Supplemental Financial Information

6 Months Ended

Jun. 30, 2011

Supplemental Financial Information [Abstract]

Supplemental Financial Information

Note 17. Supplemental Financial Information

     On October 19, 2010, BKC issued the Senior Notes. The Senior Notes are irrevocably and unconditionally guaranteed, jointly and severally, on a senior unsecured basis, by the Company and the domestic subsidiaries of BKC (the “Guarantors”).

     The following is the condensed consolidating financial information for the Issuer, the Guarantors and the non-U.S. subsidiaries of BKC (the “Non-Guarantors”), together with eliminations, as of and for the periods indicated. The consolidating financial information may not necessarily be indicative of the financial position, results of operations or cash flows had BKC, Guarantors and Non-Guarantors operated as independent entities.

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
As of June 30, 2011
(In millions)
(Unaudited)

							Non-
	Issuer			Guarantors			Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	159.2		$	—		$	123.0		—		$	282.2
Trade and notes receivable, net		87.5			—			57.0		—			144.5
Prepaids and other current assets, net		129.9			—			28.4		—			158.3
Deferred income taxes, net		26.6			—			1.0		—			27.6
Total current assets		403.2			—			209.4		—			612.6
Property and equipment, net of accumulated depreciation		906.8			—			211.1		—			1,117.9
Intangible assets, net		1,572.0			—			1,366.9		—			2,938.9
Goodwill		634.4			—			—		—			634.4
Net investment in property leased to franchisees		234.3			—			20.8		—			255.1
Intercompany receivable		388.1			—			—		(388.1	)		—
Investment in subsidiaries		1,150.4			1,553.9			—		(2,704.3	)		—
Other assets, net		163.2			0.3			43.1		0.5			207.1
Total assets	$	5,452.4		$	1,554.2		$	1,851.3	$	(3,091.9	)	$	5,766.0
Liabilities and Stockholder’s Equity
Current liabilities:
Accounts and drafts payable	$	33.9		$	—		$	25.1		—		$	59.0
Accrued advertising		57.0			—			28.3		—			85.3
Other accrued liabilities		158.9			0.1			72.9		—			231.9
Current portion of long term debt and capital leases		28.7			—			1.9		—			30.6
Total current liabilities		278.5			0.1			128.2		—			406.8
Term debt, net of current portion		2,692.3			—			—		—			2,692.3
Capital leases, net of current portion		70.0			—			27.2		—			97.2
Other liabilities, net		279.9			—			75.4		—			355.3
Payables to affiliates		—			7.4			383.4		(390.8	)		—
Deferred income taxes, net		575.3			—			85.5		—			660.8
Total liabilities		3,896.0			7.5			699.7		(390.8	)		4,212.4
Stockholder’s equity:
Additional paid-in capital		1,562.5			1,563.5			1,093.9		(2,656.4	)		1,563.5
(Accumulated deficit) / retained earnings		(58.4	)		(65.9	)		22.5		39.6			(62.2	)
Accumulated other comprehensive income		52.3			49.1			35.2		(84.3	)		52.3
Total stockholder’s equity		1,556.4			1,546.7			1,151.6		(2,701.1	)		1,553.6
Total liabilities and stockholder’s equity	$	5,452.4		$	1,554.2		$	1,851.3	$	(3,091.9	)	$	5,766.0

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
As of December 31, 2010
(In millions)

