QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
Page | |||||
October 1, 2023 | January 1, 2023 | ||||||||||
ASSETS | (Unaudited) | ||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Accounts and notes receivable, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Advertising funds restricted assets | |||||||||||
Total current assets | |||||||||||
Properties | |||||||||||
Finance lease assets | |||||||||||
Operating lease assets | |||||||||||
Goodwill | |||||||||||
Other intangible assets | |||||||||||
Investments | |||||||||||
Net investment in sales-type and direct financing leases | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Current portion of finance lease liabilities | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Accounts payable | |||||||||||
Accrued expenses and other current liabilities | |||||||||||
Advertising funds restricted liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term finance lease liabilities | |||||||||||
Long-term operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Deferred franchise fees | |||||||||||
Other liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Common stock held in treasury, at cost; | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Sales | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty revenue and fees | |||||||||||||||||||||||
Franchise rental income | |||||||||||||||||||||||
Advertising funds revenue | |||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||
Cost of sales | |||||||||||||||||||||||
Franchise support and other costs | |||||||||||||||||||||||
Franchise rental expense | |||||||||||||||||||||||
Advertising funds expense | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | |||||||||||||||||||||||
Amortization of cloud computing arrangements | |||||||||||||||||||||||
System optimization gains, net | ( | ( | ( | ( | |||||||||||||||||||
Reorganization and realignment costs | |||||||||||||||||||||||
Impairment of long-lived assets | |||||||||||||||||||||||
Other operating income, net | ( | ( | ( | ( | |||||||||||||||||||
Operating profit | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss on early extinguishment of debt | ( | ( | |||||||||||||||||||||
Investment (loss) income, net | ( | ||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Provision for income taxes | ( | ( | ( | ( | |||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive (loss) income: | |||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | ( | ||||||||||||||||||||
Other comprehensive (loss) income | ( | ( | ( | ||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | |||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at April 2, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | |||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at July 2, 2023 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | |||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at October 1, 2023 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Additional Paid-In Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Loss | Total | ||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||
Balance at January 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Repurchases of common stock, including accelerated share repurchase | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | |||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at April 3, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Repurchases of common stock | ( | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | ( | ||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at July 3, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Net income | |||||||||||||||||||||||||||||||||||
Other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||
Cash dividends | ( | ( | |||||||||||||||||||||||||||||||||
Share-based compensation | |||||||||||||||||||||||||||||||||||
Common stock issued upon exercises of stock options | |||||||||||||||||||||||||||||||||||
Common stock issued upon vesting of restricted shares | ( | ( | |||||||||||||||||||||||||||||||||
Other | ( | ||||||||||||||||||||||||||||||||||
Balance at October 2, 2022 | $ | $ | $ | $ | ( | $ | ( | $ |
Nine Months Ended | |||||||||||
October 1, 2023 | October 2, 2022 | ||||||||||
(Unaudited) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | |||||||||||
Amortization of cloud computing arrangements | |||||||||||
Share-based compensation | |||||||||||
Impairment of long-lived assets | |||||||||||
Deferred income tax | ( | ||||||||||
Non-cash rental expense, net | |||||||||||
Change in operating lease liabilities | ( | ( | |||||||||
Net receipt of deferred vendor incentives | |||||||||||
System optimization gains, net | ( | ( | |||||||||
Distributions received from joint ventures, net of equity in earnings | |||||||||||
Long-term debt-related activities, net | |||||||||||
Cloud computing arrangements expenditures | ( | ( | |||||||||
Changes in operating assets and liabilities and other, net | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Franchise development fund | ( | ( | |||||||||
Dispositions | |||||||||||
Notes receivable, net | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt | |||||||||||
Repayments of long-term debt | ( | ( | |||||||||
Repayments of finance lease liabilities | ( | ( | |||||||||
Deferred financing costs | ( | ||||||||||
Repurchases of common stock | ( | ( | |||||||||
Dividends | ( | ( | |||||||||
Proceeds from stock option exercises | |||||||||||
Payments related to tax withholding for share-based compensation | ( | ( | |||||||||
Net cash (used in) provided by financing activities | ( | ||||||||||
Net cash (used in) provided by operations before effect of exchange rate changes on cash | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ |
Wendy’s U.S. | Wendy’s International | Global Real Estate & Development | Total | ||||||||||||||||||||
Three Months Ended October 1, 2023 | |||||||||||||||||||||||
Sales at Company-operated restaurants | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty revenue | |||||||||||||||||||||||
Franchise fees | |||||||||||||||||||||||
Franchise rental income | |||||||||||||||||||||||
Advertising funds revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Three Months Ended October 2, 2022 | |||||||||||||||||||||||
Sales at Company-operated restaurants | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty revenue | |||||||||||||||||||||||
Franchise fees | |||||||||||||||||||||||
Franchise rental income | |||||||||||||||||||||||
Advertising funds revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Wendy’s U.S. | Wendy’s International | Global Real Estate & Development | Total | ||||||||||||||||||||
Nine Months Ended October 1, 2023 | |||||||||||||||||||||||
Sales at Company-operated restaurants | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty revenue | |||||||||||||||||||||||
Franchise fees | |||||||||||||||||||||||
Franchise rental income | |||||||||||||||||||||||
Advertising funds revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ | |||||||||||||||||||
Nine Months Ended October 2, 2022 | |||||||||||||||||||||||
Sales at Company-operated restaurants | $ | $ | $ | $ | |||||||||||||||||||
Franchise royalty revenue | |||||||||||||||||||||||
Franchise fees | |||||||||||||||||||||||
Franchise rental income | |||||||||||||||||||||||
Advertising funds revenue | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
October 1, 2023 (a) | January 1, 2023 (a) | ||||||||||
Receivables, which are included in “Accounts and notes receivable, net” (b) | $ | $ | |||||||||
Receivables, which are included in “Advertising funds restricted assets” | |||||||||||
Deferred franchise fees (c) |
Nine Months Ended | |||||||||||
October 1, 2023 | October 2, 2022 | ||||||||||
Deferred franchise fees at beginning of period | $ | $ | |||||||||
Revenue recognized during the period | ( | ( | |||||||||
New deferrals due to cash received and other | |||||||||||
Deferred franchise fees at end of period | $ | $ |
Estimate for fiscal year: | |||||
2023 (a) | $ | ||||
2024 | |||||
2025 | |||||
2026 | |||||
2027 | |||||
Thereafter | |||||
$ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Number of restaurants sold to franchisees | |||||||||||||||||||||||
Proceeds from sales of restaurants (a) | $ | $ | $ | $ | |||||||||||||||||||
Net assets sold (b) | ( | ( | |||||||||||||||||||||
Net unfavorable leases | ( | ( | |||||||||||||||||||||
Other | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Post-closing adjustments on sales of restaurants (c) | |||||||||||||||||||||||
Gain (loss) on sales of restaurants, net | ( | ||||||||||||||||||||||
(Loss) gain on sales of other assets, net (d) | ( | ( | |||||||||||||||||||||
System optimization gains, net | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Organizational redesign | $ | $ | $ | $ | |||||||||||||||||||
Other reorganization and realignment plans | |||||||||||||||||||||||
Reorganization and realignment costs | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||
October 1, 2023 | October 1, 2023 | ||||||||||
Severance and related employee costs | $ | $ | |||||||||
Recruitment and relocation costs | |||||||||||
Third-party and other costs | |||||||||||
Share-based compensation (a) | |||||||||||
