What was the weighted average exercise price for Burger King options that were outstanding at January 1, 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-
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 outstanding options at January 1, 2024, was $60.23. This figure represents the average price that holders of these stock options would need to pay to exercise their right to purchase Burger King stock. The total number of options outstanding at that time was 6,198,000.
For a prospective franchisee, this information provides insight into the company's capital structure and employee compensation strategies. Stock options are a common tool used to incentivize employees and align their interests with the company's success. Understanding the terms and conditions of these options, such as the exercise price and vesting schedules, can offer a glimpse into the company's financial health and management philosophy.
It's important to note that this data reflects the situation as of January 1, 2024, and may have changed since then due to factors such as the granting of new options, the exercising or forfeiting of existing options, or adjustments to the exercise price. The FDD also mentions that no significant stock options were granted in 2024 or 2023. Franchisees should consider this information in the context of the overall financial picture of Burger King and its parent company.