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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 10-K
(Mark One)

ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934
For the fiscal year ended December 31, 2018
or

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934
For the transition period from to
Commission file number: 001-36786

RESTAURANT BRANDS INTERNATIONAL INC.

(Exact name of Registrant as Specified in Its Charter)

Canada 98-1202754
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)

130 King Street West, Suite 300

Toronto, Ontario M5X 1E1
(Address of Principal Executive Offices) (Zip Code)
(905) 845-6511
Registrant’s telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Name of each exchange on which registered
Common Shares, without par value New York Stock Exchange
Toronto Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
None

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes No
Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act. Yes No
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the
registrant was required to submit such files). Yes No
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is
not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller
reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer Accelerated filer

Non-accelerated filer Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange
Act). Yes No
The aggregate market value of the common equity held by non-affiliates of the registrant on June 30, 2018, computed by
reference to the closing price for such stock on the New York Stock Exchange on such date, was $14,582,123,297.
The number of shares outstanding of the registrant’s common shares as of February 11, 2019 was 251,557,945 shares.
DOCUMENTS INCORPORATED BY REFERENCE:
Portions of the registrant’s definitive proxy statement for the 2019 Annual and Special Meeting of Shareholders, which is to be
filed no later than 120 days after December 31, 2018, are incorporated by reference into Part III of this Form 10-K.
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RESTAURANT BRANDS INTERNATIONAL INC.

2018 FORM 10-K ANNUAL REPORT
TABLE OF CONTENTS

Page
PART I
Item 1. Business 4
Item 1A. Risk Factors 9
Item 1B. Unresolved Staff Comments 20
Item 2. Properties 20
Item 3. Legal Proceedings 21
Item 4. Mine Safety Disclosure 22
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 23
Item 6. Selected Financial Data 25
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 28
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 46
Item 8. Financial Statements and Supplementary Data 53
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 102
Item 9A. Controls and Procedures 102
PART III
Item 10. Directors, Executive Officers and Corporate Governance 102
Item 11. Executive Compensation 103
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 103
Item 13. Certain Relationships and Related Transactions, and Director Independence 104
Item 14. Principal Accounting Fees and Services 104
PART IV
Item 15. Exhibits and Financial Statement Schedules 105
Item 16. Form 10-K Summary 111

Tim Hortons® and Timbits® are trademarks of Tim Hortons Canadian IP Holdings Corporation. Burger King® and BK®
are trademarks of Burger King Corporation. Popeyes®, Popeyes Louisiana Kitchen® and Popeyes Chicken & Biscuits® are
trademarks of Popeyes Louisiana Kitchen, Inc. Unless the context otherwise requires, all references to “we”, “us”, “our” and
“Company” refer to Restaurant Brands International Inc. and its subsidiaries.

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Explanatory Note

We are the sole general partner of Restaurant Brands International Limited Partnership (“Partnership”), which is the indirect
parent of The TDL Group Corp. (“Tim Hortons”), Burger King Worldwide, Inc. (“Burger King”) and Popeyes Louisiana Kitchen, Inc.
(“Popeyes”). As a result of our controlling interest, we consolidate the financial results of Partnership and record a noncontrolling
interest for the portion of Partnership we do not own in our consolidated financial statements. Net income (loss) attributable to
noncontrolling interests on the consolidated statements of operations presents the portion of earnings or loss attributable to the
economic interest in Partnership owned by the holders of the noncontrolling interests. As sole general partner, we manage all of
Partnership’s operations and activities in accordance with the partnership agreement of Partnership (the “partnership agreement”).
We have established a conflicts committee composed entirely of “independent directors” (as such term is defined in the partnership
agreement) in order to consent to, approve or direct various enumerated actions on behalf of the Company (in its capacity as the
general partner of Partnership) in accordance with the terms of the partnership agreement.

Pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we are a successor
issuer to Burger King. Our common shares trade on the New York Stock Exchange and the Toronto Stock Exchange under the ticker
symbol “QSR”. In addition, the Class B exchangeable limited partnership units of Partnership (the “Partnership exchangeable
units”) are deemed to be registered under Section 12(b) of the Exchange Act, and Partnership is subject to the informational
requirements of the Exchange Act and the rules and regulations promulgated thereunder. The Partnership exchangeable units trade on
the Toronto Stock Exchange under the ticker symbol “QSP”.

Each of the Company and Partnership is a reporting issuer in each of the provinces and territories of Canada and, as a result,
is subject to Canadian continuous disclosure and other reporting obligations under applicable Canadian securities laws. This Annual
Report on Form 10-K constitutes the Company’s Annual Information Form for purposes of its Canadian continuous disclosure
obligations under National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”). Pursuant to an application for
exemptive relief made in accordance with National Policy 11-203 – Process for Exemptive Relief Applications in Multiple
Jurisdictions, Partnership has received exemptive relief dated October 31, 2014 from the Canadian securities regulators. This
exemptive relief exempts Partnership from the continuous disclosure requirements of NI 51-102, effectively allowing Partnership to
satisfy its Canadian continuous disclosure obligations by relying on the Canadian continuous disclosure documents filed by the
Company, for so long as certain conditions are satisfied. Among these conditions is a requirement that Partnership concurrently send
to all holders of the Partnership exchangeable units all disclosure materials that the Company sends to its shareholders and a
requirement that Partnership separately report all material changes in respect of Partnership that are not also material changes in
respect of the Company.

All references to “$” or “dollars” in this report are to the currency of the United States unless otherwise indicated. All
references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated.

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Part I

Item 1. Business

Company Overview

We are a Canadian corporation originally formed on August 25, 2014 to serve as the indirect holding company for Tim Hortons
and its consolidated subsidiaries and Burger King and its consolidated subsidiaries, and, since our acquisition of Popeyes in March
2017, Popeyes and its consolidated subsidiaries. We are one of the world’s largest quick service restaurant (“QSR”) companies with
more than $30 billion in system-wide sales and over 25,000 restaurants in more than 100 countries and U.S. territories as of
December 31, 2018. Our Tim Hortons®, Burger King® and Popeyes® brands have similar franchise business models with
complementary daypart mixes and product platforms. Our three iconic brands are managed independently while benefiting from
global scale and sharing of best practices. As of December 31, 2018, approximately 100% of total restaurants for each of our brands
was franchised.

Our business generates revenue from the following sources: (i) franchise revenues, consisting primarily of royalties based on a
percentage of sales reported by franchise restaurants and franchise fees paid by franchisees; (ii) property revenues from properties we
lease or sublease to franchisees; and (iii) sales at restaurants owned by us (“Company restaurants”). In addition, our Tim Hortons
business generates revenue from sales to franchisees related to our supply chain operations, including manufacturing, procurement,
warehousing and distribution, as well as sales to retailers.

Our Tim Hortons® Brand

Founded in 1964, Tim Hortons (“TH”) is one of the largest donut/coffee/tea restaurant chains in North America and the largest
in Canada as measured by total number of restaurants. As of December 31, 2018, we owned or franchised a total of 4,846 TH
restaurants. TH restaurants are quick service restaurants with a menu that includes premium blend coffee, tea, espresso-based hot and
cold specialty drinks, fresh baked goods, including donuts, Timbits®, bagels, muffins, cookies and pastries, grilled paninis, classic
sandwiches, wraps, soups and more.

Our Burger King® Brand

Founded in 1954, Burger King (“BK”) is the world’s second largest fast food hamburger restaurant (“FFHR”) chain as measured
by total number of restaurants. As of December 31, 2018, we owned or franchised a total of 17,796 BK restaurants in more than 100
countries and U.S. territories. BK restaurants are quick service restaurants that feature flame-grilled hamburgers, chicken and other
specialty sandwiches, french fries, soft drinks and other affordably-priced food items.

Our Popeyes® Brand

Founded in 1972, Popeyes (“PLK”) is the world’s second largest quick service chicken concept as measured by total number of
restaurants. As of December 31, 2018, we owned or franchised a total of 3,102 PLK restaurants. PLK restaurants are quick service
restaurants that distinguish themselves with a unique “Louisiana” style menu featuring spicy chicken, chicken tenders, fried shrimp
and other seafood, red beans and rice and other regional items.

Our Business Strategy

We believe that we have created a financially strong company built upon a foundation of three thriving, independent brands with
significant global growth potential and the opportunity to be one of the most efficient franchised QSR operators in the world through
our focus on the following strategies:

• accelerating net restaurant growth;

• enhancing guest service and experience at our restaurants through comprehensive training, improved restaurant
operations, reimaged restaurants and appealing menu options;
• increasing restaurant sales and profitability which are critical to the success of our franchise partners and our ability
to grow our brands around the world;
• utilizing technological and digital initiatives to interact with our guests and modernize the operations of our
restaurants;
• efficiently managing costs and sharing best practices; and
• preserving the rich heritage of each of our brands by managing them and their respective franchisee relationships
independently and continuing to play a prominent role in local communities.

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Operating Segments

Our business consists of three operating segments, which are also our reportable segments: (1) TH; (2) BK; and (3) PLK.
Additional financial information about our reportable segments can be found in “Management’s Discussion and Analysis of Financial
Condition and Results of Operations.”

Restaurant Development

As part of our development approach for our brands in the U.S., we have granted limited development rights in specific areas to
franchisees in connection with area development agreements. We expect to enter into similar arrangements in 2019 and beyond. In
Canada, we have not granted exclusive or protected areas to any BK or TH franchisees, with limited exceptions.

As part of our international growth strategy for all of our brands, we have established master franchise and development
agreements in a number of markets. For BK and TH, we have also created strategic master franchise joint ventures in which we
received a meaningful minority equity stake in each joint venture. We will continue to evaluate opportunities to accelerate
international development of all three of our brands, including through the establishment of master franchises with exclusive
development rights and joint ventures with new and existing franchisees.

Advertising and Promotions

In general, franchisees fund substantially all of the marketing programs for each of our brands by making contributions ranging
from 2.0% to 5.0% of gross sales to advertising funds managed by us or by the franchisees. Advertising contributions are used to pay
for expenses relating to marketing, advertising and promotion, including market research, production, advertising costs, sales
promotions, social media campaigns, technology initiatives and other support functions for the respective brands.

We manage the advertising funds for each of our brands in the U.S. and Canada, as well as in certain other markets for BK.
However, in many international markets, including the markets managed by master franchisees, franchisees make contributions into
franchisee-managed advertising funds. As part of our global marketing strategy, we provide franchisees with advertising support and
guidance in order to deliver a consistent global brand message.

Product Development

New product development is a key driver of the long-term success of our brands. We believe the development of new products
can drive traffic by expanding our customer base, allowing restaurants to expand into new dayparts, and continuing to build brand
leadership in food quality and taste. Based on guest feedback, we drive product innovation in order to satisfy the needs of our guests
around the world. This strategy will continue to be a focus in 2019 and beyond.

Operations Support

Our operations strategy is designed to deliver best-in-class restaurant operations by our franchisees and to improve friendliness,
cleanliness, speed of service and overall guest satisfaction. Each of our brands has uniform operating standards and specifications
relating to product quality, cleanliness and maintenance of the premises. In addition, our restaurants are required to be operated in
accordance with quality assurance and health standards that each brand has established, as well as standards set by applicable
governmental laws and regulations. Each franchisee typically participates in initial and ongoing training programs to learn all aspects
of operating a restaurant in accordance with each brand’s operating standards.

Manufacturing, Supply and Distribution

In general, we approve the manufacturers of the food, packaging, equipment and other products used in restaurants for each of
our brands. We have a comprehensive supplier approval process, which requires all products to pass our quality standards and the
supplier’s manufacturing process and facilities to pass on-site food safety inspections. Our franchisees are required to purchase
substantially all food and other products from approved suppliers and distributors.

TH products are sourced from a combination of third-party suppliers and our own manufacturing facilities. To protect our
proprietary blends, we operate two coffee roasting facilities in Ancaster, Ontario and Rochester, New York, where we blend all of the
coffee for our TH restaurants and, where practical, for our take home, packaged coffee. Our fondant and fills manufacturing facility in
Oakville, Ontario produces, and is the primary supplier of, the ready-to-use glaze, fondants, fills and syrups which are used in a
number of TH products. As of December 31, 2018, we have only one or a few suppliers to service each category of products sold at
our system restaurants.

We sell most raw materials and supplies, including coffee, sugar, paper goods and other restaurant supplies, to TH restaurants in
Canada and the U.S. We purchase those raw materials from multiple suppliers and generally have alternative sources of supply for
each. While we have multiple suppliers for coffee from various coffee-producing regions, the available supply and price for high-

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quality coffee beans can fluctuate dramatically. Accordingly, we monitor world market conditions for green (unroasted) coffee and
contract for future supply volumes to obtain expected requirements of high-quality coffee beans at acceptable prices.

Our TH business has significant supply chain operations, including procurement, warehousing and distribution, to supply paper
and dry goods to a substantial majority of our Canadian restaurants, and procure and supply frozen baked goods and some refrigerated
products to most of our Ontario and Quebec restaurants. We act as a distributor to TH restaurants in Canada through five distribution
centers located in Canada. In 2018, we announced plans to build two new warehouses in Western Canada and to renovate an existing
warehouse in Eastern Canada to facilitate the supply of frozen and refrigerated products in those markets. We expect to complete these
projects in 2020. We own or lease a significant number of trucks and trailers that regularly deliver to most of our Canadian restaurants.
In the U.S., we supply similar products to system restaurants through third-party distributors.

All of the products used in our BK and PLK restaurants are sourced from third-party suppliers. In the U.S. and Canada, there is a
purchasing cooperative for each brand that negotiates the purchase terms for most equipment, food, beverages (other than branded soft
drinks which we negotiate separately under long-term agreements) and other products used in BK and PLK restaurants. The
purchasing agent is also authorized to purchase and manage distribution services on behalf of most of the BK and PLK restaurants in
the U.S. and Canada. PLK also utilizes exclusive suppliers for certain of its proprietary products. As of December 31, 2018, four
distributors serviced approximately 87% of BK restaurants in the U.S. and five distributors serviced approximately 85% of PLK
restaurants in the U.S.

In 2000, Burger King Corporation entered into long-term exclusive contracts with The Coca-Cola Company and Dr Pepper/
Snapple, Inc. to supply BK restaurants with their products and which obligate restaurants in the U.S. to purchase a specified number of
gallons of soft drink syrup. These volume commitments are not subject to any time limit. As of December 31, 2018, we estimate that it
will take approximately 7 years to complete the Coca-Cola purchase commitment and approximately 11 years to complete the Dr
Pepper/Snapple, Inc. purchase commitment. If these agreements were terminated, we would be obligated to pay an aggregate amount
equal to approximately $413 million as of December 31, 2018 based on an amount per gallon for each gallon of soft drink syrup
remaining in the purchase commitments, interest and certain other costs. We have also entered into long-term beverage supply
arrangements with certain major beverage vendors for the TH and PLK brands in the U.S. and Canada.

Franchise Agreements and Other Arrangements

General. We grant franchisees the right to operate restaurants using our trademarks, trade dress and other intellectual property,
uniform operating procedures, consistent quality of products and services and standard procedures for inventory control and
management. For each franchise restaurant, we generally enter into a franchise agreement covering a standard set of terms and
conditions. Recurring fees consist of periodic royalty and advertising payments. Franchisees report gross sales on a monthly or weekly
basis and pay royalties based on gross sales.

Franchise agreements are generally not assignable without our consent. Our TH franchise agreements grant us the right to
reacquire a restaurant under certain circumstances, and our BK and PLK franchise agreements generally have a right of first refusal if
a franchisee proposes to sell a restaurant. Defaults (including non-payment of royalties or advertising contributions, or failure to
operate in compliance with our standards) can lead to termination of the franchise agreement.

U.S. and Canada. TH franchisees in the U.S. and Canada operate under several types of license agreements, with a typical term
for a standard restaurant of 10 years plus renewal period(s) of 10 years in the aggregate for Canada and a typical term of 20 years for
the U.S. TH franchisees who lease land and/or buildings from us typically pay a royalty of 3.0% to 4.5% of weekly restaurant gross
sales. Our license agreements contemplate a one-time franchise fee which must be paid in full before the restaurant opens for business
and upon the grant of an additional term. Under a separate lease or sublease, TH franchisees typically pay monthly rent based on the
greater of a fixed monthly payment and contingent rental payments based on a percentage (usually 8.5% to 10.0%) of monthly gross
sales or flow through monthly rent based on the terms of an underlying lease. Where the franchisee owns the premises, leases it from a
third party or enters into a flow through lease with TH, the royalty is typically increased. In addition, the royalty rates under license
agreements entered into in connection with non-standard restaurants, including self-serve kiosks and strategic alliances with third
parties, may vary from those described above and are negotiated on a case-by-case basis.

The typical BK and PLK franchise agreement in the U.S. and Canada has a 20-year term and contemplates a one-time franchise
fee. Subject to the incentive programs described below, most new BK franchise restaurants in the U.S. and Canada pay a royalty on
gross sales of 4.5% and most PLK restaurants in the U.S. and Canada pay a royalty on gross sales of 5.0%. BK franchise agreements
typically provide for a 20-year renewal term, and PLK franchise agreements typically provide for two 10-year renewal terms.

In an effort to improve the image of our BK restaurants in the U.S., we offered U.S. franchisees reduced up-front franchise fees
and limited-term royalty and advertising fund rate reductions to remodel restaurants to our modern image during 2016, 2017 and 2018
and we plan to continue to offer remodel incentives to U.S. franchisees during 2019. These limited-term incentive programs are
expected to negatively impact our effective royalty rate until 2027. However, we expect this impact to be partially mitigated as
incentive programs granted in prior years will expire and we will also be entering into new franchise agreements for BK restaurants in
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the U.S. with a 4.5% royalty rate. For PLK, we offered development incentive programs in 2017 pursuant to which we reduced or
waived franchise fees and royalty payments to encourage our PLK franchisees to develop and open new restaurants. Most of these
programs were discontinued in 2018.

International. Historically, we entered into franchise agreements for each BK restaurant in our international markets with up-
front franchise fees and monthly royalties and advertising contributions typically of up to 5.0% of gross sales. However, as part of the
international growth strategy for each of our brands, we have entered into master franchise agreements or development agreements
that grant franchisees exclusive or non-exclusive development rights and, in some cases, require them to provide support services to
other franchisees in their markets. In 2018, we entered into master franchise agreements for the TH brand in China, for the PLK brand
in Brazil and the Philippines, and for the BK brand in the Netherlands. The up-front franchise fees and royalty rate paid by master
franchisees or exclusive developers vary from country to country, depending on the facts and circumstances of each market. We expect
to continue implementing similar arrangements for our brands in 2019 and beyond.

Franchise Restaurant Leases. We leased or subleased 3,571 properties to TH franchisees, 1,634 properties to BK franchisees,
and 79 properties to PLK franchisees as of December 31, 2018 pursuant to separate lease agreements with these franchisees. For
properties that we lease from third-party landlords and sublease to franchisees, our leases generally provide for fixed rental payments
and may provide for contingent rental payments based on a restaurant’s annual gross sales. Franchisees who lease land only or land
and building from us do so on a “triple net” basis. Under these triple net leases, the franchisee is obligated to pay all costs and
expenses, including all real property taxes and assessments, repairs and maintenance and insurance.

Intellectual Property

We own valuable intellectual property relating to our brands, including trademarks, service marks, patents, copyrights, trade
secrets and other proprietary information, some of which are of material importance to our TH, BK and PLK businesses. We have
established the standards and specifications for most of the goods and services used in the development, improvement and operation of
our restaurants. These proprietary standards, specifications and restaurant operating procedures are our trade secrets. Additionally, we
own certain patents of varying duration relating to equipment used in BK and TH restaurants.

Competition

Each of our brands competes in the U.S., Canada and internationally with many well-established food service companies on the
basis of product choice, quality, affordability, service and location. With few barriers to entry to the restaurant industry, our
competitors include a variety of independent local operators, in addition to well-capitalized regional, national and international
restaurant chains and franchises, and new competitors may emerge at any time. We also compete for consumer dining dollars with
national, regional and local (i) quick service restaurants that offer alternative menus, (ii) casual and “fast casual” restaurant chains and
(iii) convenience stores and grocery stores. Furthermore, delivery aggregators and other food delivery services provide consumers
with convenient access to a broad range of competing restaurant chains and food retailers, particularly in urban areas.

Government Regulations and Affairs

General. We and our franchisees are subject to various laws and regulations including (i) licensing and regulation relating to
health, food preparation, sanitation and safety standards and, for our distribution business, traffic and transportation regulations;
(ii) information security, privacy and consumer protection laws; and (iii) other laws regulating the design, accessibility and operation
of facilities, such as the Americans with Disabilities Act of 1990, the Accessibility for Ontarians with Disabilities Act and similar
Canadian federal and provincial legislation that can have a significant impact on our franchisees and our performance. These
regulations include food safety regulations, including supervision by the U.S. Food and Drug Administration and its international
equivalents, which govern the manufacture, labeling, packaging and safety of food. In addition, we are or may become subject to
legislation or regulation seeking to tax and/or regulate high-fat, high-calorie and high-sodium foods, particularly in Canada, the U.S.,
the United Kingdom and Spain. Certain countries, provinces, states and municipalities have approved menu labeling legislation that
requires restaurant chains to provide caloric information on menu boards, and menu labeling legislation has also been adopted on the
U.S. federal level as well as in Ontario.

U.S. and Canada. Our restaurants must comply with licensing requirements and regulations by a number of governmental
authorities, which include zoning, health, safety, sanitation, building and fire agencies in the jurisdiction in which the restaurant is
located. We and our franchisees are also subject to various employment laws, including laws governing union organizing, working
conditions, work authorization requirements, health insurance, overtime and wages. In addition, we and our U.S. franchisees are
subject to the Patient Protection and Affordable Care Act.

We are subject to federal franchising laws adopted by the U.S. Federal Trade Commission (the “FTC”) and state and provincial
franchising laws. Much of the legislation and rules adopted have been aimed at providing detailed disclosure to a prospective
franchisee, duties of good faith as between the franchisor and the franchisee, and/or periodic registration by the franchisor with

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applicable regulatory agencies. Additionally, some U.S. states have enacted or are considering enacting legislation that governs the
termination or non-renewal of a franchise agreement and other aspects of the franchise relationship.

International. Internationally, we and our franchisees are subject to national and local laws and regulations that often are similar
to those affecting us and our franchisees in the U.S. and Canada. We and our franchisees are also subject to a variety of tariffs and
regulations on imported commodities and equipment, and laws regulating foreign investment.

Environmental Matters

Various laws concerning the handling, storage and disposal of hazardous materials and restaurant waste and the operation of
restaurants in environmentally sensitive locations may impact aspects of our operations and the operations of our franchisees;
however, we do not believe that compliance with applicable environmental regulations will have a material effect on our capital
expenditures, financial condition, results of operations, or competitive position. Increased focus by U.S., Canadian and international
governmental authorities on environmental matters is likely to lead to new governmental initiatives, particularly in the area of climate
change. While we cannot predict the precise nature of these initiatives, we expect that they may impact our business both directly and
indirectly. There is a possibility that government initiatives, or actual or perceived effect of changes in weather patterns, climate or
water resources could have a direct impact on the operations of our brands in ways that we cannot predict at this time.

Seasonal Operations

Our restaurant sales are typically higher in the spring and summer months when the weather is warmer and typically lowest
during the winter months. Furthermore, adverse weather conditions can have material adverse effects on restaurant sales. The timing
of holidays may also impact restaurant sales. Because our businesses are moderately seasonal, results for any one quarter are not
necessarily indicative of the results that may be achieved for any other quarter or for the full fiscal year.

Our Employees

As of December 31, 2018, we had approximately 6,000 employees in our restaurant support centers, regional offices,
distribution centers, manufacturing facilities, field operations and Company restaurants. Our franchisees are independent business
owners so their employees are not our employees and therefore are not included in our employee count.

Available Information

We make available free of charge on or through the Investor Relations section of our internet website at www.rbi.com, all
materials that we file electronically with the Securities and Exchange Commission (the “SEC”), including this annual report on Form
10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably
practicable after electronically filing or furnishing such material with the SEC and with the Canadian Securities Administrators. This
information is also available at www.sec.gov, an internet site maintained by the SEC that contains reports, proxy and information
statements and other information regarding issuers that file electronically with the SEC, and on the System for Electronic Document
Analysis and Retrieval (“SEDAR”) at www.sedar.com, a website maintained by the Canadian Securities Administrators. The
references to our website address, the SEC’s website address and the website maintained by the Canadian Securities Administrators do
not constitute incorporation by reference of the information contained in these websites and should be not considered part of this
document.

A copy of our Corporate Governance Guidelines, Code of Business Ethics and Conduct for Non-Restaurant Employees, Code of
Ethics for Executive Officers, Code of Conduct for Directors and the Charters of the Audit Committee, Compensation Committee,
Nominating and Corporate Governance Committee, Conflicts Committee and Operations and Strategy Committee of our board of
directors are posted in the Investor Relations section of our website at www.rbi.com.

Our principal executive offices are located at 130 King Street West, Suite 300, Toronto, Ontario M5X 1E1, Canada. Our
telephone number is (905) 845-6511.

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Item 1A. Risk Factors

Risks Related to Our Business

We face intense competition in our markets, which could negatively impact our business.

The restaurant industry is intensely competitive and we compete with many well-established food service companies on the
basis of product choice, quality, affordability, service and location. With few barriers to entry, our competitors include a variety of
independent local operators, in addition to well-capitalized regional, national and international restaurant chains and franchises, and
new competitors may emerge at any time. Furthermore, delivery aggregators and food delivery services provide consumers with
convenient access to a broad range of competing restaurant chains and food retailers, particularly in urbanized areas. Each of our
brands also competes for qualified franchisees, suitable restaurant locations and management and personnel.

Our ability to compete will depend on the success of our plans to improve existing products, to develop and roll-out new
products, to effectively respond to consumer preferences and to manage the complexity of restaurant operations as well as the impact
of our competitors’ actions. In addition, our long-term success will depend on our ability to strengthen our customers' digital
experience through expanded mobile ordering, delivery and social interaction. Some of our competitors have substantially greater
financial resources, higher revenues and greater economies of scale than we do. These advantages may allow them to implement their
operational strategies more quickly or effectively than we can or benefit from changes in technologies, which could harm our
competitive position. These competitive advantages may be exacerbated in a difficult economy, thereby permitting our competitors to
gain market share. There can be no assurance that we will be able to successfully respond to changing consumer preferences,
including with respect to new technologies and alternative methods of delivery. If we are unable to maintain our competitive position,
we could experience lower demand for products, downward pressure on prices, reduced margins, an inability to take advantage of new
business opportunities, a loss of market share, reduced franchisee profitability and an inability to attract qualified franchisees in the
future.

Our success depends on the value of our brands and the failure to preserve their value and relevance could have a negative
impact on our financial results.

We depend in large part on the value of the TH, BK and PLK brands. To be successful in the future, we must preserve, enhance
and leverage the value of our brands. Brand value is based in part on consumer tastes, preferences and perceptions on a variety of
factors, including the nutritional content, methods of production and preparation of our products and our business practices. Consumer
acceptance of our products may be influenced by or subject to change for a variety of reasons. For example, adverse publicity
associated with nutritional, health and other scientific studies and conclusions, which constantly evolve and often have contradictory
implications, may drive popular opinion against quick service restaurants in general, which may impact the demand for our products.
Moreover, health campaigns against products we offer in favor of foods that are perceived as healthier may affect consumer perception
of our product offerings and impact the value of our brands.

In addition, adverse publicity related to litigation, regulation (including initiatives intended to drive consumer behavior) or
incidents involving us, our franchisees, competitors or suppliers may impact the value of our brands by discouraging customers from
buying our products. Perceptions may also be affected by activist campaigns to promote adverse perceptions of the quick service
restaurant industry or our brands and/or our operations, suppliers, franchisees or other partners such as campaigns aimed at
sustainability or living-wage opinions. Consumer demand for our products and our brand equity could diminish if we, our employees
or our franchisees or other business partners fail to preserve the quality of our products, act or are perceived to act as unethical, illegal,
racially-biased or in a socially irresponsible manner, including with respect to the sourcing, content or sale of our products or the use
of consumer data for general or direct marketing or other purposes, fail to comply with laws and regulations, publicly take
controversial positions or actions or fail to deliver a consistently positive consumer experience in each of our markets. If we are
unsuccessful in addressing consumer adverse perceptions, our brands and our financial results may suffer.

Economic conditions have adversely affected, and may continue to adversely affect, consumer discretionary spending which
could negatively impact our business and operating results.

We believe that our restaurant sales, guest traffic and profitability are strongly correlated to consumer discretionary spending,
which is influenced by general economic conditions, unemployment levels, the availability of discretionary income and, ultimately,
consumer confidence. A protracted economic slowdown, increased unemployment and underemployment of our customer base,
decreased salaries and wage rates, inflation, rising interest rates or other industry-wide cost pressures adversely affect consumer
behavior by weakening consumer confidence and decreasing consumer spending for restaurant dining occasions. There can be no
assurance that governmental or other responses to economic challenges will restore or maintain consumer confidence. As a result of

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these factors, during recessionary periods we and our franchisees may experience reduced sales and profitability, which may cause our
business and operating results to suffer.

Our substantial leverage and obligations to service our debt could adversely affect our business.

As of December 31, 2018, we had aggregate outstanding indebtedness of $12,038 million, including a senior secured term loan
facility in an aggregate principal amount of $6,338 million, senior secured first lien notes in an aggregate principal amount of $2,750
million and senior secured second lien notes in an aggregate principal amount of $2,800 million. Subject to restrictions set forth in
these instruments, we may also incur significant additional indebtedness in the future, some of which may be secured debt. This may
have the effect of increasing our total leverage.

Our substantial leverage could have important potential consequences, including, but not limited to:

• increasing our vulnerability to, and reducing our flexibility to respond to, changes in our business and general adverse
economic and industry conditions;
• requiring the dedication of a substantial portion of our cash flow from operations to our debt service, thereby reducing the
availability of such cash flow to fund working capital, capital expenditures, acquisitions, joint ventures, product research,
dividends, share repurchases or other corporate purposes;
• increasing our vulnerability to a downgrade of our credit rating, which could adversely affect our cost of funds, liquidity
and access to capital markets;
• placing us at a competitive disadvantage as compared to certain of our competitors who are not as highly leveraged;
• restricting us from making strategic acquisitions or causing us to make non-strategic divestitures;
• exposing us to the risk of increased interest rates as borrowings under our credit facilities are subject to variable rates of
interest;
• making it more difficult for us to repay, refinance or satisfy our obligations with respect to our debt;
• limiting our ability to borrow additional funds in the future and increasing the cost of any such borrowing; and
• exposing us to risks related to fluctuations in foreign currency as we earn profits in a variety of currencies around the
world and substantially all of our debt is denominated in U.S. dollars.

There is no assurance that we will generate cash flow from operations or that future debt or equity financings will be available to
us to enable us to pay our indebtedness or to fund other needs. As a result, we may need to refinance all or a portion of our
indebtedness on or before maturity. There is no assurance that we will be able to refinance any of our indebtedness on favorable terms,
or at all. An inability to generate sufficient cash flow or refinance our indebtedness on favorable terms could have a material adverse
effect on our financial condition.

The terms of our indebtedness limit our ability to take certain actions and perform certain corporate functions, and could
have the effect of delaying or preventing a future change of control.

The terms of our indebtedness include a number of restrictive covenants that, among other things, limit our ability to:

• incur additional indebtedness or guarantee or prepay indebtedness;

• pay dividends on, repurchase or make distributions in respect of capital stock;
• make investments or acquisitions;
• create liens or use assets as security in other transactions;
• consolidate, merge, sell or otherwise dispose of substantially all of our or our subsidiaries’ assets;
• make intercompany transactions; and
• enter into transactions with affiliates.

These limitations may hinder our ability to finance future operations and capital needs and our ability to pursue business
opportunities and activities that may be in our interest. In addition, our ability to comply with these covenants and restrictions may be
affected by events beyond our control.

A breach of the covenants under our indebtedness could result in an event of default under the applicable agreement. In the event
of default, our debt holders may accelerate repayment of such debt, which may result in the acceleration of the repayment of any other
debt to which a cross-acceleration or cross-default provision applies. In addition, default under our senior secured credit facilities
would also permit the lenders thereunder to terminate all other commitments to extend additional credit under the senior secured credit
facilities. Similarly, in the event of a change of control, pursuant to the terms of our indebtedness, we may be required to repay our
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credit facilities, or offer to repurchase the senior secured first lien and second lien notes. In addition, our future indebtedness may also
be subject to mandatory repurchase or repayment upon a future change of control. Such current and future terms could have the effect
of delaying or preventing a future change of control or may discourage a potential acquirer from proposing or completing a transaction
that may otherwise have presented a premium to our shareoholders.

In the event of either a default or change of control, we may not have sufficient resources to repurchase, repay or redeem our
obligations, as applicable. Moreover, third-party financing may be required in order to provide the funds necessary for us to satisfy
these obligations, and we may not be able to obtain such additional financing on terms favorable to us or at all. Furthermore, if we
were unable to repay the amounts due under our secured indebtedness, the holders of such indebtedness could proceed against the
collateral that secures such indebtedness. In the event our creditors accelerate the repayment of our secured indebtedness, we and our
subsidiaries may not have sufficient assets to repay that indebtedness.

Our fully franchised business model presents a number of disadvantages and risks.

Substantially all of our restaurants are owned and operated by franchisees. Under our fully franchised business model, our future
prospects depend on (i) our ability to attract new franchisees for each of our brands that meet our criteria and (ii) the willingness and
ability of franchisees to open restaurants in existing and new markets. There can be no assurance that we will be able to identify
franchisees who meet our criteria, or if we identify such franchisees, that they will successfully implement their expansion plans.

Our fully franchised business model presents a number of other drawbacks, such as limited influence over franchisees, limited
ability to facilitate changes in restaurant ownership, limitations on enforcement of franchise obligations due to bankruptcy or
insolvency proceedings and reliance on franchisees to participate in our strategic initiatives. While we can mandate certain strategic
initiatives through enforcement of our franchise agreements, we will need the active support of our franchisees if the implementation
of these initiatives is to be successful. The failure of these franchisees to support our marketing programs and strategic initiatives
could adversely affect our ability to implement our business strategy and could materially harm our business, results of operations and
financial condition.

Our principal competitors that have a significantly higher percentage of company-operated restaurants than we do may have
greater influence over their respective restaurant systems and greater ability to implement operational initiatives and business
strategies, including their marketing and advertising programs.

The ability of our franchisees and prospective franchisees to obtain financing for development of new restaurants or
reinvestment in existing restaurants depends in part upon financial and economic conditions which are beyond their control. If our
franchisees are unable to obtain financing on acceptable terms to develop new restaurants or reinvest in existing restaurants, our
business and financial results could be adversely affected.

Our franchisees are also dependent upon their ability to attract and retain qualified employees in an intensely competitive
employee market. The inability of our franchisees to recruit and retain qualified individuals may delay the planned openings of new
restaurants by our franchisees and could adversely impact existing franchise restaurants, which could slow our growth. Moreover, we
may also face liability for employment-related claims of our franchisees’ employees based on theories of joint employer liability with
our franchisees or other theories of vicarious liability, which could materially harm our results of operations and financial condition.

Our operating results are closely tied to the success of our franchisees, who are independent operators, and we have limited
influence over their restaurant operations.

We generate revenues in the form of royalties, fees and other amounts from our franchisees. As a result, our operating results are
closely tied to the success of our franchisees. However, our franchisees are independent operators and we cannot control many factors
that impact the profitability of their restaurants. If sales trends or economic conditions worsen for franchisees, their financial results
may deteriorate, which could result in, among other things, restaurant closures, delayed or reduced payments to us of royalties,
advertising contributions, rents and, in the case of the TH brand, delayed or reduced payments for products and supplies, and an
inability for such franchisees to obtain financing to fund development, restaurant remodels or equipment initiatives on acceptable
terms or at all. Furthermore, franchisees may not be willing or able to renew their franchise agreements with us due to low sales
volumes, or high real estate costs, or may be unable to renew due to the failure to secure lease renewals. If our franchisees fail to
renew their franchise agreements, our royalty revenues may decrease which in turn could materially and adversely affect our business
and operating results.

Under our franchise agreements, we can, among other things, establish operating procedures and approve suppliers, distributors
and products. However, franchisees may not successfully operate restaurants in a manner consistent with our standards and
requirements or standards set by applicable law, including sanitation and pest control standards. Any operational shortcoming of a
franchise restaurant is likely to be attributed by guests to the entire brand, thus damaging the brand’s reputation and potentially
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affecting our revenues and profitability. We may not be able to identify problems and take effective action quickly enough and, as a
result, our image and reputation may suffer, and our franchise revenues and results of operations could decline.

Our operating results depend on the effectiveness of our marketing and advertising programs and the successful development
and launch of new products.

Our revenues are heavily influenced by brand marketing and advertising and by our ability to develop and launch new and
innovative products. Our marketing and advertising programs may not be successful or we may fail to develop commercially
successful new products, which may lead us to fail to attract new guests and retain existing guests, which, in turn, could materially and
adversely affect our results of operations. Moreover, because franchisees contribute to advertising funds based on a percentage of
gross sales at their franchise restaurants, advertising fund expenditures are dependent upon sales volumes at system-wide restaurants.
If system-wide sales decline, there will be a reduced amount available for our marketing and advertising programs. Furthermore, to the
extent that we use value offerings in our marketing and advertising programs to drive traffic, the low price offerings may condition our
guests to resist higher prices in a more favorable economic environment.

In addition, we continue to focus on restaurant modernization and technology and digital engagement in order to transform the
restaurant experience. As part of these initiatives we are seeking to improve our service model and strengthen relationships with
customers, digital channels, loyalty initiatives, mobile ordering and payment systems and delivery initiatives. These initiatives may
not have the anticipated impact on our franchise sales and therefore we may not fully realize the intended benefits of these significant
investments.

Our future growth and profitability will depend on our ability to successfully accelerate international development with
strategic partners and joint ventures.

We believe that the future growth and profitability of each of our brands will depend on our ability to successfully accelerate
international development with strategic partners and joint ventures in new and existing international markets. New markets may have
different competitive conditions, consumer tastes and discretionary spending patterns than our existing markets. As a result, new
restaurants in those markets may have lower average restaurant sales than restaurants in existing markets and may take longer than
expected to reach target sales and profit levels (or may never do so). We will need to build brand awareness in those new markets we
enter through advertising and promotional activity, and those activities may not promote our brands as effectively as intended, if at all.

We have adopted a master franchise development model for all of our brands, which in markets with strong growth potential
may include participating in strategic joint ventures, to accelerate international growth. These new arrangements may give our joint
venture and/or master franchise partners the exclusive right to develop and manage our restaurants in a specific country or countries. A
joint venture partnership involves special risks, including the following: our joint venture partners may have economic, business or
legal interests or goals that are inconsistent with those of the joint venture or us, or our joint venture partners may be unable to meet
their economic or other obligations and we may be required to fulfill those obligations alone. Our master franchise arrangements
present similar risks and uncertainties. We cannot control the actions of our joint venture partners or master franchisees, including any
nonperformance, default or bankruptcy of joint venture partners or master franchisees. In addition, the termination of an arrangement
with a master franchisee or a lack of expansion by certain master franchisees could result in the delay or discontinuation of the
development of franchise restaurants, or an interruption in the operation of our brand in a particular market or markets. We may not be
able to find another operator to resume development activities in such market or markets. Any such delay, discontinuation or
interruption could materially and adversely affect our business and operating results.

If we are unable to effectively manage our growth, it could adversely affect our business and operating results.

We are the indirect holding company for TH, BK, and PLK and their respective consolidated subsidiaries with over 25,000
restaurants, of which approximately 100% are franchised restaurants. In addition, our growth strategy includes strategic expansion in
existing and new markets, and contemplates a significant acceleration in the growth in the number of new restaurants. As our
franchisees are independent third parties, we have expended and may need to continue to expend substantial financial and managerial
resources to enhance our existing restaurant management systems, financial and management controls, information systems and
personnel to accurately capture and reflect the financial and operational activities at our franchise restaurants. On occasion we have
encountered, and may in the future encounter, challenges in receiving these results from our franchisees in a consistent and timely
manner. If we are not able to effectively manage the management and information demands associated with the significant growth of
our franchise system, then our business and operating results could be negatively impacted.

Sub-franchisees could take actions that could harm our business and that of our master franchisees.

Our business model contemplates us entering into agreements with master franchisees that permit them to develop and operate
restaurants in defined geographic areas. As permitted by certain of these agreements, master franchisees may elect to license sub-
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franchisees to develop and operate TH, BK, or PLK restaurants, as applicable in the geographic area covered by the agreement. These
agreements contractually obligate our master franchisees to operate their restaurants in accordance with specified operations, safety
and health standards and also require that any sub-franchise agreement contain similar requirements. However, we are not party to the
agreements with the sub-franchisees and are dependent upon our master franchisees to enforce these standards with respect to sub-
franchised restaurants. As a result, the ultimate success and quality of any sub-franchised restaurant rests with the master franchisee
and the sub-franchisee. If sub-franchisees do not successfully operate their restaurants in a manner consistent with required standards,
franchise fees and royalty income ultimately paid to us could be adversely affected, and our brand image and reputation may be
harmed, which could materially and adversely affect our business and operating results.

