixed income debt securities(a)		170				170
Time deposits		154				154
Structured deposits		94				94
Total short-term investments		901		483		418		—
Long-term bank deposits and notes:
Time deposits		359				359
Variable return investments		154				154
Fixed income bank notes(a)		150				150
Structured deposits		25				25
Total long-term bank deposits and notes		688		—		688		—
Equity investments:
Investment in equity securities		38		38
Investment in available-for-sale debt securities		15						15
Total equity investments		53		38		—		15
Total	$	1,875	$	567	$	1,293	$	15


			Fair Value Measurement or Disclosure at December 31, 2025
	Balance at December 31, 2025		Level 1		Level 2		Level 3
Cash equivalents:
Fixed income debt securities(a)	$	185	$	43	$	142
Money market funds		93		93
Total cash equivalents		278		136		142		—
Short-term investments:
Time deposits		420				420
Fixed income debt securities(a)		200				200
Variable return investments		162		162
Structured deposits		96				96
Total short-term investments		878		162		716		—
Long-term bank deposits and notes:
Time deposits		352				352
Variable return investments		151				151
Fixed income bank notes		150				150
Structured deposits		25				25
Total long-term bank deposits and notes		678		—		678		—
Equity investments:
Investment in equity securities		57		57
Investment in available-for-sale debt securities		15						15
Total equity investments		72		57		—		15
Total	$	1,906	$	355	$	1,536	$	15

(a)

Classified as held-to-maturity investments and measured at amortized cost.

Schedule of Amounts Recognized From Non-recurring Fair Value Measurements

The following table presents amounts recognized from all non-recurring fair value measurements based on unobservable inputs (Level 3) during the quarters and years to date ended June 30, 2026 and 2025. These amounts exclude fair value measurements made for restaurants that were subsequently closed or refranchised prior to those respective period-end dates.

            
           Quarter Ended

           Year to Date Ended

            
           6/30/2026

           6/30/2025

           6/30/2026

           6/30/2025

           Account Classification

Restaurant-level impairment(a)

7

8

7

8

Closure and impairment expenses, net

(a)

Restaurant-level impairment charges are recorded in Closures and impairment expenses, net and resulted mainly from our semi-annual impairment evaluation of long-lived assets of individual restaurants that were being operated at the time of impairment and had not been offered for refranchising. After considering the impairment charges recorded during the corresponding periods, the fair value of such assets as of June 30, 2026 and 2025 was $19 million and $23 million, respectively.