What changed in this filing

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Item 1. Financial Statements

2025-05-12 compared with 2024-11-07 · 92 added, 141 removed, 310 unchanged (43% of the section changed)

1 unchanged sentence

CONDENSED CONSOLIDATED BALANCE SHEET

In millions, except per share data September 30,

In millions, except per share data March 31,

2025 December 31,

5 unchanged sentences

Total current assets 4,735 4,599

Investments in and advances to affiliates 2,960 1,080

Investments in affiliates 2,751 2,710

Goodwill 3,186 3,145

7 unchanged sentences

Total assets $ 56,329 $ 55,182

Liabilities and shareholders’ equity

Liabilities and shareholders’ equity (deficit)

Current liabilities

1 unchanged sentence

Accounts payable 882 1,029

Dividend Payable 1,265 —

Lease liability 663 636

27 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED)

Quarters Ended Nine Months Ended

September 30, September 30,

Quarters Ended

In millions, except per share data 2025 2024

Sales by Company-owned and operated restaurants $ 2,656 $ 2,556 $ 7,472 $ 7,267

Revenues from franchised restaurants $ 3,661 $ 3,723

Sales by Company-owned and operated restaurants 2,132 2,355

Other revenues 162 91

1 unchanged sentence

Operating costs and expenses

Company-owned and operated restaurant expenses 2,248 2,135 6,358 6,149

Franchised restaurants-occupancy expenses 620 627

Company-owned and operated restaurant expenses 1,859 2,035

Other restaurant expenses 140 68

17 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

Quarters Ended Nine Months Ended

September 30, September 30,

Quarters Ended

In millions 2025 2024

4 unchanged sentences

income ("AOCI"), including net investment hedges

188 ( 145 ) 101 ( 90 )

Reclassification of (gain) loss to net income — —

1 unchanged sentence

benefit (expense) of $ 136 and $( 93 )

182 ( 145 ) 136 ( 90 )

Cash flow hedges:

2 unchanged sentences

Cash flow hedges-net of tax benefit (expense) of $ 20 and $( 12 )

( 46 ) 51 ( 7 ) 31

Defined benefit pension plans:

3 unchanged sentences

of $ 0 and $ 1

( 11 ) 4 ( 10 ) —

Total other comprehensive income (loss), net of tax ( 4 ) ( 77 )

2 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

Quarters Ended Nine Months Ended

September 30, September 30,

Quarters Ended

In millions 2025 2024

18 unchanged sentences

Financing activities

Net short-term borrowings (repayments) 474 6 133 ( 137 )

Net short-term borrowings ( 792 ) ( 339 )

Long-term financing issuances 1,498 —

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)

For the nine months ended September 30, 2023

For the quarter ended March 31, 2024

issued Accumulated other

18 unchanged sentences

Stock option exercises and other 58 1.2 41 99

Balance at September 30, 2023 1,660.6 $ 17 $ 8,825 $ 62,649 $ ( 298 ) $ 62 $ ( 2,310 ) ( 935.3 ) $ ( 73,799 ) $ ( 4,855 )

For the nine months ended September 30, 2024

Balance at March 31, 2024 1,660.6 $ 17 $ 9,001 $ 64,203 $ ( 367 ) $ 32 $ ( 2,198 ) ( 939.9 ) $ ( 75,520 ) $ ( 4,833 )

For the quarter ended March 31, 2025

issued Accumulated other

18 unchanged sentences

Stock option exercises and other 98 1.4 49 147

Balance at September 30, 2024 1,660.6 $ 17 $ 9,194 $ 64,819 $ ( 377 ) $ ( 13 ) $ ( 1,947 ) ( 944.0 ) $ ( 76,870 ) $ ( 5,177 )

See Notes to condensed consolidated financial statements.