Our international operations subject us to additional risks and costs and may cause our profitability to decline.

Our operations outside of the U.S. and Canada are exposed to risks inherent in foreign operations. These risks, which can vary
substantially by market, are described in many of the risk factors discussed in this section and include the following:

• governmental laws, regulations and policies adopted to manage national economic conditions, such as increases in taxes,
austerity measures that impact consumer spending, monetary policies that may impact inflation rates and currency
fluctuations;
• the imposition of import restrictions or controls;
• the risk of markets in which we have granted exclusive development and subfranchising rights;
• the effects of legal and regulatory changes and the burdens and costs of our compliance with a variety of foreign laws;
• changes in the laws and policies that govern foreign investment and trade in the countries in which we operate;
• compliance with U.S., Canadian and other foreign anti-corruption and anti-bribery laws, including compliance by our
employees, contractors, licensees or agents and those of our strategic partners and joint ventures;
• risks and costs associated with political and economic instability, corruption, anti-American sentiment and social and
ethnic unrest in the countries in which we operate;
• the risks of operating in developing or emerging markets in which there are significant uncertainties regarding the
interpretation, application and enforceability of laws and regulations and the enforceability of contract rights and
intellectual property rights;
• risks arising from the significant and rapid fluctuations in currency exchange markets and the decisions and positions that
we take to hedge such volatility;
• changing labor conditions and difficulties experienced by our franchisees in staffing their international operations;
• the impact of labor costs on our franchisees’ margins given our labor-intensive business model and the long-term trend
toward higher wages in both mature and developing markets and the potential impact of union organizing efforts on day-
to-day operations of our franchisees’ restaurants; and
• the effects of increases in the taxes we pay and other changes in applicable tax laws.

These factors may increase in importance as we expect franchisees of each of our brands to open new restaurants in international
markets as part of our growth strategy.

Our operations are subject to fluctuations in foreign currency exchange and interest rates.

We report our results in U.S. dollars, which is our reporting currency. The operations of TH, BK, and PLK that are denominated
in currencies other than the U.S. dollar are translated to U.S. dollars for our financial reporting purposes, and are therefore impacted
by fluctuations in currency exchange rates and changes in currency regulations. In addition, fluctuations in interest rates may affect
our combined business. Although we attempt to minimize these risks through geographic diversification and the utilization of
derivative financial instruments, our risk management strategies may not be effective and our results of operations could be adversely
affected.

Increases in food and commodity costs or shortages or interruptions in the supply or delivery of our food could harm our
operating results and the results of our franchisees.

Our profitability and the profitability of our franchisees will depend in part on our ability to anticipate and react to changes in
food and commodity and supply costs. With respect to our TH business, volatility in connection with certain key commodities that we
purchase in the ordinary course of business can impact our revenues, costs and margins. If commodity prices rise, franchisees may
experience reduced sales due to decreased consumer demand at retail prices that have been raised to offset increased commodity
prices, which may reduce franchisee profitability. In addition, the markets for beef and chicken are subject to significant price
fluctuations due to seasonal shifts, climate conditions, the cost of grain, disease, industry demand, international commodity markets,

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food safety concerns, product recalls, government regulation and other factors, all of which are beyond our control and, in many
instances unpredictable. Such increases in commodity costs may materially and adversely affect our business and operating results.

We and our franchisees are dependent on frequent deliveries of fresh food products that meet our specifications. Shortages or
interruptions in the supply of fresh food products caused by unanticipated demand, natural disasters, problems in production or
distribution, inclement weather or other conditions could adversely affect the availability, quality and cost of ingredients, which would
adversely affect our operating results.

Our vertically integrated supply chain operations subject us to additional risks and may cause our profitability to decline.

We operate a vertically integrated supply chain for our TH business in which we manufacture, warehouse, and distribute certain
food and restaurant supplies to our franchise and Company restaurants. There are certain risks associated with this vertical integration
growth strategy, including:

• delays and/or difficulties associated with, or liabilities arising from, owning a manufacturing, warehouse and distribution
business;
• maintenance, operations and/or management of the facilities, equipment, employees and inventories;
• limitations on the flexibility of controlling capital expenditures and overhead;
• the need for skills and techniques that are outside our traditional core expertise;
• increased transportation, shipping, food and other supply costs;
• inclement weather or extreme weather events;
• shortages or interruptions in the availability or supply of high-quality coffee beans, perishable food products and/or their
ingredients;
• variations in the quality of food and beverage products and/or their ingredients; and
• political, physical, environmental, labor, or technological disruptions in our or our suppliers’ manufacturing and/or
warehousing plants, facilities, or equipment.

If we do not adequately address the challenges related to these vertically integrated operations or the overall level of utilization
or production decreases for any reason, our results of operations and financial condition may be adversely impacted. Moreover,
shortages or interruptions in the availability and delivery of food, beverages and other suppliers to our restaurants may increase costs
or reduce revenues. As of December 31, 2018, we have only one or a few suppliers to service each category of products sold at our TH
and PLK restaurants, and the loss of any one of these suppliers would likely adversely affect our business.

Our success is dependent on securing desirable restaurant locations for each of our brands, and competition for these
locations may impact our ability to effectively grow our restaurant portfolios.

The success of any restaurant depends in substantial part on its location. There can be no assurance that the current locations of
our restaurants will continue to be attractive as demographic patterns change. Neighborhood or economic conditions where restaurants
are located could decline in the future, thus resulting in potentially reduced sales in those locations. Competition for restaurant
locations can also be intense and there may be delay or cancellation of new site developments by developers and landlords, which may
be exacerbated by factors related to the commercial real estate or credit markets. If franchisees cannot obtain desirable locations for
their restaurants at reasonable prices due to, among other things, higher than anticipated acquisition, construction and/or development
costs of new restaurants, difficulty negotiating leases with acceptable terms, onerous land use or zoning restrictions, or challenges in
securing required governmental permits, then their ability to execute their respective growth strategies may be adversely affected.

The market for retail real estate is highly competitive. Based on their size advantage and/or their greater financial resources,
some of our competitors may have the ability to negotiate more favorable lease terms than we can and some landlords and developers
may offer priority or grant exclusivity to some of our competitors for desirable locations. As a result, we or our franchisees may not be
able to obtain new leases or renew existing leases on acceptable terms, if at all, which could adversely affect our sales and brand-
building initiatives.

Our ownership and leasing of significant amounts of real estate exposes us to possible liabilities, losses, and risks.

Many of our system restaurants are located on leased premises. As leases underlying our Company and franchise restaurants
expire, we or our franchisees may be unable to negotiate a new lease or lease extension, either on commercially acceptable terms or at
all, which could cause us or our franchisees to close restaurants in desirable locations. As a result, our sales and our brand-building
initiatives could be adversely affected. Furthermore, in general, we cannot cancel existing leases; therefore, if an existing or future
restaurant is not profitable, and we decide to close it, we may nonetheless be committed to perform our obligations under the
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applicable lease. In addition, the value of our owned real estate assets could decrease, and/or our costs could increase, because of
changes in the investment climate for real estate, demographic trends, demand for restaurant sites and other retail properties, and
exposure to or liability associated with environmental contamination and reclamation.

Typically the costs of insurance, taxes, maintenance, utilities, and other property-related costs due under a prime lease with a
third-party landlord are passed through to the franchisee under our sublease. If a franchisee fails to perform the obligations passed
through under the sublease, we will be required to perform these obligations resulting in an increase in our leasing and operational
costs and expenses. In addition, the rent a franchisee pays us under the sublease may be based on a percentage of gross sales. If gross
sales at a certain restaurant are less than we project we may pay more rent to a third-party landlord under the prime lease than we
receive from the franchisee under the sublease. These events could result in an inability to fully recover from the franchisee expenses
incurred on leased properties, resulting in increased leasing and operational costs to us.

Food safety concerns and concerns about the health risk of fast food may have an adverse effect on our business.

Food safety is a top priority for us and we dedicate substantial resources to ensure that our customers enjoy safe, high-quality
food products. However, food-borne illnesses and other food safety issues have occurred in the food industry in the past and could
occur in the future. Furthermore, our reliance on third-party food suppliers and distributors increases the risk that food-borne illness
incidents could be caused by factors outside of our control and that multiple locations would be affected rather than a single restaurant.
Any report or publicity, including through social media, linking us or one of our franchisees or suppliers to instances of food-borne
illness or other food safety issues, including food tampering, adulteration or contamination, could adversely affect our brands and
reputation as well as our revenues and profits. Such occurrence at restaurants of competitors could adversely affect restaurant sales as
a result of negative publicity about the foodservice industry generally. The occurrence of food-borne illnesses or food safety issues
could also adversely affect the price and availability of affected ingredients, which could result in disruptions in our supply chain,
significantly increase our costs and/or lower margins for us and our franchisees.

Some of our products contain caffeine, dairy products, fats, sugar and other compounds and allergens, the health effects of
which are the subject of public scrutiny, including suggesting that excessive consumption of caffeine, beef, sugar and other
compounds can lead to a variety or adverse health effects. Particularly in the U.S., there is increasing consumer awareness of the
health risks, including obesity, as well as increased consumer litigation based on alleged adverse health impacts of consumption of
various food products. An unfavorable report on the health effects of caffeine or other compounds present in our products, or negative
publicity or litigation arising from other health risks such as obesity, could significantly reduce the demand for our beverages and food
products. A decrease in customer traffic as a result of these health concerns or negative publicity could materially and adversely affect
our brands and our business.

Our results can be adversely affected by unforeseen events, such as adverse weather conditions, natural disasters, terrorist
attacks or threats or catastrophic events.

Unforeseen events, such as adverse weather conditions, natural disasters or catastrophic events, can adversely impact restaurant
sales. Natural disasters such as earthquakes, hurricanes, and severe adverse weather conditions and health pandemics whether
occurring in Canada, the United States or abroad, can keep customers in the affected area from dining out and result in lost
opportunities for our restaurants. Furthermore, we cannot predict the effects that actual or threatened armed conflicts, terrorist attacks,
efforts to combat terrorism or heightened security requirements will have on our future operations. Because a significant portion of our
restaurant operating costs are fixed or semi-fixed in nature, the loss of sales during these periods hurts our and our franchisees'
operating margins and can result in restaurant operating losses.

The loss of key management personnel or our inability to attract and retain new qualified personnel could hurt our business
and inhibit our ability to operate and grow successfully.

We are dependent on the efforts and abilities of our senior management, including the executives managing each of our brands,
and our success will also depend on our ability to attract and retain additional qualified employees. Failure to attract personnel
sufficiently qualified to execute our strategy, or to retain existing key personnel, could have a material adverse effect on our business.

U.S. federal income tax reform could adversely affect us.

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and
Jobs Act (the “Tax Act”). This new legislation significantly modifies the Internal Revenue Code of 1986, as amended (the “Code”).
Among other things, it reduces the U.S. federal corporate tax rate and puts into effect the migration from a “worldwide” system of
taxation to a modified territorial system (including providing for a 100% dividends received deduction in respect of non-U.S. source
income received by certain U.S. recipients from certain non-U.S. corporations). The Tax Act also puts in place a number of provisions
that may adversely impact us, including (i) a provision designed to tax currently global intangible low-taxed income (GILTI)
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(effectively, non-U.S. income in excess of a deemed return on tangible assets of non-U.S. corporations), with (subject to certain
limitations) a potential offset by foreign tax credits (ii) a base erosion anti-abuse tax (BEAT) that eliminates the deduction of certain
base-erosion payments made to related non-U.S. corporations and imposes a minimum tax if greater than regular tax, (iii) significant
additional limitations on the deductibility of interest, (iv) a one-time transition tax on certain unrepatriated earnings of non-U.S.
subsidiaries that may, if elected, be paid over eight years, (v) limitations on the deductibility of certain executive compensation and
(vi) limitations on the utilization of foreign tax credits to reduce the U.S. income tax liability. The provisions of the Tax Act are
complex and likely will be the subject of additional regulatory and administrative guidance, which may adversely affect us.
Accordingly, our effective tax rate and results of operations could be adversely impacted.

Unanticipated tax liabilities could adversely affect the taxes we pay and our profitability.

We are subject to income and other taxes in Canada, the United States, and numerous foreign jurisdictions. A taxation authority
may disagree with certain of our views, including, for example, the allocation of profits by tax jurisdiction, and the deductibility of our
interest expense, and may take the position that material income tax liabilities, interest, penalties, or other amounts are payable by us,
in which case, we expect to contest such assessment. Contesting such an assessment may be lengthy and costly and if we were
unsuccessful, the implications could be materially adverse to us and affect our effective income tax rate or operating income.

From time to time, we are subject to additional state and local income tax audits, international income tax audits and sales,
franchise and value-added tax audits. Although we believe our tax estimates are reasonable, the final determination of tax audits and
any related litigation could be materially different from our historical income tax provisions and accruals. There can be no assurance
that the Canada Revenue Agency (the “CRA”), the U.S. Internal Revenue Service (the “IRS”) and/or foreign tax authorities will agree
with our interpretation of the tax aspects of reorganizations, initiatives, transactions, or any related matters associated therewith that
we have undertaken.

The results of a tax audit or related litigation could result in us not being in a position to take advantage of the effective income
tax rates and the level of benefits that we anticipated to achieve as a result of corporate reorganizations, initiatives and transactions,
and the implications could have a material adverse effect on our effective income tax rate, income tax provision, net income (loss) or
cash flows in the period or periods for which that determination is made.

The Company and Partnership may be treated as U.S. corporations for U.S. federal income tax purposes, which could
subject us and Partnership to substantial additional U.S. taxes.

As Canadian entities, the Company and Partnership generally would be classified as foreign entities (and, therefore, non-U.S.
tax residents) under general rules of U.S. federal income taxation. Section 7874 of the Code, however, contains rules that result in a
non-U.S. corporation being taxed as a U.S. corporation for U.S. federal income tax purposes, unless certain tests, applied at the time of
the acquisition, regarding ownership of such entities (as relevant here, ownership by former Burger King shareholders) or level of
business activities (as relevant here, business activities in Canada by us and our affiliates, including Partnership), were satisfied at
such time. The U.S. Treasury Regulations apply these same rules to non-U.S. publicly traded partnerships, such as Partnership. These
statutory and regulatory rules are relatively new, their application is complex and there is little guidance regarding their application.

If it were determined that we and/or Partnership should be taxed as U.S. corporations for U.S. federal income tax purposes, we
and Partnership could be liable for substantial additional U.S. federal income tax. For Canadian tax purposes, we and Partnership are
expected, regardless of any application of Section 7874 of the Code, to be treated as a Canadian resident company and partnership,
respectively. Consequently, if we and/or Partnership did not satisfy either of the applicable tests, we might be liable for both Canadian
and U.S. taxes, which could have a material adverse effect on our financial condition and results of operations.

Future changes to U.S. and non-U.S. tax laws could materially affect RBI and/or Partnership, including their status as
foreign entities for U.S. federal income tax purposes, and adversely affect their anticipated financial positions and results.

Changes to the rules in sections 385 and 7874 of the Code or the Treasury Regulations promulgated thereunder, or other changes
in law, could adversely affect our and/or Partnership’s status as a non-U.S. entity for U.S. federal income tax purposes, our effective
income tax rate or future planning based on current law, and any such changes could have prospective or retroactive application to us
and/or Partnership. It is presently uncertain whether any such legislative proposals will be enacted into law and, if so, what impact
such legislation would have on us. The timing and substance of any such further action is presently uncertain. Any such change of law
or regulatory action which could apply retroactively or prospectively, could adversely impact our tax position as well as our financial
position and results in a material manner. The precise scope and application of any such regulatory proposals will not be clear until
proposed Treasury Regulations are actually issued, and, accordingly, until such regulations are promulgated and fully understood, we
cannot be certain that there will be no such impact. In addition, we would be impacted by any changes in tax law in response to
corporate tax reforms and other policy initiatives in the U.S. and elsewhere.

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Moreover, the U.S. Congress, the Organization for Economic Co-operation and Development and other government agencies in
jurisdictions where the Company and its affiliates do business have had an extended focus on issues related to the taxation of
multinational corporations. In particular, specific attention has been paid to “base erosion and profit shifting”, where payments are
made between affiliates from a jurisdiction with high tax rates to a jurisdiction with lower tax rates. As a result, the tax laws in the
countries in which we do business could change on a prospective or retroactive basis, and any such change could adversely affect us.

We may not be able to adequately protect our intellectual property, which could harm the value of our brands and branded
products and adversely affect our business.

We depend in large part on the value of our brands, which represent approximately 48% of the total assets on our balance sheet
as of December 31, 2018. We believe that our brands are very important to our success and our competitive position. We rely on a
combination of trademarks, copyrights, service marks, trade secrets, patents and other intellectual property rights to protect our brands
and the respective branded products. The success of our business depends on our continued ability to use our existing trademarks and
service marks in order to increase brand awareness and further develop our branded products in both domestic and international
markets. We have registered certain trademarks and have other trademark registrations pending in the U.S., Canada and foreign
jurisdictions. Not all of the trademarks that our brands currently use have been registered in all of the countries in which we do
business, and they may never be registered in all of these countries. We may not be able to adequately protect our trademarks, and our
use of these trademarks may result in liability for trademark infringement, trademark dilution or unfair competition. The steps we have
taken to protect our intellectual property in Canada, the U.S. and in foreign countries may not be adequate and our proprietary rights
could be challenged, circumvented, infringed or invalidated. In addition, the laws of some foreign countries do not protect intellectual
property rights to the same extent as the laws of Canada and the U.S.

We may not be able to prevent third parties from infringing on our intellectual property rights, and we may, from time to time,
be required to institute litigation to enforce our trademarks or other intellectual property rights or to protect our trade secrets. Further,
third parties may assert or prosecute infringement claims against us and we may or may not be able to successfully defend these
claims. Any such litigation could result in substantial costs and diversion of resources and could negatively affect our revenue,
profitability and prospects regardless of whether we are able to successfully enforce our rights.

We have been, and in the future may be, subject to litigation that could have an adverse effect on our business.

We may from time to time, in the ordinary course of business, be subject to litigation relating to matters including, but not
limited to, disputes with franchisees, suppliers, employees, team members, and customers, as well as disputes over our intellectual
property. For example, there have recently been multiple class action lawsuits filed against us regarding the no-poaching provision of
our BK franchise agreements in the U.S. Active and potential disputes with franchisees could damage our brand reputation and our
relationships with our broader franchise base.

Such litigation may be expensive to defend, harm our reputation and divert resources away from our operations and negatively
impact our reported earnings. Furthermore, legal proceedings against a franchisee or its affiliates by third parties, whether in the
ordinary course of business or otherwise, may include claims against us by virtue of our relationship with the franchisee.

We, or our business partners, may become subject to claims for infringement of intellectual property rights and we may be
required to indemnify or defend our business partners from such claims. Should management’s evaluation of our current exposure to
legal matters pending against us prove incorrect and such claims are successful, our exposure could exceed expectations and have a
material adverse effect on our business, financial condition and results of operations. Although some losses may be covered by
insurance, if there are significant losses that are not covered, or there is a delay in receiving insurance proceeds, or the proceeds are
insufficient to offset our losses fully, our financial condition or results of operations may be adversely affected.

Changes in regulations may adversely affect restaurant operations and our financial results.

Our franchise and Company restaurants are subject to licensing and regulation by health, sanitation, safety and other agencies in
the state, province and/or municipality in which the restaurant is located. Federal, state, provincial and local government authorities
may enact laws, rules or regulations that impact restaurant operations and the cost of conducting those operations. In many of our
markets, including Canada, the U.S. and Europe, we and our franchisees are subject to increasing regulation regarding our operations
which may significantly increase the cost of doing business. In developing markets, we face the risks associated with new and untested
laws and judicial systems. If we fail to comply with existing or future laws, we may be subject to governmental fines and sanctions.

We are subject to various provincial, state and foreign laws that govern the offer and sale of a franchise, including in the U.S., to
a Federal Trade Commission (“FTC”) rule. Various provincial, state and foreign laws regulate certain aspects of the franchise
relationship, including terminations and the refusal to renew franchises. The failure to comply with these laws and regulations in any
jurisdiction or to obtain required government approvals could result in a ban or temporary suspension on future franchise sales, fines
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and penalties or require us to make offers of rescission or restitution, any of which could adversely affect our business and operating
results. We could also face lawsuits by franchisees based upon alleged violations of these laws.

Additionally, we, our franchisees and our supply chain are subject to risks and costs arising from the effects of climate change,
greenhouse gases, and diminishing energy and water resources. These risks include the increased public focus, including by
governmental and nongovernmental organizations, on these and other environmental sustainability matters, such as packaging and
waste, animal health and welfare, deforestation and land use. These risks also include the increased pressure to make commitments, set
targets or establish additional goals and take actions to meet them. These risks could expose us to market, operational and execution
costs or risks. If we are unable to effectively manage the risks associated with our complex regulatory environment, it could have a
material adverse effect on our business and financial condition.

The personal information that we collect may be vulnerable to breach, theft or loss that could adversely affect our reputation,
results of operation and financial condition.

In the ordinary course of our business, we collect, process, transmit and retain personal information regarding our employees
and their families, our franchisees, vendors and consumers, which can include social security numbers, social insurance numbers,
banking and tax identification information, health care information and credit card information and our franchisees collect similar
information. Some of this personal information is held and managed by our franchisees and certain of our vendors. A third-party may
be able to circumvent the security and business controls we use to limit access and use of personal information, which could result in a
breach of employee, consumer or franchisee privacy. A major breach, theft or loss of personal information regarding our employees
and their families, our franchisees, vendors or consumers that is held by us or our vendors could result in substantial fines, penalties,
indemnification claims and potential litigation against us which could negatively impact our results of operations and financial
condition. For example, the European Union adopted a new regulation that became effective in May 2018, called the General Data
Protection Regulation (“GDPR”), which requires companies to meet certain requirements regarding the handling of personal data.
Failure to meet GDPR requirements could result in penalties of up to 4% of worldwide revenue. As a result of legislative and
regulatory rules, we may be required to notify the owners of the personal information of any data breaches, which could harm our
reputation and financial results, as well as subject us to litigation or actions by regulatory authorities. Furthermore, media or other
reports of existing or perceived security vulnerabilities in our systems or those of our franchisees or vendors, even if no breach has
been attempted or has occurred, can adversely impact our brand and reputation, and thereby materially impact our business.

Significant capital investments and other expenditures could be required to remedy a breach and prevent future problems,
including costs associated with additional security technologies, personnel, experts and credit monitoring services for those whose
data has been breached. These costs, which could be material, could adversely impact our results of operations during the period in
which they are incurred. The techniques and sophistication used to conduct cyber-attacks and breaches, as well as the sources and
targets of these attacks, change frequently and are often not recognized until such attacks are launched or have been in place for a
period of time. Accordingly, our expenditures to prevent future cyber-attacks or breaches may not be successful.

Information technology system failures or interruptions or breaches of our network security may interrupt our operations,
subject us to increased operating costs and expose us to litigation.

As our reliance on technology has increased, so have the risks posed to our systems. We rely heavily on our computer systems
and network infrastructure across operations including, but not limited to, point-of-sale processing at our restaurants, as well as the
systems of our third party vendors to whom we outsource certain administrative functions. Despite our implementation of security
measures, all of our technology systems are vulnerable to damage, disruption or failures due to physical theft, fire, power loss,
telecommunications failure or other catastrophic events, as well as from problems with transitioning to upgraded or replacement
systems, internal and external security breaches, denial of service attacks, viruses, worms and other disruptive problems caused by
hackers. If any of our technology systems were to fail, and we were unable to recover in a timely way, we could experience an
interruption in our operations. Furthermore, if unauthorized access to or use of our systems were to occur, data related to our
proprietary information could be compromised. The occurrence of any of these incidents could have a material adverse effect on our
future financial condition and results of operations. To the extent that some of our worldwide reporting systems require or rely on
manual processes, it could increase the risk of a breach due to human error.

In addition, we receive and maintain certain personal information about our customers, franchisees and employees, and our
franchisees receive and maintain similar information. For example, in connection with credit card transactions, we and our franchisees
collect and transmit confidential credit card information by way of retail networks. We also maintain important internal data, such as
personally identifiable information about our employees and franchisees and information relating to our operation. Our use of
personally identifiable information is regulated by applicable laws and regulations. If our security and information systems or those of
our franchisees are compromised or our business associates fail to comply with these laws and regulations and this information is
obtained by unauthorized persons or used inappropriately, it could adversely affect our reputation, as well as our restaurant operations

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and results of operations and financial condition. As privacy and information security laws and regulations change, we may incur
additional costs to ensure that we remain in compliance.

Further, the standards for systems currently used for transmission and approval of electronic payment transactions, and the
technology utilized in electronic payment themselves, all of which can put electronic payment data at risk, are determined and
controlled by the payment card industry, not by us. If someone is able to circumvent our data security measures or that of third parties
with whom we do business, including our franchisees, he or she could destroy or steal valuable information or disrupt our operations.
Any security breach could expose us to risks of data loss, litigation, liability, and could seriously disrupt our operations. Any resulting
negative publicity could significantly harm our reputation and could materially and adversely affect our business and operating results.

Finally, a number of our systems and processes are not fully integrated worldwide and, as a result, require us to manually
estimate and consolidate certain information that we use to manage our business. To the extent that we are not able to obtain
transparency into our operations from our systems, it could impair the ability of our management to react quickly to changes in the
business or economic environment.

We outsource certain aspects of our business to third-party vendors which subjects us to risks, including disruptions in our
business and increased costs.

We have outsourced certain administrative functions for our business to third-party service providers. We also outsource certain
information technology support services and benefit plan administration. In the future, we may outsource other functions to achieve
cost savings and efficiencies. If the service providers to which we outsource these functions do not perform effectively, we may not be
able to achieve the expected cost savings and may have to incur additional costs in connection with such failure to perform.
Depending on the function involved, such failures may also lead to business disruption, transaction errors, processing inefficiencies,
the loss of sales and customers, the loss of or damage to intellectual property through security breach, and the loss of sensitive data
through security breach or otherwise. Any such damage or interruption could have a material adverse effect on our business, cause us
to face significant fines, customer notice obligations or costly litigation, harm our reputation with our customers or prevent us from
paying our collective suppliers or employees or receiving payments on a timely basis.

Canadian legislation contains provisions that may have the effect of delaying or preventing a change in control.

We are a Canadian entity. The Investment Canada Act requires that a “non-Canadian,” as defined therein, file an application for
review with the Minister responsible for the Investment Canada Act and obtain approval of the Minister prior to acquiring control of a
Canadian business, where prescribed financial thresholds are exceeded. This may discourage a potential acquirer from proposing or
completing a transaction that may otherwise present a premium to shareholders.

Risks Related to our Common Shares

3G RBH owns approximately 41% of the combined voting power with respect to the Company, and its interests may conflict
with or differ from the interests of the other shareholders.

3G Restaurant Brands Holdings LP (“3G RBH”) currently owns approximately 41% of the combined voting power with respect
to the Company. The interests of 3G RBH and its principals may not always be aligned with the interests of the other shareholders of
the Company. So long as 3G RBH continues to directly or indirectly own a significant amount of the voting power of the Company, it
will continue to be able to strongly influence or effectively control the business decisions of the Company. 3G RBH and its principals
may have interests that are different from those of the other shareholders of the Company, and 3G RBH may exercise its voting and
other rights in a manner that may be adverse to the interests of such shareholders.

In addition, this concentration of ownership could have the effect of delaying or preventing a change in control or otherwise
discouraging a potential acquirer from attempting to obtain control of the Company, which could cause the market price of the
Company’s common shares to decline or prevent the Company’s shareholders from realizing a premium over the market price for their
common shares or Partnership exchangeable units.

3G RBH is affiliated with 3G Capital Partners, Ltd. a global investment firm (“3G Capital”). 3G Capital is in the business of
making investments in companies and may from time to time in the future acquire or develop controlling interests in businesses
engaged in the QSR industry that complement or directly or indirectly compete with certain portions of our business. In addition, 3G
Capital may pursue acquisitions or opportunities that may be complementary to our business and, as a result, those acquisition
opportunities may not be available to us.

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Our stock price may be volatile or may decline regardless of our operating performance.

The market price of our common shares may fluctuate materially from time to time in response to a number of factors, many of
which we cannot control, including those described under “Risk Factors – Risks Related to Our Business”. In addition, the stock
market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the
operating performance of listed companies. These broad market and industry factors may materially harm the market price of our
common shares, regardless of our operating performance. In addition, our share price may be dependent upon the valuations and
recommendations of the analysts who cover our business, and if our results do not meet the analysts’ forecasts and expectations, our
share price could decline as a result of analysts lowering their valuations and recommendations or otherwise. In the past, following
periods of volatility in the market, securities class-action litigation has often been instituted against companies. Such litigation, if
instituted against us, could result in substantial costs and diversion of management’s attention and resources, which could materially
and adversely affect our business, financial condition, results of operations and growth prospects.

Future sales of our common shares in the public market could cause volatility in the price of our common shares or cause
the share price to fall.

Sales of a substantial number of our common shares in the public market, or the perception that these sales might occur, could
depress the market price of our common shares, and could impair our ability to raise capital through the sale of additional equity
securities.

Certain holders of our common shares have required and others may require us to register their shares for resale under the U.S.
and Canadian securities laws under the terms of certain separate registration rights agreements between us and the holders of these
securities. Registration of those shares would allow the holders thereof to immediately resell their shares in the public market. Any
such sales, or anticipation thereof, could cause the market price of our common shares to decline.

In addition, we have registered common shares that are reserved for issuance under our incentive plans.

A shareholder’s percentage ownership in us may be diluted by future issuances of capital stock, which could reduce the
influence of our shareholders over matters on which our shareholders vote.

Our board of directors has the authority, without action or vote of our shareholders, to issue an unlimited number of common
shares. For example, we may issue our securities in connection with investments and acquisitions. The number of common shares
issued in connection with an investment or acquisition could constitute a material portion of the then-outstanding common shares and
could materially dilute the ownership of our shareholders. Issuances of common shares would reduce the influence of our common
shareholders over matters on which our shareholders vote.

There is no assurance that we will pay any cash dividends on our common shares in the future.

Although our board of directors declared a cash dividend on our common shares for each quarter of 2018 and for the first quarter
of 2019, any future dividends on our common shares will be determined at the discretion of our board of directors and will depend
upon results of operations, financial condition, contractual restrictions, including the terms of the agreements governing our debt and
any future indebtedness we may incur, restrictions imposed by applicable law and other factors that our board of directors deems
relevant. Although we are targeting a total of $2.00 in declared dividends per common share and Partnership exchangeable unit for
2019, there is no assurance that we will achieve our target total dividend for 2019 and satisfy our debt service and other obligations.
Realization of a gain on an investment in our common shares and in Partnership exchangeable units will depend on the appreciation of
the price of our common shares and Partnership exchangeable units, which may never occur.

Item 1B. Unresolved Staff Comments

None.

Item 2. Properties

Our corporate headquarters is located in Toronto, Ontario and consists of approximately 65,000 square feet which we lease. Our
U.S. headquarters is located in Miami, Florida and consists of approximately 150,000 square feet which we lease. We also lease office
property in Switzerland and Singapore. Related to the TH business, we own five distribution centers, two manufacturing plants and
three offices throughout Canada. In addition, we lease two offices and one cross-docking facility in Canada and one manufacturing
plant in the U.S. In 2018, we announced plans to build two new warehouses in Western Canada and to renovate an existing warehouse
in Eastern Canada to facilitate the supply of frozen and refrigerated products in those markets. We expect to complete these projects in
2020.
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As of December 31, 2018, our restaurant footprint was as follows:

TH BK PLK Total
(1)
Franchise Restaurants
Sites owned by us and leased to franchisees 748 707 33 1,488
Sites leased by us and subleased to franchisees 2,823 927 46 3,796
Sites owned/leased directly by franchisees 1,268 16,112 2,982 20,362
Total franchise restaurant sites 4,839 17,746 3,061 25,646
Company Restaurants
Sites owned by us 3 15 10 28
Sites leased by us 4 35 31 70
Total company restaurant sites 7 50 41 98
Total system-wide restaurant sites 4,846 17,796 3,102 25,744

(1) Includes VIE restaurants.

We believe that our existing headquarters and other leased and owned facilities are adequate to meet our current requirements.

Item 3. Legal Proceedings

From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including,
but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property.

On June 19, 2017, a claim was filed in the Ontario Superior Court of Justice against The TDL Group Corp, a subsidiary of the
Company, the Company, the Tim Hortons Ad Fund and certain individual defendants. The plaintiff, a franchisee of two Tim Hortons
restaurants, seeks to certify a class of all persons who have carried on business as a Tim Hortons franchisee in Canada at any time after
December 15, 2014. The claim alleges various causes of action against the defendants in relation to the purported misuse of amounts
paid by members of the proposed class to the Tim Hortons Canada advertising fund (the “Ad Fund”). The plaintiff seeks to have the
Ad Fund franchisee contributions held in trust for the benefit of members of the proposed class, an accounting of the Ad Fund, as well
as damages for breach of contract, breach of trust, breach of the statutory duty of fair dealing, and breach of fiduciary duties.

On October 6, 2017, a claim was filed in the Ontario Superior Court of Justice against the same defendants as named above. The
plaintiffs, two franchisees of Tim Hortons restaurants, seek to certify a class of all persons who have carried on business as a Tim
Hortons franchisee at any time after March 8, 2017. The claim alleges various causes of action against the defendants in relation to the
purported adverse treatment of member and potential member franchisees of the Great White North Franchisee Association. The
plaintiffs seek damages for, among other things, breach of contract, breach of the statutory duty of fair dealing, and breach of the
franchisees’ statutory right of association.

In connection with these two lawsuits, the court granted our motion to strike the individuals named in the lawsuits, the Company
and the Tim Hortons Ad Fund on October 22, 2018. The only defendant that remains in the lawsuits is The TDL Group Corp.

On July 24, 2018, a complaint for declaratory relief was filed against Tim Hortons USA, Inc. (“THUSA”) and Restaurant Brands
International Limited Partnership in the Circuit Court of the 11th Judicial Circuit in Miami-Dade County, Florida by Great White
North Franchisee Association - USA, Inc., on behalf of its members. The complaint alleges certain breaches of the franchise
agreements between THUSA and its franchisees and the implied covenant of good faith and fair dealing, as well as violations of the
U.S. franchise rules and the Florida Deceptive and Unfair Trade Practices Act.

On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King
Corporation (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of
all others similarly situated. On October 18, 2018, a second class action complaint was filed against the Company, BKW and BKC in
the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly
situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the
Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On
November 2, 2018, a fourth class action complaint was filed against the Company, BKW and BKC in the U.S. District Court for the
Southern District of Florida by Sandra Muster, individually and on behalf of all others similarly situated. These complaints allege that
the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the

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standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages
for himself or herself and other members of the class.

While we currently believe these claims are without merit, we are unable to predict the ultimate outcome of these cases.

Item 4. Mine Safety Disclosures

Not applicable.

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Part II

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Market for Our Common Shares

Our common shares trade on the New York Stock Exchange (“NYSE”) and Toronto Stock Exchange (“TSX”) under the ticker
symbol “QSR”. The Class B exchangeable limited partnership units of Partnership (the “Partnership exchangeable units”) trade on the
TSX under the ticker symbol “QSP”. As of February 11, 2019, there were 22,577 holders of record of our common shares and
approximately 7,235 former Tim Hortons shareholders who are entitled to receive common shares of the Company but who have not
submitted letters of transmittal to exchange their Tim Hortons common shares.

Dividend Policy
On January 22, 2019, our board of directors declared a cash dividend of $0.50 per common share for the first quarter of 2019.
The dividend will be paid on April 3, 2019 to common shareholders of record on March 15, 2019. Partnership will also make a
distribution in respect of each Partnership exchangeable unit in the amount of $0.50 per Partnership exchangeable unit, and the record
date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment date set forth
above.
We are targeting a total of $2.00 in declared dividends per common share and distributions in respect of each Partnership
exchangeable unit for 2019.
Although we do not have a formal dividend policy, our board of directors may, subject to compliance with the covenants
contained under the agreements governing our debt and other considerations, determine to pay dividends in the future.

Issuer Purchases of Equity Securities

During 2018, Partnership received exchange notices representing 10,185,333 Partnership exchangeable units, including
10,020,000 during the fourth quarter of 2018. Pursuant to the terms of the partnership agreement, Partnership satisfied the exchange
notices by repurchasing 10,000,000 Partnership exchangeable units for approximately $561 million in cash during the fourth quarter
and full year of 2018 and exchanging the remaining Partnership exchangeable units for the same number of our newly issued common
shares. During 2017 and 2016, Partnership received exchange notices representing 9,286,480 and 6,744,244 Partnership exchangeable
units, respectively. Partnership satisfied the exchange notices by repurchasing 5,000,000 Partnership exchangeable units for
approximately $330 million in cash during 2017 and exchanging the remaining Partnership exchangeable units for the same number of
our newly issued common shares. There were no exchanges for cash in 2016. Pursuant to the terms of the partnership agreement, the
purchase price for the Partnership exchangeable units was based on the weighted average trading price of our common shares on the
NYSE for the 20 consecutive trading days ending on the last business day prior to the exchange date. Upon the exchange of
Partnership exchangeable units, each such Partnership exchangeable unit was automatically deemed cancelled concurrently with such
exchange.

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Stock Performance Graph

The graph shows the Company’s cumulative shareholder returns over the period from December 31, 2013 to December 31,
2018. The graph reflects total shareholder returns for Burger King from December 31, 2013 to December 12, 2014, and for the
Company from December 15, 2014 to December 31, 2018. December 12, 2014 was the last day of trading on the NYSE of Burger
King common stock and December 15, 2014 was the first day of trading on the NYSE and TSX of the Company’s common shares.
The graph shows combined Burger King and Company shareholder returns because the Company has less than five years of history as
a public company. The following graph depicts the total return to shareholders from December 31, 2013 through December 31, 2018,
relative to the performance of the Standard & Poor’s 500 Index and the Standard & Poor’s Restaurant Index, a peer group. The graph
assumes an investment of $100 in Burger King common stock and each index on December 31, 2013 and the reinvestment of
dividends paid since that date. The stock price performance shown in the graph is not necessarily indicative of future price
performance.

12/31/2013 12/31/2014 12/31/2015 12/31/2016 12/31/2017 12/31/2018

Restaurant Brands International (NYSE) $ 100 $ 171 $ 163 $ 208 $ 269 $ 229
S&P 500 Index $ 100 $ 111 $ 111 $ 121 $ 145 $ 136
S&P Restaurant Index $ 100 $ 102 $ 125 $ 125 $ 154 $ 166

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Item 6. Selected Financial Data

Unless the context otherwise requires, all references to the “Company”, “we”, “us” or “our” refer to Restaurant Brands
International Inc. and its subsidiaries, collectively.

All references to “$” or “dollars” in this report are to the currency of the United States unless otherwise indicated. All
references to “Canadian dollars” or “C$” are to the currency of Canada unless otherwise indicated.

Selected Financial Data

The following tables present our selected historical consolidated financial data as of the dates and for each of the periods
indicated. The selected historical financial data as of December 31, 2018 and December 31, 2017 and for 2018, 2017 and 2016 have
been derived from our audited consolidated financial statements and notes thereto included in this report. The selected historical
financial data as of December 31, 2016, December 31, 2015 and December 31, 2014 and for 2015 and 2014 have been derived from
our audited consolidated financial statements and notes thereto, which are not included in this report.

The selected historical consolidated financial data presented below contain all normal recurring adjustments that, in the opinion
of management, are necessary to present fairly our financial position and results of operations as of and for the periods presented. The
selected historical consolidated financial data included below and elsewhere in this report are not necessarily indicative of future
results. The information presented in this section should be read in conjunction with “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in Part II, Item 7 and “Financial Statements and Supplementary Data” in Part II,
Item 8 of this report.
2018 2017(a) 2016 2015 2014(b)
(In millions, except per share data)
Statement of Operations Data:
Revenues:
Sales $ 2,355 $ 2,390 $ 2,205 $ 2,169 $ 167
Franchise and property revenues 3,002 2,186 1,941 1,883 1,031
Total revenues 5,357 4,576 4,146 4,052 1,198
Income from operations (c) 1,917 1,735 1,667 1,192 181
Net income (loss) (c) $ 1,144 $ 1,235 $ 956 $ 512 $ (269)
Earnings (loss) per common share:
Basic $ 2.46 $ 2.64 $ 1.48 $ 0.51 $ (1.16)
Diluted (d) $ 2.42 $ 2.54 $ 1.45 $ 0.50 $ (2.32)
Dividends per common share $ 1.80 $ 0.78 $ 0.62 $ 0.44 $ 0.30
Other Financial Data:
Net cash provided by (used for) operating activities $ 1,165 $ 1,391 $ 1,250 $ 1,211 $ 294
Net cash provided by (used for) investing activities (44) (858) 27 (62) (7,791)
Net cash provided by (used for) financing activities (1,285) (936) (591) (2,115) 8,566

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December 31,
2018 2017(a) 2016 2015 2014(b)
(In millions)
Balance Sheet Data:
Cash and cash equivalents $ 913 $ 1,097 $ 1,476 $ 792 $ 1,832
Total assets 20,141 21,224 19,125 18,411 21,343
Total debt and capital lease obligations 12,140 12,123 8,723 8,722 10,199
Total liabilities 16,523 16,663 12,339 12,201 13,707
Redeemable preferred shares — — 3,297 3,297 3,297
Total equity 3,618 4,561 3,489 2,913 4,339

(a) On March 27, 2017, we acquired PLK. Statement of operations data and other financial data includes PLK results from the
acquisition date through December 31, 2017. Balance sheet data includes PLK data as of December 31, 2017.
(b) On December 12, 2014, we acquired TH. Statement of operations data and other financial data include TH results from the
acquisition date through December 28, 2014, the end of TH's 2014 fiscal year. Balance sheet data includes TH data as of
December 28, 2014.
(c) Amount includes $10 million of PLK Transaction costs, $25 million of Corporate restructuring and tax advisory fees and $20
million of Office centralization and relocation costs for 2018. Amount includes $62 million of PLK Transaction costs and $2
million of Corporate restructuring and tax advisory fees for 2017. Amount includes $16 million of integration costs for 2016.
Amount includes $117 million of TH transaction and restructuring costs and $1 million of acquisition accounting impact on
cost of sales for 2015. Amount includes $125 million of TH transaction and restructuring costs, $12 million of acquisition
accounting impact on cost of sales and $291 million of net losses on derivatives for 2014.
(d) The diluted earnings per share calculation assumes conversion of 100% of the Partnership exchangeable units under the “if
converted” method. Accordingly, the numerator is also adjusted to include the earnings allocated to the holders of
noncontrolling interests. For 2017, the diluted earnings per share amount includes a $234 million gain on the redemption of the
Company's redeemable preferred shares.

