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Restaurant Brands International Inc. - Quarter Report: 2023 June (Form 10-Q)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

Form 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-36786
 
 RESTAURANT BRANDS INTERNATIONAL INC.
(Exact Name of Registrant as Specified in its Charter)


Canada 98-1202754
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
130 King Street West, Suite 300 M5X 1E1
Toronto, Ontario
(Address of Principal Executive Offices) (Zip Code)
(905) 339-6011
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class Trading SymbolsName of each exchange on which registered
Common Shares, without par value QSRNew York Stock Exchange
 Toronto Stock Exchange
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


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Large accelerated filer   Accelerated filer 
Non-accelerated filer   Smaller reporting company 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
As of August 1, 2023, there were 312,283,429 common shares of the Registrant outstanding.



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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
TABLE OF CONTENTS
 
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PART I — Financial Information
Item 1. Financial Statements
RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In millions of U.S. dollars, except share data)
(Unaudited)
 As of
June 30,
2023
December 31,
2022
ASSETS
Current assets:
Cash and cash equivalents$1,213 $1,178 
Accounts and notes receivable, net of allowance of $37 and $36, respectively
639 614 
Inventories, net171 133 
Prepaids and other current assets167 123 
Total current assets2,190 2,048 
Property and equipment, net of accumulated depreciation and amortization of $1,132 and $1,061, respectively
1,957 1,950 
Operating lease assets, net1,094 1,082 
Intangible assets, net11,120 10,991 
Goodwill5,772 5,688 
Other assets, net1,000 987 
Total assets$23,133 $22,746 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and drafts payable$735 $758 
Other accrued liabilities975 1,001 
Gift card liability174 230 
Current portion of long-term debt and finance leases132 127 
Total current liabilities2,016 2,116 
Long-term debt, net of current portion12,801 12,839 
Finance leases, net of current portion315 311 
Operating lease liabilities, net of current portion1,036 1,027 
Other liabilities, net960 872 
Deferred income taxes, net1,327 1,313 
Total liabilities18,455 18,478 
Shareholders’ equity:
Common shares, no par value; Unlimited shares authorized at June 30, 2023 and December 31, 2022; 312,203,465 shares issued and outstanding at June 30, 2023; 307,142,436 shares issued and outstanding at December 31, 2022
2,247 2,057 
Retained earnings1,198 1,121 
Accumulated other comprehensive income (loss)(591)(679)
Total Restaurant Brands International Inc. shareholders’ equity2,854 2,499 
Noncontrolling interests1,824 1,769 
Total shareholders’ equity4,678 4,268 
Total liabilities and shareholders’ equity$23,133 $22,746 
See accompanying notes to condensed consolidated financial statements.
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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data)
(Unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Revenues:
Sales$744 $708 $1,412 $1,317 
Franchise and property revenues742 676 1,410 1,291 
Advertising revenues and other services289 255 543 482 
Total revenues1,775 1,639 3,365 3,090 
Operating costs and expenses:
Cost of sales612 584 1,162 1,078 
Franchise and property expenses130 125 253 255 
Advertising expenses and other services312 259 583 506 
General and administrative expenses163 146 338 279 
(Income) loss from equity method investments11 18 22 
Other operating expenses (income), net(7)(25)10 (41)
Total operating costs and expenses1,221 1,098 2,364 2,099 
Income from operations554 541 1,001 991 
Interest expense, net145 129 287 256 
Income before income taxes409 412 714 735 
Income tax expense58 66 86 119 
Net income351 346 628 616 
Net income attributable to noncontrolling interests (Note 12)110 110 198 197 
Net income attributable to common shareholders$241 $236 $430 $419 
Earnings per common share
Basic$0.77 $0.77 $1.39 $1.36 
Diluted$0.77 $0.76 $1.37 $1.35 
Weighted average shares outstanding (in millions):
Basic312 308 310 308 
Diluted458 455 457 456 
See accompanying notes to condensed consolidated financial statements.

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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Comprehensive Income (Loss)
(In millions of U.S. dollars)
(Unaudited)

Three Months Ended
June 30,
Six Months Ended
June 30,
 2023202220232022
Net income$351 $346 $628 $616 
Foreign currency translation adjustment194 (345)234 (288)
Net change in fair value of net investment hedges, net of tax of $4, $(38), $8 and $(13)
(84)226 (115)191 
Net change in fair value of cash flow hedges, net of tax of $(31), $(30), $(16) and $(90)
86 83 43 244 
Amounts reclassified to earnings of cash flow hedges, net of tax of $6, $(6), $11 and $(13)
(17)16 (30)37 
Gain (loss) recognized on other, net of tax of $0, $0, $0 and $0
Other comprehensive income (loss)181 (19)134 186 
Comprehensive income (loss)532 327 762 802 
Comprehensive income (loss) attributable to noncontrolling interests166 104 239 256 
Comprehensive income (loss) attributable to common shareholders$366 $223 $523 $546 
See accompanying notes to condensed consolidated financial statements.

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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders’ Equity
(In millions of U.S. dollars, except shares and per share data)
(Unaudited)
 Issued Common SharesRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
 SharesAmount
Balances at December 31, 2022307,142,436 $2,057 $1,121 $(679)$1,769 $4,268 
Stock option exercises124,275 — — — 
Share-based compensation— 41 — — — 41 
Issuance of shares1,690,762 15 — — — 15 
Dividends declared ($0.55 per share)
— — (171)— — (171)
Dividend equivalents declared on restricted stock units— (5)— — — 
Distributions declared by Partnership on Partnership exchangeable units ($0.55 per unit)
— — — — (77)(77)
Exchange of Partnership exchangeable units for RBI common shares2,214,072 33 — (5)(28)— 
Restaurant VIE contributions (distributions)— — — — (1)(1)
Net income— — 189 — 88 277 
Other comprehensive income (loss)— — — (32)(15)(47)
Balances at March 31, 2023311,171,545 $2,157 $1,134 $(716)$1,736 $4,311 
Stock option exercises920,438 43 — — — 43 
Share-based compensation— 42 — — — 42 
Issuance of shares87,695 — — — — — 
Dividends declared ($0.55 per share)
— — (172)— — (172)
Dividend equivalents declared on restricted stock units— (5)— — — 
Distributions declared by Partnership on Partnership exchangeable units ($0.55 per unit)
— — — — (77)(77)
Exchange of Partnership exchangeable units for RBI common shares23,787 — — — — — 
Restaurant VIE contributions (distributions)— — — — (1)(1)
Net income— — 241 — 110 351 
Other comprehensive income (loss)— — — 125 56 181 
Balances at June 30, 2023312,203,465 $2,247 $1,198 $(591)$1,824 $4,678 
See accompanying notes to condensed consolidated financial statements.



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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders’ Equity
(In millions of U.S. dollars, except shares and per share data)
(Unaudited)
Issued Common SharesRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Noncontrolling
Interest
Total
SharesAmount
Balances at December 31, 2021309,025,068 $2,156 $791 $(710)$1,616 $3,853 
Stock option exercises87,177 — — — 
Share-based compensation— 24 — — — 24 
Issuance of shares906,260 13 — — — 13 
Dividends declared ($0.54 per share)
— — (167)— — (167)
Dividend equivalents declared on restricted stock units— (3)— — — 
Distributions declared by Partnership on Partnership exchangeable units ($0.54 per unit)
— — — — (78)(78)
Exchange of Partnership exchangeable units for RBI common shares1,525,900 21 — (3)(18)— 
Repurchase of RBI common shares(2,860,002)(161)— — — (161)
Restaurant VIE contributions (distributions)— — — — (1)(1)
Net income— — 183 — 87 270 
Other comprehensive income (loss)— — — 140 65 205 
Balances at March 31, 2022308,684,403 $2,059 $804 $(573)$1,671 $3,961 
Stock option exercises25,277 — — — 
Share-based compensation— 29 — — — 29 
Issuance of shares124,065 — — — — — 
Dividends declared ($0.54 per share)
— — (166)— — (166)
Dividend equivalents declared on restricted stock units— (3)— — — 
Distributions declared by Partnership on Partnership exchangeable units ($0.54 per unit)
— — — — (77)(77)
Exchange of Partnership exchangeable units for RBI common shares151,154 — — (2)— 
Repurchase of RBI common shares(3,241,362)(165)— — — (165)
Restaurant VIE contributions (distributions)— — — — (1)(1)
Net income— — 236 — 110 346 
Other comprehensive income (loss)— — — (13)(6)(19)
Balances at June 30, 2022305,743,537 $1,929 $871 $(586)$1,695 $3,909 
See accompanying notes to condensed consolidated financial statements.
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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In millions of U.S. dollars)
(Unaudited)
 Six Months Ended June 30,
 20232022
Cash flows from operating activities:
Net income$628 $616 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization95 97 
Amortization of deferred financing costs and debt issuance discount14 14 
(Income) loss from equity method investments18 22 
(Gain) loss on remeasurement of foreign denominated transactions(52)
Net (gains) losses on derivatives(72)27 
Share-based compensation and non-cash incentive compensation expense92 59 
Deferred income taxes(40)— 
Other(6)
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable(29)
Inventories and prepaids and other current assets(45)(27)
Accounts and drafts payable(31)99 
Other accrued liabilities and gift card liability(135)(199)
Tenant inducements paid to franchisees(9)(6)
Other long-term assets and liabilities— 13 
Net cash provided by operating activities487 669 
Cash flows from investing activities:
Payments for property and equipment(48)(28)
Net proceeds from disposal of assets, restaurant closures, and refranchisings13 10 
Net payments in connection with purchase of Firehouse Subs— (12)
Settlement/sale of derivatives, net28 
Other investing activities, net(1)(25)
Net cash (used for) provided by investing activities(8)(46)
Cash flows from financing activities:
Proceeds from long-term debt
Repayments of long-term debt and finance leases(68)(47)
Payment of dividends on common shares and distributions on Partnership exchangeable units(492)(485)
Repurchase of common shares— (326)
Proceeds from stock option exercises49 
(Payments) proceeds from derivatives63 (6)
Other financing activities, net(2)(2)
Net cash (used for) provided by financing activities(448)(860)
Effect of exchange rates on cash and cash equivalents(12)
Increase (decrease) in cash and cash equivalents35 (249)
Cash and cash equivalents at beginning of period1,178 1,087 
Cash and cash equivalents at end of period$1,213 $838 
Supplemental cash flow disclosures:
Interest paid$380 $209 
Income taxes paid$146 $120 
See accompanying notes to condensed consolidated financial statements.
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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. Description of Business and Organization
Restaurant Brands International Inc. (the “Company”, “RBI”, “we”, “us” or “our”) is a Canadian corporation that serves as the sole general partner of Restaurant Brands International Limited Partnership (“Partnership”). We franchise and operate quick service restaurants serving premium coffee and other beverage and food products under the Tim Hortons® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King® brand (“Burger King” or “BK”), chicken principally under the Popeyes® brand (“Popeyes” or “PLK”) and sandwiches under the Firehouse Subs® brand (“Firehouse” or “FHS”). We are one of the world’s largest quick service restaurant, or QSR, companies as measured by total number of restaurants. As of June 30, 2023, we franchised or owned 5,662 Tim Hortons restaurants, 18,935 Burger King restaurants, 4,269 Popeyes restaurants and 1,259 Firehouse Subs restaurants, for a total of 30,125 restaurants, and operate in more than 100 countries. Approximately 100% of current system-wide restaurants are franchised.
All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated.
Note 2. Basis of Presentation and Consolidation
We have prepared the accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements. Therefore, the Financial Statements should be read in conjunction with the audited consolidated financial statements contained in our Annual Report on Form 10-K filed with the SEC and Canadian securities regulatory authorities on February 22, 2023.
The Financial Statements include our accounts and the accounts of entities in which we have a controlling financial interest, the usual condition of which is ownership of a majority voting interest. Investments in other affiliates that are owned 50% or less where we have significant influence are accounted for by the equity method. All material intercompany balances and transactions have been eliminated in consolidation.
We are the sole general partner of Partnership and, as such we have the exclusive right, power and authority to manage, control, administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership, subject to the terms of the amended and restated limited partnership agreement of Partnership (the “partnership agreement”) and applicable laws. As a result, we consolidate the results of Partnership and record a noncontrolling interest in our condensed consolidated balance sheets and statements of operations with respect to the remaining economic interest in Partnership we do not hold.
In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation have been included in the Financial Statements. The results for interim periods are not necessarily indicative of the results that may be expected for any other interim period or for the full year.
The preparation of consolidated financial statements in conformity with U.S. GAAP and related rules and regulations of the SEC requires our management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of contingent assets and liabilities. Actual results could differ from these estimates.
The carrying amounts for cash and cash equivalents, accounts and notes receivable and accounts and drafts payable approximate fair value based on the short-term nature of these amounts.