CONDENSED CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (UNAUDITED)

For the quarter ended September 30, 2023

issued Accumulated other

comprehensive income (loss) Common stock in

treasury Total

shareholders’

equity (deficit)

capital Retained

earnings Pensions Cash flow

hedges Foreign

In millions, except per share data Shares Amount Shares Amount

Balance at June 30, 2023 1,660.6 $ 17 $ 8,736 $ 61,437 $ ( 303 ) $ 11 $ ( 2,164 ) ( 931.9 ) $ ( 72,733 ) $ ( 4,999 )

Net income 2,317 2,317

Other comprehensive income (loss),

net of tax 4 51 ( 145 ) ( 90 )

Comprehensive income 2,227

Common stock cash dividends

($ 1.52 per share)

( 1,105 ) ( 1,105 )

Treasury stock purchases ( 3.6 ) ( 1,083 ) ( 1,083 )

Share-based compensation 43 43

Stock option exercises and other 46 0.2 16 62

Balance at September 30, 2023 1,660.6 $ 17 $ 8,825 $ 62,649 $ ( 298 ) $ 62 $ ( 2,310 ) ( 935.3 ) $ ( 73,799 ) $ ( 4,855 )

For the quarter ended September 30, 2024

issued Accumulated other

comprehensive income (loss) Common stock in

treasury Total

shareholders’

equity (deficit)

capital Retained

earnings Pensions Cash flow

hedges Foreign

In millions, except per share data Shares Amount Shares Amount

Balance at June 30, 2024 1,660.6 $ 17 $ 9,055 $ 65,026 $ ( 367 ) $ 33 $ ( 2,129 ) ( 943.3 ) $ ( 76,459 ) $ ( 4,824 )

Net income 2,255 2,255

Other comprehensive income (loss),

net of tax ( 11 ) ( 46 ) 182 125

Comprehensive income 2,380

Common stock cash dividends

($ 3.44 per share)

( 2,462 ) ( 2,462 )

Treasury stock purchases ( 1.6 ) ( 443 ) ( 443 )

Share-based compensation 40 40

Stock option exercises and other 100 1.0 33 133

Balance at September 30, 2024 1,660.6 $ 17 $ 9,194 $ 64,819 $ ( 377 ) $ ( 13 ) $ ( 1,947 ) ( 944.0 ) $ ( 76,870 ) $ ( 5,177 )

Balance at March 31, 2025 1,660.6 $ 17 $ 9,423 $ 67,436 $ ( 400 ) $ 52 $ ( 2,209 ) ( 945.6 ) $ ( 77,773 ) $ ( 3,454 )

See Notes to Condensed Consolidated Financial Statements.

4 unchanged sentences

In the opinion of management, all normal recurring adjustments necessary for a fair presentation have been included.

The results for the quarter and nine months ended September 30, 2024 do not necessarily indicate the results that may be expected for the full year.

Change in Presentation

In the first quarter of 2024, the Company changed its rounding presentation to the nearest whole number in millions of reported amounts, except per share data or as otherwise designated.

The change in rounding presentation has been applied to all prior year amounts presented.

In certain circumstances, this change adjusted previously reported balances, however, these changes were not significant, and no other changes were made to previously reported financial information.

Additionally, certain columns and rows within the financial statements and tables presented may not add due to rounding.

The results for the quarter ended March 31, 2025 do not necessarily indicate the results that may be expected for the full year.

Certain columns and rows within the financial statements and tables presented may not add due to rounding.

Percentages have been calculated from the underlying whole-dollar amounts for all periods presented.

1 unchanged sentence

The following table presents restaurant information by ownership type:

Restaurants at September 30, 2024 2023

Restaurants at March 31, 2025 2024

Conventional franchised 22,126 21,841

7 unchanged sentences

Diluted earnings per common share is calculated as net income divided by diluted weighted-average shares.

Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 3.3 million shares and 4.4 million shares for the quarters ended 2024 and 2023, respectively, and 3.6 million shares and 4.6 million shares for the nine months ended 2024 and 2023, respectively.

Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 2.0 million shares and 1.2 million shares for the quarters ended 2024 and 2023, respectively, and 2.0 million shares and 2.1 million shares for the nine months ended 2024 and 2023, respectively.

