System Optimization Gains, Net (Tables)

12 Months Ended

Jan. 03, 2021

Plant, Property and Equipment

Summary of Disposition Activity

	Year End
	January 3, 2021		December 29, 2019
Land	$	372,473	$	375,109
Buildings and improvements	504,504		508,602
Leasehold improvements	409,306		405,158
Office, restaurant and transportation equipment	255,469		279,799
	1,541,752		1,568,668
Accumulated depreciation and amortization	(625,863)		(591,668)
	$	915,889	$	977,000

Assets Held for Sale

	January 3, 2020		December 29, 2019
Number of restaurants classified as held for sale	43		—
Net restaurant assets held for sale (a)	$	20,587	$	—
Other assets held for sale (b)	$	1,732	$	1,437

_______________

(a)Net restaurant assets held for sale include the New York Company-operated restaurants we expect to sell in the second quarter of 2021 and consist primarily of cash, inventory, property and an estimate of allocable goodwill.

(b)Other assets held for sale primarily consist of surplus properties.

System Optimization

Plant, Property and Equipment

Summary of Disposition Activity

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:

	Year Ended
	2020		2019		2018
Number of restaurants sold to franchisees	1		—		3
Proceeds from sales of restaurants	$	50	$	—	$	1,436
Net assets sold (a)	(34)		—		(1,370)
Goodwill related to sales of restaurants	—		—		(208)
Net favorable leases	—		—		220
Other	—		—		11
	16		—		89
Post-closing adjustments on sales of restaurants (b)	362		1,087		445
Gain on sales of restaurants, net	378		1,087		534
Gain (loss) on sales of other assets, net (c)	2,770		196		(71)
System optimization gains, net	$	3,148	$	1,283	$	463

_______________

(a)Net assets sold consisted primarily of equipment.

(b)2020, 2019 and 2018 include the recognition of deferred gains of $368, $911 and $1,029, respectively, as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. 2018 also includes cash proceeds, net of payments, of $6 related to post-closing reconciliations with franchisees.

(c)During 2020, 2019 and 2018, Wendy’s received cash proceeds of $6,041, $3,448 and $1,781, respectively, primarily from the sale of surplus and other properties.