What was the weighted average exercise price for Burger King options that were exercised in 2024?
Burger_King Franchise · 2025 FDDAnswer from 2025 FDD Document
options vested 20% on the first anniversary of the grant date, 40% on the second anniversary of the grant date and 100% on the third anniversary of the grant date. If an employee is terminated with cause or resigns before vesting, all stock options are forfeited. If there is an event such as a return of capital or dividend that is determined to be dilutive, the exercise price of the awards will be adjusted accordingly.
The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option awards granted in 2022 at the grant date. There were no significant stock option awards granted in 2024 or 2023.
| Risk-free interest rate | 3.92% |
|---|---|
| Expected term (in years) | 7.50 |
| Expected volatility | 30.0% |
| Expected dividen |
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 weighted average exercise price for options exercised in 2024 was $50.35. This figure represents the average price that holders of Burger King stock options paid to purchase shares of the company's stock when they exercised their options during that year.
For a prospective franchisee, this information provides insight into the financial structure and compensation practices within Burger King's parent company. While it doesn't directly impact the operations of a franchise, it can reflect the overall financial health and management strategies of the company. Understanding the exercise price of stock options can help franchisees gauge the perceived value and potential growth of the brand.
It's important to note that this data pertains to stock options granted by Burger King's parent company, Restaurant Brands International (RBI), to its employees and executives. The exercise of these options can influence the company's capital structure and potentially affect shareholder value. Franchisees may find this information useful in assessing the long-term stability and investment potential of the Burger King brand.