							Non-
	Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	132.9		$	0.7		$	73.4			—		$	207.0
Trade and notes receivable, net		94.5			—			53.5			—			148.0
Prepaids and other current assets, net		131.4			—			27.8			—			159.2
Deferred income taxes, net		22.3			—			0.9			—			23.2
Total current assets		381.1			0.7			155.6			—			537.4
Property and equipment, net of accumulated depreciation		939.5			—			221.9			—			1,161.4
Intangible assets, net		1,584.1			—			1,293.5			—			2,877.6
Goodwill		634.4			—			—			—			634.4
Net investment in property leased to franchisees		238.2			—			20.1			—			258.3
Intercompany receivable		369.9			—			—			(369.9	)		—
Investment in subsidiaries		1,033.3			1,458.3			1,013.5			(3,505.1	)		—
Other assets, net		194.2			—			32.0			(0.2	)		226.0
Total assets	$	5,374.7		$	1,459.0		$	2,736.6		$	(3,875.2	)	$	5,695.1
Liabilities and Stockholder’s Equity
Current liabilities:
Accounts and drafts payable	$	58.5		$	—		$	31.7			—		$	90.2
Accrued advertising		62.6			—			19.9			—			82.5
Other accrued liabilities		164.6			0.3			82.9			—			247.8
Current portion of long term debt and capital leases		31.0			—			1.9			—			32.9
Total current liabilities		316.7			0.3			136.4			—			453.4
Term debt, net of current portion		2,652.0			—			—			—			2,652.0
Capital leases, net of current portion		72.0			—			27.3			—			99.3
Other liabilities, net		304.6			(0.2	)		75.3			—			379.7
Payables to affiliates		—			0.7			369.2			(369.9	)		—
Deferred income taxes, net		570.6			—			81.6			—			652.2
Total liabilities		3,915.9			0.8			689.8			(369.9	)		4,236.6
Stockholder’s equity:
Additional paid-in capital		1,562.5			1,563.5			2,099.0			(3,661.5	)		1,563.5
(Accumulated deficit) retained earnings		(100.9	)		(102.4	)		(22.0	)		123.1			(102.2	)
Accumulated other comprehensive loss		(2.8	)		(2.9	)		(30.2	)		33.1			(2.8	)
Total stockholder’s equity		1,458.8			1,458.2			2,046.8			(3,505.3	)		1,458.5
Total liabilities and stockholder’s equity	$	5,374.7		$	1,459.0		$	2,736.6		$	(3,875.2	)	$	5,695.1

Successor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended June 30, 2011
(In millions)
(Unaudited)

							Non-
	Issuer			Guarantors			Guarantors		Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	263.7		$	—		$	155.3	$	—		$	419.0
Franchise revenues		91.6			—			57.2		—			148.8
Intercompany revenues		1.8			—			—		(1.8	)		—
Property revenues		22.4			—			6.0		—			28.4
Total revenues		379.5			—			218.5		(1.8	)		596.2
Company restaurant expenses:
Food, paper and product costs		86.4			—			49.0		—			135.4
Payroll and employee benefits		78.5			—			43.7		—			122.2
Occupancy and other operating costs		66.3			—			44.5		—			110.8
Total company restaurant expenses		231.2			—			137.2		—			368.4
Selling, general and administrative expenses		69.8			—			36.2		—			106.0
Intercompany expenses		—			—			1.8		(1.8	)		—
Property expenses		11.7			—			6.0		—			17.7
Other operating (income) expense, net		0.1			0.2			0.4		(0.4	)		0.3
Total operating costs and expenses		312.8			0.2			181.6		(2.2	)		492.4
Income (loss) from operations		66.7			(0.2	)		36.9		0.4			103.8
Interest expense		46.9			—			0.8		—			47.7
Intercompany interest (income) expense		(2.5	)		—			2.5		—			—
Interest income		(0.4	)		—			—		—			(0.4	)
Total interest expense, net		44.0			—			3.3		—			47.3
Income (loss) before income taxes		22.7			(0.2	)		33.6		0.4			56.5
Income tax expense		4.7			—			9.0		—			13.7
Income (loss) from continuing operations		18.0			(0.2	)		24.6		0.4			42.8
Equity in earnings of subsidiaries		32.5			39.5			—		(72.0	)		—
Net income	$	50.5		$	39.3		$	24.6	$	(71.6	)	$	42.8

Successor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2011
(In millions)
(Unaudited)

							Non-
	Issuer			Guarantors			Guarantors			Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	512.8		$	—		$	298.8		$	—		$	811.6
Franchise revenues		174.5			—			106.5			—			281.0
Intercompany revenues		3.4			—			—			(3.4	)		—
Property revenues		44.1			—			12.6			—			56.7
Total revenues		734.8			—			417.9			(3.4	)		1,149.3
Company restaurant expenses:
Food, paper and product costs		168.0			—			94.4			—			262.4
Payroll and employee benefits		156.1			—			86.1			—			242.2
Occupancy and other operating costs		131.3			—			88.2			—			219.5
Total company restaurant expenses		455.4			—			268.7			—			724.1
Selling, general and administrative expenses		139.0			—			73.2			—			212.2
Intercompany expenses		—			—			3.4			(3.4	)		—
Property expenses		23.3			—			12.6			—			35.9
Other operating (income) expense, net		1.1			0.2			4.0			—			5.3
Total operating costs and expenses		618.8			0.2			361.9			(3.4	)		977.5
Income (loss) from operations		116.0			(0.2	)		56.0			—			171.8
Interest expense		98.0			—			1.4			—			99.4
Intercompany interest (income) expense		(4.5	)		—			4.5			—			—
Interest income		(1.1	)		—			(0.5	)		—			(1.6	)
Total interest expense, net		92.4			—			5.4			—			97.8
Loss on early extinguishment		19.6			—			—			—			19.6
Income (loss) before income taxes		4.0			(0.2	)		50.6			—			54.4
Income tax expense (benefit)		(1.8	)		—			16.2			—			14.4
Income (loss) from continuing operations		5.8			(0.2	)		34.4			—			40.0
Equity in earnings of subsidiaries		34.4			40.2			—			(74.6	)		—
Net income	$	40.2		$	40.0		$	34.4		$	(74.6	)	$	40.0