Diluted weighted-average shares include weighted-average shares outstanding plus the dilutive effect of share-based compensation, calculated using the treasury stock method, of 3.3 million shares and 4.1 million shares for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Share-based compensation awards that would have been antidilutive, and therefore were not included in the calculation of diluted weighted-average shares, totaled 2.2 million shares and 2.1 million shares for the quarters ended March 31, 2025 and March 31, 2024, respectively.

Recent Accounting Pronouncements

Recent Accounting Pronouncements Not Yet Adopted

Segment Reporting

In November 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures" ("ASU 2023-07").

The pronouncement expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024.

We are currently in the process of determining the impact that ASU 2023-07 will have on the Company's consolidated financial statement disclosures.

In December 2023, the FASB issued ASU No.

In December 2023, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No.

2023-09, "Income Taxes (Topic 740):

3 unchanged sentences

We are currently in the process of determining the impact that ASU 2023-09 will have on the Company's consolidated financial statement disclosures.

Disaggregation - Income Statement Expenses

In November 2024, the FASB issued ASU No.

2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses" ("ASU 2024-03").

The pronouncement expands the disclosure requirements for expenses, specifically by providing more detailed information about the types of expenses in commonly presented expense captions.

ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.

We are currently in the process of determining the impact that ASU 2024-03 will have on the Company's consolidated financial statement disclosures.

Accelerating the Organization

2 unchanged sentences

Accelerating the Organization is designed to unlock further growth as the Company focuses on becoming faster, more innovative and more efficient for its customers and people.

The Company incurred $ 146 million of restructuring charges related to Accelerating the Organization in the nine months ended September 30, 2024.

These charges were recorded in the Other operating (income) expense, net line within the consolidated statement of income, and primarily recorded within the Corporate segment.

For the period presented, restructuring charges primarily consisted of professional services costs.

The Company incurred $ 66 million and $ 44 million of restructuring charges related to Accelerating the Organization in the three months ended March 31, 2025 and 2024, respectively.

These restructuring charges were recorded in the Other operating (income) expense, net line within the Condensed Consolidated Statement of Income.

There were no significant non-cash impairment charges included in the amounts listed in the table below.

6 unchanged sentences

Accrued Balance at March 31, 2025 $ 35 $ 4 $ 34 $ 73

Restructuring Costs Incurred ( 1 ) — 58 57

Cash Payments ( 5 ) ( 1 ) ( 50 ) ( 56 )

Other Non-Cash Items — — — —

Accrued Balance at June 30, 2024 $ 21 $ 5 $ 14 $ 40

Restructuring Costs Incurred ( 1 ) — 47 46

Cash Payments ( 3 ) ( 1 ) ( 41 ) ( 45 )

Other Non-Cash Items — — 1 1

Accrued Balance at September 30, 2024 $ 17 $ 4 $ 21 $ 42

The Company continues to evolve its ways of working by driving efficiency and effectiveness across the organization, primarily led by its Global Business Services organization.

Transformation efforts under Accelerating the Organization will continue to result in various restructuring charges as the strategy progresses through its anticipated completion during 2027.

The Company expects to incur approximately $ 250 million of restructuring charges in 2024, primarily related to professional services costs.

Of the $ 66 million of restructuring charges incurred in the three months ended March 31, 2025, $ 48 million was recorded primarily at Corporate and $ 18 million was recorded in the International Operated Markets.

Substantially all of the accrued restructuring balance recorded at March 31, 2025, related to the Company's Accelerating the Organization initiative, is expected to be paid out over the next twelve months.

The Company continues to evolve its ways of working by driving efficiency and effectiveness across the organization, primarily led by its Global Business Services ("GBS") organization.

Transformation efforts under Accelerating the Organization will continue to result in various restructuring charges as the strategy progresses through its anticipated completion during 2027, with $ 537 million of total restructuring charges incurred since the initiative commenced in 2023.

The Company currently expects to incur approximately $ 300 million of restructuring charges in 2025, primarily related to professional services costs.

Equity Method Investments

2 unchanged sentences

The carrying value of the investment is also adjusted for any dividends received and the effect of foreign exchange.

The Company records its proportionate share of net income or loss within the Other operating (income) expense, net line on the consolidated statement of income.

