For Burger King, what was the income tax expense (benefit) from continuing operations in 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Current: | |||
| Canadian | $ 96 | $ (47) $ | (284) |
| U.S. Federal | 113 | 77 | 105 |
| U.S. state, net of federal income tax benefit | 24 | 27 | 26 |
| Other Foreign | 136 | 108 | 96 |
| $ 369 | $ 165 | $ (57) | |
| Deferred: | |||
| Canadian | $ | (54) $ (37) $ | 20 |
| U.S. Federal | (23) | (18) | (79) |
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, the income tax expense from continuing operations in 2024 was $364 million. This figure represents the amount of income tax Burger King was required to pay on its profits from ongoing business activities during that year. It's important to note that this is an expense, meaning it reduces the company's net income.
In contrast, Burger King had an income tax benefit from continuing operations of $(265) million in 2023 and $(117) million in 2022. An income tax benefit typically arises when a company experiences losses or has deductible expenses that reduce its taxable income, resulting in a credit or refund on its taxes. The shift from a benefit in 2023 and 2022 to an expense in 2024 suggests a change in the company's profitability or tax situation.
For a prospective franchisee, understanding these figures provides insight into Burger King's financial performance and tax obligations. While franchisees do not directly pay Burger King's corporate income taxes, the overall financial health of the company can impact its ability to invest in brand development, marketing, and support for its franchisees. A consistent pattern of profitability and manageable tax expenses is generally a positive sign for potential investors.