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Supplier Finance Programs
Our TH business includes individually negotiated contracts with suppliers, which include payment terms that range up to 120 days. A global financial institution offers a voluntary supply chain finance (“SCF”) program to certain TH vendors, which provides suppliers that elect to participate with the ability to elect early payment, which is discounted based on the payment terms and a rate based on RBI's credit rating, which may be beneficial to the vendor. Participation in the SCF program is at the sole discretion of the suppliers and financial institution and we are not a party to the arrangements between the suppliers and the financial institution. Our obligations to suppliers are not affected by the suppliers’ decisions to participate in the SCF program and our payment terms remain the same based on the original supplier invoicing terms and conditions. No guarantees are provided by us or any of our subsidiaries in connection with the SCF Program.
Our confirmed outstanding obligations under the SCF program at June 30, 2023 and December 31, 2022 totaled $36 million and $47 million, respectively, and are classified as Accounts and drafts payable in our condensed consolidated balance sheets. All activity related to the obligations is classified as Cost of sales in our condensed consolidated statements of operations and presented within cash flows from operating activities in our condensed consolidated statements of cash flows.
Note 3. New Accounting Pronouncements
Accounting Relief for the Transition Away from LIBOR and Certain other Reference Rates – In March 2020 and as clarified in January 2021 and December 2022, the Financial Accounting Standards Board (“FASB”) issued guidance which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. This amendment is effective as of March 12, 2020 through December 31, 2024. The expedients and exceptions provided by this new guidance do not apply to contract modifications made and hedging relationships entered into or evaluated after December 31, 2024, except for hedging relationships existing as of December 31, 2024, that an entity has elected certain optional expedients for and that are retained through the end of the hedging relationships. During 2021, we adopted certain of the expedients as it relates to hedge accounting as certain of our debt agreements and hedging relationships bear interest at variable rates, primarily U.S. dollar LIBOR. Additionally, following the discontinuance of the U.S. dollar LIBOR after June 30, 2023, the Financial Conduct Authority (“FCA”) has decided to require the publication of a U.S. dollar LIBOR using a synthetic methodology (“synthetic U.S. dollar LIBOR”) until September 30, 2024. We expect to use the synthetic U.S. dollar LIBOR for the Eurocurrency rate under our Term Loan B facility during that period. The adoption of and future elections under this new guidance did not and are not expected to have a material impact on our Financial Statements. We will continue to monitor the discontinuance of LIBOR on our debt agreements and hedging relationships.
Liabilities—Supplier Finance Programs – In September 2022, the FASB issued guidance that requires buyers in a supplier finance program to disclose sufficient information about the program to allow investors to understand the program's nature, activity during the period, changes from period to period, and potential magnitude. These disclosures would include the key terms of the program, as well as the obligation amount that the buyer has confirmed as valid to the third party that is outstanding at the end of the reporting period, a rollforward of that amount, and a description of where that amount is presented in the balance sheet. This amendment is effective in 2023, except for the amendment on rollforward information which is effective in 2024, with early adoption permitted. This guidance should be applied retrospectively to each period in which a balance sheet is presented, except for the amendment on rollforward information, which should be applied prospectively. During the first quarter of 2023, we adopted this guidance and added necessary disclosures upon adoption as disclosed in Note 2, Basis of Presentation and Consolidation.

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Note 4. Leases
Property revenues consist primarily of lease income from operating leases and earned income on direct financing leases and sales-type leases with franchisees as follows (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Lease income - operating leases
Minimum lease payments$97 $101 $195 $214 
Variable lease payments119 106 215 179 
Amortization of favorable and unfavorable income lease contracts, net
Subtotal - lease income from operating leases217 208 411 394 
Earned income on direct financing and sales-type leases
Total property revenues$220 $209 $416 $397 
Note 5. Revenue Recognition
Contract Liabilities
Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying agreement. We may recognize unamortized franchise fees and upfront fees when a contract with a franchisee or master franchisee is modified and is accounted for as a termination of the existing contract. We classify these contract liabilities as Other liabilities, net in our condensed consolidated balance sheets. The following table reflects the change in contract liabilities on a consolidated basis between December 31, 2022 and June 30, 2023 (in millions):
Contract Liabilities
Balance at December 31, 2022$540 
Recognized during period and included in the contract liability balance at the beginning of the year(30)
Increase, excluding amounts recognized as revenue during the period24 
Impact of foreign currency translation
Balance at June 30, 2023$538 
The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) on a consolidated basis as of June 30, 2023 (in millions):
Contract liabilities expected to be recognized in
Remainder of 2023$27 
202452 
202549 
202646 
202743 
Thereafter321 
Total$538 


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Disaggregation of Total Revenues
The following tables disaggregate revenue by segment (in millions):
Three months ended June 30, 2023
THBKPLKFHSTotal
Sales$688 $24 $22 $10 $744 
Royalties90 302 81 18 491 
Property revenues158 58 — 220 
Franchise fees and other revenue13 31 
Advertising revenues and other services73 132 70 14 289 
Total revenues$1,016 $529 $182 $48 $1,775 
Six months ended June 30, 2023
THBKPLKFHSTotal
Sales$1,306 $43 $43 $20 $1,412 
Royalties167 575 156 35 933 
Property revenues295 114 — 416 
Franchise fees and other revenue13 28 12 61 
Advertising revenues and other services135 253 136 19 543 
Total revenues$1,916 $1,013 $350 $86 $3,365 
Three months ended June 30, 2022
THBKPLKFHSTotal
Sales$661 $17 $20 $10 $708 
Royalties83 266 72 17 438 
Property revenues149 57 — 209 
Franchise fees and other revenue12 29 
Advertising revenues and other services69 121 64 255 
Total revenues$968 $473 $165 $33 $1,639 
Six months ended June 30, 2022
THBKPLKFHSTotal
Sales$1,227 $33 $37 $20 $1,317 
Royalties152 517 139 33 841 
Property revenues279 112 — 397 
Franchise fees and other revenue13 24 53 
Advertising revenues and other services126 230 124 482 
Total revenues$1,797 $916 $313 $64 $3,090 
Note 6. Earnings per Share
An economic interest in Partnership common equity is held by the holders of Class B exchangeable limited partnership units (the “Partnership exchangeable units”), which is reflected as a noncontrolling interest in our equity. See Note 12, Shareholders’ Equity.
Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for the period. We apply the treasury stock method to determine the dilutive weighted average common shares represented by outstanding equity awards, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of noncontrolling interests.
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The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Numerator:
Net income attributable to common shareholders - basic$241 $236 $430 $419 
Add: Net income attributable to noncontrolling interests109 109 196 195 
Net income available to common shareholders and noncontrolling interests - diluted$350 $345 $626 $614 
Denominator:
Weighted average common shares - basic312 308 310 308 
Exchange of noncontrolling interests for common shares (Note 12)141 143 142 144 
Effect of other dilutive securities
Weighted average common shares - diluted458 455 457 456 
Basic earnings per share (a)$0.77 $0.77 $1.39 $1.36 
Diluted earnings per share (a)$0.77 $0.76 $1.37 $1.35 
Anti-dilutive securities outstanding
(a) Earnings per share may not recalculate exactly as it is calculated based on unrounded numbers.
Note 7. Intangible Assets, net and Goodwill
Intangible assets, net and goodwill consist of the following (in millions):

As of
June 30, 2023December 31, 2022
GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Identifiable assets subject to amortization:
   Franchise agreements$727 $(331)$396 $720 $(313)$407 
   Favorable leases87 (57)30 90 (57)33 
      Subtotal814 (388)426 810 (370)440 
Indefinite-lived intangible assets:
   Tim Hortons brand
$6,424 $— $6,424 $6,292 $— $6,292 
   Burger King brand
2,099 — 2,099 2,088 — 2,088 
   Popeyes brand
1,355 — 1,355 1,355 — 1,355 
   Firehouse Subs brand
816 — 816 816 — 816 
      Subtotal10,694 — 10,694 10,551 — 10,551 
Intangible assets, net$11,120 $10,991 
Goodwill:
   Tim Hortons segment$4,140 $4,059 
   Burger King segment593 590 
   Popeyes segment846 846 
   Firehouse Subs segment 193 193 
      Total$5,772 $5,688 
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Amortization expense on intangible assets totaled $10 million for the three months ended June 30, 2023 and 2022. Amortization expense on intangible assets totaled $19 million and $20 million for the six months ended June 30, 2023 and 2022, respectively. The change in brands and goodwill balances during the six months ended June 30, 2023 was due to the impact of foreign currency translation.