Operating Metrics
We evaluate our restaurants and assess our business based on the following operating metrics:

• System-wide sales growth refers to the percentage change in sales at all franchise restaurants and Company
restaurants in one period from the same period in the prior year.
• Comparable sales refers to the percentage change in restaurant sales in one period from the same prior year period
for restaurants that have been open for 13 months or longer for TH and BK and 17 months or longer for PLK.
• System-wide sales growth and comparable sales are measured on a constant currency basis, which means the results
exclude the effect of foreign currency translation (“FX Impact”). For system-wide sales growth and comparable
sales, we calculate the FX Impact by translating prior year results at current year monthly average exchange rates.
• Unless otherwise stated, system-wide sales growth, system-wide sales and comparable sales are presented on a
system-wide basis, which means they include franchise restaurants and Company restaurants. System-wide results
are driven by our franchise restaurants, as approximately 100% of system-wide restaurants are franchised for each of
our brands. Franchise sales represent sales at all franchise restaurants and are revenues to our franchisees. We do not
record franchise sales as revenues; however, our royalty revenues are calculated based on a percentage of franchise
sales.
• Net restaurant growth refers to the net increase in restaurant count (openings, net of closures) over a trailing twelve
month period, divided by the restaurant count at the beginning of the trailing twelve month period.

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The following table presents our operating metrics for each of the periods indicated, which have been derived from our internal
records. The system-wide sales growth, system-wide sales, comparable sales and net restaurant growth presented for Popeyes are
calculated using the historical information from Popeyes when it was under previous ownership for the periods prior to the acquisition
date of March 27, 2017. Consequently, these metrics for Popeyes, as well as consolidated system-wide sales and consolidated net
restaurant growth, may not necessarily reflect actual data as if Popeyes had been included in our results for the full year 2017 and
2016. We evaluate our restaurants and assess our business based on these operating metrics. These metrics may differ from those used
by other companies in our industry who may define these metrics differently.

2018 2017 2016

System-wide sales growth
Tim Hortons 2.4% 3.0 % 5.2%
Burger King 8.9% 10.1 % 7.8%
Popeyes (a)(b) 8.9% 5.1 % 7.4%
System-wide sales ($ in millions)
Tim Hortons $ 6,869 $ 6,717 $ 6,405
Burger King $ 21,624 $ 20,075 $ 18,209
Popeyes (a)(b) $ 3,732 $ 3,512 $ 3,287
Consolidated $ 32,225 $ 30,304 $ 27,901
Comparable sales
Tim Hortons 0.6% (0.1)% 2.5%
Burger King 2.0% 3.1 % 2.3%
Popeyes (a)(b) 1.6% (1.5)% 1.7%
Net restaurant growth
Tim Hortons 2.1% 2.9 % 4.5%
Burger King 6.1% 6.5 % 4.9%
Popeyes (a)(c) 7.3% 6.1 % 6.2%
Consolidated 5.5% 5.8 % 5.0%
System Restaurant count
Tim Hortons 4,846 4,748 4,613
Burger King 17,796 16,767 15,738
Popeyes (a)(c) 3,102 2,892 2,725
Consolidated 25,744 24,407 23,076

(a) PLK 2016 annual figures are shown for informational purposes only.
(b) For 2017, PLK comparable sales, system-wide sales growth and system-wide sales are for the period from December 26, 2016
through December 31, 2017. Comparable sales and system-wide sales growth are calculated using the same period in the prior
year (December 26, 2015 through December 31, 2016). Results for 2016 are consistent with PLK's former fiscal calendar.
Consequently, results for 2018 may not be comparable to those of 2017 and 2016.
(c) For 2017, net restaurant growth is for the period from December 26, 2016 through December 31, 2017. Results for 2016 are
consistent with PLK's former fiscal calendar. Restaurant count is as of December 31, 2018 for 2018, December 31, 2017 for
2017, and as of December 25, 2016 for 2016, inclusive of temporary closures.

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion together with Part II, Item 6 “Selected Financial Data” of our Annual Report
for the year ended December 31, 2018 (our “Annual Report”) and our audited Consolidated Financial Statements and the
related notes thereto included in Part II, Item 8 “Financial Statements and Supplementary Data” of our Annual Report.

The following discussion includes information regarding future financial performance and plans, targets, aspirations,
expectations, and objectives of management, which constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the Canadian securities laws
as described in further detail under “Special Note Regarding Forward-Looking Statements” that is set forth below. Actual
results may differ materially from the results discussed in the forward-looking statements because of a number of risks and
uncertainties, including the matters discussed in the “Special Note Regarding Forward-Looking Statements” below. In
addition, please refer to the risks set forth under the caption “Risk Factors” included in our Annual Report for a further
description of risks and uncertainties affecting our business and financial results. Historical trends should not be taken as
indicative of future operations and financial results. Other than as required under the U.S. Federal securities laws or the
Canadian securities laws, we do not assume a duty to update these forward-looking statements, whether as a result of new
information, subsequent events or circumstances, changes in expectations or otherwise.

We prepare our financial statements in accordance with accounting principles generally accepted in the United States
(“U.S. GAAP” or “GAAP”). However, this Management’s Discussion and Analysis of Financial Condition and Results of
Operations also contains certain non-GAAP financial measures to assist readers in understanding our performance. Non-
GAAP financial measures either exclude or include amounts that are not reflected in the most directly comparable measure
calculated and presented in accordance with GAAP. Where non-GAAP financial measures are used, we have provided the most
directly comparable measures calculated and presented in accordance with U.S. GAAP, a reconciliation to GAAP measures
and a discussion of the reasons why management believes this information is useful to it and may be useful to investors.

Unless the context otherwise requires, all references in this section to the “Company,” “we,” “us,” or “our” are to
Restaurant Brands International Inc. and its subsidiaries, collectively.

Overview
We are a Canadian corporation originally formed on August 25, 2014 to serve as the indirect holding company for Tim
Hortons and its consolidated subsidiaries and for Burger King and its consolidated subsidiaries. On March 27, 2017, we
acquired Popeyes Louisiana Kitchen, Inc. and its consolidated subsidiaries. We are one of the world’s largest quick service
restaurant (“QSR”) companies with more than $30 billion in system-wide sales and over 25,000 restaurants in more than 100
countries and U.S. territories as of December 31, 2018. Our Tim Hortons®, Burger King®, and Popeyes® brands have similar
franchise business models with complementary daypart mixes and product platforms. Our three iconic brands are managed
independently while benefiting from global scale and sharing of best practices.

Tim Hortons restaurants are quick service restaurants with a menu that includes premium blend coffee, tea, espresso-
based hot and cold specialty drinks, fresh baked goods, including donuts, Timbits®, bagels, muffins, cookies and pastries,
grilled paninis, classic sandwiches, wraps, soups and more. Burger King restaurants are quick service restaurants that feature
flame-grilled hamburgers, chicken and other specialty sandwiches, french fries, soft drinks and other affordably-priced food
items. Popeyes restaurants are quick service restaurants featuring a unique “Louisiana” style menu that includes spicy chicken,
chicken tenders, fried shrimp and other seafood, red beans and rice, and other regional items.

We have three operating and reportable segments: (1) Tim Hortons (“TH”); (2) Burger King (“BK”); and (3) Popeyes
Louisiana Kitchen (“PLK”). Our business generates revenue from the following sources: (i) franchise revenues, consisting
primarily of royalties based on a percentage of sales reported by franchise restaurants and franchise fees paid by franchisees;
(ii) property revenues from properties we lease or sublease to franchisees; and (iii) sales at restaurants owned by us (“Company
restaurants”). In addition, our Tim Hortons business generates revenue from sales to franchisees related to our supply chain
operations, including manufacturing, procurement, warehousing and distribution, as well as sales to retailers.

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Recent Events and Factors Affecting Comparability

Transition to New Revenue Recognition Accounting Standard

We transitioned to Accounting Standards Codification Topic 606, Revenue from Contracts with Customers (“ASC 606”),
effective January 1, 2018 using the modified retrospective method. Our consolidated financial statements for 2018 reflect the
application of ASC 606 guidance, while our consolidated financial statements for 2017 and 2016 were prepared under the
guidance of previously applicable accounting standards.
The most significant effects of this transition that affect comparability of our results of operations between 2018 and
previous periods include the following:
• Franchise fee revenue for franchise agreements entered into subsequent to the acquisitions of BK in 2010, TH in 2014
and PLK in 2017 are deferred and amortized over the franchise agreement term beginning in 2018 compared to
upfront recognition in 2017 and 2016 under previously applicable accounting standards. Franchise fees associated
with acquired franchise agreements are not included in franchise fee revenue under ASC 606. Consequently, we expect
the impact to be greater in those periods in which more openings occur.
• Advertising fund contributions and advertising fund expenses are reflected on a gross basis in our 2018 statement of
operations and there may be a difference in timing for recognition of advertising fund contributions and advertising
fund expenses beginning in 2018. Under previously applicable accounting standards, our statement of operations did
not reflect gross advertising fund contributions and advertising fund expenses and temporary net differences between
contributions and expenses due to the timing of expenses were reflected as current assets or current liabilities on our
consolidated balance sheet.
• The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage.
Under ASC 606, we recognize gift card breakage income proportionately as each gift card is redeemed using an
estimated breakage rate based on our historical experience. Under previously applicable accounting standards, we
recognized gift card breakage income for each gift card’s remaining balance when redemption of that balance was
deemed remote. This change impacts the timing of when gift card breakage income is recognized.
Please refer to Note 16, Revenue Recognition, to the accompanying audited consolidated financial statements for further
details of the effects of this change in accounting principle.

Tax Reform

In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and
Jobs Act (the “Tax Act”) that significantly revises the U.S. tax code generally effective January 1, 2018 by, among other
changes, lowering the corporate income tax rate from 35% to 21%, limiting deductibility of interest expense and performance
based incentive compensation and implementing a modified territorial tax system. As a Canadian entity, we generally would be
classified as a foreign entity (and, therefore, a non-U.S. tax resident) under general rules of U.S. federal income taxation.
However, we have subsidiaries subject to U.S. federal income taxation and therefore the Tax Act impacted our consolidated
results of operations in 2017 and 2018, and is expected to continue to impact our consolidated results of operations in future
periods.

The impacts to our consolidated statements of operations consist of the following (“Tax Act Impact”):

• A provisional benefit of $420 million recorded in our provision from income taxes for 2017 and a favorable
adjustment of $9 million recorded for 2018, as a result of the remeasurement of net deferred tax liabilities.

• Provisional charges of $103 million recorded in 2017 and a favorable adjustment of $3 million recorded in 2018,
related to certain deductions allowed to be carried forward before the Tax Act, which potentially may not be
carried forward and deductible under the Tax Act.

• A provisional estimate for a one-time transitional repatriation tax on unremitted foreign earnings (the “Transition
Tax”) of $119 million recorded in 2017, most of which had been previously accrued with respect to certain
undistributed foreign earnings, and a favorable adjustment of $15 million (primarily related to utilization of
foreign tax credits) recorded in 2018.

In accordance with Staff Accounting Bulletin No. 118 issued by the staff of the Securities and Exchange Commission (the
“SEC”), adjustments to provisional amounts were recorded as discrete items in the provision for income taxes in 2018, the
period in which those adjustments became reasonably estimable, as described above.
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We recorded $25 million during 2018 and $2 million during 2017 of costs associated with corporate restructuring
initiatives and professional advisory and consulting services related to the interpretation and implementation of the Tax Act
(“Corporate restructuring and tax advisory fees”). We expect to continue to incur additional Corporate restructuring and tax
advisory fees related to the Tax Act in 2019.

Popeyes Acquisition and PLK Transaction Costs

As described in Note 3 to the accompanying consolidated financial statements, on March 27, 2017, we completed the
acquisition of Popeyes for total consideration of $1,655 million (the “Popeyes Acquisition”). The consideration was funded
through (1) cash on hand of approximately $355 million and (2) $1,300 million from incremental borrowings under our Term
Loan Facility – see Note 9 to the accompanying consolidated financial statements included in Part II, Item 8 “Financial
Statements and Supplementary Data” of our Annual Report. Our 2018 consolidated statements of operations includes PLK
revenues and segment income for a full fiscal year. Our 2017 consolidated statements of operations includes PLK revenues and
segment income from March 28, 2017 through December 31, 2017.

In connection with the Popeyes Acquisition, we incurred certain non-recurring fees and expenses (“PLK Transaction
costs”) totaling $10 million during 2018 and $62 million during 2017 consisting primarily of professional fees and
compensation related expenses, all of which are classified as selling, general and administrative expenses in the consolidated
statements of operations. We do not expect to incur any additional PLK Transaction costs.

Office Centralization and Relocation Costs

In connection with the centralization and relocation of our Canadian and U.S. restaurant support centers to new offices in
Toronto, Ontario, and Miami, Florida, respectively, we incurred certain non-operational expenses (“Office centralization and
relocation costs”) totaling $20 million during 2018 consisting primarily of duplicate rent expense, moving costs, and
relocation-driven compensation expenses, which are classified as selling, general and administrative expenses in the
consolidated statement of operations.

Integration Costs

In connection with the implementation of initiatives to integrate the back-office processes of TH and BK to enhance
efficiencies, we incurred $16 million related to these initiatives during 2016, primarily consisting of professional fees.

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Results of Operations
Tabular amounts in millions of U.S. dollars unless noted otherwise. Segment income may not calculate exactly due to
rounding.
2018 vs. 2017 2017 vs. 2016

Variance Variance
FX Excluding FX Excluding
Consolidated 2018 2017 2016 Variance Impact (a) FX Impact Variance Impact FX Impact
Favorable / (Unfavorable)
Revenues:
Sales $ 2,355 $ 2,390 $ 2,205 $ (35) $ 1 $ (36) $ 185 $ 40 $ 145
Franchise and property
revenues 3,002 2,186 1,941 816 (10) 826 245 18 227
Total revenues 5,357 4,576 4,146 781 (9) 790 430 58 372
Operating costs and
expenses:
Cost of sales 1,818 1,850 1,727 32 — 32 (123) (31) (92)
Franchise and property
expenses 422 478 454 56 — 56 (24) (6) (18)
Selling, general and
administrative expenses 1,214 416 319 (798) — (798) (97) (8) (89)
(Income) loss from
equity method
investments (22) (12) (20) 10 — 10 (8) — (8)
Other operating
expenses (income), net 8 109 (1) 101 (5) 106 (110) — (110)
Total operating costs
and expenses 3,440 2,841 2,479 (599) (5) (594) (362) (45) (317)
Income from operations 1,917 1,735 1,667 182 (14) 196 68 13 55
Interest expense, net 535 512 467 (23) — (23) (45) — (45)
Loss on early
extinguishment of debt — 122 — 122 — 122 (122) — (122)
Income before income taxes 1,382 1,101 1,200 281 (14) 295 (99) 13 (112)
Income tax (benefit)
expense 238 (134) 244 (372) (12) (360) 378 (1) 379
Net income $ 1,144 $ 1,235 $ 956 $ (91) $ (26) $ (65) $ 279 $ 12 $ 267

(a) We calculate the FX Impact by translating prior year results at current year monthly average exchange rates. We analyze these
results on a constant currency basis as this helps identify underlying business trends, without distortion from the effects of currency
movements.

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2018 vs. 2017 2017 vs. 2016

Variance Variance
FX Excluding FX Excluding
TH Segment 2018 2017 2016 Variance Impact (a) FX Impact Variance Impact FX Impact
Favorable / (Unfavorable)
Revenues:
Sales $ 2,201 $ 2,229 $ 2,112 $ (28) $ 1 $ (29) $ 117 $ 39 $ 78
Franchise and property
revenues 1,091 926 889 165 (2) 167 37 17 20
Total revenues 3,292 3,155 3,001 137 (1) 138 154 56 98
Cost of sales 1,688 1,707 1,647 19 — 19 (60) (30) (30)
Franchise and property
expenses 279 336 317 57 1 56 (19) (6) (13)
Segment SG&A 314 91 79 (223) — (223) (12) (1) (11)
Segment depreciation and
amortization (b) 102 103 102 1 1 — (1) (1) —
Segment income (c) 1,127 1,136 1,072 (9) (1) (8) 64 20 44
(b) Segment depreciation and amortization consists of depreciation and amortization included in cost of sales and franchise and
property expenses.
(c) TH segment income includes $15 million, $13 million and $12 million of cash distributions received from equity method
investments for 2018, 2017 and 2016, respectively.

2018 vs. 2017 2017 vs. 2016

Variance Variance
FX Excluding FX Excluding
BK Segment 2018 2017 2016 Variance Impact (a) FX Impact Variance Impact FX Impact
Favorable / (Unfavorable)
Revenues:
Sales $ 75 $ 94 $ 93 $ (19) $ — $ (19) $ 1 $ 1 $ —
Franchise and
property revenues 1,576 1,125 1,052 451 (7) 458 73 1 72
Total revenues 1,651 1,219 1,145 432 (7) 439 74 2 72
Cost of sales 67 86 80 19 — 19 (6) (1) (5)
Franchise and property
expenses 131 135 137 4 (1) 5 2 — 2
Segment SG&A 577 143 160 (434) (2) (432) 17 (1) 18
Segment depreciation and
amortization (b) 48 47 48 (1) (1) — 1 (1) 2
Segment income (d) 928 903 816 25 (9) 34 87 1 86

(d) BK segment income includes $5 million and $1 million of cash distributions received from equity method investments for 2018 and
2017, respectively.

2018 vs. 2017

Variance
FX Excluding
PLK Segment 2018 2017(e) Variance Impact (a) FX Impact
Favorable / (Unfavorable)
Revenues:
Sales $ 79 $ 67 $ 12 $ — $ 12
Franchise and
property revenues 335 135 200 (1) 201
Total revenues 414 202 212 (1) 213
Cost of sales 63 57 (6) — (6)
Franchise and property
expenses 12 7 (5) — (5)
Segment SG&A 193 40 (153) — (153)
Segment depreciation and
amortization (b) 10 9 (1) — (1)
Segment income 157 107 50 (1) 51

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(e) PLK revenues and segment income from the acquisition date of March 27, 2017 through December 31, 2017 are included in our
consolidated statement of operations for 2017.

Comparable Sales
TH comparable sales were 0.6% for 2018, including Canada comparable sales of 0.9%. BK comparable sales were 2.0%
for 2018, including U.S. comparable sales of 1.4%. PLK comparable sales were 1.6% for 2018, including U.S. comparable
sales of 0.9%.

Sales and Cost of Sales

Sales include TH supply chain sales and sales from Company restaurants. TH supply chain sales represent sales of
products, supplies and restaurant equipment, as well as sales to retailers. In periods prior to January 1, 2018, we classified
revenues derived from sales of equipment packages at the establishment of a restaurant and in connection with renewal or
renovation as franchise and property revenues. Sales from Company restaurants, including sales by our consolidated TH
Restaurant VIEs, represent restaurant-level sales to our guests.

Cost of sales includes costs associated with the management of our TH supply chain, including cost of goods, direct labor
and depreciation, as well as the cost of products sold to retailers. Cost of sales also includes food, paper and labor costs of
Company restaurants. In periods prior to January 1, 2018, we classified costs related to sales of equipment packages at the
establishment of a restaurant and in connection with renewal or renovation as franchise and property expenses.

During 2018, the decrease in sales was driven by a decrease of $29 million in our TH segment and a decrease of $19
million in our BK segment, partially offset by an increase of $12 million in our PLK segment, primarily as a result of including
PLK for a full year in 2018 compared to nine months in 2017, and a favorable FX Impact of $1 million. The decrease in our TH
segment was driven by a $48 million decrease in our TH Company restaurant revenue, primarily from the conversion of
Restaurant VIEs to franchise restaurants, partially offset by a $19 million increase in supply chain sales. The increase in supply
chain sales was primarily due to the reclassification of revenue from the sales of equipment packages from franchise and
property revenues to sales beginning January 1, 2018, partially offset by the non-recurrence of the roll-out of espresso
equipment and related espresso inventory in 2017. The decrease in our BK segment was due to Company restaurant
refranchisings in prior periods.

During 2017, the increase in sales was driven by a $78 million increase in our TH segment, the inclusion of $67 million
from our PLK segment, and a $40 million favorable FX Impact. The increase in our TH segment was driven by a $135 million
increase in supply chain sales primarily reflecting growth in system-wide sales and the launch of our espresso-based beverage
platform, partially offset by a $57 million decrease in our TH Company restaurant revenue, primarily from the conversion of
Restaurant VIEs to franchise restaurants.

During 2018, the decrease in cost of sales was driven primarily by a decrease of $19 million in our TH segment and a
decrease of $19 million in our BK segment, partially offset by an increase of $6 million in our PLK segment, primarily as a
result of including PLK for a full year in 2018 compared to nine months in 2017. The decrease in our TH segment was
primarily due to a decrease of $41 million in Company restaurant cost of sales, primarily from the conversion of Restaurant
VIEs to franchise restaurants, partially offset by an increase of $22 million in supply chain cost of sales. The increase in supply
chain cost of sales was primarily due to the reclassification of costs from the sales of equipment packages from franchise and
property expenses to costs of sales beginning January 1, 2018, partially offset by a decrease in costs in connection with the non-
recurrence of the roll-out of espresso equipment in 2017. The decrease in our BK segment was due to Company restaurant
refranchisings in prior periods.

During 2017, the increase in cost of sales was driven primarily by the inclusion of $57 million from our PLK segment, a
$30 million increase in our TH segment, a $5 million increase in our BK segment, and a $31 million unfavorable FX Impact.
The increase in our TH segment was primarily due to an $80 million increase in supply chain cost of sales driven by the
increase in supply chain sales described above, net of supply chain cost savings derived from effective cost management. This
factor was partially offset by a $50 million decrease in Company restaurant cost of sales, primarily from the conversion of
Restaurant VIEs to franchise restaurants.

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Franchise and Property

Franchise and property revenues consist primarily of royalties earned on franchise sales, rents from real estate leased or
subleased to franchisees, franchise fees, and other revenue. Franchise and property expenses consist primarily of depreciation
of properties leased to franchisees, rental expense associated with properties subleased to franchisees, amortization of franchise
agreements, and bad debt expense (recoveries). In periods prior to January 1, 2018, franchise and property revenues and
franchise and property expenses included revenues and cost of sales, respectively, related to equipment packages sold at
establishment of a restaurant and in connection with renewals or renovations.

During 2018, the increase in franchise and property revenues was driven by an increase of $458 million in our BK
segment, an increase of $201 million in our PLK segment, and an increase of $167 million in our TH segment, partially offset
by a $10 million unfavorable FX Impact. The increase in our BK, TH and PLK segments reflects the inclusion of advertising
fund contributions from franchisees as a result of the application of ASC 606 beginning January 1, 2018, an increase in PLK
franchise and property revenues as a result of including PLK for a full year in 2018 compared to nine months in 2017, and an
increase in royalties driven by system-wide sales growth. These factors were partially offset by a decrease in franchise fees and
other revenue, primarily due to the deferral of initial and renewal franchise fees as a result of the application of ASC 606 and
for our TH segment, the reclassification of revenue from the sales of equipment packages from franchise and property revenues
to sales beginning January 1, 2018.

During 2017, the increase in franchise and property revenues was driven by the inclusion of $135 million from our PLK
segment, a $72 million increase in our BK segment, a $20 million increase in our TH segment, and an $18 million favorable
FX Impact. The increase in our BK segment was primarily due to an increase in royalties, driven by system-wide sales growth.
The increase in our TH segment was primarily due to an increase in royalties, driven by system-wide sales growth, and an
increase in property revenues, driven by new leases and subleases associated with additional restaurants leased or subleased to
franchisees as a result of converting Restaurant VIEs to franchise restaurants.

During 2018, the decrease in franchise and property expenses was driven by a decrease of $56 million in our TH segment
and a decrease of $5 million in our BK segment, partially offset by an increase of $5 million in our PLK segment, primarily as
a result of including PLK for a full year in 2018 compared to nine months in 2017. The decrease in our TH segment was
primarily due to the reclassification of expenses from sales of equipment packages from franchise and property expenses to
cost of sales beginning January 1, 2018.

During 2017, the increase in franchise and property expenses was driven by a $13 million increase in our TH segment,
the inclusion of $7 million from our PLK segment, and a $6 million unfavorable FX Impact, partially offset by a $2 million
decrease in our BK segment. The increase in our TH segment was primarily due to an increase in property expenses driven by
new subleases associated with additional restaurants subleased to franchisees as a result of converting Restaurant VIEs to
franchise restaurants.

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Selling, General and Administrative Expenses

Our selling, general and administrative expenses were comprised of the following:

2018 vs. 2017 2017 vs. 2016

2018 2017 2016 $ % $ %
Favorable / (Unfavorable)
TH Segment SG&A $ 314 $ 91 $ 79 $ (223) NM $ (12) (15.2)%
BK Segment SG&A 577 143 160 (434) NM 17 10.6 %
PLK Segment SG&A 193 40 — (153) NM (40) NM
Share-based compensation and non-
cash incentive compensation expense 55 55 42 — —% (13) (31.0)%
Depreciation and amortization 20 23 22 3 13.0% (1) (4.5)%
PLK Transaction costs 10 62 — 52 83.9% (62) NM
Corporate restructuring and tax
advisory fees 25 2 — (23) NM (2) NM
Office centralization and relocation
costs 20 — — (20) NM — NM
Integration costs — — 16 — NM 16 NM
Selling, general and administrative
expenses $ 1,214 $ 416 $ 319 $ (798) NM $ (97) (30.4)%

NM – Not Meaningful

Upon our transition to ASC 606 on January 1, 2018, segment selling, general and administrative expenses (“Segment
SG&A”) include segment selling expenses, which consist primarily of advertising fund expenses, and segment general and
administrative expenses, which are comprised primarily of salary and employee-related costs for non-restaurant employees,
professional fees, information technology systems, and general overhead for our corporate offices. Prior to our transition to
ASC 606 on January 1, 2018, our statement of operations did not reflect advertising fund contributions or advertising fund
expenses, since such amounts were netted under previously applicable accounting standards. Segment SG&A excludes share-
based compensation and non-cash incentive compensation expense, depreciation and amortization, PLK Transaction costs,
Corporate restructuring and tax advisory fees, Office centralization and relocation costs and Integration costs.

During 2018, TH, BK and PLK Segment SG&A increased primarily due to the inclusion of advertising fund expenses
from the application of ASC 606 beginning January 1, 2018.

During 2017, TH Segment SG&A increased primarily due to an increase in salaries and benefits and an unfavorable FX
Impact. During the same period, BK Segment SG&A decreased primarily due to a decrease in salaries and benefits, partially
offset by an unfavorable FX Impact.

During 2017, the increase in share-based compensation and non-cash incentive compensation expense was due primarily
to an increase of $4 million in equity award modifications and an increase due to additional equity awards granted during 2017.

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(Income) Loss from Equity Method Investments

(Income) loss from equity method investments reflects our share of investee net income or loss, non-cash dilution gains
or losses from changes in our ownership interests in equity method investees, and basis difference amortization.

The change in (income) loss from equity method investments during 2018 was primarily driven by the current year
recognition of a $20 million non-cash dilution gain on the initial public offering by one of our equity method investees,
partially offset by an increase in equity method investment net losses that we recognized during 2018.

The change in (income) loss from equity method investments during 2017 was primarily driven by the prior year
recognition of a $12 million increase to the carrying value of our investment balance and a non-cash dilution gain included in
(income) loss from equity method investments on the issuance of capital stock by one of our equity method investees, partially
offset by improved results of our BK equity method investments in 2017.

Other Operating Expenses (Income), net

Our other operating expenses (income), net were comprised of the following:

2018 2017 2016

Net losses on disposal of assets, restaurant closures and refranchisings $ 19 $ 29 $ 18
Litigation settlements and reserves, net 11 2 1
Net losses (gains) on foreign exchange (33) 77 (20)
Other, net 11 1 —
Other operating expenses (income), net $ 8 $ 109 $ (1)

Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other
costs related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain
costs related to closures and refranchisings that occurred in previous periods.

Litigation settlements and reserves, net primarily reflects accruals and proceeds received in connection with litigation
matters.

Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities.

Other, net during 2018 is comprised primarily of a payment in connection with the settlement of certain provisions
associated with the 2017 redemption of our preferred shares as a result of recently proposed Treasury regulations.

Interest Expense, net

2018 2017 2016
Interest expense, net $ 535 $ 512 $ 467
Weighted average interest rate on long-term debt 4.8% 4.8% 5.1%

During 2018, interest expense, net increased primarily due to higher outstanding debt from the incurrence of incremental
term loans and the issuance of senior notes during 2017, partially offset by a $60 million benefit during 2018 from our adoption
of the new hedge accounting standard. Please refer to Note 2, Significant Accounting Policies - New Accounting
Pronouncements, to the accompanying audited consolidated financial statements for further details of the effects of the
adoption of the new hedge accounting standard. Subject to foreign exchange rate movements and other factors, we expect a
benefit to continue during 2019.

During 2017, interest expense, net increased primarily due to higher outstanding debt from the incurrence of incremental
term loans and the issuance of senior notes during 2017, partially offset by an increase in interest income and a lower weighted
average interest rate.

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Loss on Early Extinguishment of Debt

During 2017, we recorded a $122 million loss on early extinguishment of debt which primarily reflects the payment of
premiums to fully redeem our second lien notes and the write-off of unamortized debt issuance costs and discounts in
connection with the refinancing of our Term Loan Facility.

Income Tax Expense

The change in our effective income tax rate to 17.2% in 2018 from (12.1)% in 2017 is primarily due to the impact of
certain aspects of the Tax Act, realignment of certain intercompany financings and changes in foreign currency exchange rates,
partially offset by the release of a valuation allowance related to use of capital losses.

The change in our effective income tax rate to (12.1)% in 2017 from 20.3% in 2016 is primarily due to provisional
amounts recorded in 2017 for the Tax Act Impact. Our effective income tax rate in 2017 also includes a benefit from stock
option exercises as a result of the required adoption of a new share-based compensation accounting standard, as well as
differing tax rules applicable to certain subsidiaries outside Canada. These factors were partially offset by a valuation
allowance on foreign exchange capital losses.

Net Income

We reported net income of $1,144 million for 2018 compared to net income of $1,235 million for 2017. The decrease in
net income is primarily due to a $372 million increase in income tax expense, a $23 million increase in interest expense, net, a
$23 million increase in Corporate restructuring and tax advisory fees, the inclusion of $20 million of Office centralization and
relocation costs, and a $9 million decrease in TH segment income. These factors were partially offset by the non-recurrence of
$122 million of loss on early extinguishment of debt recognized in the prior period, a $101 million favorable change in results
from other operating expenses (income), net, a $52 million decrease in PLK Transaction costs, a $50 million increase in PLK
segment income, primarily as a result of including PLK for a full year in 2018 compared to nine months in 2017, and a $25
million increase in BK segment income.

Our net income increased to $1,235 million for 2017 compared to net income of $956 million for 2016, primarily as a
result of a $134 million income tax benefit in 2017 compared to a $244 million income tax expense in 2016, a net change of
$378 million. Additionally, segment income in TH and BK increased $151 million and 2017 includes $107 million of PLK
segment income. These factors were partially offset by a $122 million loss on early extinguishment of debt, a $110 million
increase in other operating expenses (income), net, $62 million of PLK Transaction costs, and a $45 million increase in interest
expense, net.

Non-GAAP Reconciliations
The table below contains information regarding EBITDA and Adjusted EBITDA, which are non-GAAP measures. These
non-GAAP measures do not have a standardized meaning under U.S. GAAP and may differ from similar captioned measures of
other companies in our industry. We believe that these non-GAAP measures are useful to investors in assessing our operating
performance, as it provides them with the same tools that management uses to evaluate our performance and is responsive to
questions we receive from both investors and analysts. By disclosing these non-GAAP measures, we intend to provide
investors with a consistent comparison of our operating results and trends for the periods presented. EBITDA is defined as
earnings (net income or loss) before interest expense, net, loss on early extinguishment of debt, income tax (benefit) expense,
and depreciation and amortization and is used by management to measure operating performance of the business. Adjusted
EBITDA is defined as EBITDA excluding the non-cash impact of share-based compensation and non-cash incentive
compensation expense and (income) loss from equity method investments, net of cash distributions received from equity
method investments, as well as other operating expenses (income), net. Other specifically identified costs associated with non-
recurring projects are also excluded from Adjusted EBITDA, including PLK Transaction costs associated with the Popeyes
Acquisition, Corporate restructuring and tax advisory fees related to the interpretation and implementation of the Tax Act,
including Treasury regulations proposed in late 2018, non-operational Office centralization and relocation costs in connection
with the centralization and relocation of our Canadian and U.S. restaurant support centers to new offices in Toronto, Ontario,
and Miami, Florida, respectively, and Integration costs associated with the acquisition of Tim Hortons. Adjusted EBITDA is
used by management to measure operating performance of the business, excluding these non-cash and other specifically
identified items that management believes are not relevant to management’s assessment of operating performance or the
performance of an acquired business. Adjusted EBITDA, as defined above, also represents our measure of segment income for
each of our three operating segments.

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2018 2017 2016 2018 vs. 2017 2017 vs. 2016

Favorable / (Unfavorable)
Segment income:
TH $ 1,127 $ 1,136 $ 1,072 $ (9) $ 64
BK 928 903 816 25 87
PLK 157 107 — 50 107
Adjusted EBITDA 2,212 2,146 1,888 66 258
Share-based compensation and non-cash
incentive compensation expense 55 55 42 — (13)
PLK Transaction costs 10 62 — 52 (62)
Corporate restructuring and tax advisory fees 25 2 — (23) (2)
Office centralization and relocation costs 20 — — (20) —
Integration costs — — 16 — 16
Impact of equity method investments (a) (3) 1 (8) 4 (9)
Other operating expenses (income), net 8 109 (1) 101 (110)
EBITDA 2,097 1,917 1,839 180 78
Depreciation and amortization 180 182 172 2 (10)
Income from operations 1,917 1,735 1,667 182 68
Interest expense, net 535 512 467 (23) (45)
Loss on early extinguishment of debt — 122 — 122 (122)
Income tax (benefit) expense 238 (134) 244 (372) 378
Net income $ 1,144 $ 1,235 $ 956 $ (91) $ 279

(a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method
investments. Cash distributions received from our equity method investments are included in segment income.

Segment income is affected by the application of ASC 606 beginning January 1, 2018, including the deferral of initial and
renewal franchise fees and the timing of advertising fund related revenues and expenses. See Note 19, Segment Reporting and
Geographical Information, to the accompanying audited consolidated financial statements for 2018 segment income under
Previous Standards. The increase in Adjusted EBITDA for 2018 reflects the increase in segment income in our BK and PLK
segments, primarily as a result of including PLK for a full year in 2018 compared to nine months in 2017, partially offset by a
decrease in our TH segment.

The increase in EBITDA for 2018 is primarily due to a decrease in other operating expenses (income), net, an increase in
segment income in our BK and PLK segments, primarily as a result of including PLK for a full year in 2018 compared to nine
months in 2017, a decrease in PLK Transaction costs, and favorable results from the impact of equity method investments in
the current period, partially offset by the increase in Corporate restructuring and tax advisory fees, the inclusion of Office
centralization and relocation costs and a decrease in segment income in our TH segment.

The increase in Adjusted EBITDA for 2017 reflects increases in segment income in our TH and BK segments and the
inclusion of our PLK segment.

The increase in EBITDA for 2017 is primarily due to increases in segment income in our TH and BK segments, the
inclusion of PLK segment income, and the non-recurrence of integration costs, partially offset by an increase in other operating
expenses (income), net, PLK Transaction costs and Corporate restructuring and tax advisory fees recognized in the current
period, an increase in share-based compensation and non-cash incentive compensation, and unfavorable results from the impact
of equity method investments.

Liquidity and Capital Resources

Our primary sources of liquidity are cash on hand, cash generated by operations and borrowings available under our
Revolving Credit Facility (as defined below). We have used, and may in the future use, our liquidity to make required interest
and/or principal payments, to repurchase our common shares, to repurchase Class B exchangeable limited partnership units
(“Partnership exchangeable units”), to voluntarily prepay and repurchase our or one of our affiliate’s outstanding debt, to fund
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our investing activities and to pay dividends on our common shares and make distributions on the Partnership exchangeable
units. As a result of our borrowings, we are highly leveraged. Our liquidity requirements are significant, primarily due to debt
service requirements.

At December 31, 2018, we had cash and cash equivalents of $913 million and working capital of $92 million. In addition,
at December 31, 2018, we had borrowing availability of $480 million under our Revolving Credit Facility. Based on our
current level of operations and available cash, we believe our cash flow from operations, combined with availability under our
Revolving Credit Facility, will provide sufficient liquidity to fund our current obligations, debt service requirements and capital
spending over the next twelve months.

During 2018, Partnership received exchange notices representing 10,185,333 Partnership exchangeable units, including
10,020,000 received during the fourth quarter of 2018. Pursuant to the terms of the partnership agreement, Partnership satisfied
the exchange notices by repurchasing 10,000,000 Partnership exchangeable units for approximately $561 million in cash during
the fourth quarter and full year of 2018 and exchanging the remaining Partnership exchangeable units for the same number of
our newly issued common shares.

On August 2, 2016, our board of directors approved a share repurchase authorization that allows us to purchase up to
$300 million of our common shares through July 2021. Repurchases under the Company’s authorization will be made in the
open market or through privately negotiated transactions. On August 7, 2018, we announced that the Toronto Stock Exchange
(the “TSX”) had accepted the notice of our intention to renew the normal course issuer bid. Under this normal course issuer
bid, we are permitted to repurchase up to 24,087,172 common shares for the one-year period commencing on August 8, 2018
and ending on August 7, 2019, or earlier if we complete the repurchases prior to such date. Share repurchases under the normal
course issuer bid will be made through the facilities of the TSX, the New York Stock Exchange (the “NYSE”) and/or other
exchanges and alternative Canadian or foreign trading systems, if eligible, or by such other means as may be permitted by the
TSX and/or the NYSE under applicable law. Shareholders may obtain a copy of the prior notice, free of charge, by contacting
us. As of the date of this report, there have been no share repurchases under the normal course issuer bid.

Prior to the Tax Act, we provided deferred taxes on certain undistributed foreign earnings. Under our transition to a
modified territorial tax system whereby all previously untaxed undistributed foreign earnings are subject to a transition tax
charge at reduced rates and future repatriations of foreign earnings will generally be exempt from U.S. tax, we wrote off the
existing deferred tax liability on undistributed foreign earnings and recorded the impact of the new transition tax charge on
foreign earnings during the fourth quarter of 2017. We will continue to monitor available evidence and our plans for foreign
earnings and expect to continue to provide any applicable deferred taxes based on the tax liability or withholding taxes that
would be due upon repatriation of amounts not considered permanently reinvested.

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Debt Instruments and Debt Service Requirements

As of December 31, 2018, our long-term debt consists primarily of borrowings under our Credit Facilities, amounts
outstanding under our 2017 4.25% Senior Notes, 2015 4.625% Senior Notes and 2017 5.00% Senior Notes (each as defined
below), and obligations under capital leases. For further information about our long-term debt, see Note 9 to the
accompanying consolidated financial statements included in Part II, Item 8 “Financial Statements and Supplementary Data”
of our Annual Report.

