What was the investment in subsidiaries for RBILP related to Burger King as of December 31, 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
As discussed in Note 3, Carrols Acquisition, prior to May 16, 2024, we owned a 15% equity interest in Carrols, which was accounted for as an equity method investment. In connection with the Carrols Acquisition, we acquired the remaining 85% equity interest in Carrols, resulting in the Step Acquisition Gain. As a result of the Carrols Acquisition, Carrols became a wholly owned consolidated subsidiary beginning on May 16, 2024.
The aggregate carrying amount of our equity method investments was $113 million and $163 million as of December 31, 2024 and 2023, respectively, and is included as a component of Other assets, net in our 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 9.4% equity interest in Zamp S.A. (formerly BK Brasil Operação e Assessoria a Restaurantes S.A.) based on the quoted market price on December 31, 2024 is approximately $9 million. The aggregate market value of our 4.2% equity interest in TH International Limited based on the quoted market price on December 31, 2024 was approximately $5 million.
We have equity interests in entities that own or franchise Tim Hortons, Burger King and Popeyes restaurants.
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 aggregate carrying amount of equity method investments for Restaurant Brands International Limited Partnership (RBILP) was $113 million. This figure is included as a component of Other assets, net, in RBILP's consolidated balance sheets. The document also specifies that prior to May 16, 2024, RBILP owned a 15% equity interest in Carrols, which was accounted for as an equity method investment. Subsequently, RBILP acquired the remaining 85% equity interest in Carrols, making it a wholly-owned consolidated subsidiary.
Furthermore, the 2025 FDD notes that RBILP has equity interests in entities that own or franchise Tim Hortons, Burger King, and Popeyes restaurants. The aggregate market value of RBILP's 9.4% equity interest in Zamp S.A. (formerly BK Brasil Operação e Assessoria a Restaurantes S.A.) was approximately $9 million based on the quoted market price on December 31, 2024. Additionally, the aggregate market value of their 4.2% equity interest in TH International Limited was approximately $5 million on the same date.
For a potential Burger King franchisee, understanding these equity investments is crucial as it provides insight into the financial structure and strategic interests of the parent company. The investments in other restaurant brands and related entities could influence the overall direction and support provided to Burger King franchisees. It also highlights the interconnectedness of RBILP with other players in the quick-service restaurant industry, which could have implications for market dynamics and competitive strategies.