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. NPC Op Co B does not have any assets or operations as of December 27, 2016 and has not had any cash flows during its existence. The subsidiary guarantees are joint and several, full and unconditional. The following summarizes the Company’s condensed consolidating information as of December 27, 2016 and December 29, 2015, the 52-week periods ended December 27, 2016 and December 29, 2015 and December 30, 2014 (in thousands):

Condensed Consolidating Statements of Income



	52 Weeks Ended December 27, 2016
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	998,792		$	237,776	$	—	$	—		$	1,236,568
Total costs and expenses	—		963,617			222,142		—		—			1,185,759
Operating income	—		35,175			15,634		—		—			50,809
Interest expense	—		44,823			—		—		—			44,823
Equity in net income of subsidiary	8,729		10,110			—		—		(18,839		)	—
Income before income taxes	8,729		462			15,634		—		(18,839		)	5,986
Income tax (benefit) expense	—		(8,267		)	5,524		—		—			(2,743		)
Net income	$	8,729	$	8,729		$	10,110	$	—	$	(18,839	)	$	8,729



	52 Weeks Ended December 29, 2015
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	1,020,006		$	203,293	$	—	$	—		$	1,223,299
Total costs and expenses	—		984,526			196,045		—		—			1,180,571
Operating income	—		35,480			7,248		—		—			42,728
Interest expense	—		41,784			—		—		—			41,784
Equity in net income of subsidiary	6,712		4,978			—		—		(11,690		)	—
Income (loss) before income taxes	6,712		(1,326		)	7,248		—		(11,690		)	944
Income tax (benefit) expense	—		(8,038		)	2,270		—		—			(5,768		)
Net income	$	6,712	$	6,712		$	4,978	$	—	$	(11,690	)	$	6,712



	52 Weeks Ended December 30, 2014
	Parent		Subsidiary			Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC			Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Total sales	$	—	$	1,020,101		$	159,796	$	—	$	—		$	1,179,897
Total costs and expenses	—		988,819			156,751		—		—			1,145,570
Operating income	—		31,282			3,045		—		—			34,327
Interest expense	—		41,101			—		—		—			41,101
Equity in net income of subsidiary	1,672		1,640			—		—		(3,312		)	—
Income (loss) before income taxes	1,672		(8,179		)	3,045		—		(3,312		)	(6,774		)
Income tax (benefit) expense	—		(9,851		)	1,405		—		—			(8,446		)
Net income	$	1,672	$	1,672		$	1,640	$	—	$	(3,312	)	$	1,672

Condensed Consolidating Balance Sheet



	December 27, 2016
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	42,188	$	2,180	$	—	$	—		$	44,368
Facilities and equipment, net	—		156,866		72,681		—		—			$	229,547
Franchise rights, net	—		561,327		56,994		—		—			$	618,321
Goodwill	—		290,502		5,624		—		—			$	296,126
Investment in subsidiary	284,797		110,680		—		—		(395,477		)	$	—
Other assets, net	—		26,619		2,154		—		—			$	28,773
Total assets	$	284,797	$	1,188,182	$	139,633	$	—	$	(395,477	)	$	1,217,135
Liabilities and member’s equity:
Current liabilities	$	—	$	95,448	$	17,599	$	—	$	—		$	113,047
Long-term debt	—		575,995		—		—		—			575,995
Other liabilities and deferred items	—		51,791		9,048		—		—			60,839
Deferred income taxes	—		180,151		2,306		—		—			182,457
Member’s equity	284,797		284,797		110,680		—		(395,477		)	284,797
Total liabilities and member’s equity	$	284,797	$	1,188,182	$	139,633	$	—	$	(395,477	)	$	1,217,135



	December 29, 2015
	Parent		Subsidiary		Subsidiary		Subsidiary
	Guarantor: Holdings		Issuer: NPC		Co-Issuer: NPCQB		Co-Issuer: NPC Op Co B		Eliminations			Consolidated
Assets:
Current assets	$	—	$	58,620	$	4,495	$	—	$	—		$	63,115
Facilities and equipment, net	—		155,501		47,967		—		—			203,468
Franchise rights, net	—		577,097		43,421		—		—			620,518
Goodwill	—		290,502		4,124		—		—			294,626
Investment in subsidiary	273,689		76,784		—		—		(350,473		)	—
Other assets, net	—		27,233		1,736		—		—			28,969
Total assets	$	273,689	$	1,185,737	$	101,743	$	—	$	(350,473	)	$	1,210,696
Liabilities and member’s equity:
Current liabilities	$	—	$	91,472	$	16,724	$	—	$	—		$	108,196
Long-term debt	—		577,011		—		—		—			577,011
Other liabilities and deferred items	—		55,589		6,448		—		—			62,037
Deferred income taxes	—		187,976		1,787		—		—			189,763
Member’s equity	273,689		273,689		76,784		—		(350,473		)	273,689
Total liabilities and member’s equity	$	273,689	$	1,185,737	$	101,743	$	—	$	(350,473	)	$	1,210,696