The carrying value of the investments are recorded within the Investments in and advances to affiliates line on the consolidated balance sheet.

The Company records its proportionate share of net income or loss within the Other operating (income) expense, net line on the Condensed Consolidated Statement of Income.

The carrying value of the investments are recorded within the Investments in affiliates line on the Condensed Consolidated Balance Sheet.

The Company has elected to record dividends received from its equity method investments under the nature of distribution approach, which provides for the recording of such distributions within the cash provided by operations section of the Condensed Consolidated Statement of Cash Flows to the extent that such distributions are from the normal operating or financing activities of the investee.

The Company’s primary equity method investments include partial ownership in Grand Foods Holding, an entity that operates and manages McDonald's business in mainland China, Hong Kong and Macau, and partial ownership in McDonald’s Japan Holdings Co., Ltd, an entity that operates and manages McDonald’s business in Japan.

2 unchanged sentences

The following table summarizes the amounts related to the Company’s primary equity method investees during the periods presented.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

In Millions Percentage Ownership Fair Value (Level 1) Carrying Amount Percentage Ownership Fair Value (Level 1) Carrying Amount

1 unchanged sentence

McDonald's Japan Holdings Co., Ltd 35 % $ 1,788 $ 625 35 % $ 1,849 $ 590

On January 30, 2024, the Company acquired an additional 28 % ownership stake in Grand Foods Holding from the global investment firm Carlyle in exchange for $ 1.8 billion in cash.

The acquisition increased the Company's equity ownership to 48 %, but did not result in control of the entity.

As such, the Company remains a minority partner and will continue to account for the investment under the equity method.

As of September 30, 2024, the aggregate carrying amount of the Company's investments in these equity method investees exceeded its proportionate share of the net assets of these equity method investees by $ 1.4 billion.

As of March 31, 2025, the aggregate carrying amount of the Company's investments in these equity method investees exceeded its proportionate share of the net assets of these equity method investees by $ 1.5 billion.

This difference is not amortized.

Management has concluded that there are no indicators of impairment related to these investments.

The following table summarizes the amounts recorded related to the Company's primary equity method investments during the nine months ended September 30, 2024 and September 30, 2023, respectively.

Nine Months Ended September 30,

The following table summarizes the amounts recorded related to the Company's primary equity method investments during the three months ended March 31, 2025 and March 31, 2024, respectively.

Quarters Ended March 31,

In Millions 2025 2024

3 unchanged sentences

Dividends Received $ 15 $ 13

The effective income tax rate was 20.7 % and 20.7 % for the quarters ended 2024 and 2023, respectively, and 20.5 % and 19.7 % for the nine months ended 2024 and 2023, respectively.

The effective income tax rate was 19.8 % and 19.9 % for the three months ended March 31, 2025 and 2024, respectively.

Fair Value Measurements

6 unchanged sentences

There were no significant changes to the valuation techniques used to measure fair value as described in the Company's December 31, 2024 Annual Report on Form 10-K.

At September 30, 2024, the fair value of the Company’s debt obligations was estimated at $ 38.8 billion, compared to a carrying amount of $ 39.6 billion.

At March 31, 2025, the fair value of the Company’s debt obligations was estimated at $ 37.2 billion, compared to a carrying amount of $ 38.9 billion.

The fair value of debt obligations is based upon quoted market prices, classified as Level 2 within the valuation hierarchy.

6 unchanged sentences

Derivative Assets Derivative Liabilities

In millions Balance Sheet Classification September 30, 2024 December 31, 2023 Balance Sheet Classification September 30, 2024 December 31, 2023

In millions Balance Sheet Classification March 31, 2025 December 31, 2024 Balance Sheet Classification March 31, 2025 December 31, 2024

Derivatives designated as hedging instruments

10 unchanged sentences

— — Accrued payroll and other liabilities — —

Equity Miscellaneous other assets $ — $ 189

Total derivatives not designated as hedging instruments $ 146 $ 135 $ — $ —

Total derivatives $ 186 $ 334 $ ( 123 ) $ ( 41 )

The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the nine months ended September 30, 2024 and 2023, respectively:

The following table presents the pre-tax amounts from derivative instruments affecting income and AOCI for the three months ended March 31, 2025 and 2024, respectively:

Location of gain or loss

20 unchanged sentences

The Company enters into fair value hedges that convert a portion of its fixed rate debt into floating rate debt by use of interest rate swaps.