Total organizational redesign | $ | $ |
Balance January 1, 2023 | Charges | Payments | Balance October 1, 2023 | ||||||||||||||||||||
Severance and related employee costs | $ | $ | $ | ( | $ | ||||||||||||||||||
Recruitment and relocation costs | ( | ||||||||||||||||||||||
Third-party and other costs | ( | ||||||||||||||||||||||
$ | $ | $ | ( | $ |
October 1, 2023 | January 1, 2023 | ||||||||||
Equity method investments | $ | $ | |||||||||
Other investments in equity securities | |||||||||||
$ | $ |
Nine Months Ended | |||||||||||
October 1, 2023 | October 2, 2022 | ||||||||||
Balance at beginning of period | $ | $ | |||||||||
Equity in earnings for the period | |||||||||||
Amortization of purchase price adjustments (a) | ( | ( | |||||||||
Distributions received | ( | ( | |||||||||
Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other | ( | ||||||||||
Balance at end of period | $ | $ |
October 1, 2023 | January 1, 2023 | ||||||||||
Class A-2 Notes (a): | |||||||||||
$ | $ | ||||||||||
Unamortized debt issuance costs | ( | ( | |||||||||
Less amounts payable within one year | ( | ( | |||||||||
Total long-term debt | $ | $ |
October 1, 2023 | January 1, 2023 | ||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | Fair Value Measurements | |||||||||||||||||||||||||
Financial assets | |||||||||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | Level 1 | ||||||||||||||||||||||||
Other investments in equity securities (a) | Level 2 | ||||||||||||||||||||||||||||
Financial liabilities (b) | |||||||||||||||||||||||||||||
Series 2022-1 Class A-2-I Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2022-1 Class A-2-II Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2021-1 Class A-2-I Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2021-1 Class A-2-II Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2019-1 Class A-2-I Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2019-1 Class A-2-II Notes | Level 2 | ||||||||||||||||||||||||||||
Series 2018-1 Class A-2-II Notes | Level 2 | ||||||||||||||||||||||||||||
Level 2 |
Fair Value Measurements | |||||||||||||||||||||||
October 1, 2023 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Held and used | $ | $ | $ | $ | |||||||||||||||||||
Held for sale | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Fair Value Measurements | |||||||||||||||||||||||
January 1, 2023 | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
Held and used | $ | $ | $ | $ | |||||||||||||||||||
Held for sale | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Company-operated restaurants | $ | $ | $ | $ | |||||||||||||||||||
Restaurants leased or subleased to franchisees | |||||||||||||||||||||||
Surplus properties | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Common stock: | |||||||||||||||||||||||
Weighted average basic shares outstanding | |||||||||||||||||||||||
Dilutive effect of stock options and restricted shares | |||||||||||||||||||||||
Weighted average diluted shares outstanding | |||||||||||||||||||||||
Net income per share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Nine Months Ended | |||||||||||
October 1, 2023 | October 2, 2022 | ||||||||||
Balance at beginning of period | $ | ( | $ | ( | |||||||
Foreign currency translation | ( | ||||||||||
Balance at end of period | $ | ( | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||
Amortization of finance lease assets | $ | $ | $ | $ | |||||||||||||||||||
Interest on finance lease liabilities | |||||||||||||||||||||||
Operating lease cost | |||||||||||||||||||||||
Variable lease cost (a) | |||||||||||||||||||||||
Short-term lease cost | |||||||||||||||||||||||
Total operating lease cost (b) | |||||||||||||||||||||||
Total lease cost | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Sales-type and direct-financing leases: | |||||||||||||||||||||||
Selling profit | $ | $ | $ | $ | |||||||||||||||||||
Interest income (a) | |||||||||||||||||||||||
Operating lease income | |||||||||||||||||||||||
Variable lease income | |||||||||||||||||||||||
Franchise rental income (b) | $ | $ | $ | $ |
Nine Months Ended | |||||||||||
October 1, 2023 | October 2, 2022 | ||||||||||
Supplemental non-cash investing and financing activities: | |||||||||||
Capital expenditures included in accounts payable | $ | $ | |||||||||
Finance leases |
October 1, 2023 | January 1, 2023 | ||||||||||
Reconciliation of cash, cash equivalents and restricted cash at end of period: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash | |||||||||||
Restricted cash, included in Advertising funds restricted assets | |||||||||||
Total cash, cash equivalents and restricted cash | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Wendy’s U.S. | $ | $ | $ | $ | |||||||||||||||||||
Wendy’s International | |||||||||||||||||||||||
Global Real Estate & Development | |||||||||||||||||||||||
Total revenues | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
October 1, 2023 | October 2, 2022 | October 1, 2023 | October 2, 2022 | ||||||||||||||||||||
Wendy’s U.S. (a) | $ | $ | $ | $ | |||||||||||||||||||
Wendy’s International (b) | |||||||||||||||||||||||
Global Real Estate & Development | |||||||||||||||||||||||
Total segment profit | $ | $ | |||||||||||||||||||||
Unallocated franchise support and other costs | ( | ( | ( | ( | |||||||||||||||||||
Advertising funds surplus (deficit) | ( | ( | |||||||||||||||||||||
Unallocated general and administrative (c) | ( | ( | ( | ( | |||||||||||||||||||
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | ( | ( | ( | ( | |||||||||||||||||||
Amortization of cloud computing arrangements | ( | ( | ( | ( | |||||||||||||||||||
System optimization gains, net | |||||||||||||||||||||||
Reorganization and realignment costs | ( | ( | ( | ( | |||||||||||||||||||
Impairment of long-lived assets | ( | ( | ( | ( | |||||||||||||||||||
Unallocated other operating income, net | |||||||||||||||||||||||
Interest expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss on early extinguishment of debt | ( | ( | |||||||||||||||||||||
Investment (loss) income, net | ( | ||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||
Sales | $ | 234.7 | $ | 228.8 | $ | 5.9 | $ | 703.4 | $ | 668.9 | $ | 34.5 | |||||||||||||||||||||||
Franchise royalty revenue and fees | 149.4 | 141.7 | 7.7 | 444.0 | 414.2 | 29.8 | |||||||||||||||||||||||||||||
Franchise rental income | 57.6 | 58.5 | (0.9) | 173.4 | 174.9 | (1.5) | |||||||||||||||||||||||||||||
Advertising funds revenue | 108.9 | 103.6 | 5.3 | 320.1 | 301.0 | 19.1 | |||||||||||||||||||||||||||||
550.6 | 532.6 | 18.0 | 1,640.9 | 1,559.0 | 81.9 | ||||||||||||||||||||||||||||||
Costs and expenses: | |||||||||||||||||||||||||||||||||||
Cost of sales | 199.5 | 196.2 | 3.3 | 597.1 | 578.5 | 18.6 | |||||||||||||||||||||||||||||
Franchise support and other costs | 14.8 | 12.7 | 2.1 | 41.9 | 34.5 | 7.4 | |||||||||||||||||||||||||||||
Franchise rental expense | 31.9 | 31.7 | 0.2 | 94.9 | 92.7 | 2.2 | |||||||||||||||||||||||||||||
Advertising funds expense | 107.9 | 108.3 | (0.4) | 319.2 | 317.0 | 2.2 | |||||||||||||||||||||||||||||
General and administrative | 59.3 | 62.5 | (3.2) | 184.3 | 186.5 | (2.2) | |||||||||||||||||||||||||||||
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 34.3 | 34.3 | — | 101.3 | 100.9 | 0.4 | |||||||||||||||||||||||||||||
Amortization of cloud computing arrangements | 3.8 | 0.9 | 2.9 | 7.7 | 0.9 | 6.8 | |||||||||||||||||||||||||||||
System optimization gains, net | (0.1) | (0.5) | 0.4 | (0.1) | (4.1) | 4.0 | |||||||||||||||||||||||||||||
Reorganization and realignment costs | 0.6 | — | 0.6 | 8.1 | 0.6 | 7.5 | |||||||||||||||||||||||||||||
Impairment of long-lived assets | 0.1 | 0.2 | (0.1) | 0.5 | 2.7 | (2.2) | |||||||||||||||||||||||||||||
Other operating income, net | (3.1) | (11.8) | 8.7 | (9.4) | (20.5) | 11.1 | |||||||||||||||||||||||||||||
449.0 | 434.5 | 14.5 | 1,345.5 | 1,289.7 | 55.8 | ||||||||||||||||||||||||||||||
Operating profit | 101.6 | 98.1 | 3.5 | 295.4 | 269.3 | 26.1 | |||||||||||||||||||||||||||||
Interest expense, net | (31.0) | (31.9) | 0.9 | (93.8) | (90.4) | (3.4) | |||||||||||||||||||||||||||||
Loss on early extinguishment of debt | (0.3) | — | (0.3) | (1.6) | — | (1.6) | |||||||||||||||||||||||||||||
Investment (loss) income, net | — | — | — | (10.4) | 2.1 | (12.5) | |||||||||||||||||||||||||||||
Other income, net | 7.7 | 2.9 | 4.8 | 22.5 | 4.4 | 18.1 | |||||||||||||||||||||||||||||
Income before income taxes | 78.0 | 69.1 | 8.9 | 212.1 | 185.4 | 26.7 | |||||||||||||||||||||||||||||
Provision for income taxes | (20.0) | (18.6) | (1.4) | (54.6) | (49.3) | (5.3) | |||||||||||||||||||||||||||||
Net income | $ | 58.0 | $ | 50.5 | $ | 7.5 | $ | 157.5 | $ | 136.1 | $ | 21.4 |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | % of Total Revenues | 2022 | % of Total Revenues | 2023 | % of Total Revenues | 2022 | % of Total Revenues | ||||||||||||||||||||||||||||||||||||||||
Revenues: | |||||||||||||||||||||||||||||||||||||||||||||||
Sales | $ | 234.7 | 42.6 | % | $ | 228.8 | 43.0 | % | $ | 703.4 | 42.9 | % | $ | 668.9 | 42.9 | % | |||||||||||||||||||||||||||||||
Franchise royalty revenue and fees: | |||||||||||||||||||||||||||||||||||||||||||||||
Franchise royalty revenue | 130.1 | 23.6 | % | 124.5 | 23.4 | % | 384.3 | 23.5 | % | 361.4 | 23.2 | % | |||||||||||||||||||||||||||||||||||
Franchise fees | 19.3 | 3.5 | % | 17.2 | 3.2 | % | 59.7 | 3.6 | % | 52.8 | 3.4 | % | |||||||||||||||||||||||||||||||||||
Total franchise royalty revenue and fees | 149.4 | 27.1 | % | 141.7 | 26.6 | % | 444.0 | 27.1 | % | 414.2 | 26.6 | % | |||||||||||||||||||||||||||||||||||
Franchise rental income | 57.6 | 10.5 | % | 58.5 | 11.0 | % | 173.4 | 10.6 | % | 174.9 | 11.2 | % | |||||||||||||||||||||||||||||||||||
Advertising funds revenue | 108.9 | 19.8 | % | 103.6 | 19.4 | % | 320.1 | 19.5 | % | 301.0 | 19.3 | % | |||||||||||||||||||||||||||||||||||
Total revenues | $ | 550.6 | 100.0 | % | $ | 532.6 | 100.0 | % | $ | 1,640.9 | 100.0 | % | $ | 1,559.0 | 100.0 | % | |||||||||||||||||||||||||||||||
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | % of Sales | 2022 | % of Sales | 2023 | % of Sales | 2022 | % of Sales | ||||||||||||||||||||||||||||||||||||||||
Cost of sales: | |||||||||||||||||||||||||||||||||||||||||||||||
Food and paper | $ | 74.5 | 31.7 | % | $ | 75.0 | 32.8 | % | $ | 224.1 | 31.9 | % | $ | 219.6 | 32.8 | % | |||||||||||||||||||||||||||||||
Restaurant labor | 74.9 | 31.9 | % | 72.8 | 31.8 | % | 223.8 | 31.8 | % | 216.3 | 32.3 | % | |||||||||||||||||||||||||||||||||||
Occupancy, advertising and other operating costs | 50.1 | 21.4 | % | 48.4 | 21.1 | % | 149.2 | 21.2 | % | 142.6 | 21.4 | % | |||||||||||||||||||||||||||||||||||
Total cost of sales | $ | 199.5 | 85.0 | % | $ | 196.2 | 85.7 | % | $ | 597.1 | 84.9 | % | $ | 578.5 | 86.5 | % |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||||||||||||||
2023 | % of Sales | 2022 | % of Sales | 2023 | % of Sales | 2022 | % of Sales | ||||||||||||||||||||||||||||||||||||||||
Company-operated restaurant margin: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. | $ | 35.5 | 15.6 | % | $ | 33.3 | 14.8 | % | $ | 108.8 | 15.9 | % | $ | 92.2 | 14.0 | % | |||||||||||||||||||||||||||||||
Global | 35.2 | 15.0 | % | 32.6 | 14.3 | % | 106.3 | 15.1 | % | 90.4 | 13.5 | % |
Third Quarter | Nine Months | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Key business measures: | |||||||||||||||||||||||
U.S. same-restaurant sales: | |||||||||||||||||||||||
Company-operated | 0.7 | % | 6.8 | % | 3.6 | % | 4.2 | % | |||||||||||||||
Franchised | 2.3 | % | 6.3 | % | 4.8 | % | 3.2 | % | |||||||||||||||
Systemwide | 2.2 | % | 6.4 | % | 4.7 | % | 3.3 | % | |||||||||||||||
International same-restaurant sales (a) | 7.8 | % | 10.8 | % | 9.4 | % | 13.3 | % | |||||||||||||||
Global same-restaurant sales: | |||||||||||||||||||||||
Company-operated | 1.0 | % | 6.8 | % | 3.8 | % | 4.2 | % | |||||||||||||||
Franchised (a) | 3.0 | % | 6.9 | % | 5.4 | % | 4.4 | % | |||||||||||||||
Systemwide (a) | 2.8 | % | 6.9 | % | 5.2 | % | 4.4 | % | |||||||||||||||
Systemwide sales (b): | |||||||||||||||||||||||
U.S. Company-operated | $ | 227.7 | $ | 225.2 | $ | 685.2 | $ | 659.6 | |||||||||||||||
U.S. franchised | 2,885.3 | 2,780.6 | 8,557.2 | 8,058.9 | |||||||||||||||||||
U.S. systemwide | 3,113.0 | 3,005.8 | 9,242.4 | 8,718.5 | |||||||||||||||||||
International Company-operated | 7.1 | 3.6 | 18.2 | 9.3 | |||||||||||||||||||
International franchised (a) | 460.3 | 409.7 | 1,328.6 | 1,182.7 | |||||||||||||||||||
International systemwide (a) | 467.4 | 413.3 | 1,346.8 | 1,192.0 | |||||||||||||||||||
Global systemwide (a) | $ | 3,580.4 | $ | 3,419.1 | $ | 10,589.2 | $ | 9,910.5 |
Third Quarter | |||||||||||||||||||||||||||||
U.S. Company-operated | U.S. Franchised | International Company-operated | International Franchised | Systemwide | |||||||||||||||||||||||||
Restaurant count: | |||||||||||||||||||||||||||||
Restaurant count at July 2, 2023 | 403 | 5,590 | 11 | 1,111 | 7,115 | ||||||||||||||||||||||||
Opened | — | 27 | 1 | 44 | 72 | ||||||||||||||||||||||||
Closed | — | (10) | — | (11) | (21) | ||||||||||||||||||||||||
Restaurant count at October 1, 2023 | 403 | 5,607 | 12 | 1,144 | 7,166 | ||||||||||||||||||||||||
Nine Months | |||||||||||||||||||||||||||||
U.S. Company-operated | U.S. Franchised | International Company-operated | International Franchised | Systemwide | |||||||||||||||||||||||||
Restaurant count at January 1, 2023 | 403 | 5,591 | 12 | 1,089 | 7,095 | ||||||||||||||||||||||||
Opened | 2 | 64 | 1 | 85 | 152 | ||||||||||||||||||||||||
Closed | (2) | (48) | (1) | (30) | (81) | ||||||||||||||||||||||||
Restaurant count at October 1, 2023 | 403 | 5,607 | 12 | 1,144 | 7,166 |
Sales | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Sales | $ | 234.7 | $ | 228.8 | $ | 5.9 | $ | 703.4 | $ | 668.9 | $ | 34.5 |
Franchise Royalty Revenue and Fees | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Franchise royalty revenue | $ | 130.1 | $ | 124.5 | $ | 5.6 | $ | 384.3 | $ | 361.4 | $ | 22.9 | |||||||||||||||||||||||
Franchise fees | 19.3 | 17.2 | 2.1 | 59.7 | 52.8 | 6.9 | |||||||||||||||||||||||||||||
$ | 149.4 | $ | 141.7 | $ | 7.7 | $ | 444.0 | $ | 414.2 | $ | 29.8 |
Franchise Rental Income | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Franchise rental income | $ | 57.6 | $ | 58.5 | $ | (0.9) | $ | 173.4 | $ | 174.9 | $ | (1.5) |
Advertising Funds Revenue | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Advertising funds revenue | $ | 108.9 | $ | 103.6 | $ | 5.3 | $ | 320.1 | $ | 301.0 | $ | 19.1 |
Cost of Sales, as a Percent of Sales | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Food and paper | 31.7 | % | 32.8 | % | (1.1) | % | 31.9 | % | 32.8 | % | (0.9) | % | |||||||||||||||||||||||
Restaurant labor | 31.9 | % | 31.8 | % | 0.1 | % | 31.8 | % | 32.3 | % | (0.5) | % | |||||||||||||||||||||||
Occupancy, advertising and other operating costs | 21.4 | % | 21.1 | % | 0.3 | % | 21.2 | % | 21.4 | % | (0.2) | % | |||||||||||||||||||||||
85.0 | % | 85.7 | % | (0.7) | % | 84.9 | % | 86.5 | % | (1.6) | % |
Franchise Support and Other Costs | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Franchise support and other costs | $ | 14.8 | $ | 12.7 | $ | 2.1 | $ | 41.9 | $ | 34.5 | $ | 7.4 |
Franchise Rental Expense | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Franchise rental expense | $ | 31.9 | $ | 31.7 | $ | 0.2 | $ | 94.9 | $ | 92.7 | $ | 2.2 |
Advertising Funds Expense | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Advertising funds expense | $ | 107.9 | $ | 108.3 | $ | (0.4) | $ | 319.2 | $ | 317.0 | $ | 2.2 |
General and Administrative | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 (a) | Change | 2023 | 2022 (a) | Change | ||||||||||||||||||||||||||||||
Share-based compensation | $ | 6.4 | $ | 5.0 | $ | 1.4 | $ | 15.7 | $ | 17.5 | $ | (1.8) | |||||||||||||||||||||||
Professional fees | 13.2 | 15.7 | (2.5) | 42.8 | 44.2 | (1.4) | |||||||||||||||||||||||||||||
Incentive compensation | 5.4 | 6.4 | (1.0) | 20.4 | 19.2 | 1.2 | |||||||||||||||||||||||||||||
Other, net | 34.3 | 35.4 | (1.1) | 105.4 | 105.6 | (0.2) | |||||||||||||||||||||||||||||
$ | 59.3 | $ | 62.5 | $ | (3.2) | $ | 184.3 | $ | 186.5 | $ | (2.2) |
Depreciation and Amortization (exclusive of amortization of cloud computing arrangements shown separately below) | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Restaurants | $ | 21.9 | $ | 21.2 | $ | 0.7 | $ | 63.9 | $ | 64.3 | $ | (0.4) | |||||||||||||||||||||||
Technology support, corporate and other | 12.4 | 13.1 | (0.7) | 37.4 | 36.6 | 0.8 | |||||||||||||||||||||||||||||
$ | 34.3 | $ | 34.3 | $ | — | $ | 101.3 | $ | 100.9 | $ | 0.4 |
Amortization of Cloud Computing Arrangements | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Amortization of cloud computing arrangements | $ | 3.8 | $ | 0.9 | $ | 2.9 | $ | 7.7 | $ | 0.9 | $ | 6.8 |
System Optimization Gains, Net | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
System optimization gains, net | $ | (0.1) | $ | (0.5) | $ | 0.4 | $ | (0.1) | $ | (4.1) | $ | 4.0 |
Reorganization and Realignment Costs | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Organizational redesign | $ | 0.6 | $ | — | $ | 0.6 | $ | 8.0 | $ | — | $ | 8.0 | |||||||||||||||||||||||
Other reorganization and realignment plans | — | — | — | 0.1 | 0.6 | (0.5) | |||||||||||||||||||||||||||||
$ | 0.6 | $ | — | $ | 0.6 | $ | 8.1 | $ | 0.6 | $ | 7.5 |
Impairment of Long-Lived Assets | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Impairment of long-lived assets | $ | 0.1 | $ | 0.2 | $ | (0.1) | $ | 0.5 | $ | 2.7 | $ | (2.2) |
Other Operating Income, Net | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Gain from insurance recoveries | $ | — | $ | (8.6) | $ | 8.6 | $ | — | $ | (8.6) | $ | 8.6 | |||||||||||||||||||||||
Lease buyout | 0.2 | — | 0.2 | 0.2 | (2.1) | 2.3 | |||||||||||||||||||||||||||||
Other, net | (3.3) | (3.2) | (0.1) | (9.6) | (9.8) | 0.2 | |||||||||||||||||||||||||||||
$ | (3.1) | $ | (11.8) | $ | 8.7 | $ | (9.4) | $ | (20.5) | $ | 11.1 |
Interest Expense, Net | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Interest expense, net | $ | 31.0 | $ | 31.9 | $ | (0.9) | $ | 93.8 | $ | 90.4 | $ | 3.4 |
Loss on Early Extinguishment of Debt | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Loss on early extinguishment of debt | $ | 0.3 | $ | — | $ | 0.3 | $ | 1.6 | $ | — | $ | 1.6 |
Investment (Loss) Income, Net | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Investment (loss) income, net | $ | — | $ | — | $ | — | $ | (10.4) | $ | 2.1 | $ | (12.5) |
Other Income, Net | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Other income, net | $ | 7.7 | $ | 2.9 | $ | 4.8 | $ | 22.5 | $ | 4.4 | $ | 18.1 |
Provision for Income Taxes | Third Quarter | Nine Months | |||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Income before income taxes | $ | 78.0 | $ | 69.1 | $ | 8.9 | $ | 212.1 | $ | 185.4 | $ | 26.7 | |||||||||||||||||||||||
Provision for income taxes | (20.0) | (18.6) | (1.4) | (54.6) | (49.3) | (5.3) | |||||||||||||||||||||||||||||
Effective tax rate on income | 25.5 | % | 26.9 | % | (1.4) | % | 25.8 | % | 26.6 | % | (0.8) | % |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Sales | $ | 227.7 | $ | 225.2 | $ | 2.5 | $ | 685.2 | $ | 659.6 | $ | 25.6 | |||||||||||||||||||||||
Franchise royalty revenue | 112.7 | 108.8 | 3.9 | 334.0 | 315.6 | 18.4 | |||||||||||||||||||||||||||||
Franchise fees | 17.0 | 15.3 | 1.7 | 51.8 | 46.7 | 5.1 | |||||||||||||||||||||||||||||
Advertising fund revenue | 99.8 | 96.6 | 3.2 | 296.0 | 281.8 | 14.2 | |||||||||||||||||||||||||||||
Total revenues | $ | 457.2 | $ | 445.9 | $ | 11.3 | $ | 1,367.0 | $ | 1,303.7 | $ | 63.3 | |||||||||||||||||||||||
Segment profit | $ | 134.9 | $ | 123.7 | $ | 11.2 | $ | 403.1 | $ | 355.5 | $ | 47.6 |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Sales | $ | 7.1 | $ | 3.5 | $ | 3.6 | $ | 18.2 | $ | 9.3 | $ | 8.9 | |||||||||||||||||||||||
Franchise royalty revenue | 17.4 | 15.8 | 1.6 | 50.4 | 45.7 | 4.7 | |||||||||||||||||||||||||||||
Franchise fees | 1.6 | 1.3 | 0.3 | 4.5 | 3.7 | 0.8 | |||||||||||||||||||||||||||||
Advertising fund revenue | 9.1 | 6.9 | 2.2 | 24.1 | 19.2 | 4.9 | |||||||||||||||||||||||||||||
Total revenues | $ | 35.2 | $ | 27.5 | $ | 7.7 | $ | 97.2 | $ | 77.9 | $ | 19.3 | |||||||||||||||||||||||
Segment profit | $ | 10.8 | $ | 8.6 | $ | 2.2 | $ | 26.8 | $ | 23.4 | $ | 3.4 |
Third Quarter | Nine Months | ||||||||||||||||||||||||||||||||||
2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||
Franchise fees | $ | 0.6 | $ | 0.6 | $ | — | $ | 3.4 | $ | 2.5 | $ | 0.9 | |||||||||||||||||||||||
Franchise rental income | 57.5 | 58.5 | (1.0) | 173.4 | 174.9 | (1.5) | |||||||||||||||||||||||||||||
Total revenues | $ | 58.1 | $ | 59.1 | $ | (1.0) | $ | 176.8 | $ | 177.4 | $ | (0.6) | |||||||||||||||||||||||
Segment profit | $ | 24.4 | $ | 25.9 | $ | (1.5) | $ | 76.0 | $ | 80.8 | $ | (4.8) |
Nine Months | |||||||||||||||||
2023 | 2022 | Change | |||||||||||||||
Net cash provided by (used in): | |||||||||||||||||
Operating activities | $ | 269.5 | $ | 182.6 | $ | 86.9 | |||||||||||
Investing activities | (55.5) | (46.1) | (9.4) | ||||||||||||||
Financing activities | (373.2) | 324.5 | (697.7) | ||||||||||||||
Effect of exchange rate changes on cash | 0.3 | (7.1) | 7.4 | ||||||||||||||
Net (decrease) increase in cash, cash equivalents and restricted cash | $ | (158.9) | $ | 453.9 | $ | (612.8) |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans (2) | ||||||||||
July 3, 2023 through August 6, 2023 | 794,383 | $21.49 | 770,260 | $395,203,847 | ||||||||||
August 7, 2023 through September 3, 2023 | 967,313 | $20.66 | 925,891 | $376,132,409 | ||||||||||
September 4, 2023 through October 1, 2023 | 1,011,562 | $20.25 | 1,010,791 | $355,679,841 | ||||||||||
Total | 2,773,258 | $20.75 | 2,706,942 | $355,679,841 |
EXHIBIT NO. | DESCRIPTION | ||||
10.1 | Second Amendment to the Class A-1 Note Purchase Agreement, dated as of September 22, 2023, by and among Wendy’s Funding, LLC as Master Issuer, each of Quality Is Our Recipe, LLC, Wendy’s Properties, LLC and Wendy’s SPV Guarantor, LLC, as Guarantors, Wendy’s International, LLC, as Manager, the conduit investors party thereto, the financial institutions party thereto, certain funding agents, and Coöperatieve Rabobank, U.A., New York Branch, as L/C Provider, Swingline Lender and Administrative Agent.* | ||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
101 | The following financial information from The Wendy’s Company’s Quarterly Report on Form 10-Q for the quarter ended October 1, 2023 formatted in Inline eXtensible Business Reporting Language: (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income, (iv) the Condensed Consolidated Statements of Stockholders’ Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) Notes to Condensed Consolidated Financial Statements. | ||||
104 | The cover page from The Wendy’s Company’s Quarterly Report on Form 10-Q for the quarter ended October 1, 2023, formatted in Inline XBRL and contained in Exhibit 101. |
* | Filed herewith. | ||||
** | Identifies a management contract or compensatory plan or arrangement. | ||||
THE WENDY’S COMPANY (Registrant) | |||||
Date: November 2, 2023 | By: /s/ Gunther Plosch | ||||
Gunther Plosch | |||||
Chief Financial Officer | |||||
(On behalf of the registrant) | |||||
Date: November 2, 2023 | By: /s/ Suzanne M. Thuerk | ||||
Suzanne M. Thuerk | |||||
Chief Accounting Officer | |||||
(Principal Accounting Officer) |
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
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Revenues: | ||||
Franchise rental income | $ 57,567 | $ 58,463 | $ 173,407 | $ 174,944 |
Revenues | 550,555 | 532,569 | 1,640,927 | 1,558,995 |
Costs and expenses: | ||||
Cost of sales | 199,522 | 196,168 | 597,068 | 578,506 |
Franchise support and other costs | 14,806 | 12,728 | 41,853 | 34,456 |
Franchise Rental Expense | 31,876 | 31,687 | 94,901 | 92,699 |
Advertising funds expense | 107,895 | 108,269 | 319,174 | 317,042 |
General and administrative | 59,288 | 62,523 | 184,306 | 186,506 |
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 34,288 | 34,252 | 101,258 | 100,911 |
Amortization of cloud computing arrangements | 3,844 | 888 | 7,692 | 888 |
System optimization gains, net | (120) | (452) | (119) | (4,138) |
Reorganization and realignment costs | 611 | 8 | 8,100 | 628 |
Impairment of long-lived assets | 59 | 206 | 513 | 2,682 |
Other operating income, net | (3,117) | (11,843) | (9,174) | (20,482) |
Costs and expenses | 448,952 | 434,434 | 1,345,572 | 1,289,698 |
Operating profit | 101,603 | 98,135 | 295,355 | 269,297 |
Interest expense, net | (30,957) | (31,916) | (93,798) | (90,406) |
Loss on early extinguishment of debt | (319) | 0 | (1,585) | 0 |
Investment (loss) income, net | 0 | 0 | (10,389) | 2,107 |
Other income, net | 7,637 | 2,910 | 22,546 | 4,355 |
Income before income taxes | 77,964 | 69,129 | 212,129 | 185,353 |
Provision for income taxes | (19,915) | (18,587) | (54,627) | (49,258) |
Net income | $ 58,049 | $ 50,542 | $ 157,502 | $ 136,095 |
Net income per share: | ||||
Basic | $ 0.28 | $ 0.24 | $ 0.75 | $ 0.64 |
Diluted | $ 0.28 | $ 0.24 | $ 0.74 | $ 0.63 |
Sales | ||||
Revenues: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 234,721 | $ 228,786 | $ 703,358 | $ 668,930 |
Franchise royalty revenue and fees | ||||
Revenues: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 149,345 | 141,733 | 444,070 | 414,145 |
Advertising funds revenue | ||||
Revenues: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 108,922 | $ 103,587 | $ 320,092 | $ 300,976 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
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Net income | $ 58,049 | $ 50,542 | $ 157,502 | $ 136,095 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (4,533) | (14,183) | 574 | (20,520) |
Other comprehensive (loss) income | (4,533) | (14,183) | 574 | (20,520) |
Comprehensive income | $ 53,516 | $ 36,359 | $ 158,076 | $ 115,575 |
Basis of Presentation |
9 Months Ended |
---|---|
Oct. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of October 1, 2023, the results of our operations for the three and nine months ended October 1, 2023 and October 2, 2022 and cash flows for the nine months ended October 1, 2023 and October 2, 2022. The results of operations for the nine months ended October 1, 2023 are not necessarily indicative of the results to be expected for the full 2023 fiscal year. The Financial Statements should be read in conjunction with the audited consolidated financial statements for The Wendy’s Company and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 1, 2023 (the “Form 10-K”). The principal 100% owned subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business in the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. See Note 17 for further information. We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to or on December 31. All three- and nine-month periods presented herein contain 13 weeks and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our significant interim accounting policies include the recognition of advertising funds expense in proportion to advertising funds revenue.
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Revenue |
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Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Disaggregation of Revenue The following tables disaggregate revenue by segment and source:
Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
_______________ (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)The current portion of deferred franchise fees is included in “Accrued expenses and other current liabilities” and the long-term portion of deferred franchise fees is included in “Deferred franchise fees” and totaled $10,526 and $89,363, respectively, as of October 1, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023. Significant changes in deferred franchise fees are as follows:
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:
_______________ (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.
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System Optimization Gains, Net |
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System Optimization | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System optimization gains, net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System Optimization Gains, Net | System Optimization Gains, Net The Company’s system optimization initiative included a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”). As of January 1, 2017, the Company achieved its plan to reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system. While the Company has no plans to move its ownership away from approximately 5% of the total system, the Company expects to continue to optimize the Wendy’s system through Franchise Flips, as well as evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees, to further strengthen the franchisee base and drive new restaurant development. During the nine months ended October 1, 2023 and October 2, 2022, the Company facilitated 88 and 54 Franchise Flips, respectively. Additionally, during the nine months ended October 2, 2022, the Company completed the sale of 1 Company-operated restaurant to a franchisee. No Company-operated restaurants were sold to franchisees during the nine months ended October 1, 2023. Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our condensed consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs.” All other costs incurred related to facilitating Franchise Flips are recorded to “Franchise support and other costs.” The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
_______________ (a)In addition to the proceeds noted herein, the Company received cash proceeds of $126 and $284 during the three and nine months ended October 2, 2022, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. (b)Net assets sold consisted primarily of equipment. (c)Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. (d)During the nine months ended October 1, 2023, the Company received net cash proceeds of $280 primarily from the sale of surplus and other properties. During the three and nine months ended October 2, 2022, the Company received net cash proceeds of $2,510 and $3,368, respectively, primarily from the sale of surplus and other properties. Assets Held for Sale As of October 1, 2023 and January 1, 2023, the Company had assets held for sale of $1,320 and $1,661, respectively, primarily consisting of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.”
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Reorganization and Realignment Costs |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganization and Realignment Costs | Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:”
Organizational Redesign In February 2023, the Board of Directors approved a plan to redesign the Company’s organizational structure to better support the execution of the Company’s long-term growth strategy by maximizing organizational efficiency and streamlining decision making (the “Organizational Redesign Plan”). As a result of the Organizational Redesign Plan, the Company expects to hold its general and administrative expense in 2023 and 2024 relatively flat compared with 2022. The Company expects to incur total costs of approximately $11,000 to $13,000 related to the Organizational Redesign Plan. During the nine months ended October 1, 2023, the Company recognized costs totaling $7,986, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $3,000 to $5,000, comprised of (1) severance and related employee costs of approximately $1,500, (2) recruitment and relocation costs of approximately $500, (3) third-party and other costs of approximately $500 and (4) share-based compensation of approximately $1,500. The Company expects costs related to the Organizational Redesign Plan to continue into 2026, with approximately three-fourths of the total costs to be recognized during 2023. The following is a summary of the costs recorded as a result of the Organizational Redesign Plan:
_______________ (a)Primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan. As of October 1, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities”. The table below presents a rollforward of our accruals for the Organizational Redesign Plan.
Other Reorganization and Realignment Plans Costs incurred under the Company’s other reorganization and realignment plans were not material during the nine months ended October 1, 2023 and October 2, 2022. The Company does not expect to incur any material additional costs under these plans.
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments The following is a summary of the carrying value of our investments:
Equity Method Investments Wendy’s has a 50% share in a partnership in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons® brand (Tim Hortons is a registered trademark of Tim Hortons USA Inc.). The Company has significant influence over this investee. Such investment is accounted for using the equity method, under which our results of operations include our share of the income of the investee in “Other operating income, net.” Presented below is activity related to our investment in TimWen included in our condensed consolidated financial statements:
_______________ (a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years. Other Investments in Equity Securities During 2021, the Company made an investment in equity securities of $10,000 and, during the nine months ended October 2, 2022, recognized a gain of $2,107 as a result of an observable price change for a similar investment of the same issuer. During the nine months ended October 1, 2023, the Company recorded impairment charges of $10,389 for the difference between the estimated fair value and the carrying value of the investment.
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Long-Term Debt |
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Long-Term Debt | Long-Term Debt Long-term debt consisted of the following:
_______________ (a)Subsequent to October 1, 2023 through October 26, 2023, the Company repurchased $29,171 in principal of its Class A-2 senior secured notes for $24,935. (b)Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”). The fair value adjustment is being accreted and the related charge included in “Interest expense, net” until the debentures mature. During the nine months ended October 1, 2023, Wendy’s repurchased $39,266 in principal of its 7% debentures for $39,343. As a result, the Company recognized a loss on early extinguishment of debt of $1,585 during the nine months ended October 1, 2023. Subsequent to October 1, 2023 through October 26, 2023, the Company repurchased $1,164 in principal of its 7% debentures for $1,174.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy: •Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets. •Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. •Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
_______________ (a)The fair value of our other investments in equity securities is based on our review of information provided by the investment manager, which was based on observable price changes. (b)The fair values were based on quoted market prices in markets that are not considered active markets. The carrying amounts of cash, accounts payable and accrued expenses approximate fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable, net (both current and non-current) approximate fair value due to the effect of the related allowance for doubtful accounts. Our cash equivalents are the only financial assets measured and recorded at fair value on a recurring basis. Non-Recurring Fair Value Measurements Assets and liabilities remeasured to fair value on a non-recurring basis resulted in impairment that we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations. Total impairment losses may reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements, favorable lease assets and right-of-use assets) to fair value as a result of (1) the deterioration in operating performance of certain Company-operated restaurants and (2) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants, including any subsequent lease modifications. The fair values of long-lived assets held and used presented in the tables below represent the remaining carrying value and were estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future anticipated Company-operated restaurant performance. Total impairment losses may also include the impact of remeasuring long-lived assets held for sale. The fair values of long-lived assets held for sale presented in the tables below represent the remaining carrying value and were estimated based on current market values. See Note 8 for further information on impairment of our long-lived assets.
