What was the reported 'Adjusted Operating Income' for Burger King in 2022?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| Other | 939 | 874 | | 751 | | Total | $ 8,406 | $ 7,022 | $ | 6,505 |
(b) Only Canada and the United States represented 10% or more of our total revenues in each period presented.
Our CODM manages assets on a consolidated basis. Accordingly, segment assets are not reported to our CODM or used in his decisions to allocate resources or assess performance of the segments. Therefore, total segment assets and long-lived assets have not been disclosed.
Total long-lived assets by country are as follows (in millions):
| As of December 31, | |||||
|---|---|---|---|---|---|
| 2024 | 2023 | ||||
| By country: | |||||
| Canada | $ 1,435 | $ | 1,545 | ||
| United States | 2,684 | 1,578 | |||
| Other | 52 | 41 | |||
| Total | $ 4,171 | $ | 3,164 |
Long-lived assets include property and equipment, net
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 Adjusted Operating Income for Burger King (BK) in 2022 was $396 million. This figure is part of a broader segment income analysis that includes other brands under the same parent company, such as Tim Hortons (TH), Popeyes Louisiana Kitchen (PLK), Firehouse Subs (FHS), and International operations (INTL). The document also provides the Adjusted Operating Income for these other segments, allowing for a comparative view of each brand's performance.
Adjusted Operating Income is a key metric used by Burger King to assess the financial performance of its various segments. It represents income from operations adjusted to exclude certain items such as franchise agreement amortization, income or loss from equity method investments, and other non-recurring expenses. By excluding these items, Burger King aims to provide a clearer picture of the underlying profitability of each segment.
For a prospective franchisee, understanding the Adjusted Operating Income of Burger King is crucial. It provides insight into the brand's profitability and its contribution to the overall financial health of the parent company. While this figure represents the brand's overall performance, individual franchisee performance can vary based on location, management, and other factors. Therefore, it is important for potential franchisees to conduct their own due diligence and consider these factors when evaluating the franchise opportunity.
Furthermore, the FDD provides additional financial data, including total revenues, operating costs and expenses, depreciation and amortization, and capital expenditures for each segment. This information can be used to gain a more comprehensive understanding of Burger King's financial performance and to assess the potential risks and rewards of investing in a Burger King franchise.