At September 30, 2024, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $ 795 million, which included a decrease of $ 39 million of cumulative hedging adjustments.

For the nine months ended September 30, 2024, the Company recognized a $ 22 million gain on the fair value of interest rate swaps, and a corresponding loss on the fair value of the related hedged debt instrument to interest expense.

At March 31, 2025, the carrying amount of fixed-rate debt that was effectively converted was an equivalent notional amount of $ 793 million, which included a decrease of $ 32 million of cumulative hedging adjustments.

For the three months ended March 31, 2025, the Company recognized an $ 8 million gain on the fair value of interest rate swaps, and a corresponding loss on the fair value of the related hedged debt instrument to interest expense.

Cash Flow Hedges

2 unchanged sentences

The hedges cover up to the next 18 months for certain exposures and are denominated in various currencies.

As of September 30, 2024, the Company had derivatives outstanding with an equivalent notional amount of $ 2.2 billion that hedged a portion of forecasted foreign currency denominated cash flows.

To protect against the variability of interest rates on anticipated bond issuances, the Company may use treasury locks to hedge a portion of expected future cash flows.

As of September 30, 2024, the Company had derivatives outstanding with a notional amount of $ 500 million that hedge a portion of forecasted cash flows.

Based on market conditions at September 30, 2024, the $ 12 million in cumulative cash flow hedging losses, after tax, is not expected to have a significant effect on the Company's earnings over the next 12 months.

As of March 31, 2025, the Company had derivatives outstanding with an equivalent notional amount of $ 2.1 billion that hedged a portion of forecasted foreign currency denominated cash flows.

Based on market conditions at March 31, 2025, the $ 52 million in cumulative cash flow hedging gains, after tax, is not expected to have a significant effect on the Company's earnings over the next 12 months.

Net Investment Hedges

1 unchanged sentence

Realized and unrealized translation adjustments from these hedges are included in shareholders' equity in the foreign currency translation component of Other comprehensive income ("OCI") and offset translation adjustments on the underlying net assets of foreign subsidiaries and affiliates, which also are recorded in OCI.

As of September 30, 2024, $ 14.3 billion of the Company's third-party foreign currency denominated debt, $ 560 million of the Company's intercompany foreign currency denominated debt and $ 1.8 billion of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates.

Undesignated Hedges

As of March 31, 2025, $ 12.9 billion of the Company's third-party foreign currency denominated debt, $ 176 million of the Company's intercompany foreign currency denominated debt and $ 3.3 billion of foreign currency derivatives were designated to hedge investments in certain foreign subsidiaries and affiliates.

Undesignated Derivatives

The Company enters into certain derivatives that are not designated for hedge accounting.

Therefore, the changes in the fair value of these derivatives are recognized immediately in earnings together with the gain or loss from the hedged balance sheet position.

As an example, the Company enters into equity derivative contracts, including total return swaps, to hedge market-driven changes in certain of its supplemental benefit plan liabilities.

As an example, the Company enters into equity derivative contracts, to hedge market-driven changes in certain of its supplemental benefit plan liabilities.

The Company may also use certain investments to hedge changes in these liabilities.

3 unchanged sentences

The Company is exposed to credit-related losses in the event of non-performance by its derivative counterparties.

The Company did not have significant exposure to any individual counterparty at September 30, 2024 and has master agreements that contain netting arrangements.

The Company did not have significant exposure to any individual counterparty at March 31, 2025 and has master agreements that contain netting arrangements.

For financial reporting purposes, the Company presents gross derivative balances in its financial statements and supplementary data, including for counterparties subject to netting arrangements.

Some of these agreements also require each party to post collateral if credit ratings fall below, or aggregate exposures exceed, certain contractual limits.

At September 30, 2024, the Company was required to post $ 122 million of collateral due to the negative fair value of certain derivative positions.

