What was the total amount related to accumulated other comprehensive income (loss) for Burger King in 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | ||||
|---|---|---|---|---|---|---|
| Revenues: | ||||||
| Supply chain sales | $ 2,708 | $ | 2,679 | $ | 2,583 | |
| Company restaurant sales | 1,592 | 271 | 236 | |||
| Franchise and property revenues | 2,919 | 2,903 | 2,661 | |||
| Advertising revenues and other services | 1,187 | 1,169 | 1,025 | |||
| Total revenues | 8,406 | 7,022 | 6,505 | |||
| Operating costs and expenses: | ||||||
| Supply chain cost of sales | 2,180 | 2,193 | 2,093 | |||
| Company restaurant expenses | 1,328 | 242 | 219 | |||
| Franchise and property expenses | 544 | 512 | 518 | |||
| Advertising expenses and other services | 1,330 | 1,273 | 1,077 | |||
| General and administrative expenses | 733 | 704 | 631 | |||
| (Income) loss from equity method investments | (69) | (8) | 44 | |||
| Other operating expenses (income), net | (59) | 55 | 25 | |||
| Total operating costs and expenses | 5,987 | 4,971 | 4,607 | |||
| Income from operations | 2,419 | 2,051 | 1,898 | |||
| Interest expense, net | 577 | 582 | 533 | |||
| Loss on early extinguishment of debt | 33 | 16 | — | |||
| Income before income taxes | 1,809 | 1,453 | 1,365 | |||
| Income tax expense (benefit) | 364 | (265) | (117) | |||
| Net income | 1,445 | 1,718 | 1,482 | |||
| Net income attributable to noncontrolling interests (Note 13) | 424 | 528 | 474 | |||
| Net income attributable to common shareholders | $ 1,021 | $ | 1,190 | $ |
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 total amount related to accumulated other comprehensive income (loss) in 2024 was a loss of $540. This figure represents the sum of various adjustments and changes, including foreign currency translation adjustments, changes in the fair value of net investment hedges and cash flow hedges, and gains or losses recognized on defined benefit pension plans. These adjustments are net of tax effects, as indicated in the line items.
For a prospective Burger King franchisee, understanding this figure is crucial for assessing the overall financial health and stability of the company. While net income provides a snapshot of profitability, comprehensive income offers a broader view by including items that are not typically reflected in the income statement. A significant loss in other comprehensive income, as seen in 2024, could indicate potential risks or challenges that Burger King is facing, such as adverse currency movements or changes in investment values.
It's important to note that this $540 loss is part of a larger trend, as shown in the document. In 2023, the other comprehensive income (loss) was a loss of $12, while in 2022, it was a gain of $51. This volatility highlights the importance of considering multiple years of financial data to gain a comprehensive understanding of Burger King's financial performance. A prospective franchisee should discuss these trends with the franchisor to understand the underlying factors and potential implications for their investment.