Note 8. Equity Method Investments
The aggregate carrying amounts of our equity method investments were $140 million and $167 million as of June 30, 2023 and December 31, 2022, respectively, and are included as a component of Other assets, net in our accompanying condensed consolidated balance sheets.
Except for the following equity method investments, no quoted market prices are available for our other equity method investments. The aggregate market value of our 14.8% equity interest in Carrols Restaurant Group, Inc. based on the quoted market price on June 30, 2023 was approximately $47 million. The aggregate market value of our 9.4% equity interest in BK Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on June 30, 2023 was approximately $24 million. The aggregate market value of our 4.2% equity interest in TH International Limited based on the quoted market price on June 30, 2023 was approximately $20 million.
We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants. Sales, franchise and property revenues recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the following (in millions):

Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Revenues from affiliates:
Royalties$103 $86 $195 $174 
Advertising revenues and other services20 18 38 34 
Property revenues18 15 
Franchise fees and other revenue
Sales10 
Total$142 $121 $270 $240 
At June 30, 2023 and December 31, 2022, we had $54 million and $42 million, respectively, of accounts receivable, net from our equity method investments which were recorded in Accounts and notes receivable, net in our condensed consolidated balance sheets.
With respect to our TH business, the most significant equity method investment is our 50% joint venture interest with The Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants. Distributions received from this joint venture were $3 million and $2 million during the three months ended June 30, 2023 and 2022, respectively. Distributions received from this joint venture were $6 million and $5 million during the six months ended June 30, 2023 and 2022, respectively.
Associated with the TIMWEN Partnership, we recognized $6 million and $5 million of rent expense during the three months ended June 30, 2023 and 2022, respectively, and $10 million and $9 million of rent expense during the six months ended June 30, 2023 and 2022, respectively.
(Income) loss from equity method investments reflects our share of investee net income or loss and non-cash dilution gains or losses from changes in our ownership interests in equity investees.
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Note 9. Other Accrued Liabilities and Other Liabilities, net
Other accrued liabilities (current) and Other liabilities, net (noncurrent) consist of the following (in millions):
As of
June 30,
2023
December 31,
2022
Current:
Dividend payable$249 $243 
Interest payable64 89 
Accrued compensation and benefits84 124 
Taxes payable204 190 
Deferred income77 43 
Accrued advertising expenses50 37 
Restructuring and other provisions22 29 
Current portion of operating lease liabilities141 137 
Other84 109 
Other accrued liabilities$975 $1,001 
Noncurrent:
Taxes payable$143 $139 
Contract liabilities538 540 
Derivatives liabilities116 34 
Unfavorable leases47 50 
Accrued pension41 40 
Deferred income51 44 
Other24 25 
Other liabilities, net$960 $872 

Note 10. Long-Term Debt
Long-term debt consists of the following (in millions):
As of
June 30,
2023
December 31,
2022
Term Loan B$5,163 $5,190 
Term Loan A1,234 1,250 
3.875% First Lien Senior Notes due 2028
1,550 1,550 
3.50% First Lien Senior Notes due 2029
750 750 
5.75% First Lien Senior Notes due 2025
500 500 
4.375% Second Lien Senior Notes due 2028
750 750 
4.00% Second Lien Senior Notes due 2030
2,900 2,900 
TH Facility and other152 155 
Less: unamortized deferred financing costs and deferred issue discount(98)(111)
Total debt, net12,901 12,934 
    Less: current maturities of debt(100)(95)
Total long-term debt$12,801 $12,839 

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Credit Facilities
Following the discontinuance of the U.S. dollar LIBOR after June 30, 2023, the FCA has decided to require the publication of a synthetic U.S. dollar LIBOR until September 30, 2024. We expect to use the synthetic U.S. dollar LIBOR for the Eurocurrency rate under our Term Loan B facility during that period.
Revolving Credit Facility
As of June 30, 2023, we had no amounts outstanding under our senior secured revolving credit facility (the “Revolving Credit Facility”), had $2 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability under our Revolving Credit Facility was $998 million. Funds available under the Revolving Credit Facility may be used to repay other debt, finance debt or equity repurchases, fund acquisitions or capital expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit.
TH Facility
One of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total aggregate principal amount of C$225 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by four of our subsidiaries, and amounts borrowed under the TH Facility are secured by certain parcels of real estate. As of June 30, 2023, we had approximately C$190 million outstanding under the TH Facility with a weighted average interest rate of 6.62%.
Restrictions and Covenants
As of June 30, 2023, we were in compliance with all applicable financial debt covenants under our senior secured term loan facilities and Revolving Credit Facility (together the "Credit Facilities"), the TH Facility, and the indentures governing our Senior Notes.
Fair Value Measurement
The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid and offer prices that are Level 2 inputs, and principal carrying amount (in millions):
As of
June 30,
2023
December 31,
2022
Fair value of our variable term debt and senior notes$12,053 $11,885 
Principal carrying amount of our variable term debt and senior notes12,847 12,890 
Interest Expense, net
Interest expense, net consists of the following (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Debt (a)$142 $118 $280 $233 
Finance lease obligations10 
Amortization of deferred financing costs and debt issuance discount14 14 
Interest income(9)(1)(16)(1)
    Interest expense, net$145 $129 $287 $256 
(a)Amount includes $16 million and $12 million benefit during the three months ended June 30, 2023 and 2022, respectively, and $31 million and $23 million benefit during the six months ended June 30, 2023 and 2022, respectively, related to the quarterly net settlements of our cross-currency rate swaps and amortization of the Excluded Component as defined in Note 13, Derivative Instruments.
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Note 11. Income Taxes
Our effective tax rate was 14.3% and 12.1% for the three and six months ended June 30, 2023, respectively. The effective tax rate during these periods reflect the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements and favorable structural changes implemented in 2022.
Our effective tax rate was 15.9% and 16.2% for the three and six months ended June 30, 2022, respectively. The effective tax rate during these periods reflect the mix of income from multiple tax jurisdictions, the impact of internal financing arrangements and favorable structural changes implemented in 2022.
Note 12. Shareholders’ Equity
Noncontrolling Interests
The holders of Partnership exchangeable units held an economic interest of approximately 31.1% and 31.8% in Partnership common equity through the ownership of 140,758,781 and 142,996,640 Partnership exchangeable units as of June 30, 2023 and December 31, 2022, respectively.
During the six months ended June 30, 2023, Partnership exchanged 2,237,859 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of newly issued RBI common shares. The exchanges represented increases in our ownership interest in Partnership and were accounted for as equity transactions, with no gain or loss recorded in the accompanying condensed consolidated statement of operations. Pursuant to the terms of the partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit is automatically deemed cancelled concurrently with the exchange.
Accumulated Other Comprehensive Income (Loss)
The following table displays the changes in the components of accumulated other comprehensive income (loss) (“AOCI”) (in millions):
DerivativesPensionsForeign Currency TranslationAccumulated Other Comprehensive Income (Loss)
Balance at December 31, 2022$648 $(17)$(1,310)$(679)
Foreign currency translation adjustment— — 234 234 
Net change in fair value of derivatives, net of tax(72)— — (72)
Amounts reclassified to earnings of cash flow hedges, net of tax(30)— — (30)
Gain (loss) recognized on other, net of tax— — 
Amounts attributable to noncontrolling interests36 — (82)(46)
Balance at June 30, 2023$582 $(15)$(1,158)$(591)

Note 13. Derivative Instruments
Disclosures about Derivative Instruments and Hedging Activities
We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges and derivatives designated as net investment hedges. We use derivatives to manage our exposure to fluctuations in interest rates and currency exchange rates.

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Interest Rate Swaps
At June 30, 2023, we had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $3,500 million to hedge the variability in the interest payments on a portion of our senior secured term loan facilities (the “Term Loan Facilities”), including any subsequent refinancing or replacement of the Term Loan Facilities, beginning August 31, 2021 through the termination date of October 31, 2028. Additionally, at June 30, 2023, we also had outstanding receive-variable, pay-fixed interest rate swaps with a total notional value of $500 million to hedge the variability in the interest payments on a portion of our Term Loan Facilities effective September 30, 2019 through the termination date of September 30, 2026. Following the discontinuance of the U.S. dollar LIBOR after June 30, 2023, the interest rate on all these interest rate swaps transitioned from LIBOR to SOFR, with no impact to hedge effectiveness and no change in accounting treatment as a result of applicable accounting relief guidance for the transition away from LIBOR. At inception, all of these interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in AOCI, net of tax, and reclassified into interest expense during the period in which the hedged forecasted transaction affects earnings. The net amount of pre-tax gains in connection with these net unrealized gains in AOCI as of June 30, 2023 that we expect to be reclassified into interest expense within the next 12 months is $117 million.
Cross-Currency Rate Swaps
To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At June 30, 2023, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are economically partly offset by movements in the fair value of our cross-currency swap contracts. The fair value of the swaps is calculated each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or substantially complete liquidation of our investment in the underlying foreign operations.
At June 30, 2023, we had outstanding cross-currency rate swaps that we entered into during 2022 to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as net investment hedges. These swaps are contracts in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional amount of $5,000 million through the maturity date of September 30, 2028.
At June 30, 2023, we had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest payments on the Euro notional value of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $1,200 million. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge. During 2018, we extended the term of the swaps from March 31, 2021 to the maturity date of February 17, 2024. The extension of the term resulted in a re-designation of the hedge and the swaps continue to be accounted for as a net investment hedge. Additionally, at June 30, 2023, we also had outstanding cross-currency rate swaps in which we receive quarterly fixed-rate interest payments on the U.S. dollar notional value of $400 million, entered during 2018, and $500 million, entered during 2019, through the maturity date of February 17, 2024 and $150 million, entered during 2021, through the maturity date of October 31, 2028. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net investment hedge.
In connection with the cross-currency rate swaps hedging Canadian dollar and Euro net investments, we utilize the spot method to exclude the interest component (the “Excluded Component”) from the accounting hedge without affecting net investment hedge accounting and amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component is recognized in Interest expense, net in the condensed consolidated statement of operations. The change in fair value that is not related to the Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially liquidated.
Foreign Currency Exchange Contracts
We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and payments, such as coffee purchases made by our Canadian Tim Hortons operations. At June 30, 2023, we had outstanding forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $203 million with maturities to August 2024. We have designated these instruments as cash flow hedges, and as such, the unrealized changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the hedged forecasted transaction affects earnings.

