Condensed Consolidating Financial Statements

NPC’s obligations under the Senior Notes and Senior Secured Credit Facilities are fully guaranteed by Holdings. As of the date hereof, Holdings’ only material asset is 100% of the stock of NPC. The remaining co-issuers with NPC, NPCQB (f/k/a NPC Operating Company A, Inc.) and NPC Operating Company B, Inc. (“NPC Op Co B”) are 100% owned by NPC. NPCQB did not have any assets, operations or cash flows prior to completing the two acquisitions of Wendy’s restaurants in the third quarter of fiscal 2013. NPC Op Co B does not have any assets, operations or cash flows as of September 24, 2013. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of September 24, 2013 and December 25, 2012, and for each of the 13-week and 39-week periods ended September 24, 2013 and September 25, 2012 (in thousands):

Condensed Consolidating Statements of Income



	13 Weeks Ended September 24, 2013
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	252,798		$	8,007		$	—	$	—		$	260,805
Total costs and expenses	—		240,103			8,419			—		—			248,522
Operating income	—		12,695			(412		)	—		—			12,283
Interest expense	—		10,243			—			—		—			10,243
Equity in net income of subsidiary	2,562		—			—			—		(2,562		)	—
Income before income taxes	2,562		2,452			(412		)	—		(2,562		)	2,040
Income tax benefit	—		(427		)	(95		)	—		—			(522		)
Net income	$	2,562	$	2,879		$	(317	)	$	—	$	(2,562	)	$	2,562



	13 Weeks Ended September 25, 2012
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	256,233		$	—	$	—	$	—		$	256,233
Total costs and expenses	—		243,565			—		—		—			243,565
Operating income	—		12,668			—		—		—			12,668
Interest expense	—		11,416			—		—		—			11,416
Equity in net income of subsidiary	2,378		—			—		—		(2,378		)	—
Income before income taxes	2,378		1,252			—		—		(2,378		)	1,252
Income tax benefit	—		(1,126		)	—		—		—			(1,126		)
Net income	$	2,378	$	2,378		$	—	$	—	$	(2,378	)	$	2,378



	39 Weeks Ended September 24, 2013
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	793,725	$	8,007		$	—	$	—		$	801,732
Total costs and expenses	—		734,265		8,419			—		—			742,684
Operating income	—		59,460		(412		)	—		—			59,048
Interest expense	—		30,720		—			—		—			30,720
Equity in net income of subsidiary	23,894		—		—			—		(23,894		)	—
Income before income taxes	23,894		28,740		(412		)	—		(23,894		)	28,328
Income tax expense (benefit)	—		4,529		(95		)	—		—			4,434
Net income	$	23,894	$	24,211	$	(317	)	$	—	$	(23,894	)	$	23,894



	39 Weeks Ended September 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	790,208		$	—	$	—	$	—		$	790,208
Total costs and expenses	—		731,942		—		—		—			731,942
Operating income	—		58,266		—		—		—			58,266
Interest expense	—		35,797		—		—		—			35,797
Loss on debt extinguishment	—		5,144		—		—		—			5,144
Equity in net income of subsidiary	14,372		—		—		—		(14,372		)	—
Income before income taxes	14,372		17,325		—		—		(14,372		)	17,325
Income tax expense	—		2,953		—		—		—			2,953
Net income	$	14,372	$	14,372	$	—	$	—	$	(14,372	)	$	14,372

Condensed Consolidating Balance Sheet



	September 24, 2013
	Parent		Subsidiary		Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	75,605	$	4,094		$	—	$	—		$	79,699
Facilities and equipment, net	—		148,055		7,497			—		—			155,552
Franchise rights, net	—		611,612		11,739			—		—			623,351
Goodwill	—		290,502		1,728			—		—			292,230
Investment in subsidiary	259,365		21,557		—			—		(280,922		)	—
Other assets, net	—		44,203		1,709			—		—			45,912
Total assets	$	259,365	$	1,191,534	$	26,767		$	—	$	(280,922	)	$	1,196,744
Liabilities and member’s equity:
Current liabilities	$	—	98,858		3,778			$	—	$	—		$	102,636
Long-term debt	—		556,562		—			—		—			556,562
Other liabilities and deferred items	—		59,639		1,754			—		—			61,393
Deferred income taxes	—		216,793		(5		)	—		—			216,788
Member’s equity	259,365		259,682		21,240			—		(280,922		)	259,365
Total liabilities and member’s equity	$	259,365	$	1,191,534	$	26,767		$	—	$	(280,922	)	$	1,196,744



