v3.26.3
Segment Reporting (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Schedule of Segment Reporting Totals in the following tables may not calculate exactly due to rounding.
Three Months Ended September 30, 2026
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$1,136 $345 $204 $65 $289 $487 $— $2,525 
Intersegment revenues (a)— 51 — — 1 — (52)— 
Total revenues$1,136 $396 $204 $65 $289 $487 $(52)$2,525 
Operating costs and expenses:
Supply chain cost of sales$618 $— $— $— $— $— $— $618 
Company restaurant expenses (b)10 38 49 10 — 429 (26)509 
Segment F&P expenses86 33 8 4 6 — (3)134 
Advertising expenses and other services77 156 71 22 25 26 (22)354 
Segment G&A32 33 19 12 53 28 — 176 
Adjustments:
Cash distributions received from equity method investments4 — — — — — — 4 
Adjusted Operating Income$317 $136 $58 $16 $205 $5 $— $737 
Additional segment information:
Depreciation and amortization$27 $12 $4 $1 $7 $23 $— $74 
(Income) loss from equity method investments$(4)$— $— $— $(3)$— $— $(6)
Capital expenditures$13 $3 $4 $2 $2 $59 $— $83 
(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.
Nine Months Ended September 30, 2026
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$3,270 $1,004 $593 $186 $816 $1,441 $— $7,309 
Intersegment revenues (a)— 153 — — 1 — (155)— 
Total revenues$3,270 $1,157 $593 $186 $817 $1,441 $(155)$7,309 
Operating costs and expenses:
Supply chain cost of sales$1,817 $— $— $— $— $— $— $1,817 
Company restaurant expenses (b)28 120 128 30 — 1,265 (77)1,494 
Segment F&P expenses254 99 14 8 (4)— (10)361 
Advertising expenses and other services249 453 220 64 70 75 (67)1,064 
Segment G&A100 97 55 38 155 79 — 523 
Adjustments:
Cash distributions received from equity method investments11 — — — — — — 11 
Adjusted Operating Income$833 $388 $177 $47 $596 $21 $— $2,061 
Additional segment information:
Depreciation and amortization$81 $36 $11 $4 $21 $76 $— $229 
(Income) loss from equity method investments$(11)$(1)$— $— $1 $— $— $(10)
Capital expenditures$28 $13 $11 $3 $7 $96 $— $158 
Three Months Ended September 30, 2025
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$1,125 $338 $201 $60 $268 $459 $— $2,449 
Intersegment revenues (a)— 49 — — — — (49)— 
Total revenues$1,125 $387 $201 $60 $268 $459 $(49)$2,449 
Operating costs and expenses:
Supply chain cost of sales$619 $— $— $— $— $— $— $619 
Company restaurant expenses (b)11 59 39 9 — 403 (24)498 
Segment F&P expenses86 35 3 5 7 — (4)131 
Advertising expenses and other services77 141 79 19 25 23 (21)342 
Segment G&A33 30 17 12 47 23 — 162 
Adjustments:
Cash distributions received from equity method investments4 — — — — — — 4 
Adjusted Operating Income$304 $123 $63 $14 $189 $10 $— $702 
Additional segment information:
Depreciation and amortization$27 $13 $4 $1 $8 $24 $— $76 
(Income) loss from equity method investments$(4)$— $— $— $2 $— $— $(2)
Capital expenditures$15 $7 $4 $2 $3 $58 $— $89 
Nine Months Ended September 30, 2025
THBKPLKFHSINTLRHELIMTotal
Revenues from external customers$3,112 $985 $605 $172 $735 $1,360 $— $6,968 
Intersegment revenues (a)— 146 — — — — (146)— 
Total revenues$3,112 $1,131 $605 $172 $735 $1,360 $(146)$6,968 
Operating costs and expenses:
Supply chain cost of sales$1,704 $— $— $— $— $— $— $1,704 
Company restaurant expenses (b)30 170 118 28 — 1,188 (71)1,464 
Segment F&P expenses246 98 10 8 21 — (12)372 
Advertising expenses and other services236 419 230 57 70 68 (63)1,017 
Segment G&A104 97 57 39 145 70 — 512 
Adjustments:
Cash distributions received from equity method investments11 — — — — — — 11 
Adjusted Operating Income$803 $347 $188 $41 $499 $33 $— $1,910 
Additional segment information:
Depreciation and amortization$82 $39 $11 $4 $22 $67 $— $225 
(Income) loss from equity method investments$(11)$(1)$— $— $(1)$— $— $(12)
Capital expenditures$28 $18 $8 $4 $9 $95 $— $162 
The following table presents the components of Company restaurant expenses for our RH segment (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Company restaurant expenses for RH segment
Food, beverage, and packaging costs$148 $136 $435 $391 
Restaurant wages and related expenses154 148 454 445 
Restaurant occupancy expense and other126 119 376 353 
             Total$429 $403 $1,265 $1,188 
Schedule of Revenues by Country
The following tables present revenues by country (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Revenues by country (a):
     United States$1,182 $1,148 $3,478 $3,386 
     Canada1,039 1,028 2,978 2,835 
     Other304 273 853 747 
Total$2,525 $2,449 $7,309 $6,968 
(a)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 A reconciliation of Income from operations to Adjusted Operating Income consists of the following (in millions):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2026202520262025
Income from operations$696 $663 $2,018 $1,581 
Franchise agreement and reacquired franchise rights amortization16 16 48 49 
RH and BK China Transaction costs2 7 11 29 
Corporate restructuring and advisory fees5 1 9 7 
Impact of equity method investments (a)(3)2 1 (1)
Other operating expenses (income), net20 12 (27)244 
Adjusted Operating Income $737 $702 $2,061 $1,910 
(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.