Credit Facilities

On October 2, 2018, two of our subsidiaries (the “Borrowers”) entered into a third amendment (the “Third Amendment”)
to the credit agreement (the “Credit Agreement”) governing our senior secured term loan facility (the “Term Loan Facility”)
and our senior secured revolving credit facility of up to $500 million of revolving extensions of credit outstanding at any time
(including revolving loans, swingline loans and letters of credit) (the “Revolving Credit Facility”) and together with the Term
Loan Facility, the “Credit Facilities”). The Third Amendment amended the Credit Agreement to (i) exclude from GAAP any
applicable changes with respect to revenue recognition such that the revenue recognition standards from Accounting Standards
Codification (“ASC”) Topic 605, Revenue Recognition and ASC Subtopic 952-605, Franchisors - Revenue Recognition, solely
as it relates to initial and renewal franchise fees and upfront fees from development agreements and master franchise and
development agreements, shall continue to apply; (ii) provide for mandatory prepayments equal to 50%, 25% and 0% of annual
excess cash flow of the Borrowers and their subsidiaries if the first lien senior secured leverage ratio is above 4.00x, between
3.75x and 4.00x and below 3.75x, respectively (rather than above 3.75x, between 3.50x and 3.75x and below 3.50x,
respectively); and (iii) allow for unlimited restricted payments when the total leverage ratio is not greater than 4.75x (rather
than 4.50x).
As of December 31, 2018, there was $6,338 million outstanding principal amount under the Term Loan Facility with a
weighted average interest rate of 4.77%. Based on the amounts outstanding under the Term Loan Facility and LIBOR as of
December 31, 2018, subject to a floor of 1.00%, required debt service for the next twelve months is estimated to be
approximately $287 million in interest payments and $65 million in principal payments. In addition, based on LIBOR as of
December 31, 2018, net cash settlements that we expect to pay on our $3,500 million interest rate swap are estimated to be
approximately $4 million for the next twelve months. The Term Loan Facility matures on February 17, 2024, and we may
prepay the Term Loan Facility in whole or in part at any time. Additionally, subject to certain exceptions, the Term Loan
Facility may be subject to mandatory prepayments using (i) proceeds from non-ordinary course asset dispositions, (ii) proceeds
from certain incurrences of debt or (iii) a portion of our annual excess cash flows based upon certain leverage ratios.

As of December 31, 2018, we had no amounts outstanding under the Revolving Credit Facility, had $20 million of letters
of credit issued against the facility, and our borrowing availability was $480 million. Funds available under the Revolving
Credit Facility may be used to repay other debt, finance debt or share repurchases, fund acquisitions or capital expenditures,
and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit
Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. We are
also required to pay (i) letters of credit fees on the aggregate face amounts of outstanding letters of credit plus a fronting fee to
the issuing bank and (ii) administration fees. Amounts drawn under each letter of credit bear interest ranging from 1.25% to
2.00%, depending on our leverage ratio. The Revolving Credit Facility matures on October 13, 2022, provided that if on
October 15, 2021, more than an aggregate of $150 million of the 2015 4.625% Senior Notes (as defined below) are
outstanding, then the maturity date of the Revolving Credit Facility will be October 15, 2021.

The interest rate applicable to borrowings under our Credit Facilities is, at our option, either (i) a base rate plus an
applicable margin equal to 1.25% for the Term Loan Facility and ranging from 0.25% to 1.00%, depending on our leverage
ratio, for the Revolving Credit Facility, or (ii) a Eurocurrency rate plus an applicable margin of 2.25% for the Term Loan
Facility and ranging from 1.25% to 2.00%, depending on our leverage ratio, for the Revolving Credit Facility. Borrowings are
subject to a floor of 2.00% for base rate borrowings and 1.00% for Eurocurrency rate borrowings. The unused portion of the
Revolving Credit Facility is subject to a commitment fee of 0.25%. Obligations under the Credit Facilities are guaranteed on a
senior secured basis, jointly and severally, by the direct parent company of one of the Borrowers and substantially all of its
Canadian and U.S. subsidiaries, including Tim Hortons, Burger King, Popeyes and substantially all of their respective Canadian
and U.S. subsidiaries (the “Credit Guarantors”). Amounts borrowed under the Credit Facilities are secured on a first priority
basis by a perfected security interest in substantially all of the present and future property (subject to certain exceptions) of
each Borrower and Credit Guarantor.

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Senior Notes
In May 2017, the Borrowers entered into an indenture (the “2017 4.25% Senior Notes Indenture”) in connection with the
issuance of $1,500 million of 4.25% first lien senior secured notes due May 15, 2024 (the “2017 4.25% Senior Notes”). No
principal payments are due until maturity and interest is paid semi-annually.
During 2017, the Borrowers entered into an indenture (the “2017 5.00% Senior Notes Indenture”) in connection with the
issuance in August 2017 and October 2017 of an aggregate of $2,800 million of 5.00% second lien senior secured notes due
October 15, 2025 (the “2017 5.00% Senior Notes”). No principal payments are due until maturity and interest is paid semi-
annually.
The Borrowers are also party to an indenture (the “2015 4.625% Senior Notes Indenture”) in connection with the
issuance of $1,250 million of 4.625% first lien senior notes due January 15, 2022 (the “2015 4.625% Senior Notes”). No
principal payments are due until maturity and interest is paid semi-annually.
The Borrowers may redeem a series of Senior Notes, in whole or in part, at any time prior to May 15, 2020 for the 2017
4.25% Senior Notes and October 15, 2020 for the 2017 5.00% Senior Notes, at a price equal to 100% of the principal amount
redeemed plus a “make-whole” premium, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. In
addition, the Borrowers may redeem, in whole or in part, the 2015 4.625% Senior Notes at any time and the 2017 4.25% Senior
Notes and 2017 5.00% Senior Notes on or after the applicable date noted above, at the redemption prices set forth in the
applicable Senior Notes Indenture. The Senior Notes Indentures also contain optional redemption provisions related to tender
offers, change of control and equity offerings, among others.
Based on the amounts outstanding at December 31, 2018, required debt service for the next twelve months on all of the
Senior Notes outstanding is approximately $262 million in interest payments.

TH Facility
On October 11, 2018, one of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a
total aggregate principal amount of C$100 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate
applicable to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime
Rate plus an applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by three of our
subsidiaries, and amounts borrowed under the TH Facility are and will be secured by certain parcels of real estate. As of
December 31, 2018, we had drawn down the entire C$100 million available under the TH Facility with a weighted average
interest rate of 3.64%.

Restrictions and Covenants

Our Credit Facilities, 2017 4.25% Senior Notes Indenture, 2017 5.00% Senior Notes Indenture and 2015 4.625% Senior
Notes Indenture contain a number of customary affirmative and negative covenants that, among other things, limit or restrict
the ability of the Company and certain of our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers,
consolidations, liquidations and dissolutions; sell assets; pay dividends and make other payments in respect of capital stock;
make investments, loans and advances; pay or modify the terms of certain indebtedness; engage in certain transactions with
affiliates. In addition, the Borrowers are not permitted to exceed a first lien senior secured leverage ratio of 6.50 to 1.00 when,
as of the end of any fiscal quarter, the sum of (i) the amount of letters of credit outstanding exceeding $50 million (other than
those that are cash collateralized); (ii) outstanding amounts under the Revolving Credit Facility and (iii) outstanding amounts of
swing line loans, exceeds 30% of the commitments under the Revolving Credit Facility.

The restrictions under the Credit Facilities, the 2017 4.25% Senior Notes Indenture, 2017 5.00% Senior Notes Indenture
and 2015 4.625% Senior Notes Indenture have resulted in substantially all of our consolidated assets being restricted.

As of December 31, 2018, we were in compliance with all debt covenants under the Credit Facilities, the TH Facility, the
2017 4.25% Senior Notes Indenture, 2017 5.00% Senior Notes Indenture and 2015 4.625% Senior Notes Indenture, and there
were no limitations on our ability to draw on the remaining availability under our Revolving Credit Facility.

Cash Dividends
On January 4, 2019, we paid a dividend of $0.45 per common share and Partnership made a distribution in respect of
each Partnership exchangeable unit in the amount of $0.45 per Partnership exchangeable unit.

On January 22, 2019, our board of directors declared a quarterly cash dividend of $0.50 per common share for the first
quarter of 2019, payable on April 3, 2019 to common shareholders of record on March 15, 2019. Partnership will also make a
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distribution in respect of each Partnership exchangeable unit in the amount of $0.50 per Partnership exchangeable unit, and the
record date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment
date set forth above.

We are targeting a total of $2.00 in declared dividends per common share and distributions in respect of each Partnership
exchangeable unit for 2019.
Because we are a holding company, our ability to pay cash dividends on our common shares may be limited by
restrictions under our debt agreements. Although we do not have a formal dividend policy, our board of directors may, subject
to compliance with the covenants contained in our debt agreements and other considerations, determine to pay dividends in the
future.

Outstanding Security Data

As of February 11, 2019, we had outstanding 251,557,945 common shares and one special voting share. The special
voting share is held by a trustee, entitling the trustee to that number of votes on matters on which holders of common shares are
entitled to vote equal to the number of Partnership exchangeable units outstanding. The trustee is required to cast such votes in
accordance with voting instructions provided by holders of Partnership exchangeable units. At any shareholder meeting of the
Company, holders of our common shares vote together as a single class with the special voting share except as otherwise
provided by law. For information on our share-based compensation and our outstanding equity awards, see Note 15 to the
accompanying consolidated financial statements included in Part II, Item 8 “Financial Statements and Supplementary Data” of
our Annual Report.

There were 207,510,471 Partnership exchangeable units outstanding as of February 11, 2019. Since December 12, 2015,
the holders of Partnership exchangeable units have had the right to require Partnership to exchange all or any portion of such
holder’s Partnership exchangeable units for our common shares at a ratio of one share for each Partnership exchangeable unit,
subject to our right as the general partner of Partnership to determine to settle any such exchange for a cash payment in lieu of
our common shares.

Comparative Cash Flows

Operating Activities

Cash provided by operating activities was $1,165 million in 2018, compared to $1,391 million in 2017. The decrease in
cash provided by operating activities was driven by an increase in income tax payments, primarily due to the payment of
accrued income taxes related to the December 2017 redemption of preferred shares, increases in interest payments and
Corporate restructuring and tax advisory fees and Office centralization and relocation costs incurred in the current year. These
factors were partially offset by an increase in PLK segment income, primarily as a result of including PLK for a full year in
2018 compared to nine months in 2017, an increase in BK segment income, a decrease in PLK Transaction costs and a decrease
in cash used for working capital.
Cash provided by operating activities was $1,391 million in 2017, compared to $1,250 million in 2016. The increase in
cash provided by operating activities was driven by the inclusion of PLK segment income and increases in TH and BK segment
income, partially offset by PLK Transaction costs, increases in income tax payments and interest payments, and an increase in
cash used by changes in working capital.

Investing Activities

Cash used for investing activities was $44 million in 2018, compared to $858 million in 2017. The change in investing
activities was driven primarily by net cash used for the Popeyes Acquisition during 2017, partially offset by proceeds from the
settlement of derivatives in 2017 and an increase in capital expenditures during 2018.
Cash used for investing activities was $858 million in 2017, compared to cash provided by investing activities of $27
million in 2016. The change in investing activities was driven primarily by net cash used for the Popeyes Acquisition partially
offset by proceeds received from the settlement and termination of our previous cross-currency rate swaps.

Financing Activities

Cash used for financing activities was $1,285 million in 2018, compared to $936 million in 2017. The change in
financing activities was driven primarily by an increase in RBI common share dividends and distributions on Partnership
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exchangeable units during 2018, an increase in payments in connection with the repurchase of Partnership exchangeable units,
the 2018 payments in connection with the December 2017 redemption of preferred shares and a decrease in proceeds from the
issuance of long-term debt. These factors were partially offset by non-recurring uses of cash for financing activities in 2017,
including the redemption of the Preferred Shares, payment of financing costs, and preferred dividend payments, a decrease in
debt repayments in 2018 and an increase in proceeds from stock option exercises in 2018.
Cash used for financing activities was $936 million in 2017, compared to $591 million in 2016. The change in financing
activities was driven primarily by the redemption of the preferred shares, repurchases of Partnership exchangeable units, debt
repayments, payment of financing costs and redemption premiums, and higher dividend payments, partially offset by proceeds
from new borrowings.

Contractual Obligations and Commitments

Our significant contractual obligations and commitments as of December 31, 2018 are shown in the following table.

Payment Due by Period

Less Than More Than
Contractual Obligations Total 1 Year 1-3 Years 3-5 Years 5 Years
(In millions)
Credit Facilities, including interest (a) $ 7,789 $ 354 $ 699 $ 685 $ 6,051
Senior Notes, including interest 7,025 262 526 1,662 4,575
Other long-term debt 162 8 19 26 109
Operating lease obligations (b) 1,619 183 330 275 831
Purchase commitments (c) 697 589 105 2 1
Capital lease obligations 372 38 70 63 201
Total $ 17,664 $ 1,434 $ 1,749 $ 2,713 $ 11,768

(a) We have estimated our interest payments through the maturity of our Credit Facilities based on the three-month LIBOR as
of December 31, 2018.
(b) Operating lease payment obligations have not been reduced by the amount of payments due in the future under subleases.
(c) Includes open purchase orders, as well as commitments to purchase certain food ingredients and advertising expenditures,
and obligations related to information technology and service agreements.

We have not included in the contractual obligations table approximately $492 million of gross liabilities for unrecognized
tax benefits relating to various tax positions we have taken. These liabilities may increase or decrease over time primarily as a
result of tax examinations, and given the status of the examinations, we cannot reliably estimate the period of any cash
settlement with the respective taxing authorities. For additional information on unrecognized tax benefits, see Note 11 to the
accompanying consolidated financial statements included in Part II, Item 8 “Financial Statements and Supplementary Data” of
our Annual Report.

Other Commercial Commitments and Off-Balance Sheet Arrangements

From time to time, we enter into agreements under which we guarantee loans made by third parties to qualified
franchisees. As of December 31, 2018, there were $55 million of loans outstanding to Burger King franchisees that we had
guaranteed under six such programs, with additional franchisee borrowing capacity of approximately $300 million
remaining. Our maximum guarantee liability under these programs is limited to an aggregate of $42 million, assuming full
utilization of all borrowing capacity. We record a liability in the period the loans are funded and the maximum term of the
guarantee is approximately ten years. As of December 31, 2018, the liability reflecting the fair value of these guarantee
obligations was $1 million. As of December 31, 2018, there were no significant guarantees in connection with Tim Hortons
franchisee loans and no guarantees in connection with Popeyes franchisee loans. No significant payments have been made by
us in connection with these guarantees through December 31, 2018.

Critical Accounting Policies and Estimates

This discussion and analysis of financial condition and results of operations is based on our audited consolidated financial
statements, which have been prepared in accordance with U.S. GAAP. The preparation of these financial statements requires
our management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses,

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as well as related disclosures of contingent assets and liabilities. We evaluate our estimates on an ongoing basis and we base
our estimates on historical experience and various other assumptions we deem reasonable to the situation. These estimates and
assumptions form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent
from other sources. As future events and their effects cannot be determined with precision, actual results could differ
significantly from these estimates. Changes in our estimates could materially impact our results of operations and financial
condition in any particular period.

We consider our critical accounting policies and estimates to be as follows based on the high degree of judgment or
complexity in their application:

Goodwill and Intangible Assets Not Subject to Amortization

Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in
acquisitions. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, and the Popeyes
brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of
October 1 of each year and more often if an event occurs or circumstances change, which indicate impairment might exist. Our
annual impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass
the qualitative assessment and proceed directly to a two-step quantitative impairment test, for any reporting unit or Brand, in
any period. We can resume the qualitative assessment for any reporting unit or Brand in any subsequent period.

Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-
than-not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for
any reporting units, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a
reporting unit exceeds its fair value, we perform a two-step quantitative goodwill impairment test. The first step requires us to
estimate the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying amount, the estimated
fair value of the reporting unit is allocated to all its underlying assets and liabilities, including both recognized and
unrecognized tangible and intangible assets, based on their fair value. If necessary, goodwill is then written down to its implied
fair value. We use an income approach to estimate a reporting unit’s fair value, which discounts the reporting unit’s projected
cash flows using a discount rate we determine. We make significant assumptions when estimating a reporting unit’s projected
cash flows, including revenue, driven primarily by net restaurant growth, comparable sales growth and average royalty rates,
general and administrative expenses, capital expenditures and income tax rates.

Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-
likely-than-not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any
of our Brands, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand
exceeds its fair value, we estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount
exceeds fair value, an impairment loss is recognized in an amount equal to that excess. We use an income approach to estimate
a Brand’s fair value, which discounts the projected Brand-related cash flows using a discount rate we determine. We make
significant assumptions when estimating Brand-related cash flows, including system-wide sales, driven by net restaurant
growth and comparable sales growth, average royalty rates, brand maintenance costs and income tax rates.

We completed our impairment reviews for goodwill and the Brands as of October 1, 2018, 2017 and 2016 and no
impairment resulted. The estimates and assumptions we use to estimate fair values when performing quantitative assessments
are highly subjective judgments based on our experience and knowledge of our operations. Significant changes in the
assumptions used in our analysis could result in an impairment charge related to goodwill or the Brands. Circumstances that
could result in changes to future estimates and assumptions include, but are not limited to, expectations of lower system-wide
sales growth, which can be caused by a variety of factors, increases in income tax rates and increases in discount rates. Based
on the annual impairment tests performed in 2018, the fair values of all of our reporting units and Brands were substantially in
excess of their carrying amounts.

Long-lived Assets
Long-lived assets (including intangible assets subject to amortization) are tested for impairment whenever events or
changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Long-lived assets are grouped
for recognition and measurement of impairment at the lowest level for which identifiable cash flows are largely independent of
the cash flows of other assets.

The impairment test for long-lived assets requires us to assess the recoverability of our long-lived assets by comparing
their net carrying value to the sum of undiscounted estimated future cash flows directly associated with and arising from our
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use and eventual disposition of the assets. If the net carrying value of a group of long-lived assets exceeds the sum of related
undiscounted estimated future cash flows, we would be required to record an impairment charge equal to the excess, if any, of
net carrying value over fair value.

When assessing the recoverability of our long-lived assets, we make assumptions regarding estimated future cash flows
and other factors. Some of these assumptions involve a high degree of judgment and also bear a significant impact on the
assessment conclusions. Included among these assumptions are estimating undiscounted future cash flows, including the
projection of rental income, capital requirements for maintaining property and residual values of asset groups. We formulate
estimates from historical experience and assumptions of future performance, based on business plans and forecasts, recent
economic and business trends, and competitive conditions. In the event that our estimates or related assumptions change in the
future, we may be required to record an impairment charge.

Accounting for Income Taxes

We record income tax liabilities utilizing known obligations and estimates of potential obligations. A deferred tax asset or
liability is recognized whenever there are future tax effects from existing temporary differences and operating loss and tax
credit carry-forwards. When considered necessary, we record a valuation allowance to reduce deferred tax assets to the balance
that is more-likely-than-not to be realized. We must make estimates and judgments on future taxable income, considering
feasible tax planning strategies and taking into account existing facts and circumstances, to determine the proper valuation
allowance. When we determine that deferred tax assets could be realized in greater or lesser amounts than recorded, the asset
balance and income statement reflect the change in the period such determination is made. Due to changes in facts and
circumstances and the estimates and judgments that are involved in determining the proper valuation allowance, differences
between actual future events and prior estimates and judgments could result in adjustments to this valuation allowance.

During 2017, we recorded provisional estimates for the income tax effects of the Tax Act in accordance with SAB 118,
which established a one-year measurement period where a provisional amount could be subject to adjustment. We finalized
these provisional estimates during 2018 and reflected such refinements as discrete items along with the 2018 income tax effects
of the Tax Act based on applicable regulations and guidance issued to date. Given the complexity of the changes in the tax law
resulting from the Tax Act, additional regulations and guidance are expected to be issued by applicable authorities (e.g.,
Treasury, IRS, SEC, FASB, state taxing authorities) subsequent to the date of filing. Accordingly, it is possible that the 2018
amounts recorded may be impacted by such developments. Adjustments to the amounts recorded will be reflected as discrete
items in the provision for income taxes in the period in which those adjustments become reasonably estimable.

We file income tax returns, including returns for our subsidiaries, with federal, provincial, state, local and foreign
jurisdictions. We are subject to routine examination by taxing authorities in these jurisdictions. We apply a two-step approach to
recognizing and measuring uncertain tax positions. The first step is to evaluate available evidence to determine if it appears
more-likely-than-not that an uncertain tax position will be sustained on an audit by a taxing authority, based solely on the
technical merits of the tax position. The second step is to measure the tax benefit as the largest amount that is more than 50%
likely of being realized upon settling the uncertain tax position.

Although we believe we have adequately accounted for our uncertain tax positions, from time to time, audits result in
proposed assessments where the ultimate resolution may result in us owing additional taxes. We adjust our uncertain tax
positions in light of changing facts and circumstances, such as the completion of a tax audit, expiration of a statute of
limitations, the refinement of an estimate, and interest accruals associated with uncertain tax positions until they are resolved.
We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.
However, to the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will
impact the provision for income taxes in the period in which such determination is made.

In prior periods, we provided deferred taxes on certain undistributed foreign earnings. Under our transition to a modified
territorial tax system whereby all previously untaxed undistributed foreign earnings are subject to a transition tax charge at
reduced rates and future repatriations of foreign earnings will generally be exempt from U.S. tax, we wrote off the existing
deferred tax liability on undistributed foreign earnings and recorded the impact of the new transition tax charge on foreign
earnings. We will continue to monitor available evidence and our plans for foreign earnings and expect to continue to provide
any applicable deferred taxes based on the tax liability or withholding taxes that would be due upon repatriation of amounts not
considered permanently reinvested.

We use an estimate of the annual effective income tax rate at each interim period based on the facts and circumstances
available at that time, while the actual effective income tax rate is calculated at year-end.

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See Note 11 to the accompanying consolidated financial statements included in Part II, Item 8 “Financial Statements and
Supplementary Data” of our Annual Report for additional information about accounting for income taxes.

New Accounting Pronouncements

See Note 2, “Significant Accounting Policies – New Accounting Pronouncements,” to the accompanying consolidated
financial statements included in Part II, Item 8 “Financial Statements and Supplementary Data” of our Annual Report for a
discussion of new accounting pronouncements.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk

We are exposed to market risks associated with currency exchange rates, interest rates, commodity prices and inflation. In
the normal course of business and in accordance with our policies, we manage these risks through a variety of strategies, which
may include the use of derivative financial instruments to hedge our underlying exposures. Our policies prohibit the use of
derivative instruments for speculative purposes, and we have procedures in place to monitor and control their use.

Currency Exchange Risk

We report our results in U.S. dollars, which is our reporting currency. The operations of each of TH, BK, and PLK that are
denominated in currencies other than the U.S. dollar are impacted by fluctuations in currency exchange rates and changes in
currency regulations. The majority of TH’s operations, income, revenues, expenses and cash flows are denominated in Canadian
dollars, which we translate to U.S. dollars for financial reporting purposes. Royalty payments from BK franchisees in our
European markets and in certain other countries are denominated in currencies other than U.S. dollars. Furthermore, franchise
royalties from each of TH’s, BK’s, and PLK's international franchisees are calculated based on local currency sales;
consequently franchise revenues are still impacted by fluctuations in currency exchange rates. Each of their respective revenues
and expenses are translated using the average rates during the period in which they are recognized and are impacted by changes
in currency exchange rates.

We have numerous investments in our foreign subsidiaries, the net assets of which are exposed to volatility in foreign
currency exchange rates. We have entered into cross-currency rate swaps to hedge a portion of our net investment in such foreign
operations against adverse movements in foreign currency exchange rates. We designated cross-currency rate swaps with a
notional value of $5,000 million between Canadian dollar and U.S. dollar and cross-currency rate swaps with a notional value of
$1,600 million between the Euro and U.S. dollar, as net investment hedges of a portion of our equity in foreign operations in
those currencies. The fair value of the cross-currency rate swaps is calculated each period with changes in the fair value of these
instruments reported in AOCI to economically offset the change in the value of the net investment in these designated foreign
operations driven by changes in foreign currency exchange rates. The net fair value of these derivative instruments was a
liability of $48 million as of December 31, 2018. The net unrealized losses, net of tax, related to these derivative instruments
included in AOCI totaled $36 million as of December 31, 2018. Such amounts will remain in AOCI until the complete or
substantially complete liquidation of our investment in the underlying foreign operations.

We use forward currency contracts to manage the impact of foreign exchange fluctuations on U.S. dollar purchases and
payments, such as coffee and certain intercompany purchases, made by our TH Canadian operations. However, for a variety of
reasons, we do not hedge our revenue exposure in other currencies. Therefore, we are exposed to volatility in those other
currencies, and this volatility may differ from period to period. As a result, the foreign currency impact on our operating results
for one period may not be indicative of future results.

During 2018, income from operations would have decreased or increased approximately $119 million if all foreign
currencies uniformly weakened or strengthened 10% relative to the U.S. dollar, holding other variables constant, including sales
volumes. The effect of a uniform movement of all currencies by 10% is provided to illustrate a hypothetical scenario and related
effect on operating income. Actual results will differ as foreign currencies may move in uniform or different directions and in
different magnitudes.

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Interest Rate Risk

We are exposed to changes in interest rates related to our Term Loan Facility and Revolving Credit Facility, which bear
interest at LIBOR/EURIBOR plus a spread, subject to a LIBOR/EURIBOR floor. Generally, interest rate changes could impact
the amount of our interest paid and, therefore, our future earnings and cash flows, assuming other factors are held constant. To
mitigate the impact of changes in LIBOR/EURIBOR on interest expense for a portion of our variable rate debt, we have entered
into interest rate swaps. We account for these derivatives as cash flow hedges, and as such, the unrealized changes in market
value are recorded in AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects
earnings. At December 31, 2018, we had a series of receive-variable, pay-fixed interest rate swaps to hedge the variability in the
interest payments on $3,500 million of our Term Loan Facility through the expiration of the final swap on February 17, 2024.
The notional value of the swaps is $3,500 million.

Based on the portion of our variable rate debt balance in excess of the notional amount of the interest rate swaps and
LIBOR as of December 31, 2018, a hypothetical 1.00% increase in LIBOR would increase our annual interest expense by
approximately $28 million.

Commodity Price Risk

We purchase certain products, which are subject to price volatility that is caused by weather, market conditions and other
factors that are not considered predictable or within our control. However, in our TH business, we employ various purchasing
and pricing contract techniques, such as setting fixed prices for periods of up to one year with suppliers, in an effort to minimize
volatility of certain of these commodities. Given that we purchase a significant amount of green coffee, we typically have
purchase commitments fixing the price for a minimum of six to twelve months depending upon prevailing market conditions. We
also typically hedge against the risk of foreign exchange on green coffee prices.

We occasionally take forward pricing positions through our suppliers to manage commodity prices. As a result, we
purchase commodities and other products at market prices, which fluctuate on a daily basis and may differ between different
geographic regions, where local regulations may affect the volatility of commodity prices.

We do not make use of financial instruments to hedge commodity prices. As we make purchases beyond our current
commitments, we may be subject to higher commodity prices depending upon prevailing market conditions at such time.
Generally, increases and decreases in commodity costs are largely passed through to franchisee owners, resulting in higher or
lower revenues and higher or lower costs of sales from our business. These changes may impact margins as many of these
products are typically priced based on a fixed-dollar mark-up. We and our franchisees have some ability to increase product
pricing to offset a rise in commodity prices, subject to acceptance by franchisees and guests.

Impact of Inflation

We believe that our results of operations are not materially impacted by moderate changes in the inflation rate. Inflation
did not have a material impact on our operations in 2018, 2017 or 2016. However, severe increases in inflation could affect the
global, Canadian and U.S. economies and could have an adverse impact on our business, financial condition and results of
operations. If several of the various costs in our business experience inflation at the same time, such as commodity price
increases beyond our ability to control and increased labor costs, we and our franchisees may not be able to adjust prices to
sufficiently offset the effect of the various cost increases without negatively impacting consumer demand.

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Disclosures Regarding Partnership Pursuant to Canadian Exemptive Relief

We are the sole general partner of Partnership. To address certain disclosure conditions to the exemptive relief that
Partnership received from the Canadian securities regulatory authorities, we are providing a summary of certain terms of the
Partnership exchangeable units. This summary is not complete and is qualified in its entirety by the complete text of the
Amended and Restated Limited Partnership Agreement, dated December 11, 2014, between the Company, 8997896 Canada Inc.
and each person who is admitted as a Limited Partner in accordance with the terms of the agreement (the “partnership
agreement”) and the Voting Trust Agreement, dated December 12, 2014, between the Company, Partnership and Computershare
Trust Company of Canada (the “voting trust agreement”), copies of which are available on SEDAR at www.sedar.com and at
www.sec.gov. For a description of our common shares, see the Company’s Registration Statement on Form S-4 (File
No. 333-198769).

The Partnership Exchangeable Units

The capital of Partnership consists of three classes of units: the Partnership Class A common units, the Partnership
preferred units and the Partnership exchangeable units. Our interest, as the sole general partner of Partnership, is represented by
Class A common units and preferred units. The interests of the limited partners is represented by the Partnership exchangeable
units.

Summary of Economic and Voting Rights

The Partnership exchangeable units are intended to provide economic rights that are substantially equivalent, and voting
rights with respect to us that are equivalent, to the corresponding rights afforded to holders of our common shares. Under the
terms of the partnership agreement, the rights, privileges, restrictions and conditions attaching to the Partnership exchangeable
units include the following:

• The Partnership exchangeable units are exchangeable at any time, at the option of the holder (the “exchange right”),
on a one-for-one basis for our common shares (the “exchanged shares”), subject to our right as the general partner
(subject to the approval of the conflicts committee in certain circumstances) to determine to settle any such
exchange for a cash payment in lieu of our common shares. If we elect to make a cash payment in lieu of issuing
common shares, the amount of the cash payment will be the weighted average trading price of the common shares
on the NYSE for the 20 consecutive trading days ending on the last business day prior to the exchange date (the
“exchangeable units cash amount”). Written notice of the determination of the form of consideration shall be given
to the holder of the Partnership exchangeable units exercising the exchange right no later than ten business days
prior to the exchange date.
• If a dividend or distribution has been declared and is payable in respect of our common shares, Partnership will
make a distribution in respect of each Partnership exchangeable unit in an amount equal to the dividend or
distribution in respect of a common share. The record date and payment date for distributions on the Partnership
exchangeable units will be the same as the relevant record date and payment date for the dividends or distributions
on our common shares.
• If we issue any common shares in the form of a dividend or distribution on our common shares, Partnership will
issue to each holder of Partnership exchangeable units, in respect of each exchangeable unit held by such holder, a
number of Partnership exchangeable units equal to the number of common shares issued in respect of each common
share.
• If we issue or distribute rights, options or warrants or other securities or assets to all or substantially all of the
holders of our common shares, Partnership is required to make a corresponding distribution to holders of the
Partnership exchangeable units.
• No subdivision or combination of our outstanding common shares is permitted unless a corresponding subdivision
or combination of Partnership exchangeable units is made.
• We and our board of directors are prohibited from proposing or recommending an offer for our common shares or
for the Partnership exchangeable units unless the holders of the Partnership exchangeable units and the holders of
common shares are entitled to participate to the same extent and on equitably equivalent basis.
• Upon a dissolution and liquidation of Partnership, if Partnership exchangeable units remain outstanding and have
not been exchanged for our common shares, then the distribution of the assets of Partnership between holders of our
common shares and holders of Partnership exchangeable units will be made on a pro rata basis based on the
numbers of common shares and Partnership exchangeable units outstanding. Assets distributable to holders of
Partnership exchangeable units will be distributed directly to such holders. Assets distributable in respect of our
common shares will be distributed to us. Prior to this pro rata distribution, Partnership is required to pay to us
sufficient amounts to fund our expenses or other obligations (to the extent related to our role as the general partner
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or our business and affairs that are conducted through Partnership or its subsidiaries) to ensure that any property and
cash distributed to us in respect of the common shares will be available for distribution to holders of common shares
in an amount per share equal to distributions in respect of each Partnership exchangeable unit. The terms of the
Partnership exchangeable units do not provide for an automatic exchange of Partnership exchangeable units into our
common shares upon a dissolution or liquidation of Partnership or us.
• Approval of holders of the Partnership exchangeable units is required for an action (such as an amendment to the
partnership agreement) that would affect the economic rights of a Partnership exchangeable unit relative to a
common share.
• The holders of Partnership exchangeable units are indirectly entitled to vote in respect of matters on which holders
of our common shares are entitled to vote, including in respect of the election of our directors, through a special
voting share of the Company. The special voting share is held by a trustee, entitling the trustee to that number of
votes on matters on which holders of common shares are entitled to vote equal to the number of Partnership
exchangeable units outstanding. The trustee is required to cast such votes in accordance with voting instructions
provided by holders of Partnership exchangeable units. The trustee will exercise each vote attached to the special
voting share only as directed by the relevant holder of Partnership exchangeable units and, in the absence of
instructions from a holder of an exchangeable unit as to voting, will not exercise those votes. Except as otherwise
required by the partnership agreement, voting trust agreement or applicable law, the holders of the Partnership
exchangeable units are not directly entitled to receive notice of or to attend any meeting of the unitholders of
Partnership or to vote at any such meeting.

Exercise of Optional Exchange Right

In order to exercise the exchange right referred to above, a holder of Partnership exchangeable units must deliver to
Partnership’s transfer agent a duly executed exchange notice together with such additional documents and instruments as the
transfer agent and Partnership may reasonably require. The exchange notice must (i) specify the number of Partnership
exchangeable units in respect of which the holder is exercising the exchange right and (ii) state the business day on which the
holder desires to have Partnership exchange the subject units, provided that the exchange date must not be less than 15 business
days nor more than 30 business days after the date on which the exchange notice is received by Partnership. If no exchange date
is specified in an exchange notice, the exchange date will be deemed to be the 15th business day after the date on which the
exchange notice is received by Partnership. An exercise of the exchange right may be revoked by the exercising holder by notice
in writing given to Partnership before the close of business on the fifth business day immediately preceding the exchange date.
On the exchange date, Partnership will deliver or cause the transfer agent to deliver to the relevant holder, as applicable (i) the
applicable number of exchanged shares, or (ii) a cheque representing the applicable exchangeable units cash amount, in each
case, less any amounts withheld on account of tax.

Offers for Units or Shares

The partnership agreement contains provisions to the effect that if a take-over bid is made for all of the outstanding
Partnership exchangeable units and not less than 90% of the Partnership exchangeable units (other than units of Partnership held
at the date of the take-over bid by or on behalf of the offeror or its associates or associates) are taken up and paid for by the
offeror, the offeror will be entitled to acquire the Partnership exchangeable units held by unitholders who did not accept the offer
on the terms offered by the offeror. The partnership agreement further provides that for so long as Partnership exchangeable
units remain outstanding, (i) we will not propose or recommend a formal bid for our common shares, and no such bid will be
effected with the consent or approval of our board of directors, unless holders of Partnership exchangeable units are entitled to
participate in the bid to the same extent and on an equitably equivalent basis as the holders of our common shares, and (ii) we
will not propose or recommend a formal bid for Partnership exchangeable units, and no such bid will be effected with the
consent or approval of our board of directors, unless holders of the Company’s common shares are entitled to participate in the
bid to the same extent and on an equitably equivalent basis as the holders of Partnership exchangeable units. Canadian securities
regulatory authorities may intervene in the public interest (either on application by an interested party or by staff of a Canadian
securities regulatory authority) to prevent an offer to holders of our common shares, Preferred Shares or Partnership
exchangeable units being made or completed where such offer is abusive of the holders of one of those security classes that are
not subject to that offer.

Merger, Sale or Other Disposition of Assets

As long as any Partnership exchangeable units are outstanding, we cannot consummate a transaction in which all or
substantially all of our assets would become the property of any other person or entity. This does not apply to a transaction if
such other person or entity becomes bound by the partnership agreement and assumes our obligations, as long as the transaction
does not impair in any material respect the rights, duties, powers and authorities of other parties to the partnership agreement.

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Mandatory Exchange
Partnership may cause a mandatory exchange of the outstanding Partnership exchangeable units into our common shares
in the event that (1) at any time there remain outstanding fewer than 5% of the number of Partnership exchangeable units
outstanding as of the effective time of the Merger (other than Partnership exchangeable units held by us and our subsidiaries and
as such number of Partnership exchangeable units may be adjusted in accordance with the partnership agreement); (2) any one of
the following occurs: (i) any person, firm or corporation acquires directly or indirectly any voting security of the Company and
immediately after such acquisition, the acquirer has voting securities representing more than 50% of the total voting power of all
the then outstanding voting securities of the Company on a fully diluted basis, (ii) our shareholders shall approve a merger,
consolidation, recapitalization or reorganization of the Company, other than any transaction which would result in the holders of
outstanding voting securities of the Company immediately prior to such transaction having at least a majority of the total voting
power represented by the voting securities of the surviving entity outstanding immediately after such transaction, with the voting
power of each such continuing holder relative to other continuing holders not being altered substantially in the transaction; or
(iii) our shareholders shall approve a plan of complete liquidation of the Company or an agreement for the sale or disposition of
the Company of all or substantially all of the our assets, provided that, in each case, we, in our capacity as the general partner of
Partnership, determine, in good faith and in our sole discretion, that such transaction involves a bona fide third-party and is not
for the primary purpose of causing the exchange of the exchangeable units in connection with such transaction; or (3) a matter
arises in respect of which applicable law provides holders of Partnership exchangeable units with a vote as holders of units of
Partnership in order to approve or disapprove, as applicable, any change to, or in the rights of the holders of, the Partnership
exchangeable units, where the approval or disapproval, as applicable, of such change would be required to maintain the
economic equivalence of the Partnership exchangeable units and our common shares, and the holders of the Partnership
exchangeable units fail to take the necessary action at a meeting or other vote of holders of Partnership exchangeable units to
approve or disapprove, as applicable, such matter in order to maintain economic equivalence of the Partnership exchangeable
units and our common shares.

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Special Note Regarding Forward-Looking Statements

Certain information contained in our Annual Report, including information regarding future financial performance and
plans, targets, aspirations, expectations, and objectives of management, constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of the
Canadian securities laws. We refer to all of these as forward-looking statements. Forward-looking statements are forward-
looking in nature and, accordingly, are subject to risks and uncertainties. These forward-looking statements can generally be
identified by the use of words such as “believe”, “anticipate”, “expect”, “intend”, “estimate”, “plan”, “continue”, “will”,
“may”, “could”, “would”, “target”, “potential” and other similar expressions and include, without limitation, statements
regarding our expectations or beliefs regarding (i) our ability to become one of the most efficient franchised QSR operators in
the world; (ii) the benefits of our fully franchised business model; (iii) the domestic and international growth opportunities for
the Tim Hortons, Burger King and Popeyes brands, both in existing and new markets; (iv) our ability to accelerate international
development through joint venture structures and master franchise and development agreements and the impact on future growth
and profitability of our brands; (v) our continued use of joint ventures structures and master franchise and development
agreements in connection with our domestic and international expansion; (vi) the impact of our strategies on the growth of our
Tim Hortons, Burger King and Popeyes brands and our profitability; (vii) our commitment to technology and innovation;
(viii) the correlation between our sales, guest traffic and profitability to consumer discretionary spending and the factors that
influence spending; (ix) our ability to drive traffic, expand our customer base and allow restaurants to expand into new dayparts
through new product innovation; (x) the benefits accrued from sharing and leveraging best practices among our Tim Hortons,
Burger King and Popeyes brands; (xi) the drivers of the long-term success for and competitive position of each of our brands as
well as increased sales and profitability of our franchisees; (xii) the impact of our cost management initiatives at each of our
brands; (xiii) the continued use of certain franchise incentives and their impact on our financial results; (xiv) the impact of our
modern image remodel initiative; (xv) our future financial obligations, including annual debt service requirements, capital
expenditures and dividend payments, the source of liquidity needed to satisfy such obligations, and our ability to meet such
obligations; (xvi) future PLK Transaction costs and Corporate restructuring and tax advisory fees; (xvii) our plans to build new
warehouses and renovate existing warehouses and the anticipated timing for completion; (xviii) our exposure to changes in
interest rates and foreign currency exchange rates and the impact of changes in interest rates and foreign currency exchange
rates on the amount of our interest payments, future earnings and cash flows; (xix) our tax positions and their compliance with
applicable tax laws; (xx) certain accounting matters, including the impact of changes in accounting standards and our transition
to ASC 606; (xxi) certain tax matters, such as our estimates with respect to tax matters as a result of the Tax Act, including our
effective tax rate for 2019 and the impacts of the Tax Act; (xxii) the impact of inflation on our results of operations; (xxiii) the
impact of governmental regulation, both domestically and internationally, on our business and financial and operational results;
(xxiv) the adequacy of our facilities to meet our current requirements; (xxv) our future financial and operational results; (xxvi)
certain litigation matters; and (xxvii) our target total dividend for 2019.

