table_specific

What were the total advertising expenses and other services expenses for the BK (Burger King) segment?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

and integration costs ("FHS Transaction costs"); and (iii) non-operating costs from professional advisory and consulting services associated with certain transformational corporate restructuring initiatives that rationalize our structure and optimize cash movements as well as services related to significant tax reform legislation and regulations ("Corporate restructuring and advisory fees").

The following tables present total segment revenues, significant segment expenses that are regularly reviewed by the CODM to manage and assess segment performance and segment income, as well as depreciation and amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions). For the periods referenced, segment franchise and property expenses ("Segment F&P expenses") for each segment excludes franchise agreement and reacquired franchise rights amortization and Segment G&A for each segment excludes RH Transaction costs, FHS Transaction costs and Corporate restructuring and advisory fees (each as defined below). For segment reporting purposes, capital expenditures include payments for additions of property and equipment during the period, as well as the change in accruals for additions of property and equipment since the prior period. For 2024, capital expenditures for RH excludes $7 million of accruals for additions of property and equipment assumed in connection with the Carrols Acquisition.

2024
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TH BK PLK FHS INTL RH ELIM Total
Revenues from external customers $ 4,040 $ 1,333 $ 768 $ 214 $ 935 $ 1,116 $ — $ 8,406
Intersegment revenues — 117 — — — — (117) —
Total revenues $ 4,040 $ 1,450 $ 768 $ 214 $ 935 $ 1,116 $ (117) $ 8,406
Operating costs and expenses:
Supply chain cost of sales 2,180 — — — — — — 2,180
Company restaurant expenses (a) 37 221 129 36 — 965 (60) 1,328
Segment F&P expenses 330 122 9 8 31 — (10) 490
Advertising expenses and other 307 558 303 70 90 49 (47) 1,330
services
Segment G&A 158 139 84 51 200 59 — 691
Adjustments:
Cash distributions received from 15 — — — — — — 15
equity method investments
Adjusted Operating Income 1,043 410 243 48 614 44 — 2,402
Additional segment information:
Depreciation and amortization 111 49 13 5 27 59 — 264
(Income) loss from equity method (15) (78) — — 24 — — (69)
investments
Capital expenditures 47 72 23 6 11 86 — 245

(a) The components of Company restaurant expenses for our RH segment are included below.

TH BK PLK FHS INTL Total
Total revenues $ 3,972 $ 1,297 $ 692 $ 187 $ 874 $ 7,022
Operating costs and expenses:
Supply chain cost of sales 2,193 — — — — 2,193
Company restaurant expenses 38 90 80 34 — 242
Segment F&P expenses 319 133 10 8 11 481
Advertising expenses and other 309 543 295 49 77 1,273
services
Segment G&A 168 145 86 58 190 647
Adjustments:
Cash distributions received from 14 — — — — 14
equity method investments
Adjusted Operating Income 958 386 221 38 597 2,200
Additional segment information:
Depreciation and amortization 108 46 11 4 22 191
(Income) loss from equity method (15) 8 — — (1) (8)
investments
Capital expenditures 51 37 9 4 19 120

2022
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TH BK PLK FHS INTL Total
Total revenues $ 3,801 $ 1,196 $ 619 $ 138 $ 751 $ 6,505
Operating costs and expenses:
Supply chain cost of sales 2,093 — — — — 2,093
Company restaurant expenses 38 74 72 35 — 219
Segment F&P expenses 325 133 9 6 13 486
Advertising expenses and other 282 468 261 12 54 1,077
services
Segment G&A 151 126 72 52 160 561
Adjustments:
Cash distributions received from 13 — — — 2 15
equity method investments
Adjusted Operating Income 925 396 205 33 525

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 advertising expenses and other services for the Burger King (BK) segment are detailed in the Item 20 tables, which provide financial performance representations. These expenses reflect the costs associated with advertising, marketing, and related services managed by Burger King for its U.S. and Canadian operations, excluding results from Burger King restaurants acquired as part of the Carrols Acquisition. The tables present these expenses alongside other operating costs and revenues for different segments of the company.

In 2023, the advertising expenses and other services for the BK segment totaled $558. In 2022, these expenses amounted to $468. For an earlier period, the expenses were $543. These figures are part of a broader overview of the operating costs and expenses for Burger King, which also includes supply chain costs, company restaurant expenses, and general & administrative expenses.

For a prospective franchisee, understanding these advertising expenses is crucial. These costs are typically funded by franchisee contributions to advertising funds, calculated as a percentage of franchised restaurant sales. The funds are used for advertising, product development, marketing, and related activities. Additionally, other services revenues consist of tech fees and revenues that partially offset expenses related to technology initiatives. Reviewing these figures helps potential franchisees gauge the scale of marketing support and the associated costs, which can significantly impact their restaurant's performance and profitability.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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