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Credit Risk
By entering into derivative contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position, the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with investment grade credit ratings and regularly monitoring our market position with each counterparty.
Credit-Risk Related Contingent Features
Our derivative instruments do not contain any credit-risk related contingent features.
Quantitative Disclosures about Derivative Instruments and Fair Value Measurements
The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair values (all estimated using Level 2 inputs) and their location on our condensed consolidated balance sheets (in millions):
Gain or (Loss) Recognized in Other Comprehensive Income (Loss)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Derivatives designated as cash flow hedges(1)
Interest rate swaps$120 $107 $63 $330 
Forward-currency contracts$(3)$$(4)$
Derivatives designated as net investment hedges
Cross-currency rate swaps$(88)$264 $(123)$204 
(1) We did not exclude any components from the cash flow hedge relationships presented in this table.
Location of Gain or (Loss) Reclassified from AOCI into EarningsGain or (Loss) Reclassified from
AOCI into Earnings
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Derivatives designated as cash flow hedges
Interest rate swapsInterest expense, net$20 $(23)$35 $(52)
Forward-currency contractsCost of sales$$$$
Location of Gain or (Loss) Recognized in EarningsGain or (Loss) Recognized in Earnings
(Amount Excluded from Effectiveness Testing)
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Derivatives designated as net investment hedges
Cross-currency rate swapsInterest expense, net$16 $12 $31 $23 

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Fair Value as of
June 30,
2023
December 31, 2022Balance Sheet Location
Assets:
Derivatives designated as cash flow hedges
Interest rate$283 $280 Other assets, net
Foreign currencyPrepaids and other current assets
Derivatives designated as net investment hedges
Foreign currency42 78 Other assets, net
Total assets at fair value$326 $365 
Liabilities:
Derivatives designated as cash flow hedges
Foreign currency$$— Other accrued liabilities
Derivatives designated as net investment hedges
Foreign currency116 34 Other liabilities, net
Total liabilities at fair value$119 $34 


Note 14. Other Operating Expenses (Income), net
Other operating expenses (income), net consists of the following (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings$(9)$(1)$(11)$
Litigation settlements (gains) and reserves, net(3)(2)
Net losses (gains) on foreign exchange(1)(31)(52)
Other, net16 
     Other operating expenses (income), net$(7)$(25)$10 $(41)
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods.
Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities, primarily those denominated in Euros and Canadian dollars.
Other, net for 2023 is primarily related to payments in connection with FHS area representative buyouts.
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Note 15. Commitments and Contingencies
Litigation
From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including, but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property.
On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King Company, successor in interest, (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of all others similarly situated. On October 18, 2018, a second class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On November 2, 2018, a fourth class action complaint was filed against RBI, BKW and BKC in the U.S. District Court for the Southern District of Florida by Sandra Munster, individually and on behalf of all others similarly situated. These complaints have been consolidated and allege that the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages for himself or herself and other members of the class. On March 24, 2020, the Court granted BKC’s motion to dismiss for failure to state a claim and on April 20, 2020 the plaintiffs filed a motion for leave to amend their complaint. On April 27, 2020, BKC filed a motion opposing the motion for leave to amend. The court denied the plaintiffs motion for leave to amend their complaint in August 2020 and the plaintiffs appealed this ruling. In August 2022, the federal appellate court reversed the lower court's decision to dismiss the case and remanded the case to the lower court for further proceedings. While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of this case or estimate the range of possible loss, if any.
On October 26, 2020, City of Warwick Municipal Employees Pension Fund, a purported stockholder of RBI, individually and putatively on behalf of all other stockholders similarly situated, filed a lawsuit in the Supreme Court of the State of New York County of New York naming RBI and certain of our officers, directors and shareholders as defendants alleging violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, as amended, in connection with certain offerings of securities by an affiliate in August and September 2019. The complaint alleges that the shelf registration statement used in connection with such offering contained certain false and/or misleading statements or omissions. The complaint seeks, among other relief, class certification of the lawsuit, unspecified compensatory damages, rescission, pre-judgement and post-judgement interest, costs and expenses. On December 18, 2020 the plaintiffs filed an amended complaint and on February 16, 2021 RBI filed a motion to dismiss the complaint. The plaintiffs filed a brief in opposition to the motion on April 19, 2021 and RBI filed a reply in May 2021. The motion to dismiss was heard in April 2022 and the motion to dismiss was denied in May 2022. On June 6, 2022, we filed an answer to the complaint and on July 8, 2022, we filed an appeal of the denial of the motion to dismiss. On November 10, 2022, the appellate division reversed the trial court and ordered that the complaint be dismissed. Plaintiffs moved for leave to appeal to the Court of Appeals of the State of New York, which RBI opposed, and on March 21, 2023, the Court of Appeals denied leave to appeal. As that decision is now final, we do not anticipate any further proceedings in this matter.
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Note 16. Segment Reporting
As stated in Note 1, Description of Business and Organization, we manage four brands. Under the Tim Hortons brand, we operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes brand, we operate in the chicken category of the quick service segment of the restaurant industry. Under the Firehouse Subs brand, we operate in the specialty subs category of the quick service segment of the restaurant industry. Our business generates revenue from the following sources: (i) sales, consisting primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and sales at restaurants owned by us (“Company restaurants”); (ii) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (iii) property revenues from properties we lease or sublease to franchisees; and (iv) advertising revenues and other services, consisting primarily of advertising fund contributions based on a percentage of sales reported by franchise restaurants. We manage each of our brands as an operating segment and each operating segment represents a reportable segment.

The following tables present revenues, by segment and by country (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Revenues by operating segment:
     TH$1,016 $968 $1,916 $1,797 
     BK529 473 1,013 916 
     PLK182 165 350 313 
     FHS48 33 86 64 
Total revenues$1,775 $1,639 $3,365 $3,090 
Three Months Ended
June 30,
Six Months Ended
June 30,
2023202220232022
Revenues by country (a):
     Canada$918 $878 $1,727 $1,625 
     United States631 571 1,204 1,092 
     Other226 190 434 373 
Total revenues$1,775 $1,639 $3,365 $3,090 
(a)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 EBITDA. Adjusted EBITDA represents earnings (net income or loss) before interest expense, net, loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization, adjusted to exclude (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (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 expense incurred in connection with the acquisition of Firehouse consisting of professional fees, compensation-related expenses and integration costs (“FHS 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, including services related to significant tax reform legislation and regulations (“Corporate restructuring and advisory fees”).

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Adjusted EBITDA 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
June 30,
Six Months Ended
June 30,
2023202220232022
Segment income:
     TH$290 $274 $541 $505 
     BK288 270 544 499 
     PLK73 61 139 117 
     FHS14 13 29 27 
          Adjusted EBITDA665 618 1,253 1,148 
Share-based compensation and non-cash incentive compensation expense47 32 92 59 
FHS Transaction costs— 19 
Corporate restructuring and advisory fees12 
Impact of equity method investments (a)15 12 24 28 
Other operating expenses (income), net(7)(25)10 (41)
          EBITDA603 589 1,096 1,088 
Depreciation and amortization49 48 95 97 
          Income from operations554 541 1,001 991 
Interest expense, net145 129 287 256 
Income tax expense58 66 86 119 
          Net income$351 $346 $628 $616 
(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.

Note 17. Subsequent Events
Dividends
On July 6, 2023, we paid a cash dividend of $0.55 per common share to common shareholders of record on June 22, 2023. On such date, Partnership also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.55 per exchangeable unit to holders of record on June 22, 2023.
Subsequent to June 30, 2023, our board of directors declared a cash dividend of $0.55 per common share, which will be paid on October 4, 2023 to common shareholders of record on September 20, 2023. Partnership will also make a distribution in respect of each Partnership exchangeable unit in the amount of $0.55 per Partnership exchangeable unit, and the record date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment date set forth above.
*****
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
You should read the following discussion together with our unaudited condensed consolidated financial statements and the related notes thereto included in Part I, Item 1 “Financial Statements” of this report.
The following discussion includes information regarding future financial performance and plans, targets, aspirations, expectations, and objectives of management, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws as described in further detail under “Special Note Regarding Forward-Looking Statements” set forth below. Actual results may differ materially from the results discussed in the forward-looking statements. Please refer to the risks and further discussion in the “Special Note Regarding Forward-Looking Statements” below.
We prepare our financial statements in accordance with accounting principles generally accepted in the United States (“U.S. GAAP” or “GAAP”). However, this Management’s Discussion and Analysis of Financial Condition and Results of Operations also contains certain non-GAAP financial measures to assist readers in understanding our performance. Non-GAAP financial measures either exclude or include amounts that are not reflected in the most directly comparable measure calculated and presented in accordance with GAAP. Where non-GAAP financial measures are used, we have provided the most directly comparable measures calculated and presented in accordance with U.S. GAAP, a reconciliation to GAAP measures and a discussion of the reasons why management believes this information is useful to it and may be useful to investors.
Operating results for any one quarter are not necessarily indicative of results to be expected for any other quarter or for the fiscal year and our operating metrics, as discussed below, may decrease for any future period. Unless the context otherwise requires, all references in this section to “RBI”, the “Company”, “we”, “us” or “our” are to Restaurant Brands International Inc. and its subsidiaries, collectively and all references in this section to “Partnership” are to Restaurant Brands International Limited Partnership and its subsidiaries, collectively.
Overview
We are one of the world’s largest quick service restaurant (“QSR”) companies with over $40 billion in annual system-wide sales and over 30,000 restaurants in more than 100 countries as of June 30, 2023. Our Tim Hortons®, Burger King®, Popeyes®, and Firehouse Subs® brands have similar franchised business models with complementary daypart mixes and product platforms. Our four iconic brands are managed independently while benefiting from global scale and sharing of best practices.
Tim Hortons restaurants are quick service restaurants with a menu that includes premium blend coffees, hot and cold specialty drinks, alongside breakfast sandwiches, fresh baked goods, muffins, cookies and pastries, sandwiches, bowls, wraps, soups and more. Burger King restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken, and other specialty sandwiches, french fries, soft drinks, and other affordably-priced food items. Popeyes restaurants are quick service restaurants featuring a unique “Louisiana” style menu that includes bone in fried chicken, chicken sandwiches, chicken tenders, fried shrimp and other regional items. Firehouse Subs restaurants are quick service restaurants featuring hot and hearty subs piled high with quality meats and cheese as well as chopped salads, chili and soups, signature and other sides, soft drinks and local specialties.
We have four operating and reportable segments: (1) Tim Hortons (“TH”); (2) Burger King (“BK”); (3) Popeyes Louisiana Kitchen (“PLK”); and (4) Firehouse Subs (“FHS”). Our business generates revenue from the following sources: (i) sales, consisting primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees, as well as sales to retailers and sales at restaurants owned by us (“Company restaurants”); (ii) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (iii) property revenues from properties we lease or sublease to franchisees; and (iv) advertising revenues and other services, consisting primarily of advertising fund contributions based on a percentage of sales reported by franchise restaurants.


