Financial Performance - Net sales for Q2 2024 were 40,815million,a3.379,550 million, up 4.1% year-over-year[93]. - Franchise partner fees decreased to 18,149millioninQ22024from19,070 million in Q2 2023, with a total of 35,907millionforthefirstsixmonthsof2024comparedto36,982 million in 2023[94]. - Franchise royalties and fees fell to 3,615millioninQ22024from4,125 million in Q2 2023, totaling 7,092millionforthefirstsixmonthsof2024versus8,383 million in 2023[95]. - Other income decreased to 2,442millionin2024from4,301 million in 2023, with notable property sales contributing to the previous year's figures[98]. - Total other income for the first six months of 2024 was 2,691million,anincreasefrom2,300 million in the first six months of 2023, showing a growth of 17.0%[106]. Cost and Expenses - Cost of food as a percentage of net sales increased to 30.3% in Q2 2024 from 29.6% in Q2 2023, while for the first six months, it was 29.3% compared to 29.0% in 2023[96]. - Labor costs represented 31.8% of net sales in Q2 2024, up from 30.8% in Q2 2023, with first six months labor costs at 32.1% compared to 31.3% in 2023[96]. - General and administrative expenses rose to 13,016millionor20.210,790 million or 16.7% in Q2 2023[97]. - General and administrative expenses for Q2 2024 were 33million,downfrom54 million in Q2 2023[121]. Impairment and Losses - The company recorded impairment charges of 853millioninQ22023,with107 million in the first six months of 2024 compared to 1,629millionin2023[97].−InvestmentlossesnetoftaxforQ22024were2,159 million, a significant decline from investment gains of 276millioninQ22023,andforthefirstsixmonthsof2024,losseswere827 million compared to gains of 3,141millionin2023[123].−InvestmentpartnershiplossesforQ22024were79,890 million, compared to losses of 7,496millioninQ22023,andforthefirstsixmonthsof2024,losseswere57,905 million compared to gains of 65,092millionin2023[124].−ThetotallossesandexpensesforSouthernPioneerinthesecondquarterof2024were7,582 million, which is 111.5% of premiums earned, compared to 106.7% in the same quarter of 2023[110]. Insurance Operations - The pre-tax underwriting gain for the insurance operations was 546millioninQ22024,downfrom2,704 million in Q2 2023[103]. - Premiums earned for the second quarter of 2024 were 16,291million,anincreasefrom15,971 million in the same quarter of 2023, representing a growth of 2.0%[106]. - Insurance losses for the second quarter of 2024 were 10,962million,upfrom8,372 million in the second quarter of 2023, indicating a rise of 30.0%[106]. - The pre-tax underwriting gain for First Guard in the second quarter of 2024 was 1,331million,comparedto3,155 million in the same quarter of 2023, reflecting a decrease of 57.8%[107]. - Southern Pioneer's insurance losses in the second quarter of 2024 were 4,801million,whichis70.626,897 million, down from 28,066millionattheendof2023[131].−Netcashprovidedbyoperatingactivitiesforthefirstsixmonthsof2024was20,910 million, a decrease of 10,608millioncomparedto31,518 million in 2023[133]. - Cash used in investing activities decreased by 8,888millionin2024comparedto2023,primarilyduetoincreasedproceedsfrompropertyandequipmentdisposals[134].−ThecarryingvalueofcashandinvestmentsonthebalancesheetasofJune30,2024,was279,247 million, down from 319,048millionattheendof2023[131].OilandGasOperations−Oilandgasrevenuesforthesecondquarterof2024were8,671 million, down from 10,741millioninthesamequarterof2023,indicatingadeclineof19.413,369 million, compared to 2,150millioninthesamequarterof2023,reflectingasignificantincrease[115].−SouthernOil′soilandgasrevenuesforthesecondquarterof2024were3,679 million, down from $4,810 million in the same quarter of 2023, a decrease of 23.5%[119].
