Revenue (Tables)

12 Months Ended

Jan. 02, 2022

The following tables disaggregate revenue by segment and source for 2021, 2020 and 2019:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
2021
Sales at Company-operated restaurants	$	730,415	$	3,659	$	—	$	734,074
Franchise royalty revenue	407,317		53,392		—		460,709
Franchise fees	64,170		5,391		6,478		76,039
Franchise rental income	—		—		236,655		236,655
Advertising funds revenue	365,594		23,927		—		389,521
Total revenues	$	1,567,496	$	86,369	$	243,133	$	1,896,998

2020

Sales at Company-operated restaurants	$	722,764	$	—	$	—	$	722,764
Franchise royalty revenue	373,162		43,346		—		416,508
Franchise fees	22,126		1,962		4,153		28,241
Franchise rental income	—		—		232,648		232,648
Advertising funds revenue	313,330		20,334		—		333,664
Total revenues	$	1,431,382	$	65,642	$	236,801	$	1,733,825

2019
Sales at Company-operated restaurants	$	707,485	$	—	$	—	$	707,485
Franchise royalty revenue	355,702		44,998		—		400,700
Franchise fees	21,889		2,978		3,432		28,299
Franchise rental income	—		—		233,065		233,065
Advertising funds revenue	319,231		20,222		—		339,453
Total revenues	$	1,404,307	$	68,198	$	236,497	$	1,709,002

Contract balances, assets and liabilities

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:


	Year End
	January 2, 2022 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	49,168	$	57,677
Receivables, which are included in “Advertising funds restricted assets”	65,497		63,252
Deferred franchise fees (c)	97,186		97,785

_______________

(a)Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s consolidated statements of operations.

(b)Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,084 and $88,102 as of January 2, 2022, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively.

Deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Year Ended
	2021		2020		2019
Deferred franchise fees at beginning of period	$	97,785	$	100,689	$	102,205
Revenue recognized during the period	(19,838)		(8,955)		(9,487)
New deferrals due to cash received and other	19,239		6,051		7,971
Deferred franchise fees at end of period	$	97,186	$	97,785	$	100,689

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:


Estimate for fiscal year:
2022	$	9,084
2023	6,284
2024	6,096
2025	5,911
2026	5,795
Thereafter	64,016
	$	97,186