As of December 31, 2024, what was the total debt, net, for Burger King?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
PLK China Acquisition"). In addition, Tims China issued us a $20 million three-year convertible note due June 28, 2027 and a $5 million three-year convertible note due August 15, 2027, which are included within other assets, net in the consolidated balance sheets as of December 31, 2024.
Note 8. Other Accrued Liabilities and Other Liabilities
Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions):
| As of December 31, | ||||
|---|---|---|---|---|
| 2024 | 2023 | |||
| Current: | ||||
| Distributions payable | $ | 262 | $ | 245 |
| Interest payable | 69 | 67 | ||
| Accrued compensation and benefits | 143 | 147 | ||
| Taxes payable | 228 | 129 | ||
| Deferred income | 71 | 77 | ||
| Accrued advertising expenses | 35 | 58 | ||
| Restructuring |
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 109–124)
What This Means (2025 FDD)
According to Burger King's 2025 Franchise Disclosure Document, as of December 31, 2024, the total debt, net, was $13,642. This figure is calculated after deducting unamortized deferred financing costs and deferred issuance discounts, which amounted to $117. The total long-term debt for Burger King was $13,455 after deducting current maturities of debt of $187.
For a prospective franchisee, understanding Burger King's debt structure is crucial as it reflects the financial stability and leverage of the company. A high debt level might indicate higher financial risk, potentially affecting the franchisor's ability to support franchisees during economic downturns or invest in new initiatives. Conversely, effective debt management can fuel growth and innovation, benefiting the entire franchise system.
It is important to note that this debt includes various term loans and senior notes with different interest rates and maturity dates. For instance, there are term loans like Term Loan B amounting to $4,726 and Term Loan A at $1,275, along with several First Lien Senior Notes due in different years. Monitoring these components can provide insights into the franchisor's repayment obligations and overall financial health. A prospective franchisee should consider these factors in their due diligence to assess the long-term viability and stability of the Burger King franchise.