What is the total value of Burger King's intangible assets, net?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
.25 | | Anti-dilutive securities outstanding | | 4 | | 5 | 6 |
(a) Diluted weighted average common shares and earnings per share may not recalculate exactly as it is calculated based on unrounded numbers.
Note 5. Property and Equipment, net
Property and equipment, net, consist of the following (in millions):
| | As of December 31, | | | | | |-------------------------------------------|--------------------|----|---------|--|--| | | 2024 | | 2023 | | | | Land | $ 952 | $ | 987 | | | | Buildings and improvements | 1,334 | | 1,193 | | | | Restaurant equipment | 310 | | 215 | | | | Furniture, fixtures, and other | 280 | | 347 | | | | Finance leases | 331 | | 335 | | | | Construction in progress | 116 3,323 | | 62 3,139 | | | | Accumulated depreciation and amortization | (1,087) | | (1,187) | | | | Property and equipment, net | $ 2,236 | $ | 1,952 | | | Depreciation and amortization expense on property and equipment totaled $186 million for 2024, $137 million for 2023 and $135 million for 2022.
Included in our property and equipment, net at December 31, 2024 and 2023 are $211 million and $226 million, respectively, of assets leased under finance leases (mostly buildings and improvements), net of accumulated depreciation and amortization of $120 million and $109 million, respectively.
Note 6. Intangible Assets, net and Goodwill
Intangible assets, net and goodwill consist of the following (in millions):
| | | | As of December 31, | | | | |
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 company's intangible assets, net, totaled $10,922 as of December 31, 2024. This figure represents the sum of identifiable assets subject to amortization and indefinite-lived intangible assets, less accumulated amortization. In the previous year, as of December 31, 2023, the intangible assets, net, amounted to $11,107.
The identifiable assets subject to amortization include franchise agreements, reacquired franchise rights, and favorable leases. As of December 31, 2024, franchise agreements had a net value of $338, reacquired franchise rights had a net value of $352, and favorable leases had a net value of $21. The indefinite-lived intangible assets include the Tim Hortons brand, the Burger King brand, the Popeyes brand, and the Firehouse Subs brand. As of December 31, 2024, the Tim Hortons brand was valued at $5,972, the Burger King brand at $2,068, the Popeyes brand at $1,355, and the Firehouse Subs brand at $816.
These intangible assets are crucial for Burger King's brand recognition and market position. Franchise agreements and reacquired franchise rights represent the legal rights to operate franchises, while favorable leases provide a financial advantage in property costs. The brand values of Tim Hortons, Burger King, Popeyes, and Firehouse Subs reflect the strength and reputation of these brands in the market. Goodwill, which is also listed, represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. As of December 31, 2024, the total goodwill was valued at $5,986 across various segments.
For a prospective franchisee, understanding the value and composition of these intangible assets is important. It highlights the established brand equity and the potential benefits of aligning with a well-known franchise system. The amortization of identifiable assets also indicates the ongoing expense associated with these assets, which can impact the overall financial performance of the franchise. The goodwill associated with different segments reflects the value of those specific business units, which can be relevant if considering investment in a particular area or brand.