Revenue (Tables)

9 Months Ended

Oct. 02, 2022

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended October 2, 2022
Sales at Company-operated restaurants	$	225,245	$	3,541	$	—	$	228,786
Franchise royalty revenue	108,780		15,777		—		124,557
Franchise fees	15,294		1,257		625		17,176
Franchise rental income	—		—		58,463		58,463
Advertising funds revenue	96,615		6,972		—		103,587
Total revenues	$	445,934	$	27,547	$	59,088	$	532,569

Nine Months Ended October 2, 2022
Sales at Company-operated restaurants	$	659,649	$	9,281	$	—	$	668,930
Franchise royalty revenue	315,572		45,743		—		361,315
Franchise fees	46,685		3,695		2,450		52,830
Franchise rental income	—		—		174,944		174,944
Advertising funds revenue	281,779		19,197		—		300,976
Total revenues	$	1,303,685	$	77,916	$	177,394	$	1,558,995

Three Months Ended October 3, 2021
Sales at Company-operated restaurants	$	169,961	$	1,117	$	—	$	171,078
Franchise royalty revenue	102,603		13,918		—		116,521
Franchise fees	19,759		1,144		1,331		22,234
Franchise rental income	—		—		62,446		62,446
Advertising funds revenue	91,481		6,495		—		97,976
Total revenues	$	383,804	$	22,674	$	63,777	$	470,255

Nine Months Ended October 3, 2021
Sales at Company-operated restaurants	$	552,297	$	1,363	$	—	$	553,660
Franchise royalty revenue	305,373		39,048		—		344,421
Franchise fees	46,020		4,041		3,764		53,825
Franchise rental income	—		—		182,190		182,190
Advertising funds revenue	271,911		17,788		—		289,699
Total revenues	$	1,175,601	$	62,240	$	185,954	$	1,423,795

Contract Balances, assets and liabilities

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


	October 2, 2022 (a)		January 2, 2022 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	68,936	$	49,168
Receivables, which are included in “Advertising funds restricted assets”	68,251		65,497
Deferred franchise fees (c)	100,136		97,186

_______________

(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 condensed 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 $8,467 and $91,669, respectively, as of October 2, 2022, and $9,084 and $88,102, respectively, as of January 2, 2022.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Nine Months Ended
	October 2, 2022		October 3, 2021
Deferred franchise fees at beginning of period	$	97,186	$	97,785
Revenue recognized during the period	(7,193)		(14,001)
New deferrals due to cash received and other	10,143		15,273
Deferred franchise fees at end of period	$	100,136	$	99,057

Anticipated Future Recognition of Deferred Franchise Fees

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 (a)	$	5,026
2023	6,518
2024	6,342
2025	6,171
2026	6,065
Thereafter	70,014
	$	100,136

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2022, which includes development-related franchise fees expected to be recognized over a duration of one year or less.