These forward looking statements represent management’s expectations as of the date hereof. These forward-looking
statements are based on certain assumptions and analyses that we made in light of our experience and our perception of
historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the
circumstances. However, these forward-looking statements are subject to a number of risks and uncertainties and actual results
may differ materially from those expressed or implied in such statements. Important factors that could cause actual results, level
of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking
statements include, among other things, risks related to: (1) our substantial indebtedness, which could adversely affect our
financial condition and prevent us from fulfilling our obligations; (2) global economic or other business conditions that may
affect the desire or ability of our customers to purchase our products such as inflationary pressures, high unemployment levels,
declines in median income growth, consumer confidence and consumer discretionary spending and changes in consumer
perceptions of dietary health and food safety; (3) our relationship with, and the success of, our franchisees and risks related to
our fully franchised business model; (4) the effectiveness of our marketing and advertising programs and franchisee support of
these programs; (5) significant and rapid fluctuations in interest rates and in the currency exchange markets and the
effectiveness of our hedging activity; (6) our ability to successfully implement our domestic and international growth strategy for
each of our brands and risks related to our international operations; (7) our reliance on master franchisees and subfranchisees
to accelerate restaurant growth; (8) the ability of the counterparties to our credit facilities’ and derivatives’ to fulfill their
commitments and/or obligations; (9) changes in applicable tax laws or interpretations thereof; and risks related to the
complexity of the Tax Act and our ability to accurately interpret and predict its impact on our financial condition and results.

Finally, our future results will depend upon various other risks and uncertainties, including, but not limited to, those
detailed in the section entitled “Item 1A - Risk Factors” of our Annual Report as well as other materials that we from time to
time file with, or furnish to, the SEC or file with Canadian securities regulatory authorities on SEDAR. All forward-looking
statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements
in this section and elsewhere in this annual report. Other than as required under securities laws, we do not assume a duty to
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update these forward-looking statements, whether as a result of new information, subsequent events or circumstances, changes
in expectations or otherwise.

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Item 8. Financial Statements and Supplementary Data

RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

Page
Management’s Report on Internal Control Over Financial Reporting 54
Report of Independent Registered Public Accounting Firm 55
Consolidated Balance Sheets 57
Consolidated Statements of Operations 58
Consolidated Statements of Comprehensive Income (Loss) 59
Consolidated Statements of Shareholders’ Equity 60
Consolidated Statements of Cash Flows 61
Notes to Consolidated Financial Statements 62

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Management’s Report on Internal Control Over Financial Reporting

Management is responsible for the preparation, integrity and fair presentation of the consolidated financial statements, related notes
and other information included in this annual report. The consolidated financial statements were prepared in accordance with
accounting principles generally accepted in the United States of America and include certain amounts based on management’s
estimates and assumptions. Other financial information presented in the annual report is derived from the consolidated financial
statements.

Management is also responsible for establishing and maintaining adequate internal control over financial reporting, and for performing
an assessment of the effectiveness of internal control over financial reporting as of December 31, 2018. Internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles. Our system of internal control
over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that
transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting
principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management
and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company’s assets that could have a material effect on the consolidated financial statements.

Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of
December 31, 2018 based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO). Based on our assessment and those criteria, management determined
that the Company’s internal control over financial reporting was effective as of December 31, 2018.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The effectiveness of the Company’s internal control over financial reporting as of December 31, 2018 has been audited by KPMG
LLP, the Company’s independent registered public accounting firm, as stated in its report which is included herein.

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Restaurant Brands International Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of Restaurant Brands International Inc. and subsidiaries (the
“Company”) as of December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income (loss),
shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes
(collectively, the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all
material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its
cash flows for each of the years in the three-year period ended December 31, 2018, in conformity with U.S. generally accepted
accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in
Internal Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission,
and our report dated February 22, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over
financial reporting.

Change in Accounting Principle

As discussed in Note 2 to the consolidated financial statements, the Company has changed its method of accounting for revenue from
contracts with customers in 2018 due to the adoption of the new revenue standard.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to
error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial
statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining,
on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included
evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall
presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

(signed) KPMG LLP

We have served as the Company's auditor since 1989.

Miami, Florida
February 22, 2019

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

Restaurant Brands International Inc.:

Opinion on Internal Control over Financial Reporting

We have audited Restaurant Brands International Inc. and subsidiaries’ (the “Company”) internal control over financial reporting as of
December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective
internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated
Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(“PCAOB”), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, the related consolidated statements
of operations, comprehensive income (loss), shareholders' equity, and cash flows for each of the years in the three-year period ended
December 31, 2018, and the related notes (collectively, the “consolidated financial statements”), and our report dated February 22,
2019 expressed an unqualified opinion on those consolidated financial statements.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control
over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based
on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the
Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange
Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting,
assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control
based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.

(signed) KPMG LLP

Miami, Florida
February 22, 2019

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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES

Consolidated Balance Sheets
(In millions of U.S. dollars, except share data)

As of December 31,
2018 2017
ASSETS
Current assets:
Cash and cash equivalents $ 913 $ 1,097
Accounts and notes receivable, net of allowance of $14 and $16, respectively 452 489
Inventories, net 75 78
Prepaids and other current assets 60 86
Total current assets 1,500 1,750
Property and equipment, net of accumulated depreciation and amortization of $704 and $623,
respectively 1,996 2,133
Intangible assets, net 10,463 11,062
Goodwill 5,486 5,782
Net investment in property leased to franchisees 54 71
Other assets, net 642 426
Total assets $ 20,141 $ 21,224
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and drafts payable $ 513 $ 496
Other accrued liabilities 637 866
Gift card liability 167 215
Current portion of long term debt and capital leases 91 78
Total current liabilities 1,408 1,655
Term debt, net of current portion 11,823 11,801
Capital leases, net of current portion 226 244
Other liabilities, net 1,547 1,455
Deferred income taxes, net 1,519 1,508
Total liabilities 16,523 16,663
Commitments and contingencies (Note 18)
Shareholders’ equity:
Common shares, no par value; unlimited shares authorized at December 31, 2018 and December
31, 2017; 251,532,493 shares issued and outstanding at December 31, 2018; 243,899,476 shares
issued and outstanding at December 31, 2017 1,737 2,052
Retained earnings 674 651
Accumulated other comprehensive income (loss) (800) (476)
Total Restaurant Brands International Inc. shareholders’ equity 1,611 2,227
Noncontrolling interests 2,007 2,334
Total shareholders’ equity 3,618 4,561
Total liabilities and shareholders’ equity $ 20,141 $ 21,224

See accompanying notes to consolidated financial statements.

Approved on behalf of the Board of Directors:

By: /s/ Alexandre Behring By: /s/ Paul J. Fribourg
Alexandre Behring, Co-Chairman Paul J. Fribourg, Director

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RESTAURANT BRANDS INTERNATIONAL INC. AND SUBSIDIARIES

Consolidated Statements of Operations
(In millions of U.S. dollars, except per share data)

2018 2017 2016

Revenues:
Sales $ 2,355 $ 2,390 $ 2,205
Franchise and property revenues (Note 16) 3,002 2,186 1,941
Total revenues 5,357 4,576 4,146
Operating costs and expenses:
Cost of sales 1,818 1,850 1,727
Franchise and property expenses 422 478 454
Selling, general and administrative expenses (Note 16) 1,214 416 319
(Income) loss from equity method investments (22) (12) (20)
Other operating expenses (income), net 8 109 (1)
Total operating costs and expenses 3,440 2,841 2,479
Income from operations 1,917 1,735 1,667
Interest expense, net 535 512 467
Loss on early extinguishment of debt — 122 —
Income before income taxes 1,382 1,101 1,200
Income tax (benefit) expense 238 (134) 244
Net income 1,144 1,235 956
Net income attributable to noncontrolling interests (Note 14) 532 587 340
Preferred shares dividends — 256 270
Gain on redemption of preferred shares (Note 13) — (234) —
Net income attributable to common shareholders $ 612 $ 626 $ 346
Earnings per common share:
Basic $ 2.46 $ 2.64 $ 1.48
Diluted $ 2.42 $ 2.54 $ 1.45
Weighted average shares outstanding:
Basic 249 237 233
Diluted 473 477 470

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Comprehensive Income (Loss)
(In millions of U.S. dollars)

2018 2017 2016

Net income $ 1,144 $ 1,235 $ 956

Foreign currency translation adjustment (831) 824 223

Net change in fair value of net investment hedges, net of tax of $(101), $13, and $(12) 282 (371) (99)
Net change in fair value of cash flow hedges, net of tax of $7, $4, and $7 (19) (11) (20)
Amounts reclassified to earnings of cash flow hedges, net of tax of $(5), $(9), and
$(6) 14 25 16
Gain (loss) recognized on defined benefit pension plans, net of tax of $0, $2, and $2 1 4 (8)
Other comprehensive income (loss) (553) 471 112
Comprehensive income (loss) 591 1,706 1,068
Comprehensive income (loss) attributable to noncontrolling interests 276 818 398
Comprehensive income (loss) attributable to preferred shareholders — 22 270
Comprehensive income (loss) attributable to common shareholders $ 315 $ 866 $ 400

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Shareholders’ Equity
(In millions of U.S. dollars, except shares)
Accumulated
Issued Common Shares Other
Retained Comprehensive Noncontrolling
Shares Amount Earnings Income (Loss) Interests Total
Balances at December 31, 2015 225,707,588 $ 1,825 $ 246 $ (733) $ 1,576 $ 2,914
Stock option exercises 1,554,235 14 — — — 14
Stock option tax benefits — 9 — — — 9
Share-based compensation — 33 — — — 33
Issuance of shares 230,611 7 — — — 7
Dividends declared on common shares ($0.62 per share) — — (145) — — (145)
Dividend equivalents declared on restricted stock units — 1 (1) — — —
Distributions declared by Partnership on partnership
exchangeable units ($0.62 per unit) — — — — (141) (141)
Preferred share dividends — — (270) — — (270)
Exchange of Partnership exchangeable units for RBI
common shares 6,744,244 66 — (19) (47) —
Net income (loss) — — 616 — 340 956
Other comprehensive income (loss) — — — 54 58 112
Balances at December 31, 2016 234,236,678 $ 1,955 $ 446 $ (698) $ 1,786 $ 3,489
Stock option exercises 5,102,046 29 — — — 29
Share-based compensation — 46 — — — 46
Issuance of shares 274,272 8 — — — 8
Dividends declared on common shares ($0.78 per share) — — (186) — — (186)
Dividend equivalents declared on restricted stock units — 2 (2) — — —
Distributions declared by Partnership on partnership
exchangeable units ($0.78 per units) — — — — (175) (175)
Preferred share dividends — — (256) — — (256)
Repurchase of Partnership exchangeable units — (272) — (9) (49) (330)
Exchange of Partnership exchangeable units for RBI
common shares 4,286,480 50 — (8) (42) —
Restaurant VIE contributions (distributions) — — — — (4) (4)
Gain on redemption of preferred shares (Note 13) — 234 — — — 234
Net income — — 649 — 586 1,235
Other comprehensive income (loss) — — — 239 232 471
Balances at December 31, 2017 243,899,476 $ 2,052 $ 651 $ (476) $ 2,334 $ 4,561
Cumulative effect adjustment (Note 16) — — (132) — (118) (250)
Stock option exercises 7,221,947 61 — — — 61
Share-based compensation — 48 — — — 48
Issuance of shares 225,737 7 — — — 7
Dividends declared on common shares ($1.80 per share) — — (452) — — (452)
Dividend equivalents declared on restricted stock units — 5 (5) — — —
Distributions declared by Partnership on partnership
exchangeable units ($1.80 per unit) — — — — (387) (387)
Repurchase of Partnership exchangeable units — (438) — (26) (97) (561)
Exchange of Partnership exchangeable units for RBI
common shares 185,333 2 — (1) (1) —
Net income — — 612 — 532 1,144
Other comprehensive income (loss) — — — (297) (256) (553)
Balances at December 31, 2018 251,532,493 $ 1,737 $ 674 $ (800) $ 2,007 $ 3,618

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Cash Flows
(In millions of U.S. dollars)

2018 2017 2016

Cash flows from operating activities:
Net income $ 1,144 $ 1,235 $ 956
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 180 182 172
Premiums paid and non-cash loss on early extinguishment of debt — 119 —
Amortization of deferred financing costs and debt issuance discount 29 33 39
(Income) loss from equity method investments (22) (12) (20)
Loss (gain) on remeasurement of foreign denominated transactions (33) 77 (20)
Net (gains) losses on derivatives (40) 31 21
Share-based compensation expense 48 48 35
Deferred income taxes 29 (742) 80
Other 5 18 4
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Accounts and notes receivable 19 (30) (16)
Inventories and prepaids and other current assets (7) 19 (10)
Accounts and drafts payable 41 14 16
Other accrued liabilities and gift card liability (219) 360 (1)
Tenant inducements paid to franchisees (52) (20) (19)
Other long-term assets and liabilities 43 59 13
Net cash provided by operating activities 1,165 1,391 1,250
Cash flows from investing activities:
Payments for property and equipment (86) (37) (34)
Proceeds from disposal of assets, restaurant closures and refranchisings 8 26 30
Net payment for purchase of Popeyes, net of cash acquired — (1,636) —
Return of investment on direct financing leases 16 16 17
Settlement/sale of derivatives, net 17 772 11
Other investing activities, net 1 1 3
Net cash provided by (used for) investing activities (44) (858) 27
Cash flows from financing activities:
Proceeds from issuance of long-term debt 75 5,850 —
Repayments of long-term debt and capital leases (74) (2,742) (70)
Payments in connection with redemption of preferred shares (60) (3,006) —
Payment of financing costs (3) (63) —
Payment of dividends on common and preferred shares and distributions on
Partnership exchangeable units (728) (664) (538)
Repurchase of Partnership exchangeable units (561) (330) —
Proceeds from stock option exercises 61 29 14
Excess tax benefits from share-based compensation — — 8
Other financing activities, net 5 (10) (5)
Net cash provided by (used for) financing activities (1,285) (936) (591)
Effect of exchange rates on cash and cash equivalents (20) 24 (2)
Increase (decrease) in cash and cash equivalents (184) (379) 684
Cash and cash equivalents at beginning of period 1,097 1,476 792
Cash and cash equivalents at end of period $ 913 $ 1,097 $ 1,476
Supplemental cashflow disclosures:
Interest paid $ 561 $ 447 $ 407
Income taxes paid $ 433 $ 200 $ 159
See accompanying notes to consolidated financial statements.

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Notes to Consolidated Financial Statements

Note 1. Description of Business and Organization

Description of Business
Restaurant Brands International Inc. (the “Company,” “RBI,” “we,” “us” or “our”) was formed on August 25, 2014 and
continued under the laws of Canada. The Company serves as the sole general partner of Restaurant Brands International Limited
Partnership (the “Partnership”). We franchise and operate quick service restaurants serving premium coffee and other beverage and
food products under the Tim Hortons® brand (“Tim Hortons” or “TH”), fast food hamburgers principally under the Burger King®
brand (“Burger King” or “BK”), and chicken under the Popeyes® brand (“Popeyes” or “PLK”). We are one of the world’s largest
quick service restaurant, or QSR, companies as measured by total number of restaurants. As of December 31, 2018, we franchised or
owned 4,846 Tim Hortons restaurants, 17,796 Burger King restaurants, and 3,102 Popeyes restaurants, for a total of 25,744
restaurants, and operate in more than 100 countries and U.S. territories. Approximately 100% of current system-wide restaurants are
franchised.

All references to “$” or “dollars” are to the currency of the United States unless otherwise indicated. All references to “Canadian
dollars” or “C$” are to the currency of Canada unless otherwise indicated.

Note 2. Significant Accounting Policies

Basis of Presentation
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United
States (“GAAP”) and related rules and regulations of the U.S. Securities and Exchange Commission requires our management to make
estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and the related disclosure of
contingent assets and liabilities. Actual results could differ from these estimates.

Principles of Consolidation
The consolidated financial statements include our accounts and the accounts of entities in which we have a controlling financial
interest, the usual condition of which is ownership of a majority voting interest. All material intercompany balances and transactions
have been eliminated in consolidation. Investments in other affiliates that are owned 50% or less where we have significant influence
are accounted for by the equity method.

We are the sole general partner of Partnership and, as such we have the exclusive right, power and authority to manage, control,
administer and operate the business and affairs and to make decisions regarding the undertaking and business of Partnership, subject to
the terms of the partnership agreement of Partnership (“partnership agreement”) and applicable laws. As a result, we consolidate the
results of Partnership and record a noncontrolling interest in our consolidated balance sheets and statements of operations with respect
to the remaining economic interest in Partnership we do not hold.

We also consider for consolidation entities in which we have certain interests, where the controlling financial interest may be
achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is
required to be consolidated by its primary beneficiary. The primary beneficiary is the entity that possesses the power to direct the
activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the right to
receive benefits from the VIE that are significant to it. Our maximum exposure to loss resulting from involvement with VIEs is
attributable to accounts and notes receivable balances, outstanding loan guarantees and future lease payments, where applicable.

As our franchise and master franchise arrangements provide the franchise and master franchise entities the power to direct the
activities that most significantly impact their economic performance, we do not consider ourselves the primary beneficiary of any such
entity that might be a VIE.

Tim Hortons has historically entered into certain arrangements in which an operator acquires the right to operate a restaurant,
but Tim Hortons owns the restaurant’s assets. In these arrangements, Tim Hortons has the ability to determine which operators manage
the restaurants and for what duration. We perform an analysis to determine if the legal entity in which operations are conducted is a
VIE and consolidate a VIE entity if we also determine Tim Hortons is the entity’s primary beneficiary (“Restaurant VIEs”). As of
December 31, 2018 and 2017, we determined that we are the primary beneficiary of 17 and 31 Restaurant VIEs, respectively, and
accordingly, have consolidated the results of operations, assets and liabilities, and cash flows of these Restaurant VIEs in our
consolidated financial statements. Material intercompany accounts and transactions have been eliminated in consolidation.

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Assets and liabilities related to consolidated VIEs are not significant to our total consolidated assets and liabilities. Liabilities
recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they
represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these
VIEs do not represent additional assets that could be used to satisfy claims by our creditors as they are not legally included within our
general assets.

Reclassifications
Certain prior year amounts in the accompanying consolidated financial statements and notes to the consolidated financial
statements have been reclassified in order to be comparable with the current year classifications. These consist of the reclassification
of $20 million and $19 million for the years ended December 31, 2017 and 2016, respectively, from changes in Other long-term
assets and liabilities to Tenant inducements paid to franchisees in the Consolidated Statement of Cash Flows and the December 31,
2017 reclassification of Advertising fund restricted assets to Cash and cash equivalents, Accounts and notes receivable, net and
Prepaids and other current assets and the reclassification of Advertising fund liabilities to Accounts and drafts payable and Other
accrued liabilities as detailed below (in millions). These reclassifications had no effect on previously reported net income.

December 31, 2017 December 31, 2017

As Reported Reclassification As Adjusted
Current assets:
Cash and cash equivalents $ 1,073 $ 24 $ 1,097
Accounts and notes receivable, net 456 33 489
Inventories, net 78 — 78
Advertising fund restricted assets 83 (83) —
Prepaids and other current assets 60 26 86
Total current assets $ 1,750 $ — $ 1,750

Current liabilities:
Accounts and drafts payable $ 413 $ 83 $ 496
Other accrued liabilities 838 28 866
Gift card liability 215 — 215
Advertising fund liabilities 111 (111) —
Current portion of long term debt and capital leases 78 — 78
Total current liabilities $ 1,655 $ — $ 1,655

Foreign Currency Translation and Transaction Gains and Losses

Our functional currency is the U.S. dollar, since our term loan and senior secured notes are denominated in U.S. dollars, and the
principal market for our common shares is the U.S. The functional currency of each of our operating subsidiaries is generally the
currency of the economic environment in which the subsidiary primarily does business. Our foreign subsidiaries’ financial statements
are translated into U.S. dollars using the foreign exchange rates applicable to the dates of the financial statements. Assets and
liabilities are translated using the end-of-period spot foreign exchange rates. Income, expenses and cash flows are translated at the
average foreign exchange rates for each period. Equity accounts are translated at historical foreign exchange rates. The effects of these
translation adjustments are reported as a component of accumulated other comprehensive income (loss) (“AOCI”) in the consolidated
statements of shareholders’ equity.

For any transaction that is denominated in a currency different from the entity’s functional currency, we record a gain or loss
based on the difference between the foreign exchange rate at the transaction date and the foreign exchange rate at the transaction
settlement date (or rate at period end, if unsettled) which is included within other operating expenses (income), net in the consolidated
statements of operations.

Cash and Cash Equivalents

All highly liquid investments with original maturities of three months or less and credit card receivables are considered cash
equivalents.

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Inventories
Inventories are carried at the lower of cost or net realizable value and consist primarily of raw materials such as green coffee
beans and finished goods such as new equipment, parts, paper supplies and restaurant food items. The moving average method is used
to determine the cost of raw material and finished goods inventories held for sale to Tim Hortons franchisees.

Property and Equipment, net

We record property and equipment at historical cost less accumulated depreciation and amortization, which is recognized using
the straight-line method over the following estimated useful lives: (i) buildings and improvements – up to 40 years; (ii) restaurant
equipment – up to 17 years; (iii) furniture, fixtures and other – up to 10 years; (iv) manufacturing equipment – up to 25 years; and
(v) capital leases – up to 40 years or lease term. Leasehold improvements to properties where we are the lessee are amortized over the
lesser of the remaining term of the lease or the estimated useful life of the improvement.

We are considered to be the owner of certain restaurants leased from unrelated lessors because Tim Hortons constructed some of
the structural elements of those restaurants. Accordingly, lessors’ contributions to the construction costs of these restaurants was
recognized as other debt and was $71 million and $83 million at December 31, 2018 and 2017, respectively.

Major improvements are capitalized, while maintenance and repairs are expensed when incurred.

Leases
We define lease term as the initial term of a lease plus any renewals covered by bargain renewal options or that are reasonably
assured of exercise because non-renewal would create an economic penalty, plus any periods that the lessee has use of the property but
is not charged rent by a landlord (rent holiday). We record rental income and rental expense for operating leases on a straight-line
basis over the lease term, net of any applicable lease incentive amortization. Contingent rental income is recognized on an accrual
basis as earned.

Assets we acquire as lessee under capital leases are stated at the lower of the present value of future minimum lease payments or
fair market value at the date of inception of the lease. Capital lease assets are depreciated using the straight-line method over the
shorter of the useful life of the asset or the underlying lease term.

We also have net investments in properties leased to franchisees, which meet the criteria of direct financing leases. Investments
in direct financing leases are recorded on a net basis, consisting of the gross investment and residual value in the lease, less unearned
income. Earned income on direct financing leases is recognized when earned and collectability is reasonably assured. Unearned
income is recognized over the lease term yielding a constant periodic rate of return on the net investment in the lease. Direct financing
leases are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the asset may not be
recoverable based on the payment history under the lease.

We have recorded favorable and unfavorable operating leases in connection with the acquisition method of accounting. We
amortize favorable and unfavorable leases on a straight-line basis over the remaining term of the leases, as determined at the
acquisition date.

Goodwill and Intangible Assets Not Subject to Amortization

Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in connection
with the acquisition of Popeyes in 2017, the acquisition of Tim Hortons in 2014 and the acquisition of Burger King Holdings, Inc. by
3G Capital Partners Ltd. Our indefinite-lived intangible assets consist of the Tim Hortons brand, the Burger King brand, and the
Popeyes brand (each a “Brand” and together, the “Brands”). Goodwill and the Brands are tested for impairment at least annually as of
October 1 of each year and more often if an event occurs or circumstances change which indicate impairment might exist. Our annual
impairment tests of goodwill and the Brands may be completed through qualitative assessments. We may elect to bypass the
qualitative assessment and proceed directly to a quantitative impairment test for any reporting unit or Brand in any period. We can
resume the qualitative assessment for any reporting unit or Brand in any subsequent period.

Under a qualitative approach, our impairment review for goodwill consists of an assessment of whether it is more-likely-than-
not that a reporting unit’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for any reporting
unit, or if a qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a reporting unit exceeds its
fair value, we perform a two-step quantitative goodwill impairment test. The first step requires us to estimate the fair value of the
reporting unit. If the fair value of the reporting unit is less than its carrying amount, the estimated fair value of the reporting unit is

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allocated to all its underlying assets and liabilities, including both recognized and unrecognized tangible and intangible assets, based
on their fair value. If necessary, goodwill is then written down to its implied fair value.

Under a qualitative approach, our impairment review for the Brands consists of an assessment of whether it is more-likely-than-
not that a Brand’s fair value is less than its carrying amount. If we elect to bypass the qualitative assessment for a Brand, or if a
qualitative assessment indicates it is more-likely-than-not that the estimated carrying value of a Brand exceeds its fair value, we
estimate the fair value of the Brand and compare it to its carrying amount. If the carrying amount exceeds fair value, an impairment
loss is recognized in an amount equal to that excess.

We completed our impairment tests for goodwill and the Brands as of October 1, 2018, 2017 and 2016 and no impairment
resulted.

Long-Lived Assets
Long-lived assets, such as property and equipment and intangible assets subject to amortization, are tested for impairment
whenever events or changes in circumstances indicate that the carrying amount of the asset or asset group may not be recoverable.
Some of the events or changes in circumstances that would trigger an impairment review include, but are not limited to, bankruptcy
proceedings or other significant financial distress of a lessee; significant negative industry or economic trends; knowledge of
transactions involving the sale of similar property at amounts below the carrying value; or our expectation to dispose of long-lived
assets before the end of their estimated useful lives. The impairment test for long-lived assets requires us to assess the recoverability of
long-lived assets by comparing their net carrying value to the sum of undiscounted estimated future cash flows directly associated
with and arising from use and eventual disposition of the assets or asset group. Long-lived assets are grouped for recognition and
measurement of impairment at the lowest level for which identifiable cash flows are largely independent of the cash flows of other
assets. If the net carrying value of a group of long-lived assets exceeds the sum of related undiscounted estimated future cash flows,
we record an impairment charge equal to the excess, if any, of the net carrying value over fair value.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) (“OCI”) refers to revenues, expenses, gains and losses that are included in comprehensive
income (loss), but are excluded from net income (loss) as these amounts are recorded directly as an adjustment to shareholders’ equity,
net of tax. Our other comprehensive income (loss) is primarily comprised of unrealized gains and losses on foreign currency
translation adjustments and unrealized gains and losses on hedging activity, net of tax.

Derivative Financial Instruments

We recognize and measure all derivative instruments as either assets or liabilities at fair value in the consolidated balance sheets.
We may enter into derivatives that are not initially designated as hedging instruments for accounting purposes, but which largely offset
the economic impact of certain transactions.

Gains or losses resulting from changes in the fair value of derivatives are recognized in earnings or recorded in other
comprehensive income (loss) and recognized in the consolidated statements of operations when the hedged item affects earnings,
depending on the purpose of the derivatives and whether they qualify for, and we have applied, hedge accounting treatment.

When applying hedge accounting, we designate at a derivative’s inception, the specific assets, liabilities or future commitments
being hedged, and assess the hedge’s effectiveness at inception and on an ongoing basis. We discontinue hedge accounting when:
(i) we determine that the cash flow derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the
derivative expires or is sold, terminated or exercised; (iii) it is no longer probable that the forecasted transaction will occur; or
(iv) management determines that designation of the derivatives as a hedge instrument is no longer appropriate. We do not enter into or
hold derivatives for speculative purposes.

Disclosures about Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants in the principal market, or if none exists, the most advantageous market, for the specific asset or liability
at the measurement date (the exit price). The fair value is based on assumptions that market participants would use when pricing the
asset or liability. The fair values are assigned a level within the fair value hierarchy, depending on the source of the inputs into the
calculation, as follows:

Level 1 Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

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Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or
indirectly.

Level 3 Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.

The carrying amounts for cash and equivalents, accounts and notes receivable and accounts and drafts payable approximate fair
value based on the short-term nature of these amounts.

We carry all of our derivatives at fair value and value them using various pricing models or discounted cash flow analysis that
incorporate observable market parameters, such as interest rate yield curves and currency rates, which are Level 2 inputs. Derivative
valuations incorporate credit risk adjustments that are necessary to reflect the probability of default by the counterparty or us. For
disclosures about the fair value measurements of our derivative instruments, see Note 12, Derivative Instruments.
The following table presents the fair value of our variable rate term debt and senior notes, estimated using inputs based on bid
and offer prices that are Level 2 inputs, and principal carrying amount (in billions):

As of December 31,
2018 2017
Fair value of our variable term debt and senior notes $ 11 $ 12
Principal carrying amount of our variable term debt and senior notes 12 12

The determinations of fair values of certain tangible and intangible assets for purposes of the application of the acquisition
method of accounting to the acquisition of Popeyes were based upon Level 3 inputs. The determination of fair values of our reporting
units and the determination of the fair value of the Brands for impairment testing using a quantitative approach during 2018 and 2017
were based upon Level 3 inputs.

Revenue Recognition

We transitioned to FASB Accounting Standards Codification (“ASC”) Topic 606, Revenue From Contracts with Customers
(“ASC 606”), from ASC Topic 605, Revenue Recognition and ASC Subtopic 952-605, Franchisors - Revenue Recognition (together,
the “Previous Standards”) on January 1, 2018 using the modified retrospective transition method. Our Financial Statements reflect the
application of ASC 606 guidance beginning in 2018, while our consolidated financial statements for prior periods were prepared under
the guidance of the Previous Standards. See Note 16, Revenue Recognition, for further information about our transition to this new
revenue recognition model using the modified retrospective transition method.

Sales

Sales consist primarily of supply chain sales, which represent sales of products, supplies and restaurant equipment to franchisees,
as well as sales to retailers and are presented net of any related sales tax. Orders placed by customers specify the goods to be delivered
and transaction prices for supply chain sales. Revenue is recognized upon transfer of control over ordered items, generally upon
delivery to the customer, which is when the customer obtains physical possession of the goods, legal title is transferred, the customer
has all risks and rewards of ownership and an obligation to pay for the goods is created. Shipping and handling costs associated with
outbound freight for supply chain sales are accounted for as fulfillment costs and classified as cost of sales.

Commencing on January 1, 2018, we classify all sales of restaurant equipment to franchisees as Sales and related cost of
equipment sold as Cost of sales. In periods prior to January 1, 2018, we classified sales of restaurant equipment at establishment of a
restaurant and in connection with renewal or renovation as Franchise and property revenues and related costs as Franchise and
property expense.

To a much lesser extent, sales also include Company restaurant sales (including Restaurant VIEs), which consist of sales to
restaurant guests. Revenue from Company restaurant sales is recognized at the point of sale. Taxes assessed by a governmental
authority that we collect are excluded from revenue.

Franchise revenues

Franchise revenues consist primarily of royalties, advertising fund contributions, initial and renewal franchise fees and upfront
fees from development agreements and master franchise and development agreements (“MFDAs”). Under franchise agreements, we
provide franchisees with (i) a franchise license, which includes a license to use our intellectual property and, in those markets where
our subsidiaries manage an advertising fund, advertising and promotion management, (ii) pre-opening services, such as training and
inspections, and (iii) ongoing services, such as development of training materials and menu items and restaurant monitoring and
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inspections. The services we provide under franchise agreements are highly interrelated and dependent upon the franchise license and
we concluded the services do not represent individually distinct performance obligations. Consequently, we bundle the franchise
license performance obligation and promises to provide services into a single performance obligation under ASC 606, which we
satisfy by providing a right to use our intellectual property over the term of each franchise agreement.

Royalties, including franchisee contributions to advertising funds managed by our subsidiaries, are calculated as a percentage of
franchise restaurant sales over the term of the franchise agreement. Under our franchise agreements, advertising contributions paid by
franchisees must be spent on advertising, product development, marketing and related activities. Initial and renewal franchise fees are
payable by the franchisee upon a new restaurant opening or renewal of an existing franchise agreement. Our franchise agreement
royalties, inclusive of advertising fund contributions, represent sales-based royalties that are related entirely to our performance
obligation under the franchise agreement and are recognized as franchise sales occur. Additionally, under ASC 606, initial and renewal
franchise fees are recognized as revenue on a straight-line basis over the term of the respective agreement. Under the Previous
Standards, initial franchise fees were recognized as revenue when the related restaurant commenced operations and our completion of
all material services and conditions. Renewal franchise fees were recognized as revenue upon execution of a new franchise agreement.
Our performance obligation under development agreements other than MFDAs generally consists of an obligation to grant exclusive
development rights over a stated term. These development rights are not distinct from franchise agreements, so upfront fees paid by
franchisees for exclusive development rights are deferred and apportioned to each franchise restaurant opened by the franchisee. The
pro rata amount apportioned to each restaurant is accounted for as an initial franchise fee.

We have a distinct performance obligation under our MFDAs to grant subfranchising rights over a stated term. Under the terms
of MFDAs, we typically either receive an upfront fee paid in cash and/or receive noncash consideration in the form of an equity
interest in the master franchisee or an affiliate of the master franchisee. Under the Previous Standards, we accounted for noncash
consideration as a nonmonetary exchange and did not record revenue or a basis in the equity interest received in arrangements where
we received noncash consideration. These transactions now fall within the scope of ASC 606, which requires us to record investments
in the applicable equity method investee and recognize revenue in an amount equal to the fair value of the equity interest received. In
accordance with ASC 606, upfront fees from master franchisees, including the fair value of noncash consideration, are deferred and
amortized over the MFDA term on a straight-line basis. We may recognize unamortized upfront fees when a contract with a franchisee
or master franchisee is modified and is accounted for as a termination of the existing contract.

The portion of gift cards sold to customers which are never redeemed is commonly referred to as gift card breakage. Under ASC
606, we recognize gift card breakage income proportionately as each gift card is redeemed using an estimated breakage rate based on
our historical experience. Under the Previous Standards, we recognized gift card breakage income for each gift card's remaining
balance when redemption of that balance was deemed remote.

Property revenues

Property revenues consists of rental income from properties we lease or sublease to franchisees. Property revenues are accounted
for in accordance with applicable accounting guidance for leases and are excluded from the scope of ASC 606.

Advertising and Promotional Costs

Company restaurants and franchise restaurants contribute to advertising funds that our subsidiaries manage in the United States
and Canada and certain other international markets. The advertising funds expense the production costs of advertising when the
advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred. Under our
franchise agreements, advertising contributions received from franchisees must be spent on advertising, product development,
marketing and related activities. As a result of our transition to ASC 606, advertising contributions received from franchisees are
included in franchise and property revenues and advertising expenses are included as selling, general and administrative expenses
commencing on January 1, 2018. Advertising expenses included in selling, general and administrative expenses totaled $793 million
for 2018. Prior to January 1, 2018, since we were deemed to be acting as an agent for these specifically designated contributions in
accordance with the Previous Standards, the revenues and expenses of the advertising funds were generally netted in our consolidated
statements of operations.

Prior to our transition to ASC 606, advertising expenses, which primarily consisted of advertising contributions by Company
restaurants (including Restaurant VIEs) based on a percentage of gross sales, totaled $7 million for 2017 and $6 million for 2016 and
were included in selling, general and administrative expenses in the accompanying consolidated statements of operations. As a result
of our transition to ASC 606, the advertising contributions by Company restaurants (including Restaurant VIEs) are eliminated in
consolidation in 2018.

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Deferred Financing Costs

Deferred financing costs are amortized over the term of the related debt agreement into interest expense using the effective
interest method.

Income Taxes
Amounts in the financial statements related to income taxes are calculated using the principles of ASC Topic 740, Income Taxes.
Under these principles, deferred tax assets and liabilities reflect the impact of temporary differences between the amounts of assets and
liabilities recognized for financial reporting purposes and the amounts recognized for tax purposes, as well as tax credit carry-forwards
and loss carry-forwards. These deferred taxes are measured by applying currently enacted tax rates. A deferred tax asset is recognized
when it is considered more-likely-than-not to be realized. The effects of changes in tax rates on deferred tax assets and liabilities are
recognized in income in the year in which the law is enacted. A valuation allowance reduces deferred tax assets when it is more-likely-
than-not that some portion or all of the deferred tax assets will not be realized.

We recognize positions taken or expected to be taken in a tax return in the financial statements when it is more-likely-than-not
(i.e., a likelihood of more than 50%) that the position would be sustained upon examination by tax authorities. A recognized tax
position is then measured at the largest amount of benefit with greater than 50% likelihood of being realized upon ultimate settlement.

Translation gains and losses resulting from the remeasurement of foreign deferred tax assets or liabilities denominated in a
currency other than the functional currency are classified as other operating expenses (income), net in the consolidated statements of
operations.

Share-based Compensation
Compensation expense related to the issuance of share-based awards to our employees is measured at fair value on the grant
date. We use the Black-Scholes option pricing model to value stock options. The compensation expense for awards that vest over a
future service period is recognized over the requisite service period on a straight-line basis, adjusted for estimated forfeitures of
awards that are not expected to vest. The compensation expense for awards that do not require future service is recognized
immediately. Upon the end of the service period, compensation expense is adjusted to account for the actual forfeiture rate. Cash
settled share-based awards are classified as liabilities and are re-measured at the end of each reporting period. The compensation
expense for awards that contain performance conditions is recognized when it is probable that the performance conditions will be
achieved.

Restructuring
The determination of when we accrue for employee involuntary termination benefits depends on whether the termination
benefits are provided under an on-going benefit arrangement or under a one-time benefit arrangement. We record charges for ongoing
benefit arrangements in accordance with ASC Topic 712, Nonretirement Postemployment Benefits. We record charges for one-time
benefit arrangements in accordance with ASC Topic 420, Exit or Disposal Cost Obligations.

New Accounting Pronouncements

Revenue Recognition – In May 2014, the Financial Accounting Standards Board (the “FASB”) issued a new single
comprehensive model for entities to use in accounting for revenue arising from contracts with customers. We adopted this new
guidance on January 1, 2018. See Note 16, Revenue Recognition, for further information about our transition to this new revenue
recognition model using the modified retrospective transition method.

Lease Accounting – In February 2016, the FASB issued new guidance on leases. The new guidance requires lessees to recognize
on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of
more than 12 months, amends various other aspects of accounting for leases by lessees and lessors, and requires enhanced disclosures.
The new guidance is effective commencing in 2019 and requires a modified retrospective transition approach with application in all
comparative periods presented (the “comparative method”), or alternatively, as of the effective date as the date of initial application
without restating comparative period financial statements (the “effective date method”). The new guidance also provides several
practical expedients and policies that companies may elect under either transition method. We have elected to apply the effective date
method and the package of practical expedients under which we will not reassess the classification of our existing leases, reevaluate
whether any expired or existing contracts are or contain leases or reassess initial direct costs under the new guidance. Additionally, we
have elected lessee and lessor practical expedients to not separate non-lease components from lease components. We did not elect the
practical expedient that permits a reassessment of lease terms for existing leases.

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We performed an analysis of the impact of the new lease guidance and are in the process of completing the final phase of a
comprehensive plan for our implementation of the new guidance, including implementation of a new lease accounting system. The
project plan includes analyzing the impact of the new guidance on our current lease contracts, reviewing the completeness of our
existing lease portfolio, comparing our accounting policies under current accounting guidance to the new accounting guidance and
identifying potential differences from applying the requirements of the new guidance to our lease contracts. Upon our transition to the
new guidance, we currently expect to recognize approximately $1.1 billion of operating lease liabilities. Additionally, we expect to
record right-of-use assets in a corresponding amount, net of amounts reclassified from other assets and liabilities, as specified by the
new lease guidance.

We also expect this guidance will result in the gross presentation of property tax and maintenance expenses and related lessee
reimbursements as franchise and property expenses and franchise and property revenues, respectively. These expenses and
reimbursements are presented on a net basis under current accounting guidance. Otherwise, we do not expect the adoption of this
guidance will have a material impact on our consolidated statements of operations. We do not expect an impact to the amount or
timing of our cash flows or liquidity.

Goodwill Impairment – In January 2017, the FASB issued guidance to simplify how an entity measures goodwill impairment by
removing the second step of the two-step quantitative goodwill impairment test. An entity will no longer be required to perform a
hypothetical purchase price allocation to measure goodwill impairment. Instead, impairment will be measured at the amount by which
the carrying value exceeds the fair value of a reporting unit; however, the loss recognized should not exceed the total amount of
goodwill allocated to that reporting unit. The amendment requires prospective adoption and is effective commencing in 2020 with
early adoption permitted. The adoption of this new guidance will not have a material impact on our Financial Statements.

Hedge Accounting – In August 2017, the FASB issued guidance to improve the transparency and understandability of
information conveyed to financial statement users about an entity's risk management activities and to simplify the application of hedge
accounting by preparers. We adopted this guidance on January 1, 2018 (the “Adoption Date”).

The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness for cash flow and net
investment hedges that are deemed effective. Most notably, for our cross-currency swaps designated as net investment hedges, the new
guidance permits the exclusion of the interest component (the “Excluded Component”) from the accounting hedge without affecting
net investment hedge designation. The initial value of the Excluded Component may be recognized in earnings on a systematic and
rational basis over the life of the derivative instrument.

Subsequent to the Adoption Date, we changed the method of assessing effectiveness for net investment hedges using derivatives
from the forward method to the spot method. We de-designated the cross-currency swaps and re-designated them as of March 15, 2018
(the “Re-designation Date”). As a result of adopting the new guidance and the re-designation of our cross-currency swaps, we will
recognize a benefit from the amortization of the initial value of the Excluded Component as a component of Interest expense, net in
our consolidated statements of operations rather than as a component of other comprehensive income. All changes in fair value of the
instruments related to currency fluctuations will continue to be recognized within other comprehensive income.

