Revenue (Tables)

12 Months Ended

Jan. 01, 2023

The following tables disaggregate revenue by segment and source for 2022, 2021 and 2020:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
2022
Sales at Company-operated restaurants	$	882,684	$	13,901	$	—	$	896,585
Franchise royalty revenue	423,955		61,533		—		485,488
Franchise fees	63,112		5,542		4,093		72,747
Franchise rental income	—		—		234,465		234,465
Advertising funds revenue	380,491		25,729		—		406,220
Total revenues	$	1,750,242	$	106,705	$	238,558	$	2,095,505

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

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 1, 2023 (a)		January 2, 2022 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	54,497	$	49,168
Receivables, which are included in “Advertising funds restricted assets”	70,422		65,497
Deferred franchise fees (c)	99,208		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 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 $8,977 and $90,231, respectively, as of January 1, 2023, and $9,084 and $88,102, respectively, as of January 2, 2022.

Deferred Revenue, by Arrangement, Disclosure

Significant changes in deferred franchise fees are as follows:


	Year Ended
	2022		2021		2020
Deferred franchise fees at beginning of period	$	97,186	$	97,785	$	100,689
Revenue recognized during the period	(11,567)		(19,838)		(8,955)
New deferrals due to cash received and other	13,589		19,239		6,051
Deferred franchise fees at end of period	$	99,208	$	97,186	$	97,785

Anticipated Recognition of Deferred Franchise Fee

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:
2023	$	8,977
2024	5,835
2025	5,669
2026	5,559
2027	5,482
Thereafter	67,686
	$	99,208