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 three acquisitions of Wendy’s restaurants during fiscal 2013. NPC Op Co B does not have any assets, operations or cash flows as of December 31, 2013. The subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of December 31, 2013 and December 25, 2012, the 53-week period ended December 31, 2013, and for each of the 52-week periods ended December 25, 2012 and December 27, 2011 (in thousands):

Condensed Consolidating Statements of Income



	Successor
	53 Weeks Ended December 31, 2013
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	1,068,651		$	25,381		$	—	$	—		$	1,094,032
Total costs and expenses	—		988,544			25,563			—		—			1,014,107
Operating income	—		80,107			(182		)	—		—			79,925
Interest expense	—		42,016			—			—		—			42,016
Equity in net income of subsidiary	29,855		(113		)	—			—		(29,742		)	—
Income before income taxes	29,855		37,978			(182		)	—		(29,742		)	37,909
Income tax expense (benefit)	—		8,236			(69		)	—		—			8,167
Net income	$	29,855	$	29,742		$	(113	)	$	—	$	(29,742	)	$	29,742



	Successor
	52 Weeks Ended December 25, 2012
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	1,048,923	$	—	$	—	$	—		$	1,048,923
Total costs and expenses	—		970,698		—		—		—			970,698
Operating income	—		78,225		—		—		—			78,225
Interest expense	—		46,691		—		—		—			46,691
Loss on debt extinguishment	—		14,227		—		—		—			14,227
Equity in net income of subsidiary	15,020		—		—		—		(15,020		)	—
Income before income taxes	15,020		17,307		—		—		(15,020		)	17,307
Income tax expense	—		2,287		—		—		—			2,287
Net income	$	15,020	$	15,020	$	—	$	—	$	(15,020	)	$	15,020



	Predecessor
	52 Weeks Ended December 27, 2011
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	980,973		$	—	$	—	$	—		$	980,973
Total costs and expenses	—		954,569			—		—		—			954,569
Operating income	—		26,404			—		—		—			26,404
Interest expense	—		25,201			—		—		—			25,201
Equity in net income of subsidiary	4,706		—			—		—		(4,706		)	—
Income before income taxes	4,706		1,203			—		—		(4,706		)	1,203
Income tax benefit	—		(3,503		)	—		—		—			(3,503		)
Net income	$	4,706	$	4,706		$	—	$	—	$	(4,706	)	$	4,706

Condensed Consolidating Balance Sheet



	December 31, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	53,364	$	3,740	$	—	$	—		$	57,104
Facilities and equipment, net	—		152,810		17,140		—		—			$	169,950
Franchise rights, net	—		607,880		32,271		—		—			$	640,151
Goodwill	—		290,502		2,121		—		—			$	292,623
Investment in subsidiary	265,326		50,978		—		—		(316,304		)	$	—
Other assets, net	—		44,273		1,011		—		—			$	45,284
Total assets	$	265,326	$	1,199,807	$	56,283	$	—	$	(316,304	)	$	1,205,112
Liabilities and member’s equity:
Current liabilities	$	—	100,766		4,302		$	—	$	—		$	105,068
Long-term debt	—		561,687		—		—		—			$	561,687
Other liabilities and deferred items	—		58,060		629		—		—			$	58,689
Deferred income taxes	—		214,081		374		—		—			$	214,455
Member’s equity	265,326		265,213		50,978		—		(316,304		)	$	265,213
Total liabilities and member’s equity	$	265,326	$	1,199,807	$	56,283	$	—	$	(316,304	)	$	1,205,112



	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, excluding debt	$	—	$	89,743	$	—	$	—	$	—		$	89,743
Current portion of long-term debt	—		—		—		—		—			—
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



	Successor
	53 Weeks Ended December, 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	$	—	$	91,857		$	5,907		$	—	$	—		$	97,764
Investing activities:
Capital expenditures	—		(50,820		)	(211		)	—		—			(51,031		)
Purchase of Wendy’s business assets, net of cash acquired	—		—			(55,922		)	—		—			(55,922		)
Investment in NPCQB	—		(51,091		)	—			—		51,091			—
Proceeds from sale or disposition of assets	—		545			—			—		—			545
Net cash flows used in investing activities	—		(101,366		)	(56,133		)	—		51,091			(106,408		)
Financing activities:
Borrowings under revolving credit facility	—		7,000			—			—		—			7,000
Investment from parent	—		—			51,091			—		(51,091		)	—
Other	—		(3,814		)	—			—		—			(3,814		)
Net cash flows provided by financing activities	—		3,186			51,091			—		(51,091		)	3,186
Net change in cash and cash equivalents	—		(6,323		)	865			—		—			(5,458		)
Beginning cash and cash equivalents	—		25,493			—			—		—			25,493
Ending cash and cash equivalents	$	—	$	19,170		$	865		$	—	$	—		$	20,035



	Successor
	52 Weeks Ended December 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	$	—		$	70,418		$	—	$	—	$	—		$	70,418
Investing activities:
Capital expenditures	—			(40,464		)	—		—		—			(40,464		)
Purchase of the stock of the Company	(216,635		)	(431,540		)	—		—		216,635			(431,540		)
Purchase of business assets, net of cash acquired	—			(19,371		)	—		—		—			(19,371		)
Proceeds from disposition of assets	—			240			—		—		—			240
Net cash flows used in investing activities	(216,635		)	(491,135		)	—		—		216,635			(491,135		)
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
Payments on term bank facilities	—			(6,875		)	—		—		—			(6,875		)
Debt issue costs	—			(34,614		)	—		—		—			(34,614		)
Proceeds from sale-leaseback transactions	—			1,006			—		—		—			1,006
Interest rate derivative	—			(636		)	—		—		—			(636		)
Net cash provided by financing activities	216,635			367,816			—		—		(216,635		)	367,816
Net change in cash and cash equivalents	—			(52,901		)	—		—		—			(52,901		)
Beginning cash and cash equivalents	—			78,394			—		—		—			78,394
Ending cash and cash equivalents	$	—		$	25,493		$	—	$	—	$	—		$	25,493



	Predecessor
	52 Weeks Ended December 27, 2011
	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	$	—	$	86,201		$	—	$	—	$	—	$	86,201
Investing activities:
Capital expenditures	—		(23,775		)	—		—		—		(23,775		)
Proceeds from disposition of assets	—		993			—		—		—		993
Net cash flows used in investing activities	—		(22,782		)	—		—		—		(22,782		)
Financing activities:
Payments on term bank facilities	—		(29,670		)	—		—		—		(29,670		)
Proceeds from sale-leaseback transactions	—		486			—		—		—		486
Net cash used in financing activities	—		(29,184		)	—		—		—		(29,184		)
Net change in cash and cash equivalents	—		34,235			—		—		—		34,235
Beginning cash and cash equivalents	—		44,159			—		—		—		44,159
Ending cash and cash equivalents	$	—	$	78,394		$	—	$	—	$	—	$	78,394