What was the net cash provided by operating activities for Burger King in 2023?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
ange of Partnership exchangeable units for RBI common shares | 9,398,876 | | 143 | _ | (18) | | (125) | | _ | | Noncontrolling interests distributions | _ | | _ | _ | _ | | (3) | | (3) | | Net income | _ | | _ | 1,190 | _ | | 528 | | 1,718 | | Other comprehensive income (loss) | _ | | _ | _ | (9) | | (3) | | (12) | | Balances at December 31, 2023 | 312,454,851 | $ | 1,973 | $ 1,599 | $ (706) | $ | 1,864 | $ | 4,730 | | Stock option exercises | 1,537,767 | | 78 | _ | _ | | _ | | 78 | | Share-based compensation | _ | | 161 | _ | _ | | _ | | 161 | | Issuance of shares | 3,874,784 | | 18 | _ | _ | | _ | | 18 | | Dividends declared on common shares ($2.32 per share) | _ | | _ | (744) | _ | | _ | | (744) | | Dividend equivalents declared on restricted stock units | _ | | 16 | (16) | _ | | _ | | _ | | Distributions declared by Partnership on partnership exchangeable units ($2.32 per unit) | _ | | _ | _ | _ | | (302) | | (302) | | Exchange of Partnership exchangeable units for RBI common shares | 6,559,187 | | 111 | _ | (16) | | (95) | | _ | | Noncontrolling interests distributions | _ | | _ | _ | _ | | (3) | | (3) | | Net income | _ | | _ | 1,021 | _ | | 424 | | 1,445 | | Other comprehensive income (loss) | | | | | (385) | | (155) | | (540) | | Balances at December 31, 2024 | 324,426,589 | $ | 2,357 | $ 1,860 | $ (1,107) | $ | 1,733 | $ | 4,843 |
Consolidated Statements of Cash Flows (In millions of U.S. dollars)
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $ 1,445 | $ 1,718 | $ 1,482 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 264 | 191 | 190 |
| Non-cash loss on early extinguishment of debt | 23 | 5 | — |
| Amortization of deferred financing costs and debt issuance discount | 25 | 27 | 28 |
| (Income) loss from equity method investments | (69) | (8) | 44 |
| Loss (gain) on remeasurement of foreign denominated transactions | (71) | 20 | (4) |
| Net (gains) losses on derivatives | (191) | (151) | (9) |
| Share-based compensation and non-cash incentive compensation expense | 172 | 194 | 136 |
| Deferred income taxes | (5) | (430) | (60) |
| Other | 19 | 26 | 19 |
| Changes in current assets and liabilities, excluding acquisitions and dispositions: | |||
| Accounts and notes receivable | 7 | (147) | (110) |
| Inventories and prepaids and other current assets | 30 | (43) | (61) |
| Accounts and drafts payable | (30) | 22 | 169 |
| Other accrued liabilities and gift card liability | (37) | 9 | 37 |
| Tenant inducements paid to franchisees | (38) | (32) | (26) |
| Other long-term assets and liabilities | (41) | (78) | (345) |
| Net cash provided by operating activities | 1,503 | 1,323 | 1,490 |
| Cash flows from investing activities: | |||
| Payments for additions of property and equipment | (201) | (120) | (100) |
| Net proceeds from disposal of assets, restaurant closures and refranchisings | 34 | 37 | 12 |
| Payment for purchase of Carrols Restaurant Group, net of cash acquired | (508) | — | — |
| Net payments fo |
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 net cash provided by operating activities in 2023 was $1,323 million. This indicates the cash flow generated from Burger King's core business operations during that year. This figure is derived by adjusting net income to account for non-cash items and changes in working capital.
Specifically, the calculation starts with a net income of $1,718 million. Adjustments are then made for items like depreciation and amortization ($191 million), non-cash loss on early extinguishment of debt ($5 million), amortization of deferred financing costs and debt issuance discount ($27 million), and other non-cash adjustments. Changes in assets and liabilities, such as accounts receivable (- $147 million) and inventories (- $43 million), are also factored in.
For a prospective franchisee, understanding the net cash provided by operating activities is crucial. It reflects the financial health and stability of Burger King as a franchise system. A positive and substantial figure, like the $1,323 million reported for 2023, suggests that the company is generating significant cash from its operations, which can be reinvested into the business, used for expansion, or distributed to shareholders. This can be a positive indicator of the overall strength and potential of the Burger King franchise.