Restructuring and Related Activities

12 Months Ended

Dec. 31, 2024

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 included 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 $221 million of restructuring charges related to Accelerating the Organization for the year ended December 31, 2024, which brings total restructuring charges to $471 million since the initiative commenced. These restructuring charges were recorded in the Other operating (income) expense, net line within the Consolidated Statement of Income. For the current year, restructuring charges primarily consisted of professional services costs. 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		Professional Services and Other Costs		Total
2023
Accrued Balance at Beginning of Year	$	—	$	—	$	—	$	—
Restructuring Costs Incurred	96		32		122		250
Cash Payments	(52)		(21)		(99)		(172)
Other Non-Cash Items	(3)		—		(16)		(19)
Accrued Balance at December 31, 2023	$	41	$	11	$	7	$	59
2024
Accrued Balance at Beginning of Year	$	41	$	11	$	7	$	59
Restructuring Costs Incurred	6		1		214		221
Cash Payments	(24)		(8)		(205)		(237)
Other Non-Cash Items	—		—		(1)		(1)
Accrued Balance at December 31, 2024	$	23	$	4	$	15	$	42

Of the $221 million of restructuring charges incurred for the year ended December 31, 2024, $218 million was recorded in the International Developmental Licensed Markets & Corporate segment, the majority of which was recorded at Corporate, $2 million was recorded in the International Operated Markets segment and $1 million was recorded in the U.S.

Substantially all of the accrued restructuring balance recorded at December 31, 2024, 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 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. The Company currently expects to incur approximately $300 million of restructuring charges in 2025, primarily related to professional services costs.