Condensed Consolidating Financial Statements

NPC’s obligations under the 10 1/2% Senior Notes due 2020 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. NPC Op Co B does not have any assets, operations or cash flows as of or for the periods ended September 29, 2015. Holdings and subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of September 29, 2015 and December 30, 2014, and for each of the 13-week and 39-week periods ended September 29, 2015 and September 30, 2014, respectively (in thousands):

Condensed Consolidating Statements of Operations




	13 Weeks Ended September 29, 2015
	Parent			Subsidiary			Subsidiary			Subsidiary
	Guarantor: Holdings			Issuer: NPC			Co-Issuer: NPCQB			Co-Issuer: NPC Op Co B		Eliminations		Consolidated
Total sales	$	—		$	249,891		$	50,761		$	—	$	—	$	300,652
Total costs and expenses	—			245,946			49,983			—		—		295,929
Operating income	—			3,945			778			—		—		4,723
Interest expense	—			10,240			—			—		—		10,240
Equity in net loss of subsidiary	(2,116		)	(1,440		)	—			—		3,556		—
(Loss) income before income taxes	(2,116		)	(7,735		)	778			—		3,556		(5,517		)
Income tax (benefit) expense	—			(5,619		)	2,218			—		—		(3,401		)
Net loss	$	(2,116	)	$	(2,116	)	$	(1,440	)	$	—	$	3,556	$	(2,116	)




	13 Weeks Ended September 30, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	251,827		$	47,772	$	—	$	—		$	299,599
Total costs and expenses	—		245,803			46,823		—		—			292,626
Operating income	—		6,024			949		—		—			6,973
Interest expense	—		10,344			—		—		—			10,344
Equity in net income of subsidiary	162		303			—		—		(465		)	—
(Loss) income before income taxes	162		(4,017		)	949		—		(465		)	(3,371		)
Income tax (benefit) expense	—		(4,179		)	646		—		—			(3,533		)
Net income	$	162	$	162		$	303	$	—	$	(465	)	$	162




	39 Weeks Ended September 29, 2015
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	764,369		$	151,727	$	—	$	—		$	916,096
Total costs and expenses	—		739,355			146,480		—		—			885,835
Operating income	—		25,014			5,247		—		—			30,261
Interest expense	—		31,197			—		—		—			31,197
Equity in net income of subsidiary	2,931		3,483			—		—		(6,414		)	—
(Loss) income before income taxes	2,931		(2,700		)	5,247		—		(6,414		)	(936		)
Income tax (benefit) expense	—		(5,631		)	1,764		—		—			(3,867		)
Net income	$	2,931	$	2,931		$	3,483	$	—	$	(6,414	)	$	2,931




	39 Weeks Ended September 30, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	771,042		$	110,716	$	—	$	—		$	881,758
Total costs and expenses	—		745,553			108,532		—		—			854,085
Operating income	—		25,489			2,184		—		—			27,673
Interest expense	—		30,548			—		—		—			30,548
Equity in net income of subsidiary	1,744		1,091			—		—		(2,835		)	—
(Loss) income before income taxes	1,744		(3,968		)	2,184		—		(2,835		)	(2,875		)
Income tax (benefit) expense	—		(5,712		)	1,093		—		—			(4,619		)
Net income	$	1,744	$	1,744		$	1,091	$	—	$	(2,835	)	$	1,744

Condensed Consolidating Balance Sheet



	September 29, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	66,244	$	6,640	$	—	$	—		$	72,884
Facilities and equipment, net	—		160,629		43,726		—		—			204,355
Franchise rights, net	—		580,995		44,114		—		—			625,109
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	269,956		74,677		—		—		(344,633		)	—
Other assets, net	—		35,820		1,814		—		—			37,634
Total assets	$	269,956	$	1,208,867	$	100,418	$	—	$	(344,633	)	$	1,234,608
Liabilities and member’s equity:
Current liabilities	$	—	$	93,571	$	17,255	$	—	$	—		$	110,826
Long-term debt	—		588,144		—		—		—			588,144
Other liabilities and deferred items	—		54,716		5,924		—		—			60,640
Deferred income taxes	—		202,480		2,562		—		—			205,042
Member’s equity	269,956		269,956		74,677		—		(344,633		)	269,956
Total liabilities and member’s equity	$	269,956	$	1,208,867	$	100,418	$	—	$	(344,633	)	$	1,234,608