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Key Operating Metrics
We evaluate our restaurants and assess our business based on the following operating metrics:
System-wide sales growth refers to the percentage change in sales at all franchise restaurants and Company restaurants (referred to as system-wide sales) in one period from the same period in the prior year.
Comparable sales refers to the percentage change in restaurant sales in one period from the same prior year period for restaurants that have been open for 13 months or longer for TH, BK and FHS and 17 months or longer for PLK. Additionally, if a restaurant is closed for a significant portion of a month, the restaurant is excluded from the monthly comparable sales calculation.
System-wide sales growth and comparable sales are measured on a constant currency basis, which means the results exclude the effect of foreign currency translation (“FX Impact”). For system-wide sales growth and comparable sales, we calculate the FX Impact by translating prior year results at current year monthly average exchange rates.
Unless otherwise stated, system-wide sales growth, system-wide sales and comparable sales are presented on a system-wide basis, which means they include franchise restaurants and Company restaurants. System-wide results are driven by our franchise restaurants, as approximately 100% of system-wide restaurants are franchised. Franchise sales represent sales at all franchise restaurants and are revenues to our franchisees. We do not record franchise sales as revenues; however, our royalty revenues and advertising fund contributions are calculated based on a percentage of franchise sales.
Net restaurant growth refers to the net increase in restaurant count (openings, net of permanent closures) over a trailing twelve month period, divided by the restaurant count at the beginning of the trailing twelve month period.
These metrics are important indicators of the overall direction of our business, including trends in sales and the effectiveness of each brand’s marketing, operations and growth initiatives.
In our 2022 financial reports, our key operating metrics included results from our franchised Burger King restaurants in Russia, with supplemental disclosure provided excluding these restaurants. We did not generate any new profits from restaurants in Russia in 2022 and do not expect to generate any new profits in 2023. Consequently, beginning in the first quarter of 2023, our reported key operating metrics exclude the results from Russia for all periods presented.

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Three Months Ended
June 30,
Six Months Ended
June 30,
Key Operating Metrics2023202220232022
System-wide sales growth
    TH15.0 %16.3 %16.3 %14.7 %
    BK13.8 %13.2 %14.0 %14.7 %
    PLK15.0 %9.9 %14.7 %7.1 %
    FHS5.1 %N/A6.8 %N/A
    Consolidated (a)14.0 %13.3 %14.3 %13.4 %
    FHS (b)N/A2.2 %N/A4.7 %
System-wide sales (in US$ millions)
    TH$2,024 $1,838 $3,755 $3,394 
    BK$6,901 $6,134 $13,142 $11,781 
    PLK$1,714 $1,503 $3,282 $2,886 
    FHS$307 $292 $599 $564 
    Consolidated$10,946 $9,767 $20,778 $18,625 
Comparable sales
    TH11.4 %12.2 %12.5 %10.4 %
    BK10.2 %8.7 %10.5 %9.3 %
    PLK6.3 %1.4 %6.0 %(0.8)%
    FHS2.1 %N/A4.0 %N/A
    Consolidated (a)9.6 %8.2 %9.9 %7.8 %
    FHS (b)N/A(1.4)%N/A1.3 %
As of June 30,
20232022
Net restaurant growth
    TH5.8 %5.7 %
    BK2.4 %2.7 %
    PLK10.9 %8.1 %
    FHS2.1 %N/A
    Consolidated (a)4.1 %4.0 %
    FHS (b)N/A2.5 %
Restaurant count
    TH5,662 5,352 
    BK18,935 18,491 
    PLK4,269 3,851 
    FHS1,259 1,233 
    Consolidated30,125 28,927 
    
(a) Consolidated system-wide sales growth, consolidated comparable sales and consolidated net restaurant growth do not include the results of Firehouse Subs for 2022.
(b) 2022 Firehouse Subs growth figures are shown for informational purposes only.



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Macro Economic Environment
During the three and six months ended June 30, 2023 and 2022, there were increases in commodity, labor, and energy costs partially due to the macroeconomic impact of both the War in Ukraine and COVID-19. Further significant increases in inflation could affect the global, Canadian and U.S. economies, resulting in foreign exchange volatility and rising interest rates which could have an adverse impact on our business and results of operations if we and our franchisees are not able to adjust prices sufficiently to offset the effect of cost increases without negatively impacting consumer demand.
In addition, the global crisis resulting from the spread of COVID-19 impacted our restaurant operations during the three and six months ended June 30, 2022. Certain markets, including Canada and China, were significantly impacted as a result of governments mandated lockdowns. These lockdowns, which have since been lifted, resulted in restrictions to restaurant operations, such as reduced, if any, dine-in capacity, and/or restrictions on hours of operation in those markets.
Sustainability
We have adopted science based targets to reduce greenhouse gas emissions by 50% by 2030, and are committed to achieving net-zero emissions by 2050. Starting 2024, we will be changing our base year from 2019 to 2022, to reflect emissions from Firehouse Subs, which we acquired in December 2021, and an improved calculation methodology. While most of the impact is from scope 3 emissions that are not under our direct control, reaching these targets will require us to devote resources to support changes by suppliers and franchisees.

Results of Operations for the Three and Six Months Ended June 30, 2023 and 2022
Tabular amounts in millions of U.S. dollars unless noted otherwise. Total revenues for each segment and segment income may not calculate exactly due to rounding.
ConsolidatedThree Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX ImpactSix Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX Impact
20232022 Favorable / (Unfavorable)20232022 Favorable / (Unfavorable)
Revenues:
Sales$744 $708 $36 $(28)$64 $1,412 $1,317 $95 $(60)$155 
Franchise and property revenues742 676 66 (13)79 1,410 1,291 119 (34)153 
Advertising revenues and other services289 255 34 (3)37 543 482 61 (6)67 
Total revenues1,775 1,639 136 (44)180 3,365 3,090 275 (100)375 
Operating costs and expenses:
Cost of sales612 584 (28)23 (51)1,162 1,078 (84)48 (132)
Franchise and property expenses130 125 (5)(9)253 255 (7)
Advertising expenses and other services312 259 (53)(56)583 506 (77)(84)
General and administrative expenses163 146 (17)(18)338 279 (59)(63)
(Income) loss from equity method investments11 (2)— (2)18 22 — 
Other operating expenses (income), net(7)(25)(18)(19)10 (41)(51)30 (81)
Total operating costs and expenses1,221 1,098 (123)32 (155)2,364 2,099 (265)98 (363)
Income from operations554 541 13 (12)25 1,001 991 10 (2)12 
Interest expense, net145 129 (16)— (16)287 256 (31)— (31)
Income before income taxes409 412 (3)(12)714 735 (21)(2)(19)
Income tax expense58 66 — 86 119 33 32 
Net income$351 $346 $$(12)$17 $628 $616 $12 $(1)$13 
(a)We calculate the FX Impact by translating prior year results at current year monthly average exchange rates. We analyze these results on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency movements.
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TH SegmentThree Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX ImpactSix Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX Impact
20232022 Favorable / (Unfavorable)20232022 Favorable / (Unfavorable)
Revenues:
Sales$688 $661 $27 $(29)$56 $1,306 $1,227 $79 $(60)$139 
Franchise and property revenues255 238 17 (11)27 475 444 31 (22)53 
Advertising revenues and other services73 69 (3)135 126 (6)15 
Total revenues1,016 968 48 (42)90 1,916 1,797 119 (89)208 
Cost of sales562 537 (25)23 (48)1,067 990 (77)48 (126)
Franchise and property expenses86 84 (2)(6)165 165 — (9)
Advertising expenses and other services78 71 (7)(10)142 138 (4)(11)
Segment G&A28 32 57 61 
Segment depreciation and amortization (b)25 28 50 57 
Segment income (c)290 274 16 (12)28 541 505 36 (25)61 
(b)Segment depreciation and amortization consists of depreciation and amortization included in cost of sales, franchise and property expenses and advertising expenses and other services.
(c)TH segment income includes $3 million of cash distributions received from equity method investments for the three months ended June 30, 2023 and 2022. TH segment income includes $6 million of cash distributions received from equity method investments for the six months ended June 30, 2023 and 2022.
BK SegmentThree Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX ImpactSix Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX Impact
20232022 Favorable / (Unfavorable)20232022 Favorable / (Unfavorable)
Revenues:
Sales$24 $17 $$— $$43 $33 $10 $— $10 
Franchise and property revenues373 335 38 (2)40 717 653 64 (10)74 
Advertising revenues and other services133 121 12 — 11 254 230 24 — 24 
Total revenues529 473 56 (2)57 1,013 916 97 (10)107 
Cost of sales22 19 (3)— (3)39 36 (3)— (3)
Franchise and property expenses35 34 (1)— (2)75 79 
Advertising expenses and other services150 123 (27)— (26)284 242 (42)— (42)
Segment G&A47 40 (7)— (7)95 85 (10)— (10)
Segment depreciation and amortization (b)13 12 (1)— (1)25 24 (1)— (1)
Segment income288 270 18 (2)20 544 499 45 (10)55 

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PLK SegmentThree Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX ImpactSix Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX Impact
20232022 Favorable / (Unfavorable)20232022 Favorable / (Unfavorable)
Revenues:
Sales$22 $20 $$— $$43 $37 $$— $
Franchise and property revenues91 81 10 (1)11 172 152 20 (1)21 
Advertising revenues and other services69 64 — 136 124 12 — 12 
Total revenues183 165 18 (1)18 351 313 38 (1)39 
Cost of sales20 19 (1)— (1)39 35 (4)— (4)
Franchise and property expenses(2)— (2)(1)— (1)
Advertising expenses and other services70 64 (6)— (6)137 125 (12)— (12)
Segment G&A16 17 — 31 32 — 
Segment depreciation and amortization (b)(1)— (1)(1)— (1)
Segment income73 61 12 (1)13 139 117 22 (1)23 