Predecessor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended June 30, 2010
(In millions)
(Unaudited)

						Non-
	Issuer			Guarantors		Guarantors			Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	286.9		$	—	$	167.2		$	—		$	454.1
Franchise revenues		93.3			—		47.0			—			140.3
Intercompany revenues		1.6			—		1.8			(3.4	)		—
Property revenues		21.8			—		6.8			—			28.6
Total revenues		403.6			—		222.8			(3.4	)		623.0
Company restaurant expenses:
Food, paper and product costs		95.1			—		52.1			—			147.2
Payroll and employee benefits		88.2			—		51.1			—			139.3
Occupancy and other operating costs		68.5			—		50.7			—			119.2
Total company restaurant expenses		251.8			—		153.9			—			405.7
Selling, general and administrative expenses		74.7			—		46.4			—			121.1
Intercompany expenses		1.8			—		1.6			(3.4	)		—
Property expenses		8.9			—		5.8			—			14.7
Other operating (income) expense, net		3.8			—		(5.1	)		—			(1.3	)
Total operating costs and expenses		341.0			—		202.6			(3.4	)		540.2
Income from operations		62.6			—		20.2			—			82.8
Interest expense		11.5			—		0.7			—			12.2
Intercompany interest (income) expense		(2.2	)		—		2.2			—			—
Interest income		0.1			—		(0.3	)		—			(0.2	)
Total interest expense, net		9.4			—		2.6			—			12.0
Income before income taxes		53.2			—		17.6			—			70.8
Income tax expense		18.0			—		3.8			—			21.8
Income from continuing operations		35.2			—		13.8			—			49.0
Equity in earnings of subsidiaries		13.8			49.0		—			(62.8	)		—
Net income	$	49.0		$	49.0	$	13.8		$	(62.8	)	$	49.0

Predecessor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2010
(In millions)
(Unaudited)

						Non-
	Issuer			Guarantors		Guarantors			Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	565.0		$	—	$	328.3		$	—		$	893.3
Franchise revenues		178.5			—		91.7			—			270.2
Intercompany revenues		3.0			—		3.4			(6.4	)		—
Property revenues		42.6			—		13.8			—			56.4
Total revenues		789.1			—		437.2			(6.4	)		1,219.9
Company restaurant expenses:
Food, paper and product costs		183.8			—		101.4			—			285.2
Payroll and employee benefits		174.6			—		102.9			—			277.5
Occupancy and other operating costs		133.4			—		99.1			—			232.5
Total company restaurant expenses		491.8			—		303.4			—			795.2
Selling, general and administrative expenses		146.6			—		92.3			—			238.9
Intercompany expenses		3.4			—		3.0			(6.4	)		—
Property expenses		17.9			—		12.0			—			29.9
Other operating (income) expense, net		0.8			—		(6.6	)		—			(5.8	)
Total operating costs and expenses		660.5			—		404.1			(6.4	)		1,058.2
Income from operations		128.6			—		33.1			0.1			161.7
Interest expense		23.0			—		1.4			—			24.4
Intercompany interest (income) expense		(4.6	)		—		4.6			—			—
Interest income		0.4			—		(0.9	)		—			(0.5	)
Total interest expense, net		18.8			—		5.1			—			23.9
Income before income taxes		109.8			—		28.0			0.1			137.8
Income tax expense		39.2			—		8.6			—			47.8
Income from continuing operations		70.6			—		19.4			—			90.0
Equity in earnings of subsidiaries		19.4			90.0		—			(109.4	)		—
Net income	$	90.0		$	90.0	$	19.4		$	(109.4	)	$	90.0

Successor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2011
(In millions)
(Unaudited)

	Issuer			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	40.2		$	40.0		$	34.4		$	(74.6	)	$	40.0
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiary		(34.4	)		(40.2	)		—			74.6			—
Depreciation and amortization		48.8			—			19.9			—			68.7
Loss on early extinguishment of debt		19.6			—			—			—			19.6
Amortization of deferred financing cost and debt issuance discount		6.9			—			—			—			6.9
Gain on hedging activities		—			—			—			—			—
Loss on remeasurement of foreign denominated transactions		0.9			—			0.6			—			1.5
Loss on refranchisings, dispositions of assets and release of unfavorable lease obligation		—			—			0.7			—			0.7
Impairment on non-restaurant properties		—			—			—			—			—
Bad debt expense, net of recoveries		1.2			—			(0.1	)		—			1.1
Share based compensation		0.6			—			—			—			0.6
Deferred income taxes		16.1			—			—			—			16.1
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Trade and notes receivables		6.5			—			2.2			—			8.7
Prepaids and other current assets		10.5			—			(3.2	)		—			7.3
Accounts and drafts payable		(24.6	)		—			(8.4	)		—			(33.0	)
Accrued advertising		(2.5	)		—			6.6			—			4.1
Other accrued liabilities		(18.4	)		—			(13.1	)		—			(31.5	)
Other long-term assets and liabilities		(20.4	)		0.2			11.0			(1.1	)		(10.3	)
Net cash provided by operating activities		51.0			—			50.6			(1.1	)		100.5
Cash flows from investing activities:
Payments for property and equipment		(16.1	)		—			(7.4	)		—			(23.5	)
Proceeds from refranchisings, disposition of assets and restaurant closures		1.5			—			10.2			—			11.7
Investments related to unconsolidated entities		(0.4	)		—			(2.3	)		—			(2.7	)
Return of investment on direct financing leases		4.0			—			—			—			4.0
Other investing activities		(4.1	)		—			(0.3	)		—			(4.4	)
Net cash (used for) provided by investing activities		(15.1	)		—			0.2			—			(14.9	)
Cash flows from financing activities:
Proceeds from term debt		1,860.0			—						—			1,860.0
Repayments of term debt and capital leases		(1,851.5	)		—			(0.9	)		—			(1,852.4	)
Payment of deferred financing cost		(23.1	)		—			—			—			(23.1	)
Capital distribution from Parent		0.7			(0.7	)		—			—			—
Intercompany Financing		4.2			—			(5.3	)		1.1			—
Net cash used for financing activities		(9.7	)		(0.7	)		(6.2	)		1.1			(15.5	)
Effect of exchange rates on cash and cash equivalents		0.2			—			5.0			—			5.1
Increase (decrease) in cash and cash equivalents		26.3			(0.7	)		49.6			—			75.2
Cash and cash equivalents at beginning of period		132.9			0.7			73.4			—			207.0
Cash and cash equivalents at end of period	$	159.2		$	—		$	123.0		$	—		$	282.2

Predecessor

BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2010
(In millions)
(Unaudited)

	Issuer			Guarantor			Non-Guarantor			Eliminations			Consolidated
Cash flows from operating activities:
Net income	$	90.0		$	90.0		$	21.5		$	(111.5	)	$	90.0
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in earnings of subsidiary		(21.5	)		(90.0	)		—			111.5			—
Depreciation and amortization		42.7			—			16.6			—			59.3
Impairment on non-restaurant properties		1.7			—			—			—			1.7
Gain on hedging activities		(0.9	)		—			—			—			(0.9	)
Amortization of deferred financing cost and debt issuance discount		1.0			—			—			—			1.0
(Gain) loss on remeasurement of foreign denominated transactions		50.6			—			(3.5	)		—			47.1
Gain on refranchisings, dispositions of assets and release of unfavorable lease obligation		(0.3	)		—			(6.2	)		—			(6.5	)
Bad debt expense, net of recoveries		(0.1	)		—			0.5			—			0.4
Stock-based compensation		6.9			—			1.4			—			8.3
Deferred income taxes		15.7			—			0.9			—			16.6
Changes in current assets and liabilities, excluding acquisitions and dispositions:
Trade and notes receivables		(8.8	)		—			(4.8	)		—			(13.6	)
Prepaids and other current assets		(18.5	)		—			—			—			(18.5	)
Accounts and drafts payable		(4.3	)		—			6.4			—			2.1
Accrued advertising		0.4			—			2.4			—			2.8
Other accrued liabilities		2.4			—			0.4			—			2.8
Other long-term assets and liabilities		(2.9	)		—			(1.7	)		0.3			(4.3	)
Net cash provided by operating activities		154.1			—			33.9			0.3			188.3
Cash flows from investing activities:
Payments for property and equipment		(57.1	)		—			(29.4	)		—			(86.5	)
Proceeds from refranchisings, disposition of assets and restaurant closures		7.5			—			8.7			—			16.2
Payments for acquired franchisee operations, net of cash acquired		(0.1	)		—			(13.1	)		—			(13.2	)
Return of investment on direct financing leases		3.9			—			0.4			—			4.3
Other investing activities		0.9			—			(3.0	)		—			(2.1	)
Net cash used for investing activities		(44.9	)		—			(36.4	)		—			(81.3	)
Cash flows from financing activities:
Repayments of term debt and capital leases		(33.1	)		—			(0.9	)		—			(34.0	)
Borrowings under revolving credit facility		9.0			—			—			—			9.0
Repayments of revolving credit facility		(9.0	)		—			—			—			(9.0	)
Dividends paid on common stock		—			(17.1	)		—			—			(17.1	)
Proceeds from stock option exercises		—			3.8			—			—			3.8
Excess tax benefits from share-based compensation		2.5			—			0.1			—			2.6
Repurchases of common stock		—			(0.3	)		—			—			(0.3	)
Intercompany Financing		(12.9	)		13.5			(0.3	)		(0.3	)		—
Net cash used for financing activities		(43.5	)		(0.1	)		(1.1	)		(0.3	)		(45.0	)
Effect of exchange rates on cash and cash equivalents		0.2			—			(14.5	)		—			(14.3	)
Increase (decrease) in cash and cash equivalents		65.9			(0.1	)		(18.1	)		—			47.7
Cash and cash equivalents at beginning of period		4.3			—			135.6			—			139.9
Cash and cash equivalents at end of period	$	70.2		$	(0.1	)	$	117.5		$	—		$	187.6

     On April 19, 2011, BKCH, the direct parent of the Company, and Burger King Capital Finance, Inc., a Delaware corporation and another direct subsidiary of BKCH (“BK Finance” and, together with BKCH, the “Issuers”) entered into an indenture with Wilmington Trust FSB, as trustee, pursuant to which the Issuers sold $685 million in aggregate principal amount at maturity of 11.0% senior discount notes due 2019 (the “Discount Notes”). The Discount Notes generated $401.5 million in gross proceeds. Until April 15, 2016, no cash interest will accrue, but the Discount Notes will accrete at a rate of 11.0% per annum compounded semi-annually such that the accreted value on April 15, 2016 will be equal to the principal amount at maturity. Thereafter, cash interest on the Discount Notes will accrue at a rate equal to 11.0% per annum and will be payable semi-annually in cash in arrears on April 15 and October 15 of each year, commencing on October 15, 2016. The Discount Notes will mature on April 15, 2019. Neither the Company nor BKC is a guarantor of the Discount Notes. The Issuers have no operations or assets other than the interest in BKH held by BKCH. Accordingly, the cash required to service the Discount Notes is expected to be funded through distributions from BKH.

     We are presenting the following condensed consolidating financial information for the Company and the Issuers, together with eliminations, as of and for the periods indicated in accordance with the indenture. The consolidating financial information may not necessarily be indicative of the financial position or results of operations had the Issuers operated as independent entities.

BURGER KING CAPITAL HOLDINGS, LLC. AND SUBSIDIARIES
Condensed Consolidating Balance Sheets
As of June 30, 2011
(In millions)
(Unaudited)

	BKH			Issuers			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	282.2		$	392.4			—		$	674.6
Trade and notes receivable, net		144.5			—			—			144.5
Prepaids and other current assets		158.3			3.8			—			162.1
Deferred income taxes, net		27.6			—			—			27.6
Total current assets		612.6			396.2			—			1,008.8
Property and equipment, net of accumulated depreciation		1,117.9			—			—			1,117.9
Intangible assets, net		2,938.9			—			—			2,938.9
Goodwill		634.4			—			—			634.4
Net investment in property leased to franchisees		255.1			—			—			255.1
Intercompany receivable		—			—			—			—
Investment in subsidiaries		—			—			—			—
Other assets, net		207.1			8.1			(0.5	)		214.7
Total assets	$	5,766.0		$	404.3		$	(0.5	)	$	6,169.8
Liabilities and Stockholder’s Equity
Current liabilities:
Accounts and drafts payable	$	59.0		$	—			—		$	59.0
Accrued advertising		85.3			—			—			85.3
Other accrued liabilities		231.9			—			—			231.9
Current portion of long term debt and capital leases		30.6			—			—			30.6
Total current liabilities		406.8			—			—			406.8
Term debt, net of current portion		2,692.3			410.2			—			3,102.5
Capital leases, net of current portion		97.2			—			—			97.2
Other liabilities, net		355.3			—			—			355.3
Payables to affiliates		—			0.5			(0.5	)		—
Deferred income taxes, net		660.8			—			—			660.8
Total liabilities		4,212.4			410.7			(0.5	)		4,622.6
Stockholder’s equity:
Additional paid-in capital		1,563.5			—			—			1,563.5
Accumulated deficit		(62.2	)		(6.4	)		—			(68.6	)
Accumulated other comprehensive loss		52.3			—			—			52.3
Total stockholder’s equity		1,553.6			(6.4	)		—			1,547.2
Total liabilities and stockholder’s equity	$	5,766.0		$	404.3		$	(0.5	)	$	6,169.8

Successor

BURGER KING CAPITAL HOLDINGS, LLC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Three Months Ended June 30, 2011
(In millions)
(Unaudited)

	BKH			Issuers			Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	419.0		$	—		$	—		$	419.0
Franchise revenues		148.8			—			—			148.8
Intercompany revenues		—			—			—			—
Property revenues		28.4			—			—			28.4
Total revenues		596.2			—			—			596.2
Company restaurant expenses:
Food, paper and product costs		135.4			—			—			135.4
Payroll and employee benefits		122.2			—			—			122.2
Occupancy and other operating costs		110.8			—			—			110.8
Total company restaurant expenses		368.4			—			—			368.4
Selling, general and administrative expenses		106.0			—			—			106.0
Property expenses		17.7			—			—			17.7
Other operating (income) expense, net		0.3			—			—			0.3
Total operating costs and expenses		492.4			—			—			492.4
Income from operations		103.8			—			—			103.8
Interest expense		47.7			9.0			—			56.7
Intercompany interest (income) expense		—			—			—			—
Interest income		(0.4	)		—			—			(0.4	)
Total interest expense, net		47.3			9.0			—			56.3
Income (loss) before income taxes		56.5			(9.0	)		—			47.5
Income tax expense (benefit)		13.7			(2.6	)		—			11.1
Income (loss) from continuing operations		42.8			(6.4	)		—			36.4
Equity in earnings of subsidiaries		—			42.8			(42.8	)		—
Net income	$	42.8		$	36.4		$	(42.8	)	$	36.4

Successor

BURGER KING CAPITAL HOLDINGS, LLC. AND SUBSIDIARIES
Condensed Consolidating Statements of Operations
Six Months Ended June 30, 2011
(In millions)
(Unaudited)

	BKH			Issuers			Eliminations			Consolidated
Revenues:
Company restaurant revenues	$	811.6		$	—		$	—		$	811.6
Franchise revenues		281.0			—			—			281.0
Intercompany revenues		—			—			—			—
Property revenues		56.7			—			—			56.7
Total revenues		1,149.3			—			—			1,149.3
Company restaurant expenses:
Food, paper and product costs		262.4			—			—			262.4
Payroll and employee benefits		242.2			—			—			242.2
Occupancy and other operating costs		219.5			—			—			219.5
Total company restaurant expenses		724.1			—			—			724.1
Selling, general and administrative expenses		212.2			—			—			212.2
Intercompany expenses		—			—			—			—
Property expenses		35.9			—			—			35.9
Other operating (income) expense, net		5.3			—			—			5.3
Total operating costs and expenses		977.5			—			—			977.5
Income from operations		171.8			—			—			171.8
Interest expense		99.4			9.0			—			108.4
Intercompany interest (income) expense		—			—			—			—
Interest income		(1.6	)		—			—			(1.6	)
Total interest expense, net		97.8			9.0			—			106.8
Loss on early extinguishment		19.6			—			—			19.6
Income (loss) before income taxes		54.4			(9.0	)		—			45.4
Income tax expense (benefit)		14.4			(2.6	)		—			11.8
Income (loss) from continuing operations		40.0			(6.4	)		—			33.6
Equity in earnings of subsidiaries		—			40.0			(40.0	)		—
Net income	$	40.0		$	33.6		$	(40.0	)	$	33.6