Restructuring and Related Activities

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure


Accelerating the Organization

In January 2023, the Company announced an evolution of its successful Accelerating the Arches strategy. Enhancements to the strategy include the addition of Restaurant Development to the Company’s growth pillars and an internal effort to modernize ways of working, Accelerating the Organization, both of which are aimed at elevating the Company’s performance. 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 $249.7 million of costs related to Accelerating the Organization for the year ended December 31, 2023. These costs were recorded in the Other operating (income) expense, net line within the consolidated statement of income. Restructuring costs primarily consist of employee termination benefits, costs to terminate contracts, including lease terminations, and professional services and other costs. Professional services and other costs primarily relate to expenses incurred for legal and consulting activities. There were no significant non-cash impairment charges included in the amounts listed in the table below.

The following table summarizes the balance of accrued expenses related to this strategic initiative (in millions):


	Employee Termination Benefits		Costs to Terminate Contracts		Other Related Costs		Total
2023
Beginning Balance	$	—	$	—	$	—	$	—
Restructuring Costs Incurred	110.3		26.9		43.3		180.5
Cash Payments	(1.5)		(1.4)		(0.3)		(3.2)
Other Non-Cash Items	—		—		(14.1)		(14.1)
Accrued Balance at March 31, 2023	$	108.8	$	25.5	$	28.9	$	163.2
Restructuring Costs Incurred	(8.8)		5.6		21.9		18.7
Cash Payments	(27.7)		(11.7)		(46.8)		(86.2)
Other Non-Cash Items	—		—		(2.5)		(2.5)
Accrued Balance at June 30, 2023	$	72.3	$	19.4	$	1.5	$	93.2
Restructuring Costs Incurred	(0.9)		—		21.4		20.5
Cash Payments	(13.0)		(7.4)		(15.3)		(35.7)
Other Non-Cash Items	(2.5)		—		0.1		(2.4)
Accrued Balance at September 30, 2023	$	55.9	$	12.0	$	7.7	$	75.6
Restructuring Costs Incurred	(5.0)		—		35.0		30.0
Cash Payments	(9.6)		(0.8)		(36.2)		(46.6)
Other Non-Cash Items	—		—		0.5		0.5
Accrued Balance at December 31, 2023	$	41.3	$	11.2	$	7.0	$	59.5

Of the $249.7 million of restructuring costs incurred for the year ended December 31, 2023, $62.4 million was recorded in the U.S., $65.6 million was recorded in the International Operated Markets segment and $121.7 million was recorded in the International Developmental Licensed Markets & Corporate segment, the majority of which was recorded at Corporate.

Substantially all of the accrued restructuring balance recorded at December 31, 2023, related to the Company’s Accelerating the Organization initiative, is expected to be paid out over the next twelve months.

As the Company furthers its operating model and technology transformation, primarily through its Global Businesses Services strategy, under Accelerating the Organization it will continue to incur various restructuring costs as the strategy progresses through its anticipated end date of 2027. Restructuring costs in 2024 are expected to be similar to what was incurred in 2023, and are expected to primarily consist of professional service fees.