2023 Q1 Form 10-K Financial Statement

#000161875623000013 Filed on February 22, 2023

View on sec.gov

Income Statement

Concept 2023 Q1 2022 Q4 2022
Revenue $1.590B $1.689B $6.505B
YoY Change 9.58% 9.25% 13.35%
Cost Of Revenue $550.0M $619.0M $2.312B
YoY Change 11.34% 16.35% 22.33%
Gross Profit $1.040B $1.070B $4.193B
YoY Change 8.67% 5.52% 8.94%
Gross Profit Margin 65.41% 63.35% 64.46%
Selling, General & Admin $175.0M $585.0M $2.155B
YoY Change 31.58% 9.14% 12.06%
% of Gross Profit 16.83% 54.67% 51.4%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $46.00M $47.00M $135.0M
YoY Change -6.12% -7.84% -8.78%
% of Gross Profit 4.42% 4.39% 3.22%
Operating Expenses $175.0M $597.0M $2.194B
YoY Change 31.58% 10.35% 12.92%
Operating Profit $447.0M $473.0M $1.898B
YoY Change -0.67% 0.0% 1.01%
Interest Expense -$142.0M -$236.0M -$533.0M
YoY Change 11.81% 133.66% 5.54%
% of Operating Profit -31.77% -49.89% -28.08%
Other Income/Expense, Net
YoY Change
Pretax Income $305.0M $202.0M $1.365B
YoY Change -5.57% -30.1% 0.15%
Income Tax $28.00M -$134.0M -$117.0M
% Of Pretax Income 9.18% -66.34% -8.57%
Net Earnings $277.0M $229.0M $1.482B
YoY Change 2.59% 27.93% 18.28%
Net Earnings / Revenue 17.42% 13.56% 22.78%
Basic Earnings Per Share $0.61 $3.28
Diluted Earnings Per Share $0.61 $0.50 $3.25
COMMON SHARES
Basic Shares Outstanding 307.9M shares 305.9M shares 307.0M shares
Diluted Shares Outstanding 456.0M shares 455.0M shares

Balance Sheet

Concept 2023 Q1 2022 Q4 2022
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.033B $1.178B $1.178B
YoY Change 15.42% 8.37% 8.37%
Cash & Equivalents $1.033B $1.178B $1.178B
Short-Term Investments
Other Short-Term Assets $103.0M $123.0M $123.0M
YoY Change 14.44% 43.02% 43.02%
Inventory $145.0M $133.0M $133.0M
Prepaid Expenses
Receivables $612.0M $614.0M $614.0M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.893B $2.048B $2.048B
YoY Change 12.28% 12.78% 12.78%
LONG-TERM ASSETS
Property, Plant & Equipment $3.018B $1.400B $3.032B
YoY Change -4.49% -7.28% -4.2%
Goodwill $5.700B $5.688B
YoY Change -5.79% -5.29%
Intangibles $11.01B $10.99B
YoY Change -3.89% -3.73%
Long-Term Investments $152.0M $167.0M $82.00M
YoY Change -16.02% -13.92% 2.5%
Other Assets $827.0M $905.0M $905.0M
YoY Change 11.31% 18.77% 18.77%
Total Long-Term Assets $20.63B $20.70B $20.70B
YoY Change -3.97% -3.42% -3.42%
TOTAL ASSETS
Total Short-Term Assets $1.893B $2.048B $2.048B
Total Long-Term Assets $20.63B $20.70B $20.70B
Total Assets $22.53B $22.75B $22.75B
YoY Change -2.79% -2.15% -2.15%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $679.0M $758.0M $758.0M
YoY Change 6.59% 23.45% 23.45%
Accrued Expenses $415.0M $496.0M $496.0M
YoY Change 1.22% 7.36% 7.36%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $96.00M $95.00M $127.0M
YoY Change 35.21% 53.23% 32.29%
Total Short-Term Liabilities $1.882B $2.116B $2.116B
YoY Change 2.95% 12.67% 12.67%
LONG-TERM LIABILITIES
Long-Term Debt $12.82B $12.84B $13.15B
YoY Change -0.64% -0.6% -0.75%
Other Long-Term Liabilities $895.0M $872.0M $1.899B
YoY Change -47.01% -52.14% -34.34%
Total Long-Term Liabilities $13.72B $13.71B $15.05B
YoY Change -6.0% -6.97% -6.77%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.882B $2.116B $2.116B
Total Long-Term Liabilities $13.72B $13.71B $15.05B
Total Liabilities $18.22B $18.48B $20.25B
YoY Change -5.18% -4.72% -3.63%
SHAREHOLDERS EQUITY
Retained Earnings $1.134B $1.121B
YoY Change 41.04% 41.72%
Common Stock $2.157B $2.057B
YoY Change 4.76% -4.59%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $2.575B $2.499B $2.499B
YoY Change
Total Liabilities & Shareholders Equity $22.53B $22.75B $22.75B
YoY Change -2.79% -2.15% -2.15%

Cashflow Statement

Concept 2023 Q1 2022 Q4 2022
OPERATING ACTIVITIES
Net Income $277.0M $229.0M $1.482B
YoY Change 2.59% 27.93% 18.28%
Depreciation, Depletion And Amortization $46.00M $47.00M $135.0M
YoY Change -6.12% -7.84% -8.78%
Cash From Operating Activities $95.00M $423.0M $1.490B
YoY Change -59.4% -10.19% -13.67%
INVESTING ACTIVITIES
Capital Expenditures $18.00M $48.00M $100.0M
YoY Change 80.0% -233.33% -5.66%
Acquisitions $0.00 $12.00M
YoY Change -98.8%
Other Investing Activities $0.00 $50.00M $35.00M
YoY Change -100.0% -105.01% 150.0%
Cash From Investing Activities $0.00 $2.000M -$64.00M
YoY Change -100.0% -100.19% -94.2%
FINANCING ACTIVITIES
Cash Dividend Paid $243.0M $971.0M
YoY Change 0.83% -0.31%
Common Stock Issuance & Retirement, Net $296.0M
YoY Change -46.28%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -$240.0M -196.0M -$1.307B
YoY Change -43.66% 59.35% 19.58%
NET CHANGE
Cash From Operating Activities $95.00M 423.0M $1.490B
Cash From Investing Activities $0.00 2.000M -$64.00M
Cash From Financing Activities -$240.0M -196.0M -$1.307B
Net Change In Cash -$145.0M 229.0M $91.00M
YoY Change -24.48% -133.38% -119.24%
FREE CASH FLOW
Cash From Operating Activities $95.00M $423.0M $1.490B
Capital Expenditures $18.00M $48.00M $100.0M
Free Cash Flow $77.00M $375.0M $1.390B
YoY Change -65.63% -26.04% -14.2%

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CY2022Q4 us-gaap Number Of Countries In Which Entity Operates
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CY2022Q4 qsr Restaurants Owned By Franchisees Percentage
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1
CY2022 us-gaap Fiscal Period
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Fiscal YearWe operate on a monthly calendar, with a fiscal year that ends on December 31.
CY2022 us-gaap Prior Period Reclassification Adjustment Description
PriorPeriodReclassificationAdjustmentDescription
ReclassificationsCertain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial statements have been reclassified in order to be comparable with the current year classifications. These consist of the 2021 reclassification of $9 million of technology fee revenues from Franchise and property revenues to Advertising revenues and other services and $24 million of technology expenses from General and administrative expenses to Advertising expenses and other services. These reclassifications did not arise as a result of any changes to accounting policies and relate entirely to presentation with no effect on previously reported net income.
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CY2022 us-gaap Goodwill And Intangible Asset Impairment
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CY2022 us-gaap Revenue Recognition Leases
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Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted for in accordance with applicable accounting guidance for leases and are excluded from the scope of revenue recognition guidance.In certain instances, we provide incentives to franchisees in connection with restaurant renovations or other initiatives. These incentives may consist of cash consideration or non-cash consideration such as restaurant equipment. In general, these incentives are designed to support system-wide sales growth to increase our future revenues. The costs of these incentives are capitalized and amortized as a reduction in franchise and property revenue over the term of the contract to which the incentive relates.
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CY2021 qsr Exchange Of Noncontrolling Interests For Common Shares
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464000000 shares
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CY2022 qsr Effective Income Tax Rate Reconciliation Foreign Exchange Gain Loss
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DepreciationAndAmortizationExcludingOieDepreciation
201000000 usd
CY2020 qsr Depreciation And Amortization Excluding Oie Depreciation
DepreciationAndAmortizationExcludingOieDepreciation
189000000 usd
CY2022 us-gaap Operating Income Loss
OperatingIncomeLoss
1898000000 usd
CY2021 us-gaap Operating Income Loss
OperatingIncomeLoss
1879000000 usd
CY2020 us-gaap Operating Income Loss
OperatingIncomeLoss
1422000000 usd
CY2022 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-533000000 usd
CY2021 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-505000000 usd
CY2020 us-gaap Interest Income Expense Nonoperating Net
InterestIncomeExpenseNonoperatingNet
-508000000 usd
CY2022 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
0 usd
CY2021 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
-11000000 usd
CY2020 us-gaap Gains Losses On Extinguishment Of Debt
GainsLossesOnExtinguishmentOfDebt
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CY2022 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
-117000000 usd
CY2021 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
110000000 usd
CY2020 us-gaap Income Tax Expense Benefit
IncomeTaxExpenseBenefit
66000000 usd
CY2022 us-gaap Profit Loss
ProfitLoss
1482000000 usd
CY2021 us-gaap Profit Loss
ProfitLoss
1253000000 usd
CY2020 us-gaap Profit Loss
ProfitLoss
750000000 usd
CY2022 dei Auditor Name
AuditorName
KPMG LLP
CY2022 dei Auditor Location
AuditorLocation
Miami, FL
CY2022 dei Auditor Firm
AuditorFirmId
185

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