	December 30, 2014
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	51,700	$	10,210	$	—	$	—		$	61,910
Facilities and equipment, net	—		162,248		35,874		—		—			198,122
Franchise rights, net	—		592,633		46,412		—		—			639,045
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	267,025		75,902		—		—		(342,927		)	—
Other assets, net	—		40,794		1,858		—		—			42,652
Total assets	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355
Liabilities and member’s equity:
Current liabilities	$	—	$	90,701	$	16,440	$	—	$	—		$	107,141
Long-term debt	—		591,263		—		—		—			591,263
Other liabilities and deferred items	—		55,467		4,736		—		—			60,203
Deferred income taxes	—		209,323		1,400		—		—			210,723
Member’s equity	267,025		267,025		75,902		—		(342,927		)	267,025
Total liabilities and member’s equity	$	267,025	$	1,213,779	$	98,478	$	—	$	(342,927	)	$	1,236,355

Condensed Consolidating Statements of Cash Flows



	39 Weeks Ended September 29, 2015
	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	$	—	$	47,405		$	15,865		$	—	$	—		$	63,270
Investing activities:
Capital expenditures	—		(30,678		)	(11,319		)	—		—			(41,997		)
Return of investment in NPCQB	—		4,708			—			—		(4,708		)	—
Proceeds from sale-leaseback transactions	—		1,408			—			—		—			1,408
Proceeds from sale or disposition of assets	—		371			150			—		—			521
Net cash flows used in investing activities	—		(24,191		)	(11,169		)	—		(4,708		)	(40,068		)
Financing activities:
Net payments on debt	—		(3,119		)	—			—		—			(3,119		)
Distribution to parent	—		—			(4,708		)	—		4,708			—
Net cash flows used in financing activities	—		(3,119		)	(4,708		)	—		4,708			(3,119		)
Net change in cash and cash equivalents	—		20,095			(12		)	—		—			20,083
Beginning cash and cash equivalents	—		11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—	$	31,373		$	773		$	—	$	—		$	32,146



	39 Weeks Ended September 30, 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	$	—	$	40,752		$	16,973		$	—	$	—		$	57,725
Investing activities:
Capital expenditures	—		(45,697		)	(4,810		)	—		—			(50,507		)
Purchase of Wendy’s business assets, net of cash acquired	—		—			(56,803		)	—		—			(56,803		)
Investment in NPCQB	—		(57,002		)	—			—		57,002			—
Return of investment in NPCQB	—		31,886			—			—		(31,886		)	—
Proceeds from sale-leaseback transactions	—		—			19,429			—		—			19,429
Proceeds from sale or disposition of assets	—		2,843			45			—		—			2,888
Net cash flows used in investing activities	—		(67,970		)	(42,139		)	—		25,116			(84,993		)
Financing activities:
Investment from parent	—		—			57,002			—		(57,002		)	—
Payment of accrued purchase price to sellers	—		(10,875		)	—			—		—			(10,875		)
Net payments on debt	—		(9,704		)	—			—		—			(9,704		)
Issuance of debt	—		40,000			—			—		—			40,000
Distribution to parent	—		—			(31,886		)	—		31,886			—
Other	—		(553		)	—			—		—			(553		)
Net cash flows provided by financing activities	—		18,868			25,116			—		(25,116		)	18,868
Net change in cash and cash equivalents	—		(8,350		)	(50		)	—		—			(8,400		)
Beginning cash and cash equivalents	—		19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—	$	10,820		$	815		$	—	$	—		$	11,635