FHS SegmentThree Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX ImpactSix Months Ended June 30,VarianceFX Impact (a)Variance Excluding FX Impact
20232022 Favorable / (Unfavorable)20232022 Favorable / (Unfavorable)
Revenues:
Sales$10 $10 $— $— $— $20 $20 $— $— $— 
Franchise and property revenues24 22 — 47 42 — 
Advertising revenues and other services14 13 — 13 19 17 — 17 
Total revenues48 33 15 — 15 86 64 22 — 22 
Cost of sales— — — 17 17 — — — 
Franchise and property expenses— — — — — — 
Advertising expenses and other services15 (14)— (14)19 (18)— (18)
Segment G&A(1)— (1)17 16 (1)— (1)
Segment depreciation and amortization (b)— — — — — 
Segment income14 13 — 29 27 — 
System-wide Sales
For the three months ended June 30, 2023, the increase in TH system-wide sales of 15.0% was primarily driven by comparable sales of 11.4%, including Canada comparable sales of 12.5%, and net restaurant growth of 5.8%. For the six months ended June 30, 2023, the increase in TH system-wide sales of 16.3% was primarily driven by comparable sales of 12.5%, including Canada comparable sales of 13.8%, and net restaurant growth of 5.8%.
For the three months ended June 30, 2023, the increase in BK system-wide sales of 13.8% was primarily driven by comparable sales of 10.2%, including rest of the world comparable sales of 11.6% and U.S. comparable sales of 8.3%, and net restaurant growth of 2.4%. For the six months ended June 30, 2023, the increase in BK system-wide sales of 14.0% was primarily driven by comparable sales of 10.5%, including rest of the world comparable sales of 11.9% and U.S. comparable sales of 8.5%, and net restaurant growth of 2.4%.
For the three months ended June 30, 2023, the increase in PLK system-wide sales of 15.0% was primarily driven by net restaurant growth of 10.9% and comparable sales of 6.3%, including U.S. comparable sales of 4.2%. For the six months ended June 30, 2023, the increase in PLK system-wide sales of 14.7% was primarily driven by net restaurant growth of 10.9% and comparable sales of 6.0%, including U.S. comparable sales of 3.8%.
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For the three months ended June 30, 2023, the increase in FHS system-wide sales of 5.1% was primarily driven by comparable sales of 2.1%, including U.S. comparable sales of 2.6%, and net restaurant growth of 2.1%. For the six months ended June 30, 2023, the increase in FHS system-wide sales of 6.8% was primarily driven by comparable sales of 4.0%, including U.S. comparable sales of 4.5%, and net restaurant growth of 2.1%.
Sales and Cost of Sales
Sales include TH supply chain sales and sales from Company restaurants. TH supply chain sales represent sales of products, supplies and restaurant equipment, as well as sales to retailers. Sales from Company restaurants represent restaurant-level sales to our guests.
Cost of sales includes costs associated with the management of our TH supply chain, including cost of goods, direct labor and depreciation, as well as the cost of products sold to retailers. Cost of sales also includes food, paper and labor costs of Company restaurants.
During the three months ended June 30, 2023, the increase in sales was driven by an increase of $56 million in our TH segment, an increase of $7 million in our BK segment, and an increase of $2 million in our PLK segment, partially offset by an unfavorable FX Impact of $28 million. The increase in our TH segment was primarily driven by an increase in supply chain sales due to an increase in system-wide sales as well as increases in commodity prices passed on to franchisees.
During the six months ended June 30, 2023, the increase in sales was driven by an increase of $139 million in our TH segment, an increase of $10 million in our BK segment, and an increase of $6 million in our PLK segment, partially offset by an unfavorable FX Impact of $60 million. The increase in our TH segment was primarily driven by an increase in supply chain sales due to an increase in system-wide sales as well as increases in commodity prices passed on to franchisees and an increase in sales to retailers.
During the three months ended June 30, 2023, the increase in cost of sales was driven by an increase of $48 million in our TH segment, an increase of $3 million in our BK segment, and an increase of $1 million in our PLK segment, partially offset by a favorable FX Impact of $23 million. The increase in our TH segment was primarily driven by an increase in supply chain sales and increases in commodity prices.
During the six months ended June 30, 2023, the increase in cost of sales was driven by an increase of $126 million in our TH segment, an increase of $4 million in our PLK segment, and an increase of $3 million in our BK segment, partially offset by a favorable FX Impact of $48 million. The increase in our TH segment was primarily driven by an increase in supply chain sales, increases in commodity prices and an increase in sales to retailers.
Franchise and Property
Franchise and property revenues consist primarily of royalties earned on franchise sales, rents from real estate leased or subleased to franchisees, franchise fees, and other revenue. Franchise and property expenses consist primarily of depreciation of properties leased to franchisees, rental expense associated with properties subleased to franchisees, amortization of franchise agreements, and bad debt expense (recoveries).
During the three months ended June 30, 2023, the increase in franchise and property revenues was driven by an increase of $40 million in our BK segment, an increase of $27 million in our TH segment, an increase of $11 million in our PLK segment, and an increase of $2 million in our FHS segment, partially offset by an unfavorable FX Impact of $13 million. The increases were primarily driven by increases in royalties in all of our segments and increases in rent in our TH segment, as a result of increases in system-wide sales.
During the six months ended June 30, 2023, the increase in franchise and property revenues was driven by an increase of $74 million in our BK segment, an increase of $53 million in our TH segment, an increase of $21 million in our PLK segment, and an increase of $5 million in our FHS segment, partially offset by an unfavorable FX Impact of $34 million. The increases were primarily driven by increases in royalties in all of our segments and increases in rent in our TH segment, as a result of increases in system-wide sales.
During the three months ended June 30, 2023, the increase in franchise and property expenses was driven by an increase of $6 million in our TH segment, an increase of $2 million in our BK segment, an increase of $2 million in our PLK segment, partially offset by a favorable FX impact of $4 million. The increase in our TH segment was primarily driven by increases in rent expense.
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During the six months ended June 30, 2023, the decrease in franchise and property expenses was driven by a decrease of $3 million in our BK segment and a favorable FX impact of $9 million, partially offset by an increase of $9 million in our TH segment and an increase of $1 million in our PLK segment. The increase in our TH segment was primarily driven by increases in rent expense.
Advertising and Other Services
Advertising revenues and other services consist primarily of advertising contributions earned on franchise sales and are based on a percentage of sales reported by franchise restaurants and intended to fund advertising expenses. This line item also includes other services which consist primarily of fees from digital sales that partially offset expenses related to technology initiatives. Advertising expenses and other services consist primarily of expenses relating to marketing, advertising and promotion, including market research, production, advertising costs, sales promotions, social media campaigns, technology initiatives, depreciation and amortization and other related support functions for the respective brands. We generally manage advertising expenses to equal advertising revenues in the long term, however in some periods there may be a mismatch in the timing of revenues and expense or higher expenses due to our support initiatives behind the marketing programs.
During the three months ended June 30, 2023, the increase in advertising revenues and other services was driven by an increase of $13 million in our FHS segment, an increase of $11 million in our BK segment, an increase of $7 million in our TH segment, and an increase of $5 million in our PLK segment, partially offset by an unfavorable FX Impact of $3 million. The increases in our TH, BK and PLK segments were primarily driven by increases in system-wide sales. The increase in our FHS segment reflects modification of the advertising fund arrangements to be more consistent with those of our other brands.
During the six months ended June 30, 2023, the increase in advertising revenues and other services was driven by an increase of $24 million in our BK segment, an increase of $17 million in our FHS segment, an increase of $15 million in our TH segment, and an increase of $12 million in our PLK segment, partially offset by an unfavorable FX Impact of $6 million. The increases in our TH, BK and PLK segments were primarily driven by increases in system-wide sales. The increase in our FHS segment reflects modification of the advertising fund arrangements to be more consistent with those of our other brands.
During the three months ended June 30, 2023, the increase in advertising expenses and other services was driven by an increase of $26 million in our BK segment, an increase of $14 million in our FHS segment, an increase of $10 million in our TH segment, and an increase of $6 million in our PLK segment, partially offset by a favorable FX Impact of $3 million. The increases in our BK, TH and PLK segments were driven primarily by increases in advertising revenues and other services. Additionally, our BK segment reflects our support behind the marketing program in the U.S. The increase in our FHS segment reflects modification of the advertising fund arrangements to be more consistent with those of our other brands.
During the six months ended June 30, 2023, the increase in advertising expenses and other services was driven by an increase of $42 million in our BK segment, an increase of $18 million in our FHS segment, an increase of $12 million in our PLK segment, and an increase of $11 million in our TH segment, partially offset by a favorable FX Impact of $7 million. The increases in our BK, PLK and TH segments were driven primarily by increases in advertising revenues and other services. Additionally, our BK segment reflects our support behind the marketing program in the U.S. The increase in our FHS segment reflects modification of the advertising fund arrangements to be more consistent with those of our other brands.

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General and Administrative Expenses
Our general and administrative expenses consisted of the following:
Three Months Ended June 30,VarianceSix Months Ended June 30,Variance
$%$%
20232022Favorable / (Unfavorable)20232022Favorable / (Unfavorable)
Segment G&A:
TH$28 $32 $13 %$57 $61 $%
BK47 40 (7)(18)%95 85 (10)(12)%
PLK16 17 %31 32 %
FHS(1)(13)%17 16 (1)(6)%
Share-based compensation and non-cash incentive compensation expense47 32 (15)(47)%92 59 (33)(56)%
Depreciation and amortization(2)(29)%15 12 (3)(25)%
FHS Transaction costs— 100 %19 (14)NM
Corporate restructuring and advisory fees(1)(17)%12 (3)(33)%
General and administrative expenses$163 $146 $(17)(12)%$338 $279 $(59)(21)%
NM - not meaningful
Segment general and administrative expenses (“Segment G&A”) consist primarily of salary and employee-related costs for non-restaurant employees, professional fees, information technology systems, and general overhead for our corporate offices. Segment G&A excludes share-based compensation and non-cash incentive compensation expense, depreciation and amortization, FHS Transaction costs and Corporate restructuring and advisory fees.
During the three and six months ended June 30, 2023, Segment G&A for our BK segment increased primarily due to increases in compensation related expenses. Segment G&A for our TH segment decreased primarily due to a decrease in professional services. Segment G&A for our PLK and FHS segments was relatively consistent with the prior year.
During the three and six months ended June 30, 2023, the increase in share-based compensation and non-cash incentive compensation expense was primarily due to an increase in equity awards granted during 2023 and 2022, including equity awards granted to our executive chairman during the fourth quarter of 2022, and increases in expenses related to previously granted performance-based equity awards. In addition, the increase in share-based compensation and non-cash incentive compensation expense was also impacted by shorter vesting periods for equity awards granted beginning in 2021.
In connection with the acquisition of Firehouse, we incurred certain non-recurring fees and expenses (“FHS Transaction costs”) consisting of professional fees, compensation related expenses and integration costs through the three months ended March 31, 2023. We do not expect to incur additional FHS Transaction costs for the remainder of 2023.
In connection with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movement within our structure, including services related to significant tax reform legislation and regulations, we incurred non-operating expenses primarily from professional advisory and consulting services (“Corporate restructuring and advisory fees”). We expect to incur additional Corporate restructuring and advisory fees during the remainder of 2023.

