Revenue (Tables)

3 Months Ended

Apr. 02, 2023

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended April 2, 2023
Sales at Company-operated restaurants	$	222,632	$	5,317	$	—	$	227,949
Franchise royalty revenue	106,339		15,811		—		122,150
Franchise fees	17,272		1,523		732		19,527
Franchise rental income	—		—		57,807		57,807
Advertising funds revenue	94,745		6,629		—		101,374
Total revenues	$	440,988	$	29,280	$	58,539	$	528,807









Three Months Ended April 3, 2022
Sales at Company-operated restaurants	$	206,501	$	2,774	$	—	$	209,275
Franchise royalty revenue	97,920		13,825		—		111,745
Franchise fees	15,405		1,271		555		17,231
Franchise rental income	—		—		57,871		57,871
Advertising funds revenue	87,485		5,036		—		92,521
Total revenues	$	407,311	$	22,906	$	58,426	$	488,643

Contract Balances, assets and liabilities

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


	April 2, 2023 (a)		January 1, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	55,588	$	54,497
Receivables, which are included in “Advertising funds restricted assets”	65,735		70,422
Deferred franchise fees (c)	97,694		99,208

_______________

(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 $9,533 and $88,161, respectively, as of April 2, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Three Months Ended
	April 2, 2023		April 3, 2022
Deferred franchise fees at beginning of period	$	99,208	$	97,186
Revenue recognized during the period	(2,814)		(2,283)
New deferrals due to cash received and other	1,300		3,526
Deferred franchise fees at end of period	$	97,694	$	98,429

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:
2023 (a)	$	8,037
2024	5,850
2025	5,684
2026	5,577
2027	5,486
Thereafter	67,060
	$	97,694

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2023, which includes development-related franchise fees expected to be recognized over a duration of one year or less.