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 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 acquisitions of Wendy’s restaurants during the third and fourth quarters of fiscal 2013. NPC Op Co B does not have any assets, operations or cash flows as of April 1, 2014. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of April 1, 2014 and December 31, 2013, and for each of the 13-week periods ended April 1, 2014 and March 26, 2013 (in thousands):

Condensed Consolidating Statements of Income



	13 Weeks Ended April 1, 2014
	Parent		Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	266,368		$	29,885		$	—	$	—		$	296,253
Total costs and expenses	—		251,970			29,886			—		—			281,856
Operating income	—		14,398			(1		)	—		—			14,397
Interest expense	—		10,162			—			—		—			10,162
Equity in net income of subsidiary	2,965		(9		)	—			—		(2,956		)	—
Income before income taxes	2,965		4,227			(1		)	—		(2,956		)	4,235
Income taxes	—		1,271			8			—		—			1,279
Net income	$	2,965	$	2,956		$	(9	)	$	—	$	(2,956	)	$	2,956



	13 Weeks Ended March 26, 2013
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	278,969	$	—	$	—	$	—		$	278,969
Total costs and expenses	—		253,118		—		—		—			253,118
Operating income	—		25,851		—		—		—			25,851
Interest expense	—		10,240		—		—		—			10,240
Equity in net income of subsidiary	13,244		—		—		—		(13,244		)	—
Income before income taxes	13,244		15,611		—		—		(13,244		)	15,611
Income taxes	—		2,367		—		—		—			2,367
Net income	$	13,244	$	13,244	$	—	$	—	$	(13,244	)	$	13,244

Condensed Consolidating Balance Sheet



	April 1, 2014
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	36,396	$	3,794	$	—	$	—		$	40,190
Facilities and equipment, net	—		159,540		17,284		—		—			176,824
Franchise rights, net	—		604,078		31,730		—		—			635,808
Goodwill	—		290,502		2,136		—		—			292,638
Investment in subsidiary	268,291		47,681		—		—		(315,972		)	—
Other assets, net	—		43,929		1,004		—		—			44,933
Total assets	$	268,291	$	1,182,126	$	55,948	$	—	$	(315,972	)	$	1,190,393
Liabilities and member’s equity:
Current liabilities	$	—	90,152		6,963		$	—	$	—		$	97,115
Long-term debt	—		553,750		—		—		—			553,750
Other liabilities and deferred items	—		58,169		921		—		—			59,090
Deferred income taxes	—		211,886		383		—		—			212,269
Member’s equity	268,291		268,169		47,681		—		(315,972		)	268,169
Total liabilities and member’s equity	$	268,291	$	1,182,126	$	55,948	$	—	$	(315,972	)	$	1,190,393



	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

Condensed Consolidating Statements of Cash Flows



	13 Weeks Ended April 1, 2014
	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	—		20,390			4,383			—		—			24,773
Investing activities:
Capital expenditures	—		(18,191		)	(1,055		)	—		—			(19,246		)
Return of investment in NPCQB	—		3,387			—			—		(3,387		)	—
Proceeds from sale or disposition of assets	—		324			—			—		—			324
Net cash flows used in investing activities	—		(14,480		)	(1,055		)	—		(3,387		)	(18,922		)
Financing activities:
Accrued purchase price paid to sellers	—		(10,875		)	—			—		—			(10,875		)
Net payments on debt	—		(7,625		)	—			—		—			(7,625		)
Distribution to parent	—		—			(3,387		)	—		3,387			—
Net cash flows used in financing activities	—		(18,500		)	(3,387		)	—		3,387			(18,500		)
Net change in cash and cash equivalents	—		(12,590		)	(59		)	—		—			(12,649		)
Beginning cash and cash equivalents	—		19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—	$	6,580		$	806		$	—	$	—		$	7,386



	13 Weeks Ended March 26, 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	$	—	$	36,798		$	—	$	—	$	—	$	36,798
Investing activities:
Capital expenditures	—		(9,630		)	—		—		—		(9,630		)
Proceeds from sale or disposition of assets	—		40			—		—		—		40
Net cash flows used in investing activities	—		(9,590		)	—		—		—		(9,590		)
Financing activities:
Net cash flows used in financing activities	—		(640		)	—		—		—		(640		)
Net change in cash and cash equivalents	—		26,568			—		—		—		26,568
Beginning cash and cash equivalents	—		25,493			—		—		—		25,493
Ending cash and cash equivalents	$	—	$	52,061		$	—	$	—	$	—	$	52,061