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(Income) Loss from Equity Method Investments
(Income) loss from equity method investments reflects our share of investee net income or loss and non-cash dilution gains or losses from changes in our ownership interests in equity method investees.
The change in (income) loss from equity method investments during the three months ended June 30, 2023 was primarily driven by an increase in equity method investment net losses that we recognized during the current year. The change in (income) loss from equity method investments during the six months ended June 30, 2023 was primarily driven by a decrease in equity method investment net losses that we recognized during the current year.
Other Operating Expenses (Income), net
Our other operating expenses (income), net consisted of the following:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings$(9)$(1)$(11)$
Litigation settlements (gains) and reserves, net(3)(2)
Net losses (gains) on foreign exchange(1)(31)(52)
Other, net16 
     Other operating expenses (income), net$(7)$(25)$10 $(41)
Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to closures and refranchisings that occurred in previous periods.
Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities, primarily those denominated in Euros and Canadian dollars.
Other, net for 2023 is primarily related to payments in connection with FHS area representative buyouts.
Interest Expense, net
Our interest expense, net and the weighted average interest rate on our long-term debt were as follows:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Interest expense, net$145 $129 $287 $256 
Weighted average interest rate on long-term debt4.9 %4.2 %4.9 %4.1 %
During the three and six months ended June 30, 2023, interest expense, net increased primarily due to an increase in the weighted average interest rate driven by increases in interest rates which impacts our variable rate debt.
Income Tax Expense
Our effective tax rate was 14.3% and 15.9% for the three months ended June 30, 2023 and 2022, respectively, and 12.1% and 16.2% for the six months ended June 30, 2023 and 2022, respectively. Our effective tax rate for the three and six months ended June 30, 2023 was favorably impacted by structural changes implemented in the latter part of 2022 and changes to the relative mix of our income from multiple tax jurisdictions. There may continue to be some quarter-to-quarter volatility of our effective tax rate as our mix of income from multiple tax jurisdictions and related income forecast changes due to macroeconomic events.


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Net Income
We reported net income of $351 million for the three months ended June 30, 2023, compared to net income of $346 million for the three months ended June 30, 2022. The increase in net income is primarily due to an $18 million increase in BK segment income, a $16 million increase in TH segment income, a $12 million increase in PLK segment income, an $8 million decrease in income tax expense, a $4 million decrease in FHS Transaction costs, and a $1 million increase in FHS segment income. These factors were partially offset by an $18 million unfavorable change in the results from other operating expenses (income), net, a $16 million increase in interest expense, net, a $15 million increase in share-based compensation and non-cash incentive compensation expense, a $3 million unfavorable change from the impact of equity method investments, a $1 million increase in Corporate restructuring and advisory fees, and a $1 million increase in depreciation and amortization. Amounts above include a total unfavorable FX Impact to net income of $12 million.
We reported net income of $628 million for the six months ended June 30, 2023, compared to net income of $616 million for the six months ended June 30, 2022. The increase in net income is primarily due to a $45 million increase in BK segment income, a $36 million increase in TH segment income, a $33 million decrease in income tax expense, a $22 million increase in PLK segment income, a $4 million favorable change from the impact of equity method investments, a $2 million decrease in depreciation and amortization, and a $2 million increase in FHS segment income. These factors were partially offset by a $51 million unfavorable change in the results from other operating expenses (income), net, a $33 million increase in share-based compensation and non-cash incentive compensation expense, a $31 million increase in interest expense, net, a $14 million increase in FHS Transaction costs, and a $3 million increase in Corporate restructuring and advisory fees. Amounts above include a total unfavorable FX Impact to net income of $1 million.

Non-GAAP Reconciliations
The table below contains information regarding EBITDA and Adjusted EBITDA, which are non-GAAP measures. These non-GAAP measures do not have a standardized meaning under U.S. GAAP and may differ from similar captioned measures of other companies in our industry. We believe that these non-GAAP measures are useful to investors in assessing our operating performance, as they provide them with the same tools that management uses to evaluate our performance and are responsive to questions we receive from both investors and analysts. By disclosing these non-GAAP measures, we intend to provide investors with a consistent comparison of our operating results and trends for the periods presented. EBITDA is defined as earnings (net income or loss) before interest expense, net, loss on early extinguishment of debt, income tax (benefit) expense, and depreciation and amortization and is used by management to measure operating performance of the business. Adjusted EBITDA is defined as EBITDA excluding (i) the non-cash impact of share-based compensation and non-cash incentive compensation expense, (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 expense incurred in connection with the acquisition of Firehouse consisting of professional fees, compensation related expenses and integration 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, including services related to significant tax reform legislation and regulations. Management believes that these types of expenses are either not related to our underlying profitability drivers or not likely to re-occur in the foreseeable future and the varied timing, size and nature of these projects may cause volatility in our results unrelated to the performance of our core business that does not reflect trends of our core operations.
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Adjusted EBITDA 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. Adjusted EBITDA, as defined above, also represents our measure of segment income for each of our four operating segments.
Three Months Ended June 30,VarianceSix Months Ended June 30,Variance
$%$%
20232022Favorable / (Unfavorable)20232022Favorable / (Unfavorable)
Net income$351 $346 $%$628 $616 $12 %
Income tax expense58 66 12 %86 119 33 28 %
Interest expense, net145 129 (16)(12)%287 256 (31)(12)%
Income from operations554 541 13 %1,001 991 10 %
Depreciation and amortization49 48 (1)(2)%95 97 %
EBITDA603 589 14 %1,096 1,088 %
Share-based compensation and non-cash incentive compensation expense47 32 (15)(47)%92 59 (33)(56)%
FHS Transaction costs— 100 %19 (14)NM
Corporate restructuring and advisory fees(1)(17)%12 (3)(33)%
Impact of equity method investments (a)15 12 (3)(25)%24 28 14 %
Other operating expenses (income), net(7)(25)(18)72 %10 (41)(51)NM
Adjusted EBITDA$665 $618 $47 %$1,253 $1,148 $105 %
Segment income:
TH$290 $274 $16 %$541 $505 $36 %
BK288 270 18 %544 499 45 %
PLK73 61 12 19 %139 117 22 19 %
FHS14 13 %29 27 11 %
Adjusted EBITDA665 618 47 %$1,253 $1,148 $105 %
NM - not meaningful
(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.
The increase in Adjusted EBITDA for the three and six months ended June 30, 2023 reflects the increases in segment income in each of our segments and includes an unfavorable FX Impact of $15 million and $36 million for the three and six months ended June 30, 2023, respectively.
Liquidity and Capital Resources
Our primary sources of liquidity are cash on hand, cash generated by operations and borrowings available under our Revolving Credit Facility (as defined below). We have used, and may in the future use, our liquidity to make required interest and/or principal payments, to repurchase our common shares, to repurchase Class B exchangeable limited partnership units of Partnership (“Partnership exchangeable units”), to voluntarily prepay and repurchase our or one of our affiliate’s outstanding debt, to fund acquisitions and other investing activities, such as capital expenditures and joint ventures, and to pay dividends on our common shares and make distributions on the Partnership exchangeable units. Our liquidity requirements are significant, primarily due to debt service requirements.
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As of June 30, 2023, we had cash and cash equivalents of $1,213 million and borrowing availability of $998 million under our senior secured revolving credit facility (the “Revolving Credit Facility”). Based on our current level of operations and available cash, we believe our cash flow from operations, combined with our availability under our Revolving Credit Facility, will provide sufficient liquidity to fund our current obligations, debt service requirements and capital spending over the next twelve months.
In September 2022, Burger King shared the details of its “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability. We are investing $400 million over the life of the plan, comprised of $150 million in advertising and digital investments (“Fuel the Flame”) and $250 million in high-quality remodels and relocations, restaurant technology, kitchen equipment, and building enhancements (“Royal Reset”). During the six months ended June 30, 2023, we funded $18 million toward the Fuel the Flame investment and $18 million toward our Royal Reset investment and as of June 30, 2023, we have funded a total of $32 million toward the Fuel the Flame investment and $35 million toward our Royal Reset investment.
On July 28, 2021, our board of directors approved a share repurchase authorization of up to $1,000 million of our common shares until August 10, 2023. On August 12, 2022, we announced that the Toronto Stock Exchange (the “TSX”) had accepted the notice of our intention to renew the normal course issuer bid, permitting the repurchase of up to 30,254,374 common shares for the 12-month period ending on August 16, 2023. Share repurchases under the normal course issuer bid will be made through the facilities of the TSX, the New York Stock Exchange (the “NYSE”) and/or other exchanges and alternative Canadian or foreign trading systems, if eligible, or by such other means as may be permitted by the TSX and/or the NYSE under applicable law. Shareholders may obtain a copy of the prior notice, free of charge, by contacting us. Our board of directors has not renewed the share repurchase authorization or the normal course issuer bid, so these will expire on August 10, and August 16, 2023, respectively. During the six months ended June 30, 2023, we did not repurchase any RBI common shares and as of June 30, 2023 had $123 million remaining under the authorization.
We generally provide applicable deferred taxes based on the tax liability or withholding taxes that would be due upon repatriation of cash associated with unremitted earnings. We will continue to monitor our plans for such cash and related foreign earnings but our expectation is to continue to provide taxes on unremitted earnings that we expect to distribute.
Debt Instruments and Debt Service Requirements
As of June 30, 2023, our long-term debt consists primarily of borrowings under our Credit Facilities (as defined below), amounts outstanding under our 3.875% First Lien Senior Notes due 2028, 5.75% First Lien Senior Notes due 2025, 3.50% First Lien Senior Notes due 2029, 4.375% Second Lien Senior Notes due 2028, 4.00% Second Lien Senior Notes due 2030 (together, the “Senior Notes”), TH Facility, and obligations under finance leases. For further information about our long-term debt, see Note 10 to the accompanying unaudited condensed consolidated financial statements included in this report.
As of June 30, 2023, there was $6,397 million outstanding principal amount under our senior secured term loan facilities (the “Term Loan Facilities” and together with the Revolving Credit Facility, the “Credit Facilities”) with a weighted average interest rate of 6.85%. The interest rate applicable to borrowings under our Term Loan A and Revolving Credit Facility is, at our option, either (i) a base rate, subject to a floor of 1.00%, plus an applicable margin varying from 0.00% to 0.50%, or (ii) Adjusted Term SOFR (Adjusted Term SOFR is calculated as Term SOFR plus a 0.10% adjustment), subject to a floor of 0.00%, plus an applicable margin varying between 0.75% to 1.50%, in each case, determined by reference to a net first lien leverage based pricing grid. The interest rate applicable to borrowings under our Term Loan B is, at our option, either (i) a base rate, subject to a floor of 1.00%, plus an applicable margin of 0.75% or (ii) a Eurocurrency rate, subject to a floor of 0.00%, plus an applicable margin of 1.75%.
Based on the amounts outstanding under the Term Loan Facilities and LIBOR/SOFR (Secured Overnight Financing Rate) as of June 30, 2023, subject to a floor of 0.00%, required debt service for the next twelve months is estimated to be approximately $443 million in interest payments and $85 million in principal payments. In addition, based on LIBOR as of June 30, 2023, net cash settlements that we expect to receive on our $4,000 million interest rate swaps are estimated to be approximately $131 million for the next twelve months. Based on the amounts outstanding at June 30, 2023, required debt service for the next twelve months on all of the Senior Notes outstanding is approximately $264 million in interest payments. Based on the amounts outstanding under the TH Facility as of June 30, 2023, required debt service for the next twelve months is estimated to be approximately $9 million in interest payments and $13 million in principal payments.