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Impairment of Long-Lived Assets |
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Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company records impairment charges as a result of (1) the deterioration in operating performance of certain Company-operated restaurants, (2) the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of Company-operated restaurants, including any subsequent lease modifications and (3) closing Company-operated restaurants and classifying such surplus properties as held for sale. The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:”
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Income Taxes |
9 Months Ended |
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Oct. 01, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended October 1, 2023 and October 2, 2022 was 25.5% and 26.9%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the three months ended October 1, 2023 primarily due to state income taxes, including discrete changes to state deferred income taxes. The Company’s effective tax rate for the nine months ended October 1, 2023 and October 2, 2022 was 25.8% and 26.6%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the nine months ended October 1, 2023 primarily due to state income taxes, including discrete changes to state deferred income taxes, and a one-time adjustment to our foreign deferred income taxes related to prior periods. There were no significant changes to the unrecognized tax benefits or related interest and penalties for the three and nine months ended October 1, 2023. During the next twelve months, we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $582 due to lapses of statutes of limitations. The current portion of refundable income taxes was $8,062 and $3,236 as of October 1, 2023 and January 1, 2023, respectively, and is included in “Accounts and notes receivable, net.” There were no long-term refundable income taxes as of October 1, 2023 and January 1, 2023.
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Net Income Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income Per Share | Net Income Per Share The calculation of basic and diluted net income per share was as follows:
Basic net income per share for the three and nine months ended October 1, 2023 and October 2, 2022 was computed by dividing net income amounts by the weighted average number of shares of common stock outstanding. Diluted net income per share was computed by dividing net income by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. We excluded potential common shares of 5,204 and 4,719 for the three and nine months ended October 1, 2023, respectively, and 4,298 and 4,377 for the three and nine months ended October 2, 2022, respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects.
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Stockholders' Equity |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity | Stockholders’ Equity Dividends During each of the first, second and third quarters of 2023, the Company paid dividends per share of $.25. During each of the first, second and third quarters of 2022, the Company paid dividends per share of $.125. Repurchases of Common Stock In January 2023, our Board of Directors authorized a repurchase program for up to $500,000 of our common stock through February 28, 2027, when and if market conditions warrant and to the extent legally permissible (the “January 2023 Authorization”). During the nine months ended October 1, 2023, the Company repurchased 6,730 shares under the January 2023 Authorization with an aggregate purchase price of $144,320, of which $2,001 was accrued as of October 1, 2023, and excluding excise tax of $1,293 and commissions of $94. As of October 1, 2023, the Company had $355,680 of availability remaining under the January 2023 Authorization. Subsequent to October 1, 2023 through October 26, 2023, the Company repurchased 1,232 shares under the January 2023 Authorization with an aggregate purchase price of $23,596, excluding applicable excise tax and commissions. In February 2022, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through February 28, 2023, when and if market conditions warranted and to the extent legally permissible (the “February 2022 Authorization”). In April 2022, the Company’s Board of Directors approved an increase of $150,000 to the February 2022 Authorization, resulting in an aggregate authorization of $250,000 that was set to expire on February 28, 2023. During the nine months ended October 2, 2022, the Company repurchased 2,759 shares under the February 2022 Authorization with an aggregate purchase price of $51,911, excluding commissions of $39. In connection with the January 2023 Authorization, the remaining portion of the February 2022 Authorization was canceled. In February 2020, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through February 28, 2021, when and if market conditions warranted and to the extent legally permissible (the “February 2020 Authorization”). In July 2020, the Company’s Board of Directors approved an extension of the February 2020 Authorization by one year, through February 28, 2022. In addition, the Board of Directors approved increases totaling $200,000 to the February 2020 Authorization, resulting in an aggregate authorization of $300,000 that continued to expire on February 28, 2022. In November 2021, the Company entered into an accelerated share repurchase agreement (the “2021 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the February 2020 Authorization. Under the 2021 ASR Agreement, the Company paid the financial institution an initial purchase price of $125,000 in cash and received an initial delivery of 4,910 shares of common stock, representing an estimated 85% of the total shares expected to be delivered under the 2021 ASR Agreement. In February 2022, the Company completed the 2021 ASR Agreement and received an additional 715 shares of common stock. The total number of shares of common stock ultimately purchased by the Company under the 2021 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2021 ASR Agreement, less an agreed upon discount. In total, 5,625 shares were delivered under the 2021 ASR Agreement at an average purchase price of $22.22 per share. With the completion of the 2021 ASR Agreement in February 2022 as described above, the Company completed the February 2020 Authorization. Accumulated Other Comprehensive Loss The following table provides a rollforward of accumulated other comprehensive loss, which is entirely comprised of foreign currency translation:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases, Company as Lessee | Leases Nature of Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. At October 1, 2023, Wendy’s and its franchisees operated 7,166 Wendy’s restaurants. Of the 415 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 159 restaurants, owned the building and held long-term land leases for 144 restaurants and held leases covering the land and building for 112 restaurants. Wendy’s also owned 488 and leased 1,186 properties that were either leased or subleased principally to franchisees. The Company also leases restaurant, office and transportation equipment. Company as Lessee The components of lease cost are as follows:
_______________ (a)Includes expenses for executory costs of $9,777 and $8,943 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,797 and $27,796 for the nine months ended October 1, 2023 and October 2, 2022, respectively, for which the Company is reimbursed by sublessees. (b)Includes $31,824 and $31,559 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $94,751 and $92,555 for the nine months ended October 1, 2023 and October 2, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,570 and $7,357 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $22,981 and $22,130 for the nine months ended October 1, 2023 and October 2, 2022, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
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Leases, Company as Lessor | Company as Lessor The components of lease income are as follows:
_______________ (a)Included in “Interest expense, net.” (b)Includes sublease income of $42,545 and $43,540 recognized during the three months ended October 1, 2023 and October 2, 2022, respectively, and $128,457 and $130,394 recognized during the nine months ended October 1, 2023 and October 2, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,811 and $8,947 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,704 and $27,732 for the nine months ended October 1, 2023 and October 2, 2022, respectively.
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Supplemental Cash Flow Information |
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Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | Supplemental Cash Flow Information The following table includes supplemental non-cash investing and financing activities:
The following table includes a reconciliation of cash, cash equivalents and restricted cash:
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Transactions with Related Parties |
9 Months Ended |
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Oct. 01, 2023 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties Except as described below, the Company did not have any significant changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K. TimWen Lease and Management Fee Payments A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen, which are then subleased to franchisees for the operation of Wendy’s/Tim Hortons combo units in Canada. Wendy’s paid TimWen $15,713 and $15,148 under these lease agreements during the nine months ended October 1, 2023 and October 2, 2022, respectively, which has been recorded to “Franchise rental expense.” In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $181 and $166 during the nine months ended October 1, 2023 and October 2, 2022, respectively, which has been included as a reduction to “General and administrative.” Transactions with Yellow Cab Certain family members and affiliates of Mr. Nelson Peltz, our Chairman, and Mr. Peter May, our Senior Vice Chairman, as well as Mr. Matthew Peltz, our Vice Chairman, hold indirect, minority ownership interests in Yellow Cab Holdings, LLC (“Yellow Cab”) and operating companies managed by Yellow Cab, a Wendy’s franchisee, that as of October 1, 2023 owned and operated 83 Wendy’s restaurants. During the nine months ended October 1, 2023 and October 2, 2022, the Company recognized $11,143 and $9,942, respectively, in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of October 1, 2023 and January 1, 2023, $1,116 and $1,125, respectively, was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.” Transactions with AMC In February 2023, Ms. Kristin Dolan, a director of the Company, was appointed as the Chief Executive Officer of AMC Networks Inc. (“AMC”). During the nine months ended October 1, 2023, the Company purchased approximately $1,800 of advertising time from a subsidiary of AMC. As of October 1, 2023, approximately $16 was due to AMC for advertising time, which is included in “Advertising funds restricted liabilities.”
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Guarantees and Other Commitments and Contingencies |
9 Months Ended |
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Oct. 01, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Other Commitments and Contingencies | Guarantees and Other Commitments and Contingencies Except as described below, the Company did not have any significant changes in guarantees and other commitments and contingencies during the current fiscal period since those reported in the Form 10-K. Refer to the Form 10-K for further information regarding the Company’s additional commitments and obligations. Franchisee Image Activation Incentive Programs To promote new restaurant development, Wendy’s has provided franchisees with certain incentive programs for qualifying new restaurants. In February 2023, Wendy’s announced a new restaurant development incentive program in the U.S. and Canada that provides for waivers of royalty, national advertising and technical assistance fees for up to the first three years of operation for qualifying new restaurants (referred to as the “Pacesetter” program). Wendy’s previously offered and will continue to offer a restaurant development incentive program that provides for reductions in royalty and national advertising fees for up to the first two years of operation for qualifying new restaurants (referred to as the “Groundbreaker” program). Wendy’s U.S. and Canadian franchisees may elect either the Pacesetter program or the Groundbreaker program when committing to new multi-unit development agreements or adding incremental commitments to existing development agreements. Wendy’s also provides franchisees with the option of an early 20-year or 25-year renewal of their franchise agreement upon completion of reimaging utilizing certain approved Image Activation reimage designs. Lease Guarantees Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $92,673 as of October 1, 2023. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of October 1, 2023. In the event of default by a franchise owner where Wendy’s is called upon to perform under its guarantee, Wendy’s has the ability to pursue repayment from the franchise owner. The liability recorded for our probable exposure associated with these lease guarantees was not material as of October 1, 2023. Letters of Credit As of October 1, 2023, the Company had outstanding letters of credit with various parties totaling $28,843. Substantially all of the outstanding letters of credit include amounts outstanding against the 2021-1 Variable Funding Senior Secured Notes, Class A-1. We do not expect any material loss to result from these letters of credit.
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Legal and Environmental Matters |
9 Months Ended |
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Oct. 01, 2023 | |
Loss Contingency [Abstract] | |
Legal and Environmental Matters | Legal and Environmental MattersThe Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when we determine it is probable that a liability has been incurred and the loss is reasonably estimable. The Company believes it has adequate accruals for all of our legal and environmental matters. We cannot estimate the aggregate possible range of loss for our existing litigation and claims due to various reasons, including, but not limited to, many proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur and significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period. |
Segment Information (Notes) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Revenues by segment are as follows:
The following table reconciles profit by segment to the Company’s consolidated income before income taxes:
_______________ (a)Wendy’s U.S. includes advertising funds expense of $2,779 and $8,101 for the three and nine months ended October 2, 2022, respectively, related to the Company’s funding of incremental advertising. (b)Wendy’s International includes advertising funds expense of $596 and $1,802 for the three and nine months ended October 1, 2023, respectively, and $1,002 and $2,924 for the three and nine months ended October 2, 2022, respectively, related to the Company’s funding of incremental advertising in Canada. In addition, Wendy’s International includes other international-related advertising surplus (deficit) of $535 and $(789) for the three and nine months ended October 1, 2023, respectively, and $538 and $(984) for the three and nine months ended October 2, 2022, respectively. (c)Includes corporate overhead costs, such as employee compensation and related benefits.
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New Accounting Standards |
9 Months Ended |
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Oct. 01, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting Standards New Accounting Standards Common-Control Lease Arrangements In March 2023, the Financial Accounting Standards Board (“FASB”) issued an update to amend certain lease accounting guidance that applies to arrangements between related parties under common control. The amendment requires a lessee in a common-control lease arrangement to amortize leasehold improvements that it owns over the useful life of the improvements to the common-control group, regardless of the lease term, if the lessee continues to control the use of the underlying asset through a lease. The standard is effective beginning with our 2024 fiscal year. The Company does not expect the guidance to have a material impact on our condensed consolidated financial statements. New Accounting Standards Adopted Reference Rate Reform In March 2020, the FASB issued guidance to provide temporary optional expedients and exceptions to current reference rate reform guidance to ease the financial reporting burdens related to the market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. During the nine months ended October 1, 2023, certain of the Company’s subsidiaries executed amendments to the 2021-1 Variable Funding Senior Secured Notes, Class A-1 and the U.S. advertising fund revolving line of credit to transition from LIBOR to the Secured Overnight Financing Rate (“SOFR”), plus any applicable margin. In connection with these contract amendments, the Company adopted the reference rate reform guidance during the second quarter of 2023. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Business Combinations In October 2021, the FASB issued an amendment to improve the accounting for revenue contracts with customers acquired in a business combination. The amendment requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with current revenue recognition guidance as if the acquirer had originated the contracts. The Company adopted this amendment during the first quarter of 2023. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.
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Revenue (Tables) |
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Revenue [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables disaggregate revenue by segment and source:
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Contract Balances, assets and liabilities | The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
_______________ (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)The current portion of deferred franchise fees is included in “Accrued expenses and other current liabilities” and the long-term portion of deferred franchise fees is included in “Deferred franchise fees” and totaled $10,526 and $89,363, respectively, as of October 1, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023.
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Contract Balances, deferred franchise fee rollforward | Significant changes in deferred franchise fees are as follows:
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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:
_______________ (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.
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System Optimization Gains, Net (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System Optimization | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System optimization gains, net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Disposition Activity | The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
_______________ (a)In addition to the proceeds noted herein, the Company received cash proceeds of $126 and $284 during the three and nine months ended October 2, 2022, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. (b)Net assets sold consisted primarily of equipment. (c)Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. (d)During the nine months ended October 1, 2023, the Company received net cash proceeds of $280 primarily from the sale of surplus and other properties. During the three and nine months ended October 2, 2022, the Company received net cash proceeds of $2,510 and $3,368, respectively, primarily from the sale of surplus and other properties.
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Reorganization and Realignment Costs (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following is a summary of the initiatives included in “Reorganization and realignment costs:”
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Organizational Redesign | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | The following is a summary of the costs recorded as a result of the Organizational Redesign Plan:
_______________ (a)Primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan.
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Schedule of Restructuring Reserve by Type of Cost | As of October 1, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities”. The table below presents a rollforward of our accruals for the Organizational Redesign Plan.
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Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Equity Method Investments and Other Investments in Equity Securities | The following is a summary of the carrying value of our investments:
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Schedule of Equity Method Investments | Presented below is activity related to our investment in TimWen included in our condensed consolidated financial statements:
_______________ (a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.
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Long-Term Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt | Long-term debt consisted of the following:
_______________ (a)Subsequent to October 1, 2023 through October 26, 2023, the Company repurchased $29,171 in principal of its Class A-2 senior secured notes for $24,935. (b)Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”). The fair value adjustment is being accreted and the related charge included in “Interest expense, net” until the debentures mature. During the nine months ended October 1, 2023, Wendy’s repurchased $39,266 in principal of its 7% debentures for $39,343. As a result, the Company recognized a loss on early extinguishment of debt of $1,585 during the nine months ended October 1, 2023. Subsequent to October 1, 2023 through October 26, 2023, the Company repurchased $1,164 in principal of its 7% debentures for $1,174.
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
_______________ (a)The fair value of our other investments in equity securities is based on our review of information provided by the investment manager, which was based on observable price changes. (b)The fair values were based on quoted market prices in markets that are not considered active markets.
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Fair value of assets and liabilities (other than cash and cash equivalents) measured at fair value on a nonrecurring basis |
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Impairment of Long-Lived Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Impairment Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:”
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Net Income Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income per share was as follows:
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Stockholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table provides a rollforward of accumulated other comprehensive loss, which is entirely comprised of foreign currency translation:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The components of lease cost are as follows:
_______________ (a)Includes expenses for executory costs of $9,777 and $8,943 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,797 and $27,796 for the nine months ended October 1, 2023 and October 2, 2022, respectively, for which the Company is reimbursed by sublessees. (b)Includes $31,824 and $31,559 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $94,751 and $92,555 for the nine months ended October 1, 2023 and October 2, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,570 and $7,357 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $22,981 and $22,130 for the nine months ended October 1, 2023 and October 2, 2022, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
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Lease, Income | The components of lease income are as follows:
_______________ (a)Included in “Interest expense, net.” (b)Includes sublease income of $42,545 and $43,540 recognized during the three months ended October 1, 2023 and October 2, 2022, respectively, and $128,457 and $130,394 recognized during the nine months ended October 1, 2023 and October 2, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,811 and $8,947 for the three months ended October 1, 2023 and October 2, 2022, respectively, and $29,704 and $27,732 for the nine months ended October 1, 2023 and October 2, 2022, respectively.
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Supplemental Cash Flow Information (Tables) |
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Oct. 01, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information | The following table includes supplemental non-cash investing and financing activities:
The following table includes a reconciliation of cash, cash equivalents and restricted cash:
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Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | Revenues by segment are as follows:
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Reconciliation of Profit from Segments to Consolidated | The following table reconciles profit by segment to the Company’s consolidated income before income taxes:
_______________ (a)Wendy’s U.S. includes advertising funds expense of $2,779 and $8,101 for the three and nine months ended October 2, 2022, respectively, related to the Company’s funding of incremental advertising. (b)Wendy’s International includes advertising funds expense of $596 and $1,802 for the three and nine months ended October 1, 2023, respectively, and $1,002 and $2,924 for the three and nine months ended October 2, 2022, respectively, related to the Company’s funding of incremental advertising in Canada. In addition, Wendy’s International includes other international-related advertising surplus (deficit) of $535 and $(789) for the three and nine months ended October 1, 2023, respectively, and $538 and $(984) for the three and nine months ended October 2, 2022, respectively. (c)Includes corporate overhead costs, such as employee compensation and related benefits.
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Revenue Contract Balances (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Jan. 01, 2023 |
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Contract balances | |||
Deferred franchise fees at beginning of period | $ 99,208 | $ 97,186 | |
Revenue recognized during the period | (9,016) | (7,193) | |
New deferrals due to cash received and other | 9,697 | 10,143 | |
Deferred franchise fees at end of period | 99,889 | $ 100,136 | |
Deferred franchise fees, noncurrent | 89,363 | $ 90,231 | |
Accounts and notes receivable, net | Short-term Contract with Customer | |||
Contract balances | |||
Receivables, Net, Current | 54,931 | 54,497 | |
Advertising funds restricted assets | Short-term Contract with Customer | |||
Contract balances | |||
Receivables, Net, Current | 66,676 | 70,422 | |
Accrued expenses and other current liabilities | |||
Contract balances | |||
Deferred franchise fees, current | 10,526 | 8,977 | |
Deferred franchise fees | |||
Contract balances | |||
Deferred franchise fees, noncurrent | $ 89,363 | $ 90,231 |
System Optimization Gains, Net Assets Held for Sale (Details) - USD ($) $ in Thousands |
Oct. 01, 2023 |
Jan. 01, 2023 |
---|---|---|
Other assets held for sale | ||
Long lived assets held for sale | ||
Assets held for sale | $ 1,320 | $ 1,661 |
Reorganization and Realignment Costs Summary (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
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Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 611 | $ 8 | $ 8,100 | $ 628 |
Organizational redesign | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | 579 | 0 | 7,986 | 0 |
Other reorganization and realignment plans | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 32 | $ 8 | $ 114 | $ 628 |
Reorganization and Realignment Costs Organizational Redesign Accrual Rollforward (Details) - Organizational Redesign - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Oct. 01, 2023 |
Oct. 01, 2023 |
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Restructuring Cost and Reserve | ||
Beginning balance | $ 0 | |
Charges | $ 427 | 6,882 |
Payments | (4,732) | |
Ending balance | 2,150 | 2,150 |
Severance and related employee costs | ||
Restructuring Cost and Reserve | ||
Beginning balance | 0 | |
Charges | 114 | 5,674 |
Payments | (3,524) | |
Ending balance | 2,150 | 2,150 |
Recruitment and relocation costs | ||
Restructuring Cost and Reserve | ||
Beginning balance | 0 | |
Charges | 140 | 304 |
Payments | (304) | |
Ending balance | 0 | 0 |
Third-party and other costs | ||
Restructuring Cost and Reserve | ||
Beginning balance | 0 | |
Charges | 173 | 904 |
Payments | (904) | |
Ending balance | $ 0 | $ 0 |
Investments Carrying Value of Investments (Details) - USD ($) $ in Thousands |
Oct. 01, 2023 |
Jan. 01, 2023 |
---|---|---|
Schedule of Investments | ||
Equity method investments | $ 32,723 | $ 33,921 |
Other investments in equity securities | 1,718 | 12,107 |
Investments | $ 34,441 | $ 46,028 |
Investments Other Investments in Equity Securities (Details) - Other investments in equity securities - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Jan. 02, 2022 |
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Payments for investments | $ 10,000 | ||
Recognized gain on investment, observable price change for a similar investment of same issuer | $ 2,107 | ||
Impairment charge recorded, difference between estimated fair value and carrying value | $ 10,389 |
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
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Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 59 | $ 206 | $ 513 | $ 2,682 |
Company-operated restaurants | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | 0 | 159 | 428 | 2,234 |
Restaurants leased or subleased to franchisees | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | 0 | 0 | 0 | 194 |
Surplus properties | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 59 | $ 47 | $ 85 | $ 254 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
Jan. 01, 2023 |
|
Effective Income Tax Rate | 25.50% | 26.90% | 25.80% | 26.60% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | |||
Significant changes to unrecognized tax benefits | $ 0 | $ 0 | |||
Significant changes to interest and penalties related to unrecognized tax benefits | 0 | 0 | |||
Reasonably possible decrease in unrecognized tax benefits | 582 | 582 | |||
Income Taxes Receivable, Current | 8,062 | 8,062 | $ 3,236 | ||
Income Taxes Receivable, Noncurrent | $ 0 | $ 0 | $ 0 |
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Oct. 02, 2022 |
Jul. 03, 2022 |
Apr. 03, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
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Earnings Per Share [Abstract] | ||||||||
Net income | $ 58,049 | $ 59,632 | $ 39,821 | $ 50,542 | $ 48,151 | $ 37,402 | $ 157,502 | $ 136,095 |
Weighted average basic shares outstanding | 208,834 | 212,805 | 210,668 | 214,032 | ||||
Dilutive effect of stock options and restricted shares | 1,768 | 1,796 | 2,185 | 1,971 | ||||
Weighted average diluted shares outstanding | 210,602 | 214,601 | 212,853 | 216,003 | ||||
Basic net income per share | $ 0.28 | $ 0.24 | $ 0.75 | $ 0.64 | ||||
Diluted net income per share | $ 0.28 | $ 0.24 | $ 0.74 | $ 0.63 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,204 | 4,298 | 4,719 | 4,377 |
Stockholders' Equity Dividends (Details) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Oct. 02, 2022 |
Jul. 03, 2022 |
Apr. 03, 2022 |
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Common Stock, Dividends, Per Share, Cash Paid | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.125 | $ 0.125 | $ 0.125 |
Stockholders' Equity Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Oct. 01, 2023 |
Jul. 02, 2023 |
Apr. 02, 2023 |
Oct. 02, 2022 |
Jul. 03, 2022 |
Apr. 03, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
|
Accumulated Other Comprehensive Loss | ||||||||
Balance at beginning of period | $ (64,176) | $ (48,200) | $ (64,176) | $ (48,200) | ||||
Foreign currency translation | $ (4,533) | $ 4,949 | $ 158 | $ (14,183) | $ (7,455) | $ 1,118 | 574 | (20,520) |
Balance at end of period | $ (63,602) | $ (68,720) | (63,602) | (68,720) | ||||
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Loss | ||||||||
Foreign currency translation | $ 574 | $ (20,520) |
Leases Lessee Lease Narrative (Details) |
Oct. 01, 2023
number_of_restaurants
|
---|---|
Lessee, Lease, Description | |
Number of restaurants | 7,166 |
Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 415 |
Land And Building - Company Owned | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 159 |
Building - Company Owned; Land - Leased | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 144 |
Land And Building - Leased | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 112 |
Leases Lessor Lease Narrative (Details) |
Oct. 01, 2023
number_of_restaurants
|
---|---|
Lessor, Lease, Description | |
Number of restaurants | 7,166 |
Land And Building - Company Owned | Franchised Units | |
Lessor, Lease, Description | |
Number of restaurants | 488 |
Land And Building - Leased | Franchised Units | |
Lessor, Lease, Description | |
Number of restaurants | 1,186 |
Leases Components of Lease Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
|
Lease, Cost | ||||
Amortization of finance lease assets | $ 4,111 | $ 4,053 | $ 12,232 | $ 12,223 |
Interest on finance lease liabilities | 10,664 | 10,717 | 32,157 | 32,055 |
Total finance lease cost | 14,775 | 14,770 | 44,389 | 44,278 |
Operating lease cost | 21,577 | 21,929 | 64,455 | 64,914 |
Variable lease cost | 16,889 | 16,367 | 50,489 | 47,626 |
Short-term lease cost | 1,466 | 1,116 | 4,433 | 3,954 |
Total operating lease cost | 39,932 | 39,412 | 119,377 | 116,494 |
Total lease cost | 54,707 | 54,182 | 163,766 | 160,772 |
Franchise rental expense | ||||
Lease, Cost | ||||
Total operating lease cost | 31,824 | 31,559 | 94,751 | 92,555 |
Cost of sales | ||||
Lease, Cost | ||||
Total operating lease cost | 7,570 | 7,357 | 22,981 | 22,130 |
Executory costs paid by lessee | ||||
Lease, Cost | ||||
Variable lease cost | $ 9,777 | $ 8,943 | $ 29,797 | $ 27,796 |
Leases Components of Lease Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
|
Lessor Lease Income | ||||
Sales-type leases, selling profit | $ 354 | $ 711 | $ 1,555 | $ 2,868 |
Sales-type and direct-financing leases, interest income | 7,853 | 7,784 | 23,583 | 23,277 |
Operating lease income | 40,567 | 42,351 | 123,352 | 127,839 |
Variable lease income | 17,000 | 16,112 | 50,055 | 47,105 |
Franchise rental income | 57,567 | 58,463 | 173,407 | 174,944 |
Sublease income | 42,545 | 43,540 | 128,457 | 130,394 |
Executory costs paid to lessor | ||||
Lessor Lease Income | ||||
Sublease income | $ 9,811 | $ 8,947 | $ 29,704 | $ 27,732 |
