What were the total operating costs and expenses for Burger King's TH segment in 2022?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
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 Tim Hortons (TH) segment's operating costs and expenses for 2022 included several categories. These were supply chain cost of sales, company restaurant expenses, segment F&P expenses, advertising expenses and other services, and segment G&A. The sum of these expenses provides insight into the financial structure of the TH segment.
Specifically, the supply chain cost of sales for the TH segment in 2022 was $2,093 million. Company restaurant expenses amounted to $38 million. Segment F&P expenses totaled $325 million. Advertising expenses and other services were $282 million, and Segment G&A (General & Administrative) expenses reached $151 million.
These figures represent the direct costs associated with operating the Tim Hortons segment within Burger King's portfolio. Prospective franchisees should consider these operating costs and expenses, as well as revenue figures, when evaluating the overall financial performance and potential profitability of the Burger King franchise system. Understanding these costs is crucial for assessing the financial health and stability of the TH segment and its contribution to Burger King's overall financial performance.