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Restrictions and Covenants
As of June 30, 2023, we were in compliance with all applicable financial debt covenants under the Credit Facilities, the TH Facility, and the indentures governing our Senior Notes.
Cash Dividends
On July 6, 2023, we paid a dividend of $0.55 per common share and Partnership made a distribution in respect of each Partnership exchangeable unit in the amount of $0.55 per Partnership exchangeable unit.
Our board of directors has declared a cash dividend of $0.55 per common share, which will be paid on October 4, 2023 to common shareholders of record on September 20, 2023. Partnership will also make a distribution in respect of each Partnership exchangeable unit in the amount of $0.55 per Partnership exchangeable unit, and the record date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment date set forth above.
In addition, because we are a holding company, our ability to pay cash dividends on our common shares may be limited by restrictions under our debt agreements. Although we do not have a formal dividend policy, our board of directors may, subject to compliance with the covenants contained in our debt agreements and other considerations, determine to pay dividends in the future. We expect to pay all dividends from cash generated from our operations.
Outstanding Security Data
As of August 1, 2023, we had outstanding 312,283,429 common shares and one special voting share. The special voting share is held by a trustee, entitling the trustee to that number of votes on matters on which holders of common shares are entitled to vote equal to the number of Partnership exchangeable units outstanding. The trustee is required to cast such votes in accordance with voting instructions provided by holders of Partnership exchangeable units. At any shareholder meeting of the Company, holders of our common shares vote together as a single class with the special voting share except as otherwise provided by law. For information on our share-based compensation and our outstanding equity awards, see Note 14 to the audited consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the year ended December 31, 2022, filed with the U.S Securities and Exchange Commission (the “SEC”) and Canadian securities regulatory authorities on February 22, 2023.
There were 140,758,781 Partnership exchangeable units outstanding as of August 1, 2023. During the six months ended June 30, 2023, Partnership exchanged 2,237,859 Partnership exchangeable units pursuant to exchange notices received. The holders of Partnership exchangeable units have the right to require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units for our common shares at a ratio of one share for each Partnership exchangeable unit, subject to our right as the general partner of Partnership to determine to settle any such exchange for a cash payment in lieu of our common shares.
Comparative Cash Flows
Operating Activities
Cash provided by operating activities was $487 million for the six months ended June 30, 2023, compared to $669 million during the same period in the prior year. The decrease in cash provided by operating activities was driven by an increase in interest payments, an increase in income tax payments, and an increase in cash used for working capital, partially offset by an increase in segment income in each of our segments.
Investing Activities
Cash used for investing activities was $8 million for the six months ended June 30, 2023, compared to $46 million during the same period in the prior year. This change was primarily driven by a decrease in payments for other investing activities, an increase in proceeds from derivatives and the non-recurrence of payments in connection with the acquisition of Firehouse Subs in the prior year, partially offset by an increase in capital expenditures.
Financing Activities
Cash used for financing activities was $448 million for the six months ended June 30, 2023, compared to $860 million during the same period in the prior year. The change in cash used for financing activities was driven primarily by the non-recurrence of RBI common share repurchases in the current year, proceeds from derivatives in the current year compared to payments from derivatives in the prior year, and an increase in proceeds from stock option exercises, partially offset by an increase in long-term debt repayments.
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Critical Accounting Policies and Estimates
For information regarding our Critical Accounting Policies and Estimates, see the “Critical Accounting Policies and Estimates” section of “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K, filed with the SEC on February 22, 2023.
New Accounting Pronouncements
See Note 3 – New Accounting Pronouncements in the notes to the accompanying unaudited condensed consolidated financial statements.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
There were no material changes during the six months ended June 30, 2023 to the disclosures made in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC and Canadian securities regulatory authorities on February 22, 2023.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
An evaluation was conducted under the supervision and with the participation of management, including the Company’s Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and Exchange Act Rules 15d-15(e)) as of June 30, 2023. Based on that evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of such date.
Internal Control Over Financial Reporting
The Company’s management, including the CEO and CFO, confirm there were no changes in the Company’s internal control over financial reporting during the three months ended June 30, 2023 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.
Special Note Regarding Forward-Looking Statements
Certain information contained in this report, including information regarding future financial performance and plans, targets, aspirations, expectations, and objectives of management, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of Canadian securities laws. We refer to all of these as forward-looking statements. Forward-looking statements are forward-looking in nature and, accordingly, are subject to risks and uncertainties. These forward-looking statements can generally be identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “estimate”, “plan”, “continue”, “will”, “may”, “could”, “would”, “target”, “potential” and other similar expressions and include, without limitation, statements regarding our expectations or beliefs regarding (i) the effects and continued impact of the macroeconomic environment from the war in Ukraine, the COVID-19 pandemic, and related macro-economic pressures, such as inflation, rising interest rates and currency fluctuations on our results of operations, business, liquidity, prospects and restaurant operations and those of our franchisees; (ii) our digital, marketing, remodel and technology enhancement initiatives and expectations regarding further expenditures relating to these initiatives, including our “Reclaim the Flame” plan to accelerate sales growth and drive franchisee profitability at Burger King; (iii) our suspension of operations in and financial results from Russia; (iv) the amount and timing of future Corporate restructuring and advisory fees and the expectation that no additional FHS Transaction costs will be incurred during the remainder of 2023; (v) our future financial obligations, including annual debt service requirements, capital expenditures and dividend payments, our ability to meet such obligations and the source of funds used to satisfy such obligations; (vi) our targets with respect to reduction in greenhouse gas emissions; (vii) our exposure to changes in interest rates and foreign currency exchange rates and the impact of changes in interest rates and foreign currency exchange rates on the amount of our interest payments, future earnings and cash flows; (viii) certain tax matters, including our estimates with respect to tax matters and their impact on future periods; (ix) the amount of net cash settlements we expect to pay or receive on our derivative instruments; and (x) certain accounting matters.
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Our forward-looking statements, included in this report and elsewhere, represent management’s expectations as of the date that they are made. Our forward-looking statements are based on assumptions and analyses made by the Company in light of its experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. However, these forward-looking statements are subject to a number of risks and uncertainties and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results, level of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements include, among other things, risks related to: (1) our substantial indebtedness, which could adversely affect our financial condition and prevent us from fulfilling our obligations; (2) global economic or other business conditions that may affect the desire or ability of our customers to purchase our products, such as the effects of the COVID-19 pandemic, inflationary pressures, high unemployment levels, declines in median income growth, consumer confidence and consumer discretionary spending and changes in consumer perceptions of dietary health and food safety; (3) our relationship with, and the success of, our franchisees and risks related to our fully franchised business model; (4) our franchisees’ financial stability and their ability to access and maintain the liquidity necessary to operate their businesses; (5) our supply chain operations; (6) our ownership and leasing of real estate; (7) the effectiveness of our marketing, advertising and digital programs and franchisee support of these programs; (8) significant and rapid fluctuations in interest rates and in the currency exchange markets and the effectiveness of our hedging activity; (9) our ability to successfully implement our domestic and international growth strategy for each of our brands and risks related to our international operations; (10) our reliance on franchisees, including subfranchisees, to accelerate restaurant growth; (11) the ability of the counterparties to our credit facilities and derivatives to fulfill their commitments and/or obligations; (12) evolving legislation and regulations in the area of franchise and labor and employment law; (13) changes in applicable tax laws or interpretations thereof, and our ability to accurately interpret and predict the impact of such changes or interpretations on our financial condition and results; and (14) our ability to address environmental and social sustainability issues.
We operate in a very competitive and rapidly changing environment and our inability to successfully manage any of the above risks may permit our competitors to increase their market share and may decrease our profitability. New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.
Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Finally, our future results will depend upon various other risks and uncertainties, including, but not limited to, those detailed in Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC and Canadian securities regulatory authorities on February 22, 2023, as well as other materials that we from time to time file with, or furnish to, the SEC or file with Canadian securities regulatory authorities. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements in this section and elsewhere in this report. Other than as required under securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes in expectations or otherwise.

Part II – Other Information

Item 1. Legal Proceedings
See Part I, Notes to Condensed Consolidated Financial Statements, Note 15, Commitments and Contingencies.
Item 5. Other Information
During the three months ended June 30, 2023, no director or officer of the Company adopted or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.
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Item 6. Exhibits
Exhibit
Number
Description
101.INSXBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCHXBRL Taxonomy Extension Schema Document
101.CALXBRL Taxonomy Extension Calculation Linkbase Document
101.DEFXBRL Taxonomy Extension Definition Linkbase Document
101.LABXBRL Taxonomy Extension Label Linkbase Document
101.PREXBRL Taxonomy Extension Presentation Linkbase Document
104Cover Page Interactive File (formatted as Inline XBRL and contained in Exhibit 101)
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

  
RESTAURANT BRANDS INTERNATIONAL INC.
(Registrant)
Date: August 8, 2023  By: /s/ Matthew Dunnigan
   Name: Matthew Dunnigan
   Title: Chief Financial Officer
(principal financial officer)
(duly authorized officer)
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