The impact of adoption did not have a material effect on our Financial Statements as of the Adoption Date. We recorded a $60
million net benefit to Interest expense, net from the Re-designation Date through December 31, 2018 in our consolidated statements of
operations for the amortization of the initial value of the Excluded Component, as described above. We believe the new guidance
better portrays the economic results of our risk management activities and net investment hedges in our Financial Statements.

Reclassification of Certain Tax Effects – In February 2018, the FASB issued guidance which allows a reclassification from
accumulated other comprehensive income to retained earnings for the tax effects of certain items within accumulated other
comprehensive income. The amendment is effective commencing in 2019 with early adoption permitted. The adoption of this new
guidance will not have a material impact on our Financial Statements.

Share-based payment arrangements with nonemployees – In June 2018, the FASB issued guidance which simplifies the
accounting for share-based payments granted to nonemployees for goods and services. Most of the guidance on such payments to
nonemployees would be aligned with the requirements for share-based payments granted to employees. The amendment is effective
commencing in 2019 with early adoption permitted. The adoption of this new guidance will not have a material impact on our
Financial Statements.

Note 3. Popeyes Acquisition

On March 27, 2017, we completed the acquisition of all of the outstanding shares of common stock of Popeyes Louisiana
Kitchen, Inc. (the “Popeyes Acquisition”). Popeyes Louisiana Kitchen, Inc. is one of the world’s largest chicken quick service
restaurant companies and its global footprint complements RBI’s existing portfolio. Like our other brands, the Popeyes brand is
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managed independently, while benefiting from our global scale and resources. The Popeyes Acquisition was accounted for as a
business combination using the acquisition method of accounting.

Total consideration in connection with the Popeyes Acquisition was $1,655 million, which includes $33 million for the
settlement of equity awards. The consideration was funded through (1) cash on hand of approximately $355 million, and (2) $1,300
million from incremental borrowings under our Term Loan Facility – see Note 9, Long-Term Debt.

Fees and expenses related to the Popeyes Acquisition and related financings totaled $34 million consisting primarily of
professional fees and compensation related expenses, all of which are classified as selling, general and administrative expenses in the
accompanying consolidated statements of operations. These fees and expenses were funded through cash on hand.

The final allocation of consideration to the net tangible and intangible assets acquired is presented in the table below (in
millions):

March 27, 2017

Total current assets $ 64
Property and equipment 114
Intangible assets 1,405
Other assets 1
Total current liabilities (73)
Total debt and capital lease obligations (159)
Deferred income taxes (523)
Other liabilities (20)
Total identifiable net assets 809
Goodwill 846
Total consideration $ 1,655

Intangible assets include $1,355 million related to the Popeyes brand, $41 million related to franchise agreements and $9 million
related to favorable leases. The Popeyes brand has been assigned an indefinite life and, therefore, will not be amortized, but rather
tested annually for impairment. Franchise agreements have a weighted average amortization period of 17 years. Favorable leases have
a weighted average amortization period of 14 years.

Goodwill attributable to the Popeyes Acquisition will not be amortizable or deductible for tax purposes. Goodwill is considered
to represent the value associated with the workforce and synergies anticipated to be realized as a combined company.

The Popeyes Acquisition is not material to our consolidated financial statements, and therefore, supplemental pro forma
financial information related to the acquisition is not included herein.

Note 4. Earnings per Share

An economic interest in Partnership common equity is held by the holders of Class B exchangeable limited partnership units
(the “Partnership exchangeable units”), which is reflected as a noncontrolling interest in our equity. See Note 14, Shareholders’ Equity.

Basic and diluted earnings per share is computed using the weighted average number of shares outstanding for the period. We
apply the treasury stock method to determine the dilutive weighted average common shares represented by Partnership exchangeable
units and outstanding stock options, unless the effect of their inclusion is anti-dilutive. The diluted earnings per share calculation
assumes conversion of 100% of the Partnership exchangeable units under the “if converted” method. Accordingly, the numerator is
also adjusted to include the earnings allocated to the holders of noncontrolling interests.

The following table summarizes the basic and diluted earnings per share calculations (in millions, except per share amounts):

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2018 2017 2016

Numerator:
Net income attributable to common shareholders - basic $ 612 $ 626 $ 346
Add: Net income attributable to noncontrolling interests 531 585 337
Net income available to common shareholders and noncontrolling interests - diluted $ 1,143 $ 1,211 $ 683

Denominator:
Weighted average common shares - basic 249 237 233
Exchange of noncontrolling interests for common shares (Note 14) 216 226 228
Effect of other dilutive securities 8 14 9
Weighted average common shares - diluted 473 477 470

Basic earnings per share (a) $ 2.46 $ 2.64 $ 1.48

Diluted earnings per share (a) $ 2.42 $ 2.54 $ 1.45
Anti-dilutive securities outstanding 3 4 6

(a) Earnings per share may not recalculate exactly as it is calculated based on unrounded numbers.

Note 5. Property and Equipment, net

Property and equipment, net, consist of the following (in millions):
As of December 31,
2018 2017
Land $ 998 $ 1,020
Buildings and improvements 1,145 1,172
Restaurant equipment 99 122
Furniture, fixtures, and other 182 171
Capital leases 257 256
Construction in progress 19 15
2,700 2,756
Accumulated depreciation and amortization (704) (623)
Property and equipment, net $ 1,996 $ 2,133

Depreciation and amortization expense on property and equipment totaled $148 million for 2018, $150 million for 2017 and
$144 million for 2016.

Included in our property and equipment, net at December 31, 2018 and 2017 are $180 million and $193 million, respectively, of
assets leased under capital leases (mostly buildings and improvements), net of accumulated depreciation and amortization of $77
million and $63 million, respectively.

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Note 6. Intangible Assets, net and Goodwill

Intangible assets, net and goodwill consist of the following (in millions):

As of December 31,
2018 2017
Accumulated Accumulated
Gross Amortization Net Gross Amortization Net
Identifiable assets subject to amortization:
Franchise agreements $ 705 $ (194) $ 511 $ 725 $ (168) $ 557
Favorable leases 407 (200) 207 456 (194) 262
Subtotal 1,112 (394) 718 1,181 (362) 819
Indefinite lived intangible assets:
Tim Hortons brand $ 6,259 $ — $ 6,259 $ 6,727 $ — $ 6,727
Burger King brand 2,131 — 2,131 2,161 — 2,161
Popeyes brand 1,355 — 1,355 1,355 — 1,355
Subtotal 9,745 — 9,745 10,243 — 10,243
Intangible assets, net $ 10,463 $ 11,062

Goodwill
Tim Hortons segment $ 4,038 $ 4,326
Burger King segment 602 610
Popeyes segment 846 846
Total $ 5,486 $ 5,782

Amortization expense on intangible assets totaled $70 million for 2018, $72 million for 2017, and $72 million for 2016. The
change in the brands and goodwill balances during 2018 was due principally to the impact of foreign currency translation.

As of December 31, 2018, the estimated future amortization expense on identifiable assets subject to amortization is as follows
(in millions):

Twelve-months ended December 31, Amount

2019 $ 64
2020 59
2021 55
2022 51
2023 48
Thereafter 441
Total $ 718

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Note 7. Equity Method Investments

The aggregate carrying amount of our equity method investments was $259 million and $155 million as of December 31, 2018
and 2017, respectively, and is included as a component of Other assets, net in our consolidated balance sheets. The increase in the
carrying amount of our equity method investments as of December 31, 2018 compared to December 31, 2017 is primarily attributable
to the recognition of investments received in connection with master franchise and development arrangements as a result of our
transition to ASC 606. See Note 2, Significant Accounting Policies. TH and BK both have equity method investments. PLK does not
have any equity method investments.

With respect to our TH business, the most significant equity method investment is our 50.0% joint venture interest with The
Wendy’s Company (the “TIMWEN Partnership”), which jointly holds real estate underlying Canadian combination restaurants.
Distributions received from this joint venture were $13 million, $12 million and $11 million during 2018, 2017 and 2016, respectively.

The aggregate market value of our 20.5% equity interest in Carrols Restaurant Group, Inc. (“Carrols”) based on the quoted
market price on December 31, 2018 is approximately $93 million. The aggregate market value of our 10.1% equity interest in BK
Brasil Operação e Assessoria a Restaurantes S.A. based on the quoted market price on December 31, 2018 is approximately $120
million. No quoted market prices are available for our other equity method investments.

We have equity interests in entities that own or franchise Tim Hortons or Burger King restaurants. Franchise and property
revenue recognized from franchisees that are owned or franchised by entities in which we have an equity interest consist of the
following (in millions):

2018 2017 2016

Revenues from affiliates:
Royalties $ 310 $ 175 $ 132
Property revenues 36 27 28
Franchise fees and other revenue 11 26 19
Total $ 357 $ 228 $ 179

We recognized $20 million of rent expense associated with the TIMWEN Partnership during each of 2018, 2017 and 2016.

At December 31, 2018 and 2017, we had $41 million and $32 million, respectively, of accounts receivable from our equity
method investments which were recorded in accounts and notes receivable, net in our consolidated balance sheets.

(Income) loss from equity method investments reflects our share of investee net income or loss, non-cash dilution gains or losses
from changes in our ownership interests in equity method investees and basis difference amortization. We recorded increases to the
carrying value of our equity method investment balances and non-cash dilution gains in the amounts of $20 million and $12 million
during 2018 and 2016, respectively. No non-cash dilution gains were recorded during 2017. The dilution gains resulted from the
issuance of capital stock by our equity method investees, which reduced our ownership interests in these equity method investments.
The dilution gains we recorded in connection with the issuance of capital stock reflect adjustments to the differences between the
amount of underlying equity in the net assets of equity method investees before and after their issuance of capital stock.

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Note 8. Other Accrued Liabilities and Other Liabilities

Other accrued liabilities (current) and other liabilities, net (non-current) consist of the following (in millions):

As of December 31,
2018 2017
Current:
Dividend payable $ 207 $ 97
Interest payable 87 89
Accrued compensation and benefits 69 67
Taxes payable 113 401
Deferred income 27 43
Accrued advertising expenses 30 27
Closed property reserve 9 11
Restructuring and other provisions 11 12
Other 84 119
Other accrued liabilities $ 637 $ 866
Non-current:
Derivatives liabilities $ 179 $ 499
Taxes payable 493 496
Contract liabilities, net 486 10
Unfavorable leases 192 252
Accrued pension 64 72
Accrued lease straight-lining liability 69 46
Deferred income 22 27
Other 42 53
Other liabilities, net $ 1,547 $ 1,455

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Note 9. Long-Term Debt

Long-term debt consist of the following (in millions):

As of December 31,
2018 2017
Term Loan Facility (due February 17, 2024) $ 6,338 $ 6,389
2017 4.25% Senior Notes (due May 15, 2024) 1,500 1,500
2015 4.625% Senior Notes (due January 15, 2022) 1,250 1,250
2017 5.00% Senior Notes (due October 15, 2025) 2,800 2,800
Other 150 89
Less: unamortized deferred financing costs and deferred issuance discount (145) (170)
Total debt, net 11,893 11,858
Less: current maturities of debt (70) (57)
Total long-term debt $ 11,823 $ 11,801

Credit Facilities
On February 17, 2017, two of our subsidiaries (the “Borrowers”) entered into a second amendment (the “Second Amendment”)
to the credit agreement governing our senior secured term loan facility (the “Term Loan Facility”) and our senior secured revolving
credit facility of up to $500 million of revolving extensions of credit outstanding at any time (including revolving loans, swingline
loans and letters of credit) (the “Revolving Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”). Under
the Second Amendment, (i) the outstanding aggregate principal amount under our Term Loan Facility was decreased to $4,900
million as a result of a repayment of $146 million from cash on hand, (ii) the interest rate applicable to our Term Loan Facility was
reduced to, at our option, either (a) a base rate plus an applicable margin equal to 1.25%, or (b) a Eurocurrency rate plus an applicable
margin equal to 2.25%, (iii) the maturity of our Term Loan Facility was extended from December 12, 2021 to February 17, 2024, and
(iv) the Borrowers and their subsidiaries were provided with additional flexibility under certain negative covenants, including
incurrence of indebtedness, making of investments, dispositions and restricted payments, and prepayment of subordinated
indebtedness. Except as described herein, the Second Amendment did not materially change the terms of the Credit Facilities.
In connection with the Second Amendment, we capitalized approximately $11 million in debt issuance costs and recorded a loss
on early extinguishment of debt of $20 million during 2017. The loss on early extinguishment of debt primarily reflects the write-off
of unamortized debt issuance costs and discounts.

Incremental Term Loans

In connection with the Popeyes Acquisition, we obtained an incremental term loan in the aggregate principal amount of $1,300
million (the “Incremental Term Loan No. 1”) under our Term Loan Facility. Also, simultaneously and in connection with the issuance
of the 2017 4.25% Senior Notes (described below), we obtained an additional incremental term loan in the aggregate principal amount
of $250 million (the “Incremental Term Loan No. 2” and together with the Incremental Term Loan No. 1, the “Incremental Term
Loans”) under our Term Loan Facility. The Incremental Term Loans bear interest at the same rate as the Term Loan Facility and also
mature on February 17, 2024. In connection with the Incremental Term Loan No. 1, Popeyes Louisiana Kitchen, Inc. was included as
loan guarantor and its assets as collateral under the Credit Facilities. Except as described herein, there were no other material changes
to the terms of the Credit Facilities. Debt issuance costs capitalized in connection with the Incremental Term Loans were
approximately $23 million.

Revolving Credit Facility

As of December 31, 2018, we had no amounts outstanding under our Revolving Credit Facility. Funds available under the
Revolving Credit Facility may be used to repay other debt, finance debt or share repurchases, to fund acquisitions or capital
expenditures and for other general corporate purposes. We have a $125 million letter of credit sublimit as part of the Revolving Credit
Facility, which reduces our borrowing availability thereunder by the cumulative amount of outstanding letters of credit. As of
December 31, 2018, we had $20 million of letters of credit issued against the Revolving Credit Facility, and our borrowing availability
was $480 million.
During 2017, the Borrowers extended the maturity date of the Revolving Credit Facility from December 12, 2019 to October 13,
2022. The extension was effected through the termination of the existing revolving credit commitments and the entry into Incremental
Facility Amendment No. 3 (the “Third Amendment”) to the credit agreement. The Third Amendment maintained the same $500
million in aggregate principal amount of the commitments under the Revolving Credit Facility but reduced interest rates and
commitment fees. As amended, the Revolving Credit Facility matures on October 13, 2022, provided that if, on October 15, 2021,

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more than an aggregate of $150 million of the 2015 4.625% Senior Notes (as defined below) are outstanding, then the maturity date of
the Revolving Credit Facility shall be October 15, 2021. Except as described herein, there were no other material changes to the
Revolving Credit Facility. In connection with the Third Amendment we capitalized approximately $1 million in debt issuance costs.

Interest Rate Applicable to the Credit Facilities

The interest rate applicable to the Credit Facilities is, at our option, either (i) a base rate plus an applicable margin equal to
1.25% in respect of the Term Loan Facility and ranging from 0.25% to 1.00%, depending on our leverage ratio, in respect of the
Revolving Credit Facility, or (ii) a Eurocurrency rate plus an applicable margin equal to 2.25% in respect of the Term Loan Facility
and ranging from 1.25% to 2.00%, depending on our leverage ratio, in respect of the Revolving Credit Facility. Borrowings are subject
to a floor of 2.00% in the case of the base rate and a floor of 1.00% in the case of Eurocurrency rate. Amounts drawn under each letter
of credit that is issued and outstanding under this facility bear interest ranging from 1.25% to 2.00%, depending on our leverage ratio.
The unused portion of the Revolving Credit Facility is subject to a commitment fee of 0.25%. We are also required to pay (i) letters of
credit fees on the aggregate face amounts of outstanding letters of credit plus a fronting fee to the issuing bank and (ii) administration
fees. As of December 31, 2018, the weighted average interest rate on our Term Loan Facility was 4.77%. The principal amount of the
Term Loan Facility amortizes in quarterly installments equal to $16 million, with the balance payable at maturity.
Obligations under the Credit Facilities are guaranteed on a senior secured basis, jointly and severally, by the direct parent
company of one of the Borrowers and substantially all of its Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger
King Worldwide, Inc., Popeyes Louisiana Kitchen, Inc. and substantially all of their respective Canadian and U.S. subsidiaries (the
“Credit Guarantors”). Amounts borrowed under the Credit Facilities are secured on a first priority basis by a perfected security interest
in substantially all of the present and future property (subject to certain exceptions) of each Borrower and Credit Guarantor.

2017 4.25% Senior Notes

During 2017, the Borrowers entered into an indenture (the “2017 4.25% Senior Notes Indenture”) in connection with the
issuance of $1,500 million of 4.25% first lien senior notes due May 15, 2024 (the “2017 4.25% Senior Notes”). No principal payments
are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 2017 4.25% Senior Notes, together
with other sources of liquidity, were used to redeem all of the outstanding Class A 9.0% cumulative compounding perpetual voting
preferred shares (see Note 13, Redeemable Preferred Shares) and for other general corporate purposes. In connection with the issuance
of the 2017 4.25% Senior Notes, we capitalized approximately $13 million in debt issuance costs.
Obligations under the 2017 4.25% Senior Notes are guaranteed on a senior secured basis, jointly and severally, by the Borrowers
and substantially all of the Borrowers' Canadian and U.S. subsidiaries, including The TDL Group Corp., Burger King Worldwide, Inc.,
Popeyes Louisiana Kitchen, Inc. and substantially all of their respective Canadian and U.S. subsidiaries (the “Note Guarantors”). The
2017 4.25% Senior Notes are first lien senior secured obligations and rank equal in right of payment with all of the existing and future
senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities.
Our 2017 4.25% Senior Notes may be redeemed in whole or in part, on or after May 15, 2020 at the redemption prices set forth
in the 2017 4.25% Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 2017 4.25% Senior
Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among
others.

2017 5.00% Senior Notes

During 2017, the Borrowers entered into an indenture (the “2017 5.00% Senior Notes Indenture”) in connection with the
issuance of $2,800 million of 5.00% second lien senior notes due October 15, 2025 (the “2017 5.00% Senior Notes”). No principal
payments are due until maturity and interest is paid semi-annually. The net proceeds from the offering of the 2017 5.00% Senior Notes
were used to redeem the entire outstanding principal balance of $2,250 million of 6.00% second lien secured notes due April 1, 2022
(the “2014 6.00% Senior Notes”), pay related redemption premiums, fees and expenses, and for general corporate purposes. In
connection with the issuance of the 2017 5.00% Senior Notes, we capitalized approximately $15 million in debt issuance costs. In
connection with the full redemption of the 2014 6.00% Senior Notes, we recorded a loss on early extinguishment of debt of $102
million that primarily reflects the payment of premiums to redeem the notes and the write-off of unamortized debt issuance costs.
Obligations under the 2017 5.00% Senior Notes are guaranteed on a second priority senior secured basis, jointly and severally,
by the Note Guarantors. The 2017 5.00% Senior Notes are second lien senior secured obligations and rank equal in right of payment
with all of the existing and future senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the
Credit Facilities.
Our 2017 5.00% Senior Notes may be redeemed in whole or in part, on or after October 15, 2020 at the redemption prices set
forth in the 2017 5.00% Senior Notes Indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 2017 5.00%
Senior Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings,
among others.

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2015 4.625% Senior Notes

The Borrowers are also party to an indenture (the “2015 4.625% Senior Notes Indenture”) in connection with the issuance of
$1,250 million of 4.625% first lien senior notes due January 15, 2022 (the “2015 4.625% Senior Notes”). No principal payments are
due until maturity and interest is paid semi-annually.
Obligations under the 2015 4.625% Senior Notes are guaranteed on a senior secured basis, jointly and severally, by the Note
Guarantors. The 2015 4.625% Senior Notes are first lien senior secured obligations and rank equal in right of payment with all of the
existing and future senior debt of the Borrowers and Note Guarantors, including borrowings and guarantees of the Credit Facilities.

Our 2015 4.625% Senior Notes may be redeemed in whole or in part, on or after October 1, 2017, at the redemption prices set
forth in the corresponding indenture, plus accrued and unpaid interest, if any, at the date of redemption. The 2015 4.625% Senior
Notes Indenture also contains optional redemption provisions related to tender offers, change of control and equity offerings, among
others.

Restrictions and Covenants

Our Credit Facilities, 2017 4.25% Senior Notes Indenture, 2017 5.00% Senior Notes Indenture and 2015 4.625% Senior Notes
Indenture contain a number of customary affirmative and negative covenants that, among other things, limit or restrict our ability and
the ability of certain of our subsidiaries to: incur additional indebtedness; incur liens; engage in mergers, consolidations, liquidations
and dissolutions; sell assets; pay dividends and make other payments in respect of capital stock; make investments, loans and
advances; pay or modify the terms of certain indebtedness; engage in certain transactions with affiliates. In addition, the Borrowers are
not permitted to exceed a first lien senior secured leverage ratio of 6.50 to 1.00 when, as of the end of any fiscal quarter, the sum of
(i) the amount of letters of credit outstanding exceeding $50 million (other than those that are cash collateralized); (ii) outstanding
amounts under the Revolving Credit Facility and (iii) outstanding amounts of swing line loans, exceeds 30.0% of the commitments
under the Revolving Credit Facility.

The restrictions under the Credit Facilities, the 2017 4.25% Senior Notes Indenture, the 2017 5.00% Senior Notes Indenture, the
2015 4.625% Senior Notes Indenture have resulted in substantially all of our consolidated assets being restricted.

As of December 31, 2018, we were in compliance with all debt covenants under the Credit Facilities, 2017 4.25% Senior Notes
Indenture, 2017 5.00% Senior Notes Indenture and 2015 4.625% Senior Notes Indenture and there were no limitations on our ability
to draw on the remaining availability under our Revolving Credit Facility.

Other
On October 11, 2018, one of our subsidiaries entered into a non-revolving delayed drawdown term credit facility in a total
aggregate principal amount of C$100 million with a maturity date of October 4, 2025 (the “TH Facility”). The interest rate applicable
to the TH Facility is the Canadian Bankers’ Acceptance rate plus an applicable margin equal to 1.40% or the Prime Rate plus an
applicable margin equal to 0.40%, at our option. Obligations under the TH Facility are guaranteed by three of our subsidiaries, and
amounts borrowed under the TH Facility are and will be secured by certain parcels of real estate. As of December 31, 2018, we had
drawn down the entire C$100 million available under the TH Facility with a weighted average interest rate of 3.64%.

On March 27, 2017, we repaid $156 million of debt assumed in connection with the Popeyes Acquisition. Additionally, $36
million of Tim Hortons Series 1 notes were repaid on June 1, 2017, the original maturity date.

Debt Issuance Costs

During 2017, we incurred aggregate deferred financing costs of $63 million. No significant deferred financing costs were
incurred in 2018 and 2016.

Loss on Early Extinguishment of Debt

During 2017, we recorded a $122 million loss on early extinguishment of debt, which primarily reflects the payment of
premiums to redeem our 2014 6.00% Senior Notes and the write-off of unamortized debt issuance costs and discounts in connection
with the refinancing of our Term Loan Facility and the redemption of our 2014 6.00% Senior Notes.

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Maturities
The aggregate maturities of our long-term debt as of December 31, 2018 are as follows (in millions):

Year Ended December 31, Principal Amount

2019 $ 70
2020 74
2021 72
2022 1,324
2023 78
Thereafter 10,420
Total $ 12,038

Interest Expense, net

Interest expense, net consists of the following (in millions):

2018 2017 2016

Debt (a) $ 498 $ 484 $ 412
Capital lease obligations 23 21 20
Amortization of deferred financing costs and debt issuance discount 29 33 39
Interest income (15) (26) (4)
Interest expense, net $ 535 $ 512 $ 467

(a) Amount includes $60 million benefit during 2018 from our adoption of a new hedge accounting standard. See Note 2,
Significant Accounting Policies – New Accounting Pronouncements, for further details of the effects of this change in
accounting principle on Interest expense, net.

Note 10. Leases

Company as Lessor
As of December 31, 2018, we leased or subleased 5,284 restaurant properties to franchisees and 129 non-restaurant
properties to third parties under operating leases and direct financing leases where we are the lessor. Initial lease terms generally
range from 10 to 20 years. Most leases to franchisees provide for fixed monthly payments and many provide for future rent
escalations and renewal options. Certain leases also include provisions for contingent rent, determined as a percentage of sales,
generally when annual sales exceed specific levels. Lessees typically bear the cost of maintenance, insurance and property taxes.

Assets leased to franchisees and others under operating leases where we are the lessor and which are included within our
property and equipment, net are as follows (in millions):

As of December 31,
2018 2017
Land $ 906 $ 931
Buildings and improvements 1,175 1,215
Restaurant equipment 17 17
2,098 2,163
Accumulated depreciation and amortization (475) (407)
Property and equipment leased, net $ 1,623 $ 1,756

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Our net investment in direct financing leases is as follows (in millions):

As of December 31,
2018 2017
Future rents to be received:
Future minimum lease receipts $ 60 $ 77
Contingent rents (a) 29 39
Estimated unguaranteed residual value 16 17
Unearned income (35) (45)
70 88
Current portion included within accounts receivables (16) (17)
Net investment in property leased to franchisees $ 54 $ 71

(a) Amounts represent estimated contingent rents recorded in connection with the acquisition method of accounting.

Property revenues are comprised primarily of rental income from operating leases and earned income on direct financing
leases with franchisees as follows (in millions):

2018 2017 2016

Rental income:
Minimum $ 454 $ 464 $ 451
Contingent 273 284 282
Amortization of favorable and unfavorable income lease contracts, net 8 8 9
Total rental income 735 756 742
Earned income on direct financing leases 9 9 11
Total property revenues $ 744 $ 765 $ 753

Company as Lessee
In addition, we lease land, building, equipment, office space and warehouse space, including 675 restaurant buildings under
capital leases where we are the lessee. Land and building leases generally have an initial term of 10 to 30 years, while land-only
lease terms can extend longer, and most leases provide for fixed monthly payments. Many of these leases provide for future rent
escalations and renewal options. Certain leases also include provisions for contingent rent, determined as a percentage of sales,
generally when annual sales exceed specific levels. Most leases also obligate us to pay the cost of maintenance, insurance and
property taxes.

Rent expense associated with these lease commitments is as follows (in millions):

2018 2017 2016

Rental expense:
Minimum $ 201 $ 198 $ 193
Contingent 71 71 71
Amortization of favorable and unfavorable payable lease contracts, net 9 10 9
Total rental expense (a) $ 281 $ 279 $ 273

(a) Amounts include rental expense related to properties subleased to franchisees of $263 million for 2018, $263 million for
2017, and $254 million for 2016.

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As of December 31, 2018, future minimum lease receipts and commitments are as follows (in millions):

Lease Receipts Lease Commitments (a)

Direct
Financing Operating Capital Operating
Leases Leases Leases Leases
2019 $ 14 $ 416 $ 38 $ 183
2020 10 388 36 172
2021 7 360 34 158
2022 5 331 33 145
2023 5 306 30 130
Thereafter 19 1,704 201 831
Total minimum receipts / payments $ 60 $ 3,505 372 $ 1,619
Less amount representing interest (125)
Present value of minimum capital lease payments 247
Current portion of capital lease obligation (21)
Long-term portion of capital lease obligation $ 226

(a) Minimum lease payments have not been reduced by minimum sublease rentals of $2,290 million due in the future under
non-cancelable subleases.

Note 11. Income Taxes

Tax Act

In December 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs
Act (the “Tax Act”) that significantly revises the U.S. tax code generally effective January 1, 2018 by, among other changes, lowering
the corporate income tax rate from 35% to 21%, limiting deductibility of interest expense and performance based incentive
compensation and implementing a modified territorial tax system. As a Canadian entity, we generally would be classified as a foreign
entity (and, therefore, a non-U.S. tax resident) under general rules of U.S. federal income taxation. However, we have subsidiaries
subject to U.S. federal income taxation and therefore the Tax Act impacted our consolidated results of operations during 2017 and
2018, and is expected to continue to impact our consolidated results of operations in future periods.

The impacts to our consolidated statement of operations consist of the following (the “Tax Act Impact”):

• A provisional benefit of $420 million recorded in our provision from income taxes for 2017 and a favorable adjustment
of $9 million recorded for 2018, as a result of the remeasurement of net deferred tax liabilities.

• Provisional charges of $103 million recorded in 2017 and a favorable adjustment of $3 million recorded in 2018, related
to certain deductions allowed to be carried forward before the Tax Act, which potentially may not be carried forward
and deductible under the Tax Act.

• A provisional estimate for a one-time transitional repatriation tax on unremitted foreign earnings (the “Transition Tax”)
of $119 million recorded in 2017, most of which had been previously accrued with respect to certain undistributed
foreign earnings, and a favorable adjustment of $15 million (primarily related to utilization of foreign tax credits)
recorded in 2018.

In accordance with Staff Accounting Bulletin No. 118 issued by the staff of the SEC, adjustments to provisional amounts were
recorded as discrete items in the provision for income taxes in 2018, the period in which those adjustments became reasonably
estimable, as described above.

The ultimate impact of the Tax Act on our effective tax rate in future periods will depend on interpretations and regulatory
changes from the Internal Revenue Service, the SEC, the FASB and various tax jurisdictions, or actions we may take.

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Income (loss) before income taxes, classified by source of income (loss), is as follows (in millions):

2018 2017 2016

Canadian $ 1,111 $ 1,223 $ 1,050
Foreign 271 (122) 150
Income before income taxes $ 1,382 $ 1,101 $ 1,200

Income tax (benefit) expense attributable to income from continuing operations consists of the following (in millions):

2018 2017 2016

Current:
Canadian $ 25 $ 438 $ 79
U.S. Federal 95 113 45
U.S. state, net of federal income tax benefit 17 3 2
Other Foreign 72 54 38
$ 209 $ 608 $ 164
Deferred:
Canadian $ 78 $ (302) $ 49
U.S. Federal (65) (473) 37
U.S. state, net of federal income tax benefit 13 34 (7)
Other Foreign 3 (1) 1
$ 29 $ (742) $ 80
Income tax (benefit) expense $ 238 $ (134) $ 244

The statutory rate reconciles to the effective income tax rate as follows:

2018 2017 2016

Statutory rate 26.5% 26.5 % 26.5%
Costs and taxes related to foreign operations 4.2 8.9 9.6
Foreign exchange gain (loss) (0.1) (7.7) 0.1
Foreign tax rate differential (6.1) (1.9) (1.0)
Change in valuation allowance 3.2 12.0 0.2
Change in accrual for tax uncertainties 0.1 (0.4) 1.0
Intercompany financing (4.4) (19.5) (16.0)
Impact of Tax Act (1.9) (27.4) —
Benefit from stock option exercises (5.0) (4.9) —
Other 0.7 2.3 (0.1)
Effective income tax rate 17.2% (12.1)% 20.3%

Income tax (benefit) expense allocated to continuing operations and amounts separately allocated to other items was (in
millions):

2018 2017 2016

Income tax (benefit) expense from continuing operations $ 238 $ (134) $ 244
Cash flow hedge in accumulated other comprehensive income (loss) (2) 5 (2)
Net investment hedge in accumulated other comprehensive income (loss) 101 (13) 12
Pension liability in accumulated other comprehensive income (loss) — (2) (2)
Stock option tax benefit in common shares — — (9)
Total $ 337 $ (144) $ 243

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The significant components of deferred income tax (benefit) expense attributable to income from continuing operations are as
follows (in millions):

2018 2017 2016

Deferred income tax (benefit) expense $ (14) $ (449) $ 78
Change in valuation allowance 43 133 2
Change in effective Canadian income tax rate (3) — —
Change in effective U.S. federal income tax rate (8) (433) —
Change in effective U.S. state income tax rate 15 4 (3)
Change in effective foreign income tax rate (4) 3 3
Total $ 29 $ (742) $ 80

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities
are presented below (in millions):

As of December 31,
2018 2017
Deferred tax assets:
Accounts and notes receivable $ 5 $ 5
Accrued employee benefits 49 49
Unfavorable leases 123 146
Liabilities not currently deductible for tax 176 74
Tax loss and credit carryforwards 509 550
Derivatives 25 136
Other 8 —
Total gross deferred tax assets 895 960
Valuation allowance (325) (282)
Net deferred tax assets 570 678
Less deferred tax liabilities:
Property and equipment, principally due to differences in depreciation 43 33
Intangible assets 1,734 1,791
Leases 105 129
Statutory impairment 31 26
Outside basis difference 35 68
Total gross deferred tax liabilities 1,948 2,047
Net deferred tax liability $ 1,378 $ 1,369

The valuation allowance had a net increase of $43 million during 2018 primarily due to the change in provisional estimates
related to the utilization of foreign tax credits. This increase was partially offset by a release due to the utilization of capital losses that
had been previously valued.

Changes in the valuation allowance are as follows (in millions):

2018 2017 2016

Beginning balance $ 282 $ 133 $ 125
Additions due to acquisition — 9 —
Change in estimates recorded to deferred income tax expense 43 133 2
Changes from foreign currency exchange rates — 6 (1)
True-ups from changes in losses and credits — 1 7
Ending balance $ 325 $ 282 $ 133

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The gross amount and expiration dates of operating loss and tax credit carry-forwards as of December 31, 2018 are as follows
(in millions):

Amount Expiration Date

Canadian net operating loss carryforwards $ 735 2036-2038
Canadian capital loss carryforwards 1,139 Indefinite
U.S. state net operating loss carryforwards 595 2019-2038
U.S. foreign tax credits 81 2019-2028
Other foreign net operating loss carryforwards 192 Indefinite
Other foreign net operating loss carryforwards 57 2020-2037
Other foreign capital loss carryforward 30 Indefinite
Foreign credits 2 2019-2036
Total $ 2,831

In prior periods, we provided deferred taxes on certain undistributed foreign earnings. Under our transition to a modified
territorial tax system whereby all previously untaxed undistributed foreign earnings are subject to a transition tax charge at reduced
rates and future repatriations of foreign earnings will generally be exempt from U.S. tax, we wrote off the existing deferred tax
liability on undistributed foreign earnings and recorded the impact of the new transition tax charge on foreign earnings. We will
continue to monitor available evidence and our plans for foreign earnings and expect to continue to provide any applicable deferred
taxes based on the tax liability or withholding taxes that would be due upon repatriation of amounts not considered permanently
reinvested.

We had $441 million of unrecognized tax benefits at December 31, 2018, which if recognized, would favorably affect the
effective income tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows (in
millions):

2018 2017 2016

Beginning balance $ 461 $ 241 $ 239
Additions on tax position related to the current year 1 186 2
Additions for tax positions of prior years 18 41 6
Additions for tax positions taken in conjunction with acquisition of Tim Hortons — 2 —
Reductions for tax positions of prior year (18) — (1)
Reductions for settlement (18) (2) (5)
Reductions due to statute expiration (3) (7) —
Ending balance $ 441 $ 461 $ 241

During the twelve months beginning January 1, 2019, it is reasonably possible we will reduce unrecognized tax benefits by
approximately $6 million, primarily as a result of the expiration of certain statutes of limitations and the resolution of audits.

We recognize interest and penalties related to unrecognized tax benefits in income tax expense. The total amount of accrued
interest and penalties was $51 million and $37 million at December 31, 2018 and 2017, respectively. Potential interest and penalties
associated with uncertain tax positions recognized was $14 million during 2018, $10 million during 2017 and $11 million during
2016. To the extent interest and penalties are not assessed with respect to uncertain tax positions, amounts accrued will be reduced and
reflected as a reduction of the overall income tax provision.

We file income tax returns with Canada and its provinces and territories. Generally we are subject to routine examinations by the
Canada Revenue Agency (“CRA”). The CRA is conducting examinations of the 2013 through 2015 taxation years. Additionally,
income tax returns filed with various provincial jurisdictions are generally open to examination for periods of three to five years
subsequent to the filing of the respective return.

We also file income tax returns, including returns for our subsidiaries, with U.S. federal, U.S. state, and foreign jurisdictions.
Generally we are subject to routine examination by taxing authorities in the U.S. jurisdictions, as well as foreign tax jurisdictions.
None of the foreign jurisdictions should be individually material. The examination of our U.S. federal income tax returns for fiscal
2009, 2010, the period July 1, 2010 through October 18, 2010 and the period October 19, 2010 through December 31, 2010 was

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closed during the first half of 2018. The U.S. federal income tax returns for our U.S. companies for fiscal years 2014, 2015 and 2016
are currently under audit by the U.S. Internal Revenue Service. We have various U.S. state and foreign income tax returns in the
process of examination. From time to time, these audits result in proposed assessments where the ultimate resolution may result in
owing additional taxes. We believe that our tax positions comply with applicable tax law and that we have adequately provided for
these matters.

Note 12. Derivative Instruments

Disclosures about Derivative Instruments and Hedging Activities

We enter into derivative instruments for risk management purposes, including derivatives designated as cash flow hedges,
derivatives designated as net investment hedges and those utilized as economic hedges. We use derivatives to manage our exposure to
fluctuations in interest rates and currency exchange rates.

Interest Rate Swaps

During 2018, we entered into a series of receive-variable, pay-fixed interest rate swaps with a notional value of $3,500 million
to hedge the variability in the interest payments on a portion of our senior secured term loan facility (the “Term Loan Facility”)
beginning March 29, 2018 through the expiration of the final swap on February 17, 2024, resetting each March. At inception, these
interest rate swaps were designated as cash flow hedges for hedge accounting. The unrealized changes in market value are recorded in
AOCI and reclassified into earnings during the period in which the hedged forecasted transaction affects earnings.
During 2015, we entered into a series of receive-variable, pay-fixed interest rate swaps with a notional value of $2,500 million
to hedge the variability in the interest payments on a portion of our Term Loan Facility beginning May 28, 2015. All of these interest
rate swaps were settled on April 26, 2018 for an insignificant cash receipt. At inception, these interest rate swaps were designated as
cash flow hedges for hedge accounting. The unrealized changes in market value were recorded in AOCI and reclassified into earnings
during the period in which the hedged forecasted transaction affects earnings.

During 2015, we settled certain interest rate swaps and recognized a net unrealized loss of $85 million in AOCI at the date of
settlement. This amount gets reclassified into Interest expense, net as the original hedged forecasted transaction affects earnings. The
amount of pre-tax losses in AOCI as of December 31, 2018 that we expect to be reclassified into interest expense within the next 12
months is $12 million.

Cross-Currency Rate Swaps

To protect the value of our investments in our foreign operations against adverse changes in foreign currency exchange rates, we
hedge a portion of our net investment in one or more of our foreign subsidiaries by using cross-currency rate swaps. At December 31,
2018, we had outstanding cross-currency rate swap contracts between the Canadian dollar and U.S. dollar and the Euro and U.S. dollar
that have been designated as net investment hedges of a portion of our equity in foreign operations in those currencies. The component
of the gains and losses on our net investment in these designated foreign operations driven by changes in foreign exchange rates are
economically offset by movements in the fair value of our cross currency swap contracts. The fair value of the swaps is calculated
each period with changes in fair value reported in AOCI, net of tax. Such amounts will remain in AOCI until the complete or
substantially complete liquidation of our investment in the underlying foreign operations.

During 2017, we terminated and settled our previous cross-currency rate swaps with an aggregate notional value of $5,000
million, between the Canadian dollar and U.S. dollar. In connection with this termination, we received $764 million which is reflected
as a source of cash provided by investing activities in the consolidated statement of cash flows. The unrealized gains totaled $533
million, net of tax, as of the termination date and will remain in AOCI until the complete or substantially complete liquidation of our
investment in the underlying foreign operations. Additionally during 2017, we entered into new fixed-to-fixed cross-currency rate
swaps to partially hedge the net investment in our Canadian subsidiaries. At inception, these cross-currency rate swaps were
designated as a hedge and are accounted for as net investment hedges. These swaps are contracts to exchange quarterly fixed-rate
interest payments we make on the Canadian dollar notional amount of C$6,754 million for quarterly fixed-rate interest payments we
receive on the U.S. dollar notional amount of $5,000 million through the maturity date of June 30, 2023. In making such changes, we
effectively realigned our Canadian dollar hedges to reflect our current cash flow mix and capital structure maturity profile.

At December 31, 2018, we also had outstanding cross-currency rate swaps in which we pay quarterly fixed-rate interest
payments on the Euro notional amount of €1,108 million and receive quarterly fixed-rate interest payments on the U.S. dollar notional
amount of $1,200 million. At inception, these cross-currency rate swaps were designated as a hedge and are accounted for as a net
investment hedge. During 2018, we extended the term of the swaps from March 31, 2021 to the maturity date of February 17, 2024.

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The extension of the term resulted in a re-designation of the hedge and the swaps continue to be accounted for as a net investment
hedge. Additionally, during 2018, we entered into cross-currency rate swaps in which we receive quarterly fixed-rate interest payments
on the U.S. dollar notional value of $400 million through the maturity date of February 17, 2024. At inception, these cross-currency
rate swaps were designated as a hedge are accounted for as a net investment hedge.

The fixed to fixed cross-currency rate swaps hedging Canadian dollar and Euro net investments utilized the forward method of
effectiveness assessment prior to March 15, 2018. On March 15, 2018, we dedesignated and subsequently redesignated the
outstanding fixed to fixed cross-currency rate swaps to prospectively use the spot method of hedge effectiveness assessment. We also
elected to amortize the Excluded Component over the life of the derivative instrument. The amortization of the Excluded Component
is recognized in Interest expense, net in the consolidated statement of operations. The change in fair value that is not related to the
Excluded Component is recorded in AOCI and will be reclassified to earnings when the foreign subsidiaries are sold or substantially
liquidated. See Note 2, Significant Accounting Policies - New Accounting Pronouncements, for further information on the adoption of
this new guidance.