	December 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	68,786	$	—	$	—	$	—		$	68,786
Facilities and equipment, net	—		143,625		—		—		—			143,625
Franchise rights, net	—		622,634		—		—		—			622,634
Goodwill	—		290,502		—		—		—			290,502
Investment in subsidiary	235,471		—		—		—		(235,471		)	—
Other assets, net	—		44,235		—		—		—			44,235
Total assets	$	235,471	$	1,169,782	$	—	$	—	$	(235,471	)	$	1,169,782
Liabilities and member’s equity:
Current liabilities	$	—	$	89,743	$	—	$	—	$	—		$	89,743
Long-term debt	—		558,125		—		—		—			558,125
Other liabilities and deferred items	—		68,153		—		—		—			68,153
Deferred income taxes	—		218,290		—		—		—			218,290
Member’s equity	235,471		235,471		—		—		(235,471		)	235,471
Total liabilities and member’s equity	$235,471		$1,169,782		$	—	$	—	$	(235,471	)	$1,169,782

Condensed Consolidating Statements of Cash Flows



	39 Weeks Ended September 24, 2013
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—	$	75,002		$	2,599		$	—	$	—		$	77,601
Investing activities:
Capital expenditures	—		(35,776		)	(68		)	—		—			(35,844		)
Purchase of Wendy’s business assets, net of cash acquired			—			(21,505		)	—		—			(21,505		)
Investment in NPCQB			(21,557		)	—			—		21,557			—
Proceeds from sale or disposition of assets	—		554			—			—		—			554
Net cash flows used in investing activities	—		(56,779		)	(21,573		)	—		21,557			(56,795		)
Financing activities:
Investment from parent	—		—			21,557			—		(21,557		)	—
Other	—		(2,936		)	—			—		—			(2,936		)
Net cash flows used in financing activities	—		(2,936		)	21,557			—		(21,557		)	(2,936		)
Net change in cash and cash equivalents	—		15,287			2,583			—		—			17,870
Beginning cash and cash equivalents	—		25,493			—			—		—			25,493
Ending cash and cash equivalents	$	—	$	40,780		$	2,583		$	—	$	—		$	43,363



	39 Weeks Ended September 25, 2012
	Parent			Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Operating activities:
Net cash flows provided by operating activities	$	—		$	56,834		$	—	$	—	$	—		$	56,834
Investing activities:
Capital expenditures	—			(28,504		)	—		—		—			(28,504		)
Purchase of the stock of the Company	(216,635		)	(431,540		)	—		—		216,635			(431,540		)
Purchase of Pizza Hut business assets, net of cash acquired	—			(19,371		)	—		—		—			(19,371		)
Proceeds from sale or disposition of assets	—			189			—		—		—			189
Net cash flows used in investing activities	(216,635		)	(479,226		)	—		—		216,635			(479,226		)
Financing activities:
Retirement of predecessor entity debt and other obligations	—			(372,700		)	—		—		—			(372,700		)
Proceeds from equity contributions, net	216,635			216,635			—		—		(216,635		)	216,635
Issuance of debt	—			565,000			—		—		—			565,000
Debt issue costs	—			(32,012		)	—		—		—			(32,012		)
Payment on term bank facilities	—			(937		)	—		—		—			(937		)
Other	—			370			—		—		—			370
Net cash provided by financing activities	216,635			376,356			—		—		(216,635		)	376,356
Net change in cash and cash equivalents	—			(46,036		)	—		—		—			(46,036		)
Beginning cash and cash equivalents	—			78,394			—		—		—			78,394
Ending cash and cash equivalents	$	—		$	32,358		$	—	$	—	$	—		$	32,358