Condensed Consolidating Statements of Cash Flows



	52 Weeks Ended December 27, 2016
	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	$	—		$	48,939		$	30,657		$	—	$	—		$	79,596
Investing activities:
Capital expenditures	—			(43,928		)	(18,728		)	—		—			(62,656		)
Purchase of Wendy’s businesses assets, net of cash acquired	—			—			(44,188		)	—		—			(44,188		)
Investment in NPCQB	—			(44,276		)	—			—		44,276			—
Return of investment in NPCQB	—			20,490			—			—		(20,490		)	—
Proceeds from sale-leaseback transactions	—			1,452			8,908			—		—			10,360
Proceeds from sale or disposition of assets	—			1,755			406			—		—			2,161
Net cash flows used in investing activities	—			(64,507		)	(53,602		)	—		23,786			(94,323		)
Financing activities:
Payments on term bank facilities	—			(4,326		)	—			—		—			(4,326		)
Investment from parent	—			—			44,276			—		(44,276		)	—
Distribution to parent	60			(60		)	(20,490		)	—		20,490			—
Other	(60		)	—			—			—		—			(60		)
Net cash flows (used in) provided by financing activities	—			(4,386		)	23,786			—		(23,786		)	(4,386		)
Net change in cash and cash equivalents	—			(19,954		)	841			—		—			(19,113		)
Beginning cash and cash equivalents	—			31,918			799			—		—			32,717
Ending cash and cash equivalents	$	—		$	11,964		$	1,640		$	—	$	—		$	13,604



	52 Weeks Ended December 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	$	—		$	58,703		$	21,201		$	—	$	—		$	79,904
Investing activities:
Capital expenditures	—			(38,262		)	(17,948		)	—		—			(56,210		)
Return of investment in NPCQB	—			4,096			—			—		(4,096		)	—
Proceeds from sale-leaseback transactions	—			1,408			—			—		—			1,408
Proceeds from disposition of assets	—			733			857			—		—			1,590
Net cash flows used in investing activities	—			(32,025		)	(17,091		)	—		(4,096		)	(53,212		)
Financing activities:
Payments on term bank facilities	—			(4,158		)	—			—		—			(4,158		)
Debt issue costs	—			(1,832		)	—			—		—			(1,832		)
Distribution to parent	148			(148		)	(4,096		)	—		4,096			—
Other	(148		)	100			—			—		—			(48		)
Net cash used in financing activities	—			(6,038		)	(4,096		)	—		4,096			(6,038		)
Net change in cash and cash equivalents	—			20,640			14			—		—			20,654
Beginning cash and cash equivalents	—			11,278			785			—		—			12,063
Ending cash and cash equivalents	$	—		$	31,918		$	799		$	—	$	—		$	32,717



	52 Weeks Ended December 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	$	—		$	48,402		$	22,076		$	—	$	—		$	70,478
Investing activities:
Capital expenditures	—			(54,971		)	(11,096		)	—		—			(66,067		)
Acquisition of Wendy’s business, net of cash acquired	—			—			(56,841		)	—		—			(56,841		)
Investment in NPCQB	—			(57,002		)	—			—		57,002			—
Return of investment in NPCQB	—			33,718			—			—		(33,718		)	—
Proceeds from sale-leaseback transactions	—			—			24,182			—		—			24,182
Purchase of assets for sale-leaseback	—			—			(1,736		)	—		—			(1,736		)
Proceeds from sale or disposition of assets	—			3,093			51			—		—			3,144
Net cash flows used in investing activities	—			(75,162		)	(45,440		)	—		23,284			(97,318		)
Financing activities:
Investment from parent	—			—			57,002			—		(57,002		)	—
Distribution to parent	60			(60		)	(33,718		)	—		33,718			—
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
Other	(60		)	(493		)	—			—		—			(553		)
Net cash flows provided by financing activities	—			18,868			23,284			—		(23,284		)	18,868
Net change in cash and cash equivalents	—			(7,892		)	(80		)	—		—			(7,972		)
Beginning cash and cash equivalents	—			19,170			865			—		—			20,035
Ending cash and cash equivalents	$	—		$	11,278		$	785		$	—	$	—		$	12,063