The Company's counterparties were not required to post collateral on any derivative position, other than on certain hedges of the Company’s supplemental benefit plan liabilities where the counterparties were required to post collateral on their liability positions.

At March 31, 2025, the Company was required to post $ 36 million of collateral due to the negative fair value of certain derivative positions.

Franchise Arrangements

Revenues from franchised restaurants consisted of:

Quarters Ended Nine Months Ended

September 30, September 30,

Quarters Ended

In millions 2025 2024

4 unchanged sentences

Segment Information

The Company operates under an organizational structure with the following global business segments reflecting how management reviews and evaluates operating performance:

- the Company's largest market.

The segment is 95 % franchised as of September 30, 2024.

• International Operated Markets - comprised of markets or countries in which the Company owns and operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K.

The segment is 89 % franchised as of September 30, 2024.

• International Developmental Licensed Markets & Corporate - comprised primarily of developmental licensee and affiliate markets in the McDonald’s System, including equity method investments in China and Japan.

Corporate activities are also reported in this segment.

The segment is 99 % franchised as of September 30, 2024.

The following table presents the Company’s revenues and operating income by segment:

Quarters Ended Nine Months Ended

September 30, September 30,

The Company operates under the following global organizational structure, reflecting how management reviews and evaluates operating performance:

segment - the Company's largest market.

The segment is 95 % franchised as of March 31, 2025.

• International Operated Markets segment - comprised of markets or countries in which the Company owns and operates and franchises restaurants, including Australia, Canada, France, Germany, Italy, Poland, Spain and the U.K.

The segment is 89 % franchised as of March 31, 2025 .

The International Developmental Licensed Markets are 99 % franchised as of March 31, 2025.

The Company's chief operating decision makers are the President and Chief Executive Officer ("CEO") and the Executive Vice President and Global Chief Financial Officer ("CFO").

Segment performance and resource allocation are evaluated based on one measure of a segment's profit or loss, operating income.

All intercompany revenues and expenses are eliminated in computing revenues and operating income.

Corporate general and administrative expenses consist of corporate office support costs in areas such as facilities, finance, human resources, information technology, legal, marketing, restaurant operations, supply chain and training.

Corporate assets include corporate cash and equivalents, financial instruments and office facilities.

Quarters Ended

In millions 2025 2024

3 unchanged sentences

Total Revenues $ 5,956 $ 6,169

Operating Income

International Operated Markets 301 298

International Developmental Licensed Markets & Corporate — 4

Total Franchised restaurants-occupancy expenses $ 620 $ 627

International Operated Markets 1,123 1,158

International Developmental Licensed Markets & Corporate 91 203

Total Company-operated restaurant expenses $ 1,859 $ 2,035

International Operated Markets 161 161

International Developmental Licensed Markets & Corporate 378 418

Total Selling, general, & administrative expenses $ 682 $ 720

International Operated Markets 42 5

International Developmental Licensed Markets & Corporate 20 21

Total Other segment items* $ 147 $ 51

$ 1,302 $ 1,395

2 unchanged sentences

Total Operating income $ 2,648 $ 2,736

Subsequent Events

The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission ("SEC").

There were no subsequent events that required recognition or disclosure.

$ 22,638 $ 22,333

International Operated Markets 24,723 23,521

International Developmental Licensed Markets & Corporate 8,968 7,659

Total Assets $ 56,329 $ 53,513

International Operated Markets 322 311

International Developmental Licensed Markets & Corporate 4 25

Total Capital expenditures $ 551 $ 547

International Operated Markets 182 177

International Developmental Licensed Markets & Corporate 98 86

Total Depreciation & amortization** $ 520 $ 510

*Other segment items is the difference between revenues less the significant expenses disclosed and operating income.

This includes other restaurant expenses and other operating expenses included in the Other operating (income) expense, net line within the Condensed Consolidated Statement of Income.

**Total depreciation & amortization is included within the respective expense lines disclosed above, such as Company-operated restaurant expenses, Franchised restaurants-occupancy expenses, and Selling, general & administrative expenses.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements