Restaurant Brands International (QSR) presents deeply negative liquidation recovery under the lens applied here. Total assets of $24.9B against total liabilities of $19.6B yields book equity of $5.3B (including $1.5B noncontrolling interest), but that figure is a going-concern construct that collapses under liquidation haircuts. The asset side is dominated by intangibles: goodwill of $6.3B and indefinite-lived intangibles of $10.5B (primarily brand/franchise values for Burger King, Tim Hortons, Popeyes, and Firehouse Subs) together total $16.7B, or 67% of total assets. Under the lens, these receive a 0% recovery. PP&E net of $2.3B (including finance lease ROU assets) recovers at 50-70%, contributing roughly $1.1-1.6B. Finite-lived intangibles of $0.6B net also receive 0%. Operating lease ROU assets of $2.0B are matched against operating lease liabilities of $2.1B; on a liquidation basis the ROU asset recovery is partial and the lease obligation persists at face value, creating a net negative. Cash of $1.0B recovers at 100%. Net receivables (net of $37M allowance) of $767M recover at 90-95%, or approximately $690-730M. Inventory of $203M recovers at approximately $120M. Other noncurrent assets of $1.2B and equity method investments of $196M have uncertain but likely modest recovery. On the liability side, long-term debt at face is $13.4B (carrying $13.3B after unamortized discount/issuance costs), Term Loan Facilities outstanding at $5.7B and Senior Notes comprising the remainder. Operating lease liabilities total $2.1B, finance lease liabilities $253M, deferred tax liabilities $1.1B, and a substantial $2.0B of other current and noncurrent liabilities. The MFFAIS-calculated cash liquidation value of negative $15.6B is consistent with this analysis. The period-over-period comparison is limited because the prior filing provided is the 2025 10-K (full-year), not the Q1 2025 10-Q; balance-sheet changes are therefore year-end 2025 vs. Q1 2026. Notable Q1 2026 developments affecting the liquidation posture: (1) long-term debt at face declined to $13.4B from a higher prior-year level, reflecting voluntary Term Loan B repayments in 2025; (2) the filing discloses completed and pending intra-group reorganizations generating discrete deferred tax liability reductions — an approximate $170M additional DTL benefit expected in Q2 2026, which would modestly reduce the deferred tax liability of $1.1B; (3) the RH segment (Carrols-acquired Burger King restaurants) is being actively refranchised and the segment has been announced for sunset as of February 2026, which over time should reduce the company-operated PP&E and lease obligations on the balance sheet; and (4) cross-currency swaps with notional exposure of $8.45B (CAD/USD $5.7B + EUR/USD $2.75B) generate derivative liabilities of $191M noncurrent and assets of $93M — net liability position of $98M at fair value. The BK 'Reclaim the Flame' Royal Reset program has $189M funded of up to $550M planned through 2028, representing a committed capital outlay that has partially flowed through PP&E. Filing discusses the EIFEL Canadian tax legislation as creating restricted interest deduction capacity and higher near-term cash taxes; this is noted in MD&A but is not separately tagged in XBRL as a discrete liability. Recovery to equity in any stress scenario remains deeply negative, driven entirely by the intangible asset structure characteristic of large franchise holding companies.
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