Foreign Currency Exchange Contracts

We use foreign exchange derivative instruments to manage the impact of foreign exchange fluctuations on U.S. dollar purchases
and payments, such as coffee purchases made by our Canadian Tim Hortons operations. At December 31, 2018, we had outstanding
forward currency contracts to manage this risk in which we sell Canadian dollars and buy U.S. dollars with a notional value of $124
million with maturities to January 2020. We have designated these instruments as cash flow hedges, and as such, the unrealized
changes in market value of effective hedges are recorded in AOCI and are reclassified into earnings during the period in which the
hedged forecasted transaction affects earnings.

Credit Risk
By entering into derivative contracts, we are exposed to counterparty credit risk. Counterparty credit risk is the failure of the
counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is in an asset position,
the counterparty has a liability to us, which creates credit risk for us. We attempt to minimize this risk by selecting counterparties with
investment grade credit ratings and regularly monitoring our market position with each counterparty.

Credit-Risk Related Contingent Features

Our derivative instruments do not contain any credit-risk related contingent features.

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Quantitative Disclosures about Derivative Instruments and Fair Value Measurements

The following tables present the required quantitative disclosures for our derivative instruments, including their estimated fair
values (all estimated using Level 2 inputs) and their location on our consolidated balance sheets (in millions):

Gain (Loss) Recognized in

Other Comprehensive Income (Loss)
2018 2017 2016
Derivatives designated as cash flow hedges(1)
Interest rate swaps $ (37) $ (6) $ (23)
Forward-currency contracts $ 11 $ (9) $ (5)
Derivatives designated as net investment hedges
Cross-currency rate swaps $ 383 $ (384) $ (87)
(1) We did not exclude any components from the cash flow hedge relationships presented in this table.

Location of Gain or
(Loss) Reclassified from Gain or (Loss) Reclassified from AOCI into
AOCI into Earnings Earnings
2018 2017 2016
Derivatives designated as cash flow hedges
Interest rate swaps Interest expense, net $ (19) $ (31) $ (21)
Forward-currency contracts Cost of sales $ (1) $ (3) $ —

Location of Gain or Gain or (Loss) Recognized in Earnings

(Loss) Recognized in (Amount Excluded from Effectiveness
Earnings Testing)
2018 2017 2016
Derivatives designated as net investment hedges
Cross-currency rate swaps Interest expense, net $ 60 $ — $ —

Fair Value as of
December 31,
2018 2017 Balance Sheet Location
Assets:
Derivatives designated as cash flow hedges
Foreign currency $ 7 $ 1 Prepaids and other current assets
Derivatives designated as net investment hedges
Foreign currency 58 — Other assets, net
Total assets at fair value $ 65 $ 1
Liabilities:
Derivatives designated as cash flow hedges
Interest rate $ 72 $ 42 Other liabilities, net
Foreign currency — 5 Other accrued liabilities
Derivatives designated as net investment hedges
Foreign currency 107 456 Other liabilities, net
Total liabilities at fair value $ 179 $ 503

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Note 13. Redeemable Preferred Shares

On December 12, 2014 we issued 68,530,939 Class A 9.0% cumulative compounding perpetual voting preferred shares (the
“Preferred Shares”) to a subsidiary of Berkshire Hathaway, which were outstanding until the Redemption Date (as defined below). A
9.0% annual dividend accrued on the purchase price of $43.775848 per Preferred Share, and was payable quarterly in arrears, when
declared and approved by our board of directors.

The Preferred Shares were redeemable at our option on and after December 12, 2017. During 2014, we adjusted the carrying
value of the Preferred Shares to their redemption price of $48.109657 per Preferred Share (the “redemption price”). The Preferred
Shares were classified as temporary equity while outstanding because redemption was not solely within our control, as the Preferred
Shares also contained provisions that allowed the holder to redeem the Preferred Shares for cash beginning in December 2024 or upon
a change in control.

On December 12, 2017 (the “Redemption Date”), we redeemed all of the issued and outstanding Preferred Shares for aggregate
consideration of $3,116 million (the “Redemption Consideration”), consisting of (i) $3,297 million, which is the redemption price of
$48.109657 per Preferred Share multiplied by the number of Preferred Shares outstanding, plus (ii) $54 million of accrued and unpaid
preferred dividends up to the Redemption Date, minus (iii) an adjustment of $235 million, so that the after-tax internal rate of return of
the holder of the Preferred Shares from the original issue date through the Redemption Date is equal to the after-tax internal rate of
return that the holder of the Preferred Shares would have received if we were a U.S. corporation. The $235 million adjustment, net of
$1 million of related transaction costs, is reflected as a $234 million increase to net income attributable to common shareholders and
common shareholders' equity.

The Redemption Consideration was funded by proceeds from (i) the incremental Term Loan No. 2 and the issuance of the 2017
4.25% Senior Notes - see Note 9, Long-Term Debt, (ii) proceeds from the termination and settlement of our previous cross-currency
rate swaps with an aggregate notional value of $5,000 million between the Canadian dollar and U.S. dollar - see Note 12, Derivative
Instruments, and (iii) cash generated in the normal course of our business. Upon redemption, the Preferred Shares were deemed
canceled, dividends ceased to accrue and all rights of the holder terminated.

During 2018, we made a payment in connection with the settlement of certain provisions associated with the 2017 redemption of
our Preferred Shares as a result of recently proposed Treasury regulations included within Other operating expense (income), net in
our consolidated statements of operations.

Note 14. Shareholders’ Equity

Noncontrolling Interests

We reflect a noncontrolling interest which represents the interests of the holders of Partnership exchangeable units in Partnership
that are not held by RBI. The holders of Partnership exchangeable units held an economic interest of approximately 45.2% and 47.2%
in Partnership common equity through the ownership of 207,523,591 and 217,708,924 Partnership exchangeable units as of
December 31, 2018 and 2017, respectively.

Pursuant to the terms of the partnership agreement, each holder of a Partnership exchangeable unit is entitled to distributions
from Partnership in an amount equal to any dividends or distributions that we declare and pay with respect to our common shares.
Additionally, each holder of a Partnership exchangeable unit is entitled to vote in respect of matters on which holders of RBI common
shares are entitled to vote through our special voting share. Since December 12, 2015, a holder of a Partnership exchangeable unit may
require Partnership to exchange all or any portion of such holder’s Partnership exchangeable units for our common shares at a ratio of
one common share for each Partnership exchangeable unit, subject to our right as the general partner of Partnership, in our sole
discretion, to deliver a cash payment in lieu of our common shares. If we elect to make a cash payment in lieu of issuing common
shares, the amount of the payment will be the weighted average trading price of the common shares on the New York Stock Exchange
for the 20 consecutive trading days ending on the last business day prior to the exchange date.

During 2018, Partnership exchanged 10,185,333 Partnership exchangeable units, pursuant to exchange notices received. In
accordance with the terms of the partnership agreement, Partnership satisfied the exchange notices by repurchasing 10,000,000
Partnership exchangeable units for approximately $561 million in cash and exchanging 185,333 Partnership exchangeable units for the
same number of newly issued RBI common shares. During 2017, Partnership exchanged 9,286,480 Partnership exchangeable units,
pursuant to exchange notices received. In accordance with the terms of the partnership agreement, Partnership satisfied the exchange
notices by repurchasing 5,000,000 Partnership exchangeable units for approximately $330 million in cash and exchanging 4,286,480
Partnership exchangeable units for the same number of newly issued RBI common shares. During 2016, Partnership exchanged
6,744,244 Partnership exchangeable units, pursuant to exchange notices received. In accordance with the terms of the partnership
agreement, Partnership satisfied the exchange notices by exchanging these Partnership exchangeable units for the same number of
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newly issued RBI common shares. The exchanges represented increases in our ownership interest in Partnership and were accounted
for as equity transactions, with no gain or loss recorded in the consolidated statements of operations. Pursuant to the terms of the
partnership agreement, upon the exchange of Partnership exchangeable units, each such Partnership exchangeable unit was cancelled
concurrently with the exchange.

Prior to and in connection with the redemption of the Preferred Shares, under the terms of the partnership agreement,
Partnership made preferred unit distributions to RBI in amounts equal to (i) dividends RBI paid on the Preferred Shares and (ii) the
Redemption Consideration of the Preferred Shares. Although the Partnership preferred units and related distributions eliminate in
consolidation, they affect the amount of net income (loss) attributable to noncontrolling interests that we report. Net income (loss)
attributable to noncontrolling interests represents the noncontrolling interests’ portion of (i) Partnership net income (loss) for the
corresponding period less (ii) preferred unit dividends accrued by Partnership.

Accumulated Other Comprehensive Income (Loss)

The following table displays the change in the components of AOCI (in millions):

Accumulated
Foreign Other
Currency Comprehensive
Derivatives Pensions Translation Income (Loss)
Balances at December 31, 2015 $ 318 $ (12) $ (1,039) $ (733)
Foreign currency translation adjustment — — 223 223
Net change in fair value of derivatives, net of tax (119) — — (119)
Amounts reclassified to earnings of cash flow hedges, net of tax 16 — — 16
Pension and post-retirement benefit plans, net of tax — (8) — (8)
Amounts attributable to noncontrolling interests 61 4 (142) (77)
Balances at December 31, 2016 276 (16) (958) (698)
Foreign currency translation adjustment — — 824 824
Net change in fair value of derivatives, net of tax (382) — — (382)
Amounts reclassified to earnings of cash flow hedges, net of tax 25 — — 25
Pension and post-retirement benefit plans, net of tax — 4 — 4
Amounts attributable to noncontrolling interests 178 (3) (424) (249)
Balances at December 31, 2017 97 (15) (558) (476)
Foreign currency translation adjustment — — (831) (831)
Net change in fair value of derivatives, net of tax 263 — — 263
Amounts reclassified to earnings of cash flow hedges, net of tax 14 — — 14
Pension and post-retirement benefit plans, net of tax — 1 — 1
Amounts attributable to noncontrolling interests (121) (1) 351 229
Balances at December 31, 2018 $ 253 $ (15) $ (1,038) $ (800)

Note 15. Share-based Compensation

On January 30, 2015, our board of directors approved: (i) adoption of the Restaurant Brands International Inc. 2014 Omnibus
Incentive Plan, currently the Amended and Restated 2014 Omnibus Incentive Plan, (the “Omnibus Plan”), to provide for the grant of
awards to employees, directors, consultants and other persons who provide services to us and our subsidiaries; (ii) assumption and
amendment of various legacy plans of BK, and assumption of the obligation for all BK stock options and restricted stock units
(“RSUs”) outstanding; and (iii) assumption and amendment of various legacy plans of TH, and assumption of the obligation for each
vested and unvested TH stock option issued with tandem stock appreciation rights (“SARs”) that was not surrendered in connection
with the Tim Hortons transaction on the same terms and conditions of the original awards, as adjusted. No new awards may be granted
under these legacy BK plans or legacy TH plans.

We are currently issuing awards under the Omnibus Plan and the number of shares available for issuance under such plan as of
December 31, 2018 was 16,945,969. The Omnibus Plan permits the grant of several types of awards with respect to our common
shares, including stock options, time-vested RSUs, and performance-based RSUs, which may include Company and/or individual
performance based-vesting conditions. Under the terms of the Omnibus Plan, RSUs are entitled to dividend equivalents, unless
otherwise noted. Dividends are not distributed unless the awards vest. Upon vesting, the amount of the dividend, which is distributed
in additional RSUs, except in the case of RSUs awarded to non-management members of our board of directors, is equal to the

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equivalent of the aggregate dividends declared on common shares during the period from the date of grant of the award compounded
until the date the shares underlying the award are delivered.

Stock option awards are granted with an exercise price or market value equal to the closing price of our common shares on the
trading day preceding the date of grant. We satisfy stock option exercises through the issuance of authorized but previously unissued
common shares. New stock option grants generally cliff vest 5 years from the original grant date, provided the employee is
continuously employed by us or one of our subsidiaries, and the stock options expire 10 years following the grant date. Additionally, if
we terminate the employment of a stock option holder without cause prior to the vesting date, or if the employee retires or becomes
disabled, the employee will become vested in the number of stock options as if the stock options vested 20% on each anniversary of
the grant date. If the employee dies, the employee will become vested in the number of stock options as if the stock 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.

Share-based compensation expense consists of the following for the periods presented (in millions):

2018 2017 2016

Stock options, stock options with tandem SARs and RSUs (a) $ 48 $ 48 $ 35
Accelerated vesting of Popeyes stock options (b) — 12 —
Total share-based compensation expense (c) $ 48 $ 60 $ 35

(a) Includes $2 million, $5 million, and $1 million due to modification of awards in 2018, 2017 and 2016, respectively.
(b) Represents expense attributed to the post-combination service associated with the accelerated vesting of stock options in
connection with the Popeyes Acquisition.
(c) Generally classified as selling, general and administrative expenses in the consolidated statements of operations.

As of December 31, 2018, total unrecognized compensation cost related to share-based compensation arrangements was $126
million and is expected to be recognized over a weighted-average period of approximately 3.3 years.

The following assumptions were used in the Black-Scholes option-pricing model to determine the fair value of stock option
awards at the grant date:

2018 2017 2016

Risk-free interest rate 2.13% 1.23% - 1.25% 0.85%
Expected term (in years) 6.39 6.74 6.74
Expected volatility 25.2% 24.5% 26.6%
Expected dividend yield 3.08% 1.37% 1.81%

The risk-free interest rate was based on the U.S. Treasury or Canadian Sovereign bond yield with a remaining term equal to the
expected option life assumed at the date of grant. The expected term was calculated based on the analysis of a three to five-year
vesting period coupled with our expectations of exercise activity. Expected volatility was based on the historical equity volatility of
the Company and a review of the equity volatilities of publicly-traded guideline companies. The expected dividend yield is based on
the annual dividend yield at the time of grant.

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The following is a summary of stock option activity under our plans for the year ended December 31, 2018:

Weighted
Average
Total Number Aggregate Remaining
of Weighted Intrinsic Contractual
Options Average Value (a) Term
(in 000’s) Exercise Price (in 000’s) (Years)
Outstanding at January 1, 2018 20,071 $ 25.15
Granted 1,548 $ 58.19
Exercised (7,268) $ 8.37
Forfeited (748) $ 48.26
Outstanding at December 31, 2018 13,603 $ 36.41 $ 231,988 6.2
Exercisable at December 31, 2018 3,118 $ 16.32 $ 112,215 3.8
Vested or expected to vest at December 31, 2018 12,479 $ 35.75 $ 220,320 6.1

(a) The intrinsic value represents the amount by which the fair value of our stock exceeds the option exercise price at
December 31, 2018.

The weighted-average grant date fair value per stock option granted was $10.82, $12.57, and $7.53 during 2018, 2017 and 2016,
respectively. The total intrinsic value of stock options exercised was $371 million during 2018, $288 million during 2017, and $47
million during 2016.

The fair value of the time-vested RSUs and performance-based RSUs is based on the closing price of the Company’s common
shares on the trading day preceding the date of grant. New grants generally cliff vest five years from the original grant date. The
Company has awarded a limited number of performance-based RSUs that proportionally vest over a four year period. Time-vested
RSUs and performance-based RSUs are expensed over the vesting period, based upon the probability that the performance target will
be met. We grant fully vested RSUs, with dividend equivalent rights that accrue in cash, to non-employee members of our board of
directors in lieu of a cash retainer and committee fees. All such RSUs will settle and common shares of the Company will be issued
upon termination of service by the board member.

The time-vested RSUs generally cliff vest five years from December 31st of the year preceding the grant date and performance-
based RSUs generally cliff vest five years from the grant date (in each case, the “Anniversary Date”). If the employee is terminated for
any reason within the first two years of the Anniversary Date, 100% of the time-vested RSUs granted will be forfeited. If we terminate
the employment of a time-vested RSU holder without cause two years after the Anniversary Date, or if the employee retires, the
employee will become vested in the number of time-vested RSUs as if the time-vested RSUs vested 20% for each year after the
Anniversary Date. If the employee is terminated for any reason within the first three years of the Anniversary Date, 100% of the
performance-based RSUs granted will be forfeited. If we terminate the employment of a performance-based RSU holder without cause
between three and five years after the Anniversary Date, or if the employee retires, the employee will become vested in 50% of the
performance-based RSUs on the fourth anniversary date. An alternate ratable vesting schedule applies to the extent the participant
ends employment by reason of death or disability.

The following is a summary of time-vested RSUs and performance-based RSUs activity for the year ended December 31, 2018:

Time-vested RSUs Performance-based RSUs

Total Number of Weighted Average Total Number of Weighted Average
Shares Grant Date Fair Shares Grant Date Fair
(in 000’s) Value (in 000’s) Value
Outstanding at January 1, 2018 1,293 $ 38.64 1,590 $ 36.31
Granted 329 $ 57.68 920 $ 58.49
Vested and settled (43) $ 41.62 (81) $ 34.68
Dividend equivalents granted 31 $ — 58 $ —
Forfeited (110) $ 51.05 (80) $ 34.65
Outstanding at December 31, 2018 1,500 $ 41.88 2,407 $ 45.25

The total intrinsic value, determined as of the date of vesting, of RSUs vested and converted to common shares of the Company
during 2018, 2017 and 2016 was $7 million, $6 million and $3 million, respectively.

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Note 16. Revenue Recognition

Revenue from Contracts with Customers

We transitioned to ASC 606 from the Previous Standards on January 1, 2018 using the modified retrospective transition method.
Our Financial Statements reflect the application of ASC 606 guidance beginning in 2018, while our consolidated financial statements
for prior periods were prepared under the guidance of the Previous Standards. The $250 million cumulative effect of our transition to
ASC 606 is reflected as an adjustment to January 1, 2018 Shareholders' equity.

Our transition to ASC 606 represents a change in accounting principle. ASC 606 eliminates industry-specific guidance and
provides a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of ASC 606 is
that a reporting entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that
reflects the consideration to which the reporting entity expects to be entitled for the exchange of those goods or services.

Contract Liabilities

Contract liabilities consist of deferred revenue resulting from initial and renewal franchise fees paid by franchisees, as well as
upfront fees paid by master franchisees, which are generally recognized on a straight-line basis over the term of the underlying
agreement. We classify these contract liabilities as Other liabilities, net in our consolidated balance sheets. The following table reflects
the change in contract liabilities by segment and on a consolidated basis between the date of adoption (January 1, 2018) and
December 31, 2018 (in millions):

Contract Liabilities TH BK PLK Consolidated

Balance at January 1, 2018 $ 47 $ 402 $ 6 $ 455
Revenue recognized that was included in the contract
liability balance at the beginning of the year (6) (43) — (49)
Increase, excluding amounts recognized as revenue
during the period 24 58 13 95
Impact of foreign currency translation (3) (12) — (15)
Balance at December 31, 2018 $ 62 $ 405 $ 19 $ 486

The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that
are unsatisfied (or partially unsatisfied) by segment and on a consolidated basis as of December 31, 2018 (in millions):

Contract liabilities expected to be recognized in TH BK PLK Consolidated

2019 $ 7 $ 30 $ 1 $ 38
2020 7 29 1 37
2021 7 28 1 36
2022 6 28 1 35
2023 6 27 1 34
Thereafter 29 263 14 306
Total $ 62 $ 405 $ 19 $ 486

Disaggregation of Total Revenues

Total revenues consist of the following (in millions):

2018 2017 2016

Sales $ 2,355 $ 2,390 $ 2,205
Royalties 2,165 1,215 993
Property revenues 744 765 753
Franchise fees and other revenue 93 206 195
Total revenues $ 5,357 $ 4,576 $ 4,146

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Financial Statement Impact of Transition to ASC 606

As noted above, we transitioned to ASC 606 using the modified retrospective method on January 1, 2018. The cumulative effect
of this transition to applicable contracts with customers that were not completed as of January 1, 2018 was recorded as an adjustment
to Shareholders' equity as of this date. As a result of applying the modified retrospective method to transition to ASC 606, the
following adjustments were made to the consolidated balance sheet as of January 1, 2018 (in millions):

As Reported Total Adjusted

December 31, 2017 Adjustments January 1, 2018
ASSETS
Current assets:
Cash and cash equivalents $ 1,097 $ — $ 1,097
Accounts and notes receivable, net 489 — 489
Inventories, net 78 — 78
Prepaids and other current assets 86 (23) 63
Total current assets 1,750 (23) 1,727
Property and equipment, net 2,133 — 2,133
Intangible assets, net 11,062 — 11,062
Goodwill 5,782 — 5,782
Net investment in property leased to franchisees 71 — 71
Other assets, net 426 107 533
Total assets $ 21,224 $ 84 $ 21,308
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and drafts payable $ 496 $ — $ 496
Other accrued liabilities 866 9 875
Gift card liability 215 (43) 172
Current portion of long term debt and capital leases 78 — 78
Total current liabilities 1,655 (34) 1,621
Term debt, net of current portion 11,801 — 11,801
Capital leases, net of current portion 244 — 244
Other liabilities, net 1,455 426 1,881
Deferred income taxes, net 1,508 (58) 1,450
Total liabilities 16,663 334 16,997
Shareholders’ equity:
Common shares 2,052 — 2,052
Retained earnings 651 (132) 519
Accumulated other comprehensive income (loss) (476) — (476)
Total RBI shareholders’ equity 2,227 (132) 2,095
Noncontrolling interests 2,334 (118) 2,216
Total shareholders’ equity 4,561 (250) 4,311
Total liabilities and shareholders’ equity $ 21,224 $ 84 $ 21,308

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Franchise Fees

The cumulative adjustment for franchise fees consists of the following:

• A $321 million increase in Other liabilities, net for the cumulative reversal and deferral of previously recognized franchise
fees related to franchise agreements in effect at January 1, 2018 that were entered into subsequent to the acquisitions of BK in
2010, TH in 2014 and PLK in 2017 (net of the cumulative revenue attributable for the period through January 1, 2018), with
a corresponding decrease to Shareholders’ equity.
• A $107 million increase in Other assets, net for the previously unrecognized value of equity interests received in connection
with MFDA arrangements. This increase resulted in a corresponding increase in Other liabilities, net of $105 million and an
increase to Shareholders' equity of $2 million for the cumulative effect of revenue attributable for the period between the
inception of each such arrangement and January 1, 2018.
• A $67 million decrease to Deferred income taxes, net for the tax effects of the two adjustments noted above, with a
corresponding increase to Shareholders' equity.

Advertising Funds

The cumulative adjustment for advertising funds reflects the recognition of cumulative advertising expenditures temporarily in
excess of cumulative advertising fund contributions as of January 1, 2018, which is reflected as a $23 million decrease in Prepaids and
other current assets and a $23 million decrease to Shareholders’ equity.

Gift Card Breakage

The adjustment for gift card breakage reflects the impact of the change to recognize gift card breakage proportionately as gift
card balances are used rather than when it is deemed remote that the unused gift card balance would be redeemed, as done under the
Previous Standards. The cumulative effect of applying ASC 606 accounting to gift card balances outstanding at January 1, 2018 is
reflected as a $43 million decrease in Gift card liability, a $9 million increase in Other accrued liabilities, a $9 million increase in
Deferred income taxes, net and a $25 million increase in January 1, 2018 Shareholders' equity.

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Comparison to Amounts if Previous Standards Had Been in Effect

The following tables reflect the impact of adoption of ASC 606 on our consolidated statements of operations for 2018 and cash
flows from operating activities for 2018 and our consolidated balance sheet as of December 31, 2018 and the amounts as if the
Previous Standards were in effect (“Amounts Under Previous Standards”) (in millions):

Consolidated Statement of Operations for 2018

Amounts
Under
Total Previous
As Reported Adjustments Standards
Revenues:
Sales $ 2,355 $ — $ 2,355
Franchise and property revenues 3,002 (750) 2,252
Total revenues 5,357 (750) 4,607
Operating costs and expenses:
Cost of sales 1,818 — 1,818
Franchise and property expenses 422 — 422
Selling, general and administrative expenses 1,214 (785) 429
(Income) loss from equity method investments (22) (6) (28)
Other operating expenses (income), net 8 (1) 7
Total operating costs and expenses 3,440 (792) 2,648
Income from operations 1,917 42 1,959
Interest expense, net 535 1 536
Income before income taxes 1,382 41 1,423
Income tax expense 238 9 247
Net income 1,144 32 1,176
Net income attributable to noncontrolling interests 532 15 547
Net income attributable to common shareholders $ 612 $ 17 $ 629

Earnings per common share:

Basic $ 2.46 $ 2.53
Diluted $ 2.42 $ 2.49

The following summarizes the adjustments to our condensed consolidated statement of operations for 2018 to reflect our
consolidated statement of operations as if we had continued to recognize revenue under the Previous Standards:
• As described above, our transition to ASC 606 resulted in the deferral of franchise fees, recognition of franchise fees in
connection with MFDAs where we received an equity interest in the equity method investee, and a change in the timing of
recognizing gift card breakage income. The adjustments for 2018 to reflect the recognition of this revenue as if the Previous
Standards were in effect consists of a $43 million increase in Franchise and property revenue and a $11 million increase in
Income tax expense.
• The adjustments to (income) loss from equity method investments for 2018 reflect the amount of losses from equity method
investments we would not have recognized if the Previous Standards were in effect. There is no tax impact related to these
adjustments.
• As described above, under the Previous Standards our statement of operations did not reflect gross presentations of
advertising fund contributions and expenses. Our transition to ASC 606 requires the presentation of advertising fund
contributions and advertising fund expenses on a gross basis. The adjustments for 2018 reflect advertising fund contributions
and expenses as if the Previous Standards were in effect consist of a $793 million decrease in Franchise and property
revenues, a $785 million decrease in Selling, general and administrative expenses, a $1 million decrease in Other operating
expenses (income), net, a $1 million increase in Interest expense, net, and a $2 million decrease in Income tax expense.

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Consolidated Statement of Cash Flows for 2018

The transition to ASC 606 had no net impact on our cash provided by operating activities and no impact on our cash used for
investing activities or cash used for financing activities during 2018.

Total Amounts Under

As Reported Adjustments Previous Standards
Cash flows from operating activities:
Net income $ 1,144 $ 32 $ 1,176
Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization 180 — 180
Amortization of deferred financing costs and debt
issuance discount 29 — 29
(Income) loss from equity method investments (22) (6) (28)
Loss (gain) on remeasurement of foreign denominated
transactions (33) — (33)
Net (gains) losses on derivatives (40) — (40)
Share-based compensation expense 48 — 48
Deferred income taxes 29 9 38
Other 5 — 5
Changes in current assets and liabilities, excluding
acquisitions and dispositions:
Accounts and notes receivable 19 — 19
Inventories and prepaids and other current assets (7) 6 (1)
Accounts and drafts payable 41 7 48
Other accrued liabilities and gift card liability (219) (6) (225)
Tenant inducements paid to franchisees (52) — (52)
Other long-term assets and liabilities 43 (42) 1
Net cash provided by operating activities $ 1,165 $ — $ 1,165

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Consolidated Balance Sheet as of December 31, 2018

As Reported Total Amounts Under

December 31, 2018 Adjustments Previous Standards
ASSETS
Current assets:
Cash and cash equivalents $ 913 $ — $ 913
Accounts and notes receivable, net 452 — 452
Inventories, net 75 — 75
Prepaids and other current assets 60 17 77
Total current assets 1,500 17 1,517
Property and equipment, net 1,996 — 1,996
Intangible assets, net 10,463 — 10,463
Goodwill 5,486 — 5,486
Net investment in property leased to franchisees 54 — 54
Other assets, net 642 (101) 541
Total assets $ 20,141 $ (84) $ 20,057
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts and drafts payable $ 513 $ 7 $ 520
Other accrued liabilities 637 (15) 622
Gift card liability 167 42 209
Current portion of long term debt and capital leases 91 — 91
Total current liabilities 1,408 34 1,442
Term debt, net of current portion 11,823 — 11,823
Capital leases, net of current portion 226 — 226
Other liabilities, net 1,547 (468) 1,079
Deferred income taxes, net 1,519 67 1,586
Total liabilities 16,523 (367) 16,156
Shareholders’ equity:
Common shares 1,737 — 1,737
Retained earnings 674 155 829
Accumulated other comprehensive income (loss) (800) — (800)
Total RBI shareholders’ equity 1,611 155 1,766
Noncontrolling interests 2,007 128 2,135
Total shareholders’ equity 3,618 283 3,901
Total liabilities and shareholders’ equity $ 20,141 $ (84) $ 20,057

Note 17. Other Operating Expenses (Income), net

Other operating expenses (income), net, consist of the following (in millions):

2018 2017 2016

Net losses on disposal of assets, restaurant closures and refranchisings $ 19 $ 29 $ 18
Litigation settlements and reserves, net 11 2 1
Net losses (gains) on foreign exchange (33) 77 (20)
Other, net 11 1 —
Other operating expenses (income), net $ 8 $ 109 $ (1)

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Net losses (gains) on disposal of assets, restaurant closures, and refranchisings represent sales of properties and other costs
related to restaurant closures and refranchisings. Gains and losses recognized in the current period may reflect certain costs related to
closures and refranchisings that occurred in previous periods.

Litigation settlements and reserves, net primarily reflects accruals and payments made and proceeds received in connection with
litigation matters.

Net losses (gains) on foreign exchange is primarily related to revaluation of foreign denominated assets and liabilities.

Other, net during 2018 is comprised primarily of a payment in connection with the settlement of certain provisions associated
with the 2017 redemption of our preferred shares as a result of recently proposed Treasury regulations.

Note 18. Commitments and Contingencies

Letters of Credit
As of December 31, 2018, we had $20 million in irrevocable standby letters of credit outstanding, which were issued primarily
to certain insurance carriers to guarantee payments of deductibles for various insurance programs, such as health and commercial
liability insurance. These letters of credit outstanding are secured by the collateral under our Revolving Credit Facility. As of
December 31, 2018, no amounts had been drawn on any of these irrevocable standby letters of credit.

Purchase Commitments
We have arrangements for information technology and telecommunication services with an aggregate contractual obligation of
$41 million over the next three years, some of which have early termination fees. We also enter into commitments to purchase
advertising. As of December 31, 2018, these commitments totaled $380 million and run through 2024.

Litigation
From time to time, we are involved in legal proceedings arising in the ordinary course of business relating to matters including,
but not limited to, disputes with franchisees, suppliers, employees and customers, as well as disputes over our intellectual property.

On June 19, 2017, a claim was filed in the Ontario Superior Court of Justice against The TDL Group Corp, a subsidiary of the
Company, the Company, the Tim Hortons Ad Fund and certain individual defendants. The plaintiff, a franchisee of two Tim Hortons
restaurants, seeks to certify a class of all persons who have carried on business as a Tim Hortons franchisee in Canada at any time after
December 15, 2014. The claim alleges various causes of action against the defendants in relation to the purported misuse of amounts
paid by members of the proposed class to the Tim Hortons Canada advertising fund (the “Ad Fund”). The plaintiff seeks to have the
Ad Fund franchisee contributions held in trust for the benefit of members of the proposed class, an accounting of the Ad Fund, as well
as damages for breach of contract, breach of trust, breach of the statutory duty of fair dealing, and breach of fiduciary duties.

On October 6, 2017, a claim was filed in the Ontario Superior Court of Justice against the same defendants as named above. The
plaintiffs, two franchisees of Tim Hortons restaurants, seek to certify a class of all persons who have carried on business as a Tim
Hortons franchisee at any time after March 8, 2017. The claim alleges various causes of action against the defendants in relation to the
purported adverse treatment of member and potential member franchisees of the Great White North Franchisee Association. The
plaintiffs seek damages for, among other things, breach of contract, breach of the statutory duty of fair dealing, and breach of the
franchisees’ statutory right of association.

In connection with these two lawsuits, the court granted our motion to strike the individuals named in the lawsuits, the Company
and the Tim Hortons Ad Fund on October 22, 2018. The only defendant that remains in the lawsuits is The TDL Group Corp.

On July 24, 2018, a complaint for declaratory relief was filed against Tim Hortons USA, Inc. (“THUSA”) and Restaurant Brands
International Limited Partnership in the Circuit Court of the 11th Judicial Circuit in Miami-Dade County, Florida by Great White
North Franchisee Association - USA, Inc., on behalf of its members. The complaint alleges certain breaches of the franchise
agreements between THUSA and its franchisees and the implied covenant of good faith and fair dealing, as well as violations of the
U.S. franchise rules and the Florida Deceptive and Unfair Trade Practices Act.

On October 5, 2018, a class action complaint was filed against Burger King Worldwide, Inc. (“BKW”) and Burger King
Corporation (“BKC”) in the U.S. District Court for the Southern District of Florida by Jarvis Arrington, individually and on behalf of
all others similarly situated. On October 18, 2018, a second class action complaint was filed against the Company, BKW and BKC in
the U.S. District Court for the Southern District of Florida by Monique Michel, individually and on behalf of all others similarly
situated. On October 31, 2018, a third class action complaint was filed against BKC and BKW in the U.S. District Court for the
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Southern District of Florida by Geneva Blanchard and Tiffany Miller, individually and on behalf of all others similarly situated. On
November 2, 2018, a fourth class action complaint was filed against the Company, BKW and BKC in the U.S. District Court for the
Southern District of Florida by Sandra Muster, individually and on behalf of all others similarly situated. These complaints allege that
the defendants violated Section 1 of the Sherman Act by incorporating an employee no-solicitation and no-hiring clause in the
standard form franchise agreement all Burger King franchisees are required to sign. Each plaintiff seeks injunctive relief and damages
for himself or herself and other members of the class.

While we believe the claims are without merit, we are unable to predict the ultimate outcome of these cases or estimate the range
of possible loss, if any.

Note 19. Segment Reporting and Geographical Information

As stated in Note 1, Description of Business and Organization, we manage three brands. Under the Tim Hortons brand, we
operate in the donut/coffee/tea category of the quick service segment of the restaurant industry. Under the Burger King brand, we
operate in the fast food hamburger restaurant category of the quick service segment of the restaurant industry. Under the Popeyes
brand, we operate in the chicken category of the quick service segment of the restaurant industry. Our business generates revenue from
the following sources: (i) franchise revenues, consisting primarily of royalties based on a percentage of sales reported by franchise
restaurants and franchise fees paid by franchisees; (ii) property revenues from properties we lease or sublease to franchisees; and
(iii) sales at restaurants owned by us (“Company restaurants”). In addition, our TH business generates revenue from sales to
franchisees related to our supply chain operations, including manufacturing, procurement, warehousing and distribution, as well as
sales to retailers.

Each brand is managed by a brand president that reports directly to our Chief Executive Officer, who is our Chief Operating
Decision Maker. Therefore, we have three operating segments: (1) TH, which includes all operations of our Tim Hortons brand,
(2) BK, which includes all operations of our Burger King brand, and (3) PLK, which includes all operations of our Popeyes brand. Our
three operating segments represent our reportable segments.

As stated in Note 16, Revenue Recognition, we transitioned to ASC 606 on January 1, 2018 using the modified retrospective
transition method. Our Financial Statements reflect the application of ASC 606 guidance beginning in 2018, while our Financial
Statements for prior periods were prepared under the guidance of the Previous Standards. For comparability purposes, we have
disclosed 2018 total revenues by operating segment under the Previous Standards as well as segment income with a reconciliation to
net income under the Previous Standards. See Note 16, Revenue Recognition, for further details of the effects of this change in
accounting principle on total revenues and net income.

PLK revenues and segment income from the acquisition date of March 27, 2017 through December 31, 2017 are included in our
consolidated statement of operations for 2017. The following tables present revenues, by segment and by country, depreciation and
amortization, (income) loss from equity method investments, and capital expenditures by segment (in millions):

2018
Amounts
Under
2018 Previous
As Reported Standards 2017 2016
Revenues by operating segment:
TH $ 3,292 $ 3,077 $ 3,155 $ 3,001
BK 1,651 1,251 1,219 1,145
PLK 414 279 202 —
Total $ 5,357 $ 4,607 $ 4,576 $ 4,146

Revenues by country (a):

Canada $ 2,984 $ 2,832 $ 2,672
United States 1,785 1,190 1,004
Other 588 554 470
Total $ 5,357 $ 4,576 $ 4,146

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Depreciation and amortization:

TH $ 108 $ 110 $ 108
BK 61 62 64
PLK 11 10 —
Total $ 180 $ 182 $ 172

(Income) loss from equity method investments:

TH $ (6) $ (8) $ (8)
BK (16) (4) (12)
Total $ (22) $ (12) $ (20)

Capital expenditures:
TH $ 59 $ 13 $ 12
BK 25 23 22
PLK 2 1 —
Total $ 86 $ 37 $ 34

(a) Only Canada and the United States represented 10% or more of our total revenues in each period presented.

Total assets by segment, and long-lived assets by segment and country are as follows (in millions):

Assets Long-Lived Assets

As of December 31, As of December 31,
2018 2017 2018 2017
By operating segment:
TH $ 12,666 $ 13,733 $ 1,226 $ 1,351
BK 4,514 4,633 729 751
PLK 2,420 2,440 95 102
Unallocated 541 418 — —
Total $ 20,141 $ 21,224 $ 2,050 $ 2,204
By country:
Canada $ 945 $ 1,059
United States 1,098 1,138
Other 7 7
Total $ 2,050 $ 2,204

Long-lived assets include property and equipment, net, and net investment in property leased to franchisees. Only Canada and
the United States represented 10% or more of our total long-lived assets as of December 31, 2018 and December 31, 2017.

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Our measure of segment income is Adjusted EBITDA. Adjusted EBITDA represents earnings (net income or loss) before
interest expense, net, loss on early extinguishment of debt, income tax expense (benefit), and depreciation and amortization, adjusted
to exclude the non-cash impact of share-based compensation and non-cash incentive compensation expense and (income) loss from
equity method investments, net of cash distributions received from equity method investments, as well as other operating expenses
(income), net. Other specifically identified costs associated with non-recurring projects are also excluded from Adjusted EBITDA,
including fees and expenses associated with the Popeyes Acquisition (“PLK Transaction costs”), Corporate restructuring and tax
advisory fees related to the interpretation and implementation of the Tax Act, including Treasury regulations proposed in late 2018,
non-operational Office centralization and relocation costs in connection with the centralization and relocation of our Canadian and
U.S. restaurant support centers to new offices in Toronto, Ontario, and Miami, Florida, respectively, and integration costs associated
with the acquisition of Tim Hortons. Adjusted EBITDA is used by management to measure operating performance of the business,
excluding these non-cash and other specifically identified items that management believes are not relevant to management’s
assessment of operating performance or the performance of an acquired business. A reconciliation of segment income to net income
(loss) consists of the following (in millions):
2018
Amounts
Under
2018 Previous
As Reported Standards 2017 2016
Segment income:
TH $ 1,127 $ 1,128 $ 1,136 $ 1,072
BK 928 950 903 816
PLK 157 169 107 —
Adjusted EBITDA 2,212 2,247 2,146 1,888
Share-based compensation and non-cash incentive compensation
expense 55 55 55 42
PLK Transaction costs 10 10 62 —
Corporate restructuring and tax advisory fees 25 25 2 —
Office centralization and relocation costs 20 20 — —
Integration costs — — — 16
Impact of equity method investments (a) (3) (9) 1 (8)
Other operating expenses (income), net 8 7 109 (1)
EBITDA 2,097 2,139 1,917 1,839
Depreciation and amortization 180 180 182 172
Income from operations 1,917 1,959 1,735 1,667
Interest expense, net 535 536 512 467
Loss on early extinguishment of debt — — 122 —
Income tax expense (benefit) 238 247 (134) 244
Net income (loss) $ 1,144 $ 1,176 $ 1,235 $ 956

(a) Represents (i) (income) loss from equity method investments and (ii) cash distributions received from our equity method
investments. Cash distributions received from our equity method investments are included in segment income.

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Note 20. Quarterly Financial Data (Unaudited)

Our Financial Statements reflect the application of ASC 606 guidance beginning in 2018, while our consolidated financial
statements for prior periods were prepared under the guidance of the Previous Standards. As such, 2018 results are not comparable to
2017 results.
Summarized unaudited quarterly financial data (in millions, except per share data) was as follows:

Quarters Ended
March 31, June 30, September 30, December 31,
2018 2017 2018 2017 2018 2017 2018 2017
Total revenues $ 1,254 $ 1,001 $ 1,343 $ 1,132 $ 1,375 $ 1,209 $ 1,385 $ 1,234
Income from operations $ 421 $ 336 $ 503 $ 415 $ 477 $ 479 $ 516 $ 505
Net income $ 279 $ 167 $ 314 $ 243 $ 250 $ 247 $ 301 $ 578
Basic earnings per share $ 0.60 $ 0.21 $ 0.67 $ 0.38 $ 0.53 $ 0.39 $ 0.65 $ 1.64
Diluted earnings per share $ 0.59 $ 0.21 $ 0.66 $ 0.37 $ 0.53 $ 0.37 $ 0.64 $ 1.59

Note 21. Subsequent Events

Dividends
On January 4, 2019, we paid a cash dividend of $0.45 per common share to common shareholders of record on December 15,
2018. On such date, Partnership also made a distribution in respect of each Partnership exchangeable unit in the amount of $0.45 per
exchangeable unit to holders of record on December 15, 2018.

