What was the net value of property and equipment for Burger King as of December 31, 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
and vesting of RSUs will not affect the number of Class A common units or Partnership exchangeable units outstanding. However, the issuance of RBI shares by RBI in future periods will affect the allocation of net income attributable to common unitholders between Partnership's Class A common units and Partnership exchangeable units.
The following table summarizes the basic and diluted earnings per unit calculations (in millions, except per unit amounts):
| | 2024 | 2023 | | | 2022 | |--------------------------------------------
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 value of property and equipment as of December 31, 2024, was $2,236 million. This figure is after accounting for accumulated depreciation and amortization, which totaled $1,087 million as of the same date. In comparison, the net value of property and equipment as of December 31, 2023, was $1,952 million, with accumulated depreciation and amortization of $1,187 million.
This information is relevant for prospective Burger King franchisees as it provides insight into the company's asset base and how it manages its property and equipment. The net value reflects the book value of assets like land, buildings, restaurant equipment, furniture, fixtures, and finance leases, minus the accumulated depreciation. Depreciation and amortization are accounting methods used to allocate the cost of an asset over its useful life, reflecting the wear and tear or obsolescence of these assets.
The increase in net property and equipment from 2023 to 2024 suggests that Burger King may have invested in new assets or improved existing ones. For a franchisee, this could indicate a commitment by the franchisor to maintain and upgrade its facilities and equipment, which can positively impact the brand's image and operational efficiency. However, it's important to note that these figures represent the company's overall financial position and may not directly reflect the financial performance or asset base of individual franchise locations.
Prospective franchisees should consider these figures in conjunction with other financial data and information provided in the FDD to gain a comprehensive understanding of Burger King's financial health and investment strategies. It is also advisable to consult with a financial advisor to assess the implications of these figures for their own investment decisions.