On January 22, 2019, our board of directors declared a cash dividend of $0.50 per common share for the first quarter of 2019.
The dividend will be paid on April 3, 2019 to common shareholders of record on March 15, 2019. Partnership will also make a
distribution in respect of each Partnership exchangeable unit in the amount of $0.50 per Partnership exchangeable unit, and the record
date and payment date for distributions on Partnership exchangeable units are the same as the record date and payment date set forth
above.

*****

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

An evaluation was conducted under the supervision and with the participation of the Company’s management, including the
Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the design and operation of the Company’s
disclosure controls and procedures (as defined in Rule 13a-15e under the Exchange Act) as of December 31, 2018. Based on that
evaluation, the CEO and CFO concluded that the Company’s disclosure controls and procedures were effective as of such date.

Internal Control over Financial Reporting

The Company’s management, including the CEO and CFO, confirm that there were no changes in the Company’s internal
control over financial reporting during the fourth quarter of 2018 that have materially affected, or are reasonably likely to materially
affect, the Company’s internal control over financial reporting.

Management’s Report on Internal Control over Financial Reporting

Management’s Report on Internal Control Over Financial Reporting and the report of Independent Registered Public Accounting
Firm are set forth in Part II, Item 8 of this Form 10-K.
Part III

Item 10. Directors, Executive Officers and Corporate Governance

The information required by this Item, other than the information regarding our executive officers set forth below required by
Item 401 of Regulation S-K, is incorporated herein by reference from the Company’s definitive proxy statement to be filed no later
than 120 days after December 31, 2018. We refer to this proxy statement as the Definitive Proxy Statement.

Executive Officers of the Registrant

Set forth below is certain information about our executive officers. Ages are as of the date hereof.

Name Age Position

Daniel S. Schwartz 38 Executive Chairman
José E. Cil 49 Chief Executive Officer
Matthew Dunnigan 35 Chief Financial Officer
Joshua Kobza 32 Chief Operating Officer
Alexandre Macedo 41 President, Tim Hortons
Alexandre Santoro 47 President, Popeyes
Jacqueline Friesner 46 Controller and Chief Accounting Officer
Jill Granat 53 General Counsel and Corporate Secretary

José Cil. Mr. Cil was appointed Chief Executive Officer of the Company in January 2019, and previously served as President,
Burger King since December 2014. Mr. Cil served as Executive Vice President and President of Europe, the Middle East and Africa
for Burger King Worldwide and its predecessor from November 2010 until December 2014. Prior to this role, Mr. Cil was Vice
President and Regional General Manager for Wal-Mart Stores, Inc. in Florida from February 2010 to November 2010. From
September 2008 to January 2010, Mr. Cil served as Vice President of Company Operations of Burger King Corporation and from
September 2005 to September 2008, he served as Division Vice President, Mediterranean and NW Europe Divisions, EMEA of a
subsidiary of Burger King Corporation.

Daniel S. Schwartz. Mr. Schwartz was appointed Executive Chairman of the Company in January 2019. Prior to that, Mr.
Schwartz served as Chief Executive Officer of the Company from December 2014 to January 2019. Mr. Schwartz has also served as a
director of the Company since December 2014 and was appointed as Co-Chairman of the Board of Directors in January 2019. From
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June 2013 until December 2014, Mr. Schwartz served as Chief Executive Officer, from April 2013 until June 2013, he served as Chief
Operating Officer and from January 2011 until April 2013, he served as Chief Financial Officer of Burger King Worldwide and its
predecessor. Mr. Schwartz joined Burger King Worldwide in October 2010 as Executive Vice President, Deputy Chief Finance Officer
and was appointed as Executive Vice President and Chief Financial Officer in December 2010, effective January 2011. Since January
2008, Mr. Schwartz has been a partner with 3G Capital, where he was responsible for managing 3G Capital’s private equity business
until October 2010. Mr. Schwartz is a director of 3G Capital.

Joshua Kobza. Mr. Kobza was appointed Chief Operating Officer of the Company in January 2019. Prior to that, Mr. Kobza
served as Chief Technology Officer and Development Officer of the Company from January 2018 to January 2019, and as Chief
Financial Officer of the Company from December 2014 to January 2018. From April 2013 to December 2014, Mr. Kobza served as
Executive Vice President and Chief Financial Officer of Burger King Worldwide. Mr. Kobza joined Burger King Worldwide in June
2012 as Director, Investor Relations, and was promoted to Senior Vice President, Global Finance in December 2012. From January
2011 until June 2012, Mr. Kobza worked at SIP Capital, a Sao Paulo based private investment firm, where he evaluated investments
across a number of industries and geographies. From July 2008 until December 2010, Mr. Kobza served as an analyst in the corporate
private equity area of the Blackstone Group in New York City.

Matthew Dunnigan. Mr. Dunnigan was appointed Chief Financial Officer in January 2018. From October 2014 until January
2018, Mr. Dunnigan held the position of Treasurer, where he took on increasing responsibilities and successfully led all of the
Company's capital markets activities. Before he joined the Company, Mr. Dunnigan served as Vice President of Crescent Capital
Group LP, from September 2013 through October 2014, where he evaluated investments across the credit markets. Prior to that, Mr.
Dunnigan spent three years as a private equity investment professional for H.I.G. Capital.

Alexandre Macedo. Mr. Macedo has served as President, Tim Hortons since December 2017. Previously, he served as President
North America for Burger King from April 2013 until December 2017, where he led the turnaround of the Burger King business. Mr.
Macedo joined Burger King Corporation in July 2011 as SVP, Marketing, North America and later was General Manager of the U.S.
franchise business. Prior to joining Burger King, Mr. Macedo was founder and partner of True Marketing, a Brazilian based marketing
consulting firm form from December 2008 to June 2011. He also worked at AmBev, a Brazilian brewing company from June 2003
through March 2007, where he served as head of the Brahma Beer business unit.

Alexandre Santoro. Mr. Santoro was appointed President, Popeyes in March 2017. From April 2015 until March 2017, Mr.
Santoro was responsible for Global Supply Chain, Quality Assurance and Global Operations. Mr. Santoro served in multiple strategic
roles for America Latina Logistica from April 2002 through March 2015, including Chief Executive Officer of America Latina
Logistica from June 2013 through March 2015.

Jacqueline Friesner. Ms. Friesner was appointed Controller and Chief Accounting Officer of the Company in December 2014.
Ms. Friesner served as Vice President, Controller and Chief Accounting Officer of Burger King Worldwide and its predecessor from
March 2011 until December 2014. Prior thereto, Ms. Friesner served in positions of increasing responsibility with Burger King
Corporation. Before joining Burger King Corporation in October 2002, she was an audit manager at Pricewaterhouse Coopers in
Miami, Florida.

Jill Granat. Ms. Granat was appointed General Counsel and Corporate Secretary in December 2014. Ms. Granat served as
Senior Vice President, General Counsel and Secretary of Burger King Worldwide and its predecessor since February 2011. Prior to
this time, Ms. Granat was Vice President and Assistant General Counsel of Burger King Corporation from July 2009 until March 2011.
Ms. Granat joined Burger King Corporation in 1998 as a member of the legal department and served in positions of increasing
responsibility with Burger King Corporation.

Item 11. Executive Compensation

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by
reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item, other than the information regarding our equity plans set forth below required by Item
201(d) of Regulation S-K, will be contained in the Definitive Proxy Statement and is incorporated herein by reference.

Securities Authorized for Issuance under Equity Compensation Plans

Information regarding equity awards outstanding under our compensation plans as of December 31, 2018 was as follows
(amounts in thousands, except per share data):
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(a) (b) (c)

Number of
Securities
Remaining
Number of Available for
Securities to be Future Issuance
Issued Upon Weighted-Average under Equity
Exercise of Exercise Price of Compensation
Outstanding Outstanding Plans (Excluding
Options, Warrants Options, Warrants Securities Reflected
Plan Category and Rights and Rights in Column (a))
Equity Compensation Plans Approved by Security Holders 13,603 36.41 16,946
Equity Compensation Plans Not Approved by Security Holders — — —
Total 13,603 $ 36.41 16,946

Item 13. Certain Relationships and Related Transactions, and Director Independence
The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by
reference.

Item 14. Principal Accountant Fees and Services

The information required by this item will be contained in the Definitive Proxy Statement and is incorporated herein by
reference.

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Part IV

Item 15. Exhibits and Financial Statement Schedules

(a)(1) All Financial Statements

Consolidated financial statements filed as part of this report are listed under Part II, Item 8 of this Form 10-K.

(a)(2) Financial Statement Schedules

No schedules are required because either the required information is not present or is not present in amounts sufficient to
require submission of the schedule, or because the information required is included in the consolidated financial statements or the
notes thereto.

(a)(3) Exhibits
The following exhibits are filed as part of this report.
Exhibit Description Incorporated by Reference
Number

2.3 Arrangement Agreement and Plan of Merger, dated Incorporated herein by reference to Exhibit 2.1 to the
August 26, 2014, by and among Burger King Form 8-K of Burger King Worldwide, Inc. filed on
Worldwide, Inc., 1011773 B.C. Unlimited Liability August 29, 2014.
Company, New Red Canada Partnership, Blue Merger
Sub, Inc., 8997900 Canada Inc., and Tim Hortons Inc.
2.4 Plan of Arrangement under Section 192 of the Canada Incorporated herein by reference to Exhibit 2.2 to the
Business Corporations Act. Form 8-K of Registrant filed on December 12, 2014.
2.5 Agreement and Plan of Merger, dated as of February Incorporated herein by reference to Exhibit 2.1 to the
21, 2017, by and among Restaurant Brands Form 8-K of Registrant filed on February 22, 2017.
International Inc., Popeyes Louisiana Kitchen, Inc.,
Orange, Inc., and, solely for purposes of Section 9.03
of the Agreement and Plan of Merger, Restaurant
Brands Holdings Corporation.
3.1 Articles of Incorporation of the Registrant, as amended. Incorporated herein by reference to Exhibit 3.1 to the
Form 10-K of Registrant filed on March 2, 2015.
3.2 Amended and Restated By-Law 1 of the Registrant. Incorporated herein by reference to Exhibit 3.4 to the
Form 8-K of Registrant filed on December 12, 2014.
4.1 Registration Rights Agreement between Burger King Incorporated herein by reference to Exhibit 4.3 to the
Worldwide, Inc. and 3G Special Situations Fund II, Form S-8 of Burger King Worldwide, Inc. (File
L.P. No. 333-182232).
4.2 Registration Rights Agreement between Burger King Incorporated herein by reference to Exhibit 4.4 to the
Worldwide Inc., Pershing Square, L.P., Pershing Form S-8 of Burger King Worldwide, Inc. (File
Square II, L.P., Pershing Square International, Ltd. and No. 333-182232).
William Ackman.
4.6(a) Indenture, dated as of May 22, 2015, between 1011778 Incorporated herein by reference to Exhibit 4.1 to the
B.C. Unlimited Liability Company, as Issuer, New Red Form 8-K of Registrant filed on May 26, 2015.
Finance, Inc., as Co-Issuer, the Guarantors party
thereto, and Wilmington Trust, National Association, as
Trustee and Collateral Agent.
4.6(b) Form of 4.625% Senior Notes due 2022 (included as Incorporated herein by reference to Exhibit 4.2 to the
Exhibit A to Exhibit 4.6(a)). Form 8-K of Registrant filed on May 26, 2015.
4.9 Registration Rights Agreement dated as of Incorporated herein by reference to Exhibit 4.9 to the
December 12, 2014 by and among Restaurant Brands Form 10-K of Registrant filed on February 26, 2016.
International Inc. and National Indemnity Company.

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4.10 Indenture, dated as of May 17, 2017, by and among Incorporated herein by reference to Exhibit 4.10 to the
1011778 B.C. Unlimited Liability Company, as issuer, Form 8-K of Registrant filed on May 17, 2017.
New Red Finance, Inc., as co-issuer, the guarantors
from time to time party thereto and Wilmington Trust,
National Association, as trustee and as collateral agent.
4.10(a) Form of 4.250% First Lien Senior Secured Note due Incorporated herein by reference to Exhibit 4.10 to the
2024 (included as Exhibit A to Exhibit 4.10). Form 8-K of Registrant filed on May 17, 2017.

4.11 Indenture, dated as of August 28, 2017, by and among Incorporated herein by reference to Exhibit 4.11 to the
1011778 B.C. Unlimited Liability Company, as issuer, Form 8-K of Registrant filed on August 28, 2017.
New Red Finance, Inc., as co-issuer, the guarantors
from time to time party thereto and Wilmington Trust,
National Association, as trustee and as collateral agent.
4.11(a) Form of 5.000% Second Lien Senior Secured Note due Incorporated herein by reference to Exhibit 4.11(a) to
2025 (included as Exhibit A to Exhibit 4.11). the Form 8-K of Registrant filed on August 28, 2017.

4.12 First Supplemental Indenture, dated as of October 4, Incorporated herein by reference to Exhibit 4.12 to the
2017, by and among 1011778 B.C. Unlimited Liability Form 8-K of Registrant filed on October 4, 2017.
Company, as issuer, New Red Finance, Inc., as co-
issuer, the guarantors party thereto and Wilmington
Trust, National Association, as trustee and as collateral
agent.
9.1 Voting Trust Agreement, dated December 12, 2014, Incorporated herein by reference to Exhibit 3.6 to the
between Restaurant Brands International Inc., Form 8-K of Registrant filed on December 12, 2014.
Restaurant Brands International Limited Partnership,
and Computershare Trust Company of Canada.
10.1* Burger King Savings Plan, including all amendments Incorporated herein by reference to Exhibit 10.40 to the
thereto. Form S-8 of Burger King Holdings, Inc. (File
No. 333-144592).
10.2(a)* 2011 Omnibus Incentive Plan, as amended effective Incorporated herein by reference to Exhibit 99.4 to the
December 12, 2014. Form S-8 of Registrant (File No. 333-200997).
10.2(b)* Form of Option Award Agreement under the Burger Incorporated herein by reference to Exhibit 10.77 to the
King Worldwide Holdings, Inc. 2011 Omnibus Form 10-Q of Burger King Holdings, Inc. filed on
Incentive Plan. May 12, 2011.
10.4(a)* Amended and Restated 2012 Omnibus Incentive Plan, Incorporated herein by reference to Exhibit 99.2 to the
as amended effective December 12, 2014. Form S-8 of Registrant (File No. 333-200997).
10.4(b)* Form of Option Award Agreement under the Burger Incorporated herein by reference to Exhibit 10.25 to the
King Worldwide, Inc. 2012 Omnibus Incentive Plan. Form 10-K of Burger King Worldwide, Inc. filed on
February 22, 2013.
10.4(c)* Form of Matching Option Award Agreement under the Incorporated herein by reference to Exhibit 10.26 to the
Burger King Worldwide, Inc. 2012 Omnibus Incentive Form 10-K of Burger King Worldwide, Inc. filed on
Plan. February 22, 2013.
10.4(d)* Form of Amendment to Option Award Agreement Incorporated herein by reference to Exhibit 10.28 to the
under the Burger King Worldwide Holdings, Inc. 2011 Form 10-Q of Burger King Worldwide, Inc. filed on
Omnibus Incentive Plan. April 26, 2013.
10.4(e)* Form of Option Award Agreement under the Burger Incorporated herein by reference to Exhibit 10.29 to the
King Worldwide, Inc. Amended and Restated 2012 Form 10-Q of Burger King Worldwide, Inc. filed on
Omnibus Incentive Plan. July 31, 2013.
10.4(f)* Form of Board Member Option Award Agreement Incorporated herein by reference to Exhibit 10.30 to the
under the Burger King Worldwide, Inc. Amended and Form 10-Q of Burger King Worldwide, Inc. filed on
Restated 2012 Omnibus Incentive Plan. July 31, 2013.
10.4(g)* Form of Option Award Agreement under the Amended Incorporated herein by reference to Exhibit 10.32 to the
and Restated 2012 Omnibus Incentive Plan. Form 10-Q of Burger King Worldwide, Inc. filed on
October 28, 2013.
10.4(h)* Form of Board Member Option Award Agreement Incorporated herein by reference to Exhibit 10.33 to the
under the Amended and Restated 2012 Omnibus Form 10-Q of Burger King Worldwide, Inc. filed on
Incentive Plan. October 28, 2013.

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10.4(i)* Form of Board Member Restricted Stock Unit Award Incorporated herein by reference to Exhibit 10.35 to the
Agreement under the Amended and Restated 2012 Form 10-K of Burger King Worldwide, Inc. filed on
Omnibus Incentive Plan. February 21, 2014.
10.4(j)* Form of Matching Option Award Agreement under the Incorporated herein by reference to Exhibit 10.36 to the
Amended and Restated 2012 Omnibus Incentive Plan. Form 10-K of Burger King Worldwide, Inc. filed on
February 21, 2014.
10.5 Burger King Form of Director Indemnification Incorporated herein by reference to Exhibit 10.1 to the
Agreement. Form 8-K of Burger King Worldwide, Inc. filed on
June 25, 2012.
10.7* Burger King Corporation U.S. Severance Pay Plan. Incorporated herein by reference Exhibit 10.31 to the
Form 10-Q of Burger King Worldwide, Inc. filed on
October 28, 2013.
10.10(a) Credit Agreement, dated October 27, 2014, among Incorporated herein by reference to Exhibit 4.2 to the
1011778 B.C. Unlimited Liability Company, as the Form S-4 of Registrant (File No. 333-198769).
Parent Borrower, New Red Finance, Inc., as the
Subsidiary Borrower, 1013421 B.C. Unlimited
Liability Company, as Holdings, JPMorgan Chase
Bank, N.A., as Administrative Agent and Collateral
Agent, the Lenders Party thereto, Wells Fargo Bank,
National Association, as Syndication Agent, the Parties
listed thereto as Co-Documentation Agents, J.P.
Morgan Securities LLC, and Wells Fargo Securities
LLC, as Joint Lead Arrangers, and J.P. Morgan
Securities LLC, Wells Fargo Securities LLC, and
Merrill Lynch, Pierce, Fenner and Smith, Incorporated,
as Joint Book Runners (the “Credit Agreement”).
10.10(b) Guaranty, dated December 12, 2014, among 1013421 Incorporated herein by reference to Exhibit 10.2 to the
B.C. Unlimited Liability Company, as Guarantor, Form 8-K of Registrant filed on December 12, 2014.
Certain Subsidiaries defined therein, as Guarantors,
and JPMorgan Chase Bank, N.A., as Collateral Agent.
10.10(c) Amendment No. 1, dated May 22, 2015, to the Credit Incorporated herein by reference to Exhibit 10.1 to the
Agreement. Form 8-K of Registrant filed on May 26, 2015.
10.10(d) Amendment No. 2, dated February 17, 2017, to the Incorporated herein by reference to Exhibit 10.10(d) to
Credit Agreement. the Form 10-Q of Registrant filed on October 26, 2017.

10.10(e) Incremental Facility Amendment, dated as of March Incorporated herein by reference to Exhibit 10.10(e) to
27, 2017, to the Credit Agreement. the Form 10-Q of Registrant filed on October 26, 2017.

10.10(f) Incremental Facility Amendment No. 2, dated as of Incorporated herein by reference to Exhibit 10.42 to the
May 17, 2017, to the Credit Agreement. Form 8-K of Registrant filed on May 17, 2017.

10.10(g) Incremental Facility Amendment No. 3, dated as of Incorporated herein by reference to Exhibit 10.45 to the
October 13, 2017, to the Credit Agreement. Form 8-K of Registrant filed on October 16, 2017.

10.10(h) Amendment No. 3, dated October 2, 2018, to the Incorporated herein by reference to Exhibit 10.10(h) to
Credit Agreement. the Form 10-Q of Registrant filed on October 24, 2018.
10.11(a)* 2014 Omnibus Incentive Plan. Incorporated herein by reference to Exhibit 99.1 to the
Form S-8 of Registrant (File No. 333-200997).
10.11(b)* Form of Option Award Agreement under the 2014 Incorporated herein by reference to Exhibit 10.11(b) to
Omnibus Incentive Plan. the Form 10-K of Registrant filed on March 2, 2015.
10.11(c)* Form of Base Matching Option Award Agreement Incorporated herein by reference to Exhibit 10.11(c) to
under the 2014 Omnibus Incentive Plan. the Form 10-K of Registrant filed on March 2, 2015.
10.11(d)* Form of Additional Matching Option Award Agreement Incorporated herein by reference to Exhibit 10.11(d) to
under the 2014 Omnibus Incentive Plan. the Form 10-K of Registrant filed on March 2, 2015.

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10.11(e)* Form of Board Member Option Award Agreement Incorporated herein by reference to Exhibit 10.11(e) to
under the 2014 Omnibus Incentive Plan. the Form 10-K of Registrant filed on March 2, 2015.
10.11(f)* Form of Board Member Restricted Stock Unit Award Incorporated herein by reference to Exhibit 10.11(f) to
Agreement under the 2014 Omnibus Incentive Plan. the Form 10-K of Registrant filed on March 2, 2015.
10.12 Amended and Restated Limited Partnership Incorporated herein by reference to Exhibit 3.5 to the
Agreement, dated December 11, 2014, between Form 8-K of Registrant filed on December 12, 2014.
Restaurant Brands International Inc., 8997896 Canada
Inc. and each person who is admitted as a Limited
Partner in accordance with the terms of the agreement.
10.13 Restaurant Brands International Inc. Form of Director Incorporated herein by reference to Exhibit 10.13 to the
Indemnification Agreement. Form 10-K of Registrant filed on March 2, 2015.
10.14* Consulting Agreement, dated December 15, 2014, Incorporated herein by reference to Exhibit 10.14 to the
between Restaurant Brands International Inc. and Marc Form 10-K of Registrant filed on March 2, 2015.
Caira.
10.15 Tim Hortons Inc. Form of Indemnification Agreement Incorporated herein by reference to Exhibit 10.2 to the
for directors, officers and others, as applicable. Form 8-K of Tim Hortons Inc. filed on September 28,
2009.
10.16(c)* Tim Hortons Inc. Form of Nonqualified Stock Option Incorporated herein by reference to Exhibit 10(b) to the
Award Agreement under the 2006 Stock Incentive Plan Form 10-Q of Tim Hortons Inc. filed on August 11,
(2011 Award). 2011.
10.17(a)* 2012 Stock Incentive Plan, as amended effective Incorporated herein by reference to Exhibit 99.3 to the
December 12, 2014. Form S-8 of Registrant (File No. 333-200997).

10.17(b)* Tim Hortons Inc. Form of Nonqualified Stock Option Incorporated herein by reference to Exhibit 10(c) to the
Award Agreement under the 2012 Stock Incentive Plan Form 10-Q of Tim Hortons Inc. filed on August 9,
(2012 Award). 2012.
10.17(c)* Tim Hortons Inc. Form of Nonqualified Stock Option Incorporated herein by reference to Exhibit 10(c) to the
Award Agreement under the 2012 Stock Incentive Plan Form 10-Q of Tim Hortons Inc. filed on May 8, 2013.
(2013 Award).
10.17(d)* Tim Hortons Inc. Form of Nonqualified Stock Option Incorporated herein by reference to Exhibit 10(c) to the
Award Agreement under the 2012 Stock Incentive Plan Form 10-Q of Tim Hortons Inc. filed on August 6,
(2014 Award). 2014.
10.18* Tim Hortons Inc. Nonqualified Stock Option Award Incorporated herein by reference to Exhibit 10(a) to the
Agreement, dated August 13, 2013, between Tim Form 10-Q of Tim Hortons Inc. filed on November 7,
Hortons Inc. and Marc Caira. 2013.
10.19* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.19 to the
of February 9, 2015 between Restaurant Brands Form 10-Q of Registrant filed on May 5, 2015.
International Inc. and Daniel S. Schwartz.
10.20* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.20 to the
of February 9, 2015 between Burger King Corporation Form 10-Q of Registrant filed on May 5, 2015.
and Daniel S. Schwartz.
10.21* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.21 to the
of February 9, 2015 between The TDL Group Corp. Form 10-Q of Registrant filed on May 5, 2015.
and Daniel S. Schwartz.
10.22* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.22 to the
of February 3, 2015 between Restaurant Brands Form 10-Q of Registrant filed on May 5, 2015.
International Inc. and Joshua Kobza.
10.23* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.23 to the
of February 3, 2015 between Burger King Corporation Form 10-Q of Registrant filed on May 5, 2015.
and Joshua Kobza.
10.24* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.24 to the
of February 3, 2015 between The TDL Group Corp. Form 10-Q of Registrant filed on May 5, 2015.
and Joshua Kobza.

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10.25* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.25 to the
of February 3, 2015 between Restaurant Brands Form 10-Q of Registrant filed on May 5, 2015.
International Inc. and Heitor Gonçalves.
10.26* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.26 to the
of February 3, 2015 between Burger King Corporation Form 10-Q of Registrant filed on May 5, 2015.
and Heitor Gonçalves.
10.27* Employment and Post-Covenants Agreement dated as Incorporated herein by reference to Exhibit 10.27 to the
of February 9, 2015 between The TDL Group Corp. Form 10-Q of Registrant filed on May 5, 2015.
and Heitor Gonçalves.
10.28* Amended and Restated Consulting Agreement dated as Incorporated herein by reference to Exhibit 10.28 to the
of March 31, 2015 between Restaurant Brands Form 10-Q of Registrant filed on May 5, 2015.
International Inc. and Marc Caira.
10.30* Award Agreement Amendment dated August 12, 2015 Incorporated herein by reference to Exhibit 10.30 to the
between Restaurant Brands International Inc. and Marc Form 10-Q of Registrant filed on October 30, 2015.
Caira.
10.32* Form of Non-Compete, Non-Solicitation and Incorporated herein by reference to Exhibit 10.32 to the
Confidentiality Agreement. Form 10-Q of Registrant filed on October 30, 2015.
10.33* Restaurant Brands International Inc. 2015 Employee Incorporated herein by reference to Exhibit 10.30 to the
Share Purchase Plan. Form S-8 of Registrant filed on September 1, 2015.
10.35(a)* Form of Base Matching Restricted Stock Unit Award Incorporated herein by reference to Exhibit 10.35(a) to
Agreement under the 2014 Omnibus Incentive Plan. the Form 10-Q of Registrant filed on April 29, 2016.
10.35(b)* Form of Additional Matching Restricted Stock Unit Incorporated herein by reference to Exhibit 10.35(b) to
Award Agreement under the 2014 Omnibus Incentive the Form 10-Q of Registrant filed on April 29, 2016.
Plan.
10.35(c)* Form of Performance Award Agreement under the Incorporated herein by reference to Exhibit 10.35(c) to
2014 Omnibus Incentive Plan the Form 10-Q of Registrant filed on April 29, 2016.
10.35(d)* Form of Stock Option Award Agreement under the Incorporated herein by reference to Exhibit 10.35(d) to
2014 Omnibus Incentive Plan. the Form 10-Q of Registrant filed on April 29, 2016.
10.36* Restaurant Brands International Inc. Amended and Incorporated herein by reference to Exhibit 10.36 to the
Restated 2014 Omnibus Incentive Plan, as amended. Form 10-Q of Registrant filed on August 1, 2018.
10.37* Form of Restaurant Brands International Inc. Board Incorporated herein by reference to Exhibit 10.37 to the
Member Stock Option Award Agreement under the Form 10-Q of Registrant filed on October 24, 2016.
Amended and Restated 2014 Omnibus Incentive Plan.
10.38* Restaurant Brands International Inc. U.S. Severance Incorporated herein by reference to Exhibit 10.38 to the
Pay Plan. Form 10-K of Registrant filed on February 17, 2017.
10.39 Commitment Letter, dated as of February 21, 2017, Incorporated herein by reference to Exhibit 10.39 to the
among 1011778 B.C. Unlimited Liability Company, Form 8-K of Registrant filed on February 22, 2017.
New Red Finance, Inc., JPMorgan Chase Bank, N.A.,
Wells Fargo Bank, National Association and Wells
Fargo Securities, LLC.
10.40* Amendment No. 1 to Restaurant Brands International Incorporated herein by reference to Exhibit 10.39 to the
Inc. Amended and Restated 2014 Omnibus Incentive Form 10-Q of Registrant filed on April 26, 2017.
Plan.
10.41* Form of Base Matching Restricted Stock Unit Award Incorporated herein by reference to Exhibit 10.40 to the
Agreement under the Amended and Restated 2014 Form 10-Q of Registrant filed on April 26, 2017.
Omnibus Incentive Plan.
10.42* Form of Additional Matching Restricted Stock Unit Incorporated herein by reference to Exhibit 10.41 to the
Award Agreement under the Amended and Restated Form 10-Q of Registrant filed on April 26, 2017.
2014 Omnibus Incentive Plan.
10.43 Securities Purchase Agreement, dated May 3, 2017, Incorporated herein by reference to Exhibit 10.43 to the
among J. P. Morgan Securities LLC, as representative Form 10-Q of Registrant filed on August 2, 2017.
of the Initial Purchasers (as defined therein), the Issuers
(as defined therein) and the Guarantors (as defined
therein).

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10.44* Letter Agreement dated June 20, 2017 between Incorporated herein by reference to Exhibit 10.44 to the
Restaurant Brands International Inc. and Elias Diaz- Form 10-Q of Registrant filed on August 2, 2017.
Sesé.
10.45 Purchase Agreement dated as of August 8, 2017 among Incorporated herein by reference to Exhibit 10.46 to the
J.P. Morgan Securities LLC, as representative of the Form 10-Q of Registrant filed on October 26, 2017.
Initial Purchasers (as defined therein), the Issuers (as
defined therein) and the Guarantors (as defined
therein).
10.46 Purchase Agreement dated as of September 18, 2017 Incorporated herein by reference to Exhibit 10.47 to the
among J.P. Morgan Securities LLC, as representative Form 10-Q of Registrant filed on October 26, 2017.
of the Initial Purchasers (as defined therein), the Issuers
(as defined therein) and the Guarantors (as defined
therein).
10.47 Amendment to Amended and Restated Consulting Incorporated by reference to Exhibit 10.4 to the Form
Agreement dated October 25, 2017 by and between 10-K of Registrant filed on February 23, 2018.
Restaurant Brands International Inc. and Marc Caira.
10.48* Annual Bonus Program Plan Document Incorporated herein by reference to Exhibit 10.48 to the
Form 10-Q of Registrant filed April 24, 2018.
10.49(a)* Employment and Post-Employment Covenants Incorporated herein by reference to Exhibit 10.49(a) to
Agreement dated as of February 9, 2015 by and the Form 10-Q of Registrant filed April 24, 2018.
between The TDL Group Corp. and Jill Granat.
10.49(b)* Employment and Post-Employment Covenants Incorporated herein by reference to Exhibit 10.49(b) to
Agreement dated as of February 9, 2015 by and the Form 10-Q of Registrant filed April 24, 2018.
between Restaurant Brands International Inc. and Jill
Granat.
10.49(c)* Employment and Post-Employment Covenants Incorporated herein by reference to Exhibit 10.49(c) to
Agreement dated as of February 9, 2015 by and the Form 10-Q of Registrant filed April 24, 2018.
between Burger King Corporation and Jill Granat.
21.1 List of Subsidiaries of the Registrant. Filed herewith.
23.1 Consent of KPMG LLP. Filed herewith.
31.1 Certification of Chief Executive Officer of Restaurant Filed herewith.
Brands International Inc. pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
31.2 Certification of Chief Financial Officer of Restaurant Filed herewith.
Brands International Inc. pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002.
32.1 Certification of Chief Executive Officer of Restaurant Furnished herewith.
Brands International Inc. pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
32.2 Certification of Chief Financial Officer of Restaurant Furnished herewith.
Brands International Inc. pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
101.INS XBRL Instance Document. Filed herewith.
101.SCH XBRL Taxonomy Extension Schema Document. Filed herewith.
101.CAL XBRL Taxonomy Extension Calculation Linkbase Filed herewith.
Document.
101.DEF XBRL Taxonomy Extension Definition Linkbase Filed herewith.
Document.
101.LAB XBRL Taxonomy Extension Label Linkbase Filed herewith.
Document.
101.PRE XBRL Taxonomy Extension Presentation Linkbase Filed herewith.
Document.
* Management contract or compensatory plan or arrangement.
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Certain instruments relating to long-term borrowings, constituting less than 10 percent of the total assets of the Registrant and its
subsidiaries on a consolidated basis, are not filed as exhibits herewith pursuant to Item 601(b)(4)(iii)(A) of Regulation S-K. The
Registrant agrees to furnish copies of such instruments to the SEC upon request.

Item 16. Form 10-K Summary

None.

Signatures

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Restaurant Brands International Inc.

By: /s/ José E. Cil

Name: José E. Cil
Title: Chief Executive Officer

Date: February 22, 2019

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Table of Contents

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature Title Date

/s/ José E. Cil Chief Executive Officer February 22, 2019

José E. Cil (principal executive officer)

/s/ Matthew Dunnigan Chief Financial Officer February 22, 2019

Matthew Dunnigan (principal financial officer)

/s/ Jacqueline Friesner Controller and Chief Accounting Officer February 22, 2019
Jacqueline Friesner (principal accounting officer)

/s/ Alexandre Behring Co-Chairman February 22, 2019

Alexandre Behring

/s/ Daniel Schwartz Co-Chairman February 22, 2019

Daniel Schwartz

/s/ Marc Caira Vice Chairman February 22, 2019

Marc Caira

Director February 22, 2019

Martin Franklin

/s/ Paul J. Fribourg Director February 22, 2019

Paul J. Fribourg

/s/ Neil Golden Director February 22, 2019

Neil Golden

/s/ Ali Hedayat Director February 22, 2019

Ali Hedayat

/s/ Golnar Khosrowshahi Director February 22, 2019

Golnar Khosrowshahi

Director February 22, 2019

Carlos Alberto Sicupira

/s/ Joao M. Castro-Neves Director February 22, 2019

Joao M. Castro-Neves

/s/ Roberto Thompson Motta Director February 22, 2019

Roberto Thompson Motta

/s/ Alexandre Van Damme Director February 22, 2019

Alexandre Van Damme

112
 Exhibit 21.1

RESTAURANT BRANDS INTERNATIONAL INC.

List of Subsidiaries

Canada China
Restaurant Brands International Limited Partnership BK (Shanghai) Business Information Consulting Co., Ltd.
8997896 Canada Inc. Burger King (Shanghai) Commercial Consulting Co. Ltd.
1013414 B.C. Unlimited Liability Company
1013421 B.C. Unlimited Liability Company Germany
1011778 B.C. Unlimited Liability Company Burger King Beteiligungs GmbH
1014369 B.C. Unlimited Liability Company
1019334 B.C. Unlimited Liability Company Hong Kong
1024670 B.C. Unlimited Liability Company Ansons Holding Limited
1024678 B.C. Unlimited Liability Company
1028539 B.C. Unlimited Liability Company Luxembourg
TDLdd Holdings ULC Burger King (Luxembourg) 2 S.a.r.l.
TDLrr Holdings ULC Burger King (Luxembourg) 3 S.a.r.l.
1029261 B.C. Unlimited Liability Company Burger King (Luxembourg) S.a.r.l.
1016893 B.C. Unlimited Liability Company Orange Lux S.a.r.l.
BK Canada Service ULC TH Luxembourg S.a.r.l.
1057639 B.C. Unlimited Liability Company Restaurant Brands Lux S.a.r.l.
1057772 B.C. Unlimited Liability Company
1057837 B.C. Unlimited Liability Company Mexico
1112068 B.C. Unlimited Liability Company Adminstracion de Comidas Rapidas, SA de CV
1112090 B.C. Unlimited Liability Company BK Comida Rapida, S. de R.L. de C.V.
1112097 B.C. Unlimited Liability Company BK Servicios de Comida Rapida, S. de R.L. de C.V.
1112100 B.C. Unlimited Liability Company
1112104 B.C. Unlimited Liability Company Netherlands
1112106 B.C. Unlimited Liability Company Burger King Nederland Services B.V.
BC12-B1 Holdings ULC
BC12-B2 Holdings ULC Singapore
BC12-B3 Holdings ULC BK AsiaPac, Pte. Ltd.
BC12-AKA8 Holdings ULC PLK APAC Pte. Ltd.
BC12Sub-Orange Holdings ULC
RBIAA Holdings ULC South Africa
RBIBB Holdings ULC Burger King South Africa Holdings (Pty) Ltd.
RB OSC Holdings ULC
RB Timbit Holdings ULC Spain
RB Crispy Chicken Holdings ULC Burger King General Service Company, S.L.
RB Iced Capp Holdings ULC
SBFD Subco ULC Switzerland
Lax Holdings ULC Burger King Europe GmbH
P77 Limited Partnership Tim Hortons Restaurants International GmbH
Pie 1 Limited Partnership Restaurant Brands Switzerland GmbH
Pie 2 Limited Partnership
Pie 3 Limited Partnership United Kingdom
Pie 4 Limited Partnership BurgerKing Ltd.
S2019 Limited Partnership Burger King (United Kingdom) Ltd.
Burger King Canada Holdings Inc. BK (UK) Company Limited
GPAir Limited Huckleberry’s Ltd.
Grange Castle Holdings Limited
Orange Group International, Inc. Uruguay
PLK Enterprises of Canada, Inc. Jolick Trading, S.A.
The TDL Group Corp.
Tim Hortons Advertising and Promotion Fund
(Canada) Inc.
Restaurant Brands Holdings Corporation
Restaurant Brands Manage 2016 ULC
Tim Hortons Canadian IP Holdings Corporation
Argentina
BK Argentina Servicios, S.A.
Brazil
Burger King du Brasil Assessoria a Restaurantes Ltda.
U.S.A.
BCp-sub, LLC
BK Acquisition, Inc.
BK Whopper Bar, LLC
Blue Holdco 1, LLC
Blue Holdco 2, LLC
Blue Holdco 3, LLC
Blue Holdco 440, LLC
Blue Holdco aka7, LLC
Blue Holdco aka 8, LLC
Burger King Capital Finance, Inc.
Burger King Corporation
Burger King Holdings, Inc.
Burger King Interamerica, LLC
Burger King Worldwide, Inc.
LLCxox, LLC
New Red Finance Inc.
Orange Group, Inc.
Orange Intermediate, LLC
Orange Lender, LLC
Orwall Enterprises, Inc.
Orwall Industries, Inc.
Popeyes Louisiana Kitchen, Inc.
SBFD Holding Co.
SBFD Beta, LLC
SBFD, LLC
Tim Donut U.S. Limited, Inc.
Tim Hortons USA Inc.
Tim Hortons (New England), Inc.
The Tim’s National Advertising Program, Inc.
Restaurant Brands International US Services LLC
 EXHIBIT 23.1

Consent of Independent Registered Public Accounting Firm

The Board of Directors

Restaurant Brands International Inc.:

We consent to the incorporation by reference in the Registration Statements Nos. 333-214217, 333-206712,
333-200997 and 333-226499 on Form S-8 of Restaurant Brands International Inc. of our reports dated February 22,
2019, with respect to the consolidated balance sheets of Restaurant Brands International Inc. and subsidiaries as of
December 31, 2018 and 2017, the related consolidated statements of operations, comprehensive income (loss),
shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and
the related notes (collectively, the “consolidated financial statements”), and the effectiveness of internal control over
financial reporting as of December 31, 2018, which reports appear in the December 31, 2018 annual report on
Form 10-K of Restaurant Brands International Inc.

Our report on the consolidated financial statements refers to a change in the method of accounting for revenue from
contracts with customers in 2018 due to the adoption of the new revenue standard.

(signed) KPMG LLP

Miami, Florida

February 22, 2019

 EXHIBIT 31.1
CERTIFICATION
I, José E. Cil, certify that:
1. I have reviewed this annual report on Form 10-K of Restaurant Brands International Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were
made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the
periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its
consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in
which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting
to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial
reporting and the preparation of financial statements for external purposes in accordance with generally
accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period
covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred
during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual
report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control
over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or
persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize
and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting.

/s/ José E. Cil

José E. Cil
Chief Executive Officer
Dated: February 22, 2019
 EXHIBIT 31.2
CERTIFICATION
I, Matthew Dunnigan, certify that:
1. I have reviewed this annual report on Form 10-K of Restaurant Brands International Inc.;

2. Based on my knowledge, this annual report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made,
not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present
in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the
periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as
defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly during the period in which this report
is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to
be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered
by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during
the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that
has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial
reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control
over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons
performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial
reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and
report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrant’s internal control over financial reporting.

/s/ Matthew Dunnigan

Matthew Dunnigan
Chief Financial Officer
Dated: February 22, 2019
 EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Restaurant Brands International Inc. (the “Company”) for the year
ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, José E.
Cil, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to § 906 of the
Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.

/s/ José E. Cil

José E. Cil
Chief Executive Officer
Dated: February 22, 2019
 EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of Restaurant Brands International Inc. (the “Company”) for the year
ended December 31, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Matthew
Dunnigan, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to § 906 of the
Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as
amended; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Company.

/s/ Matthew Dunnigan

Matthew Dunnigan
Chief Financial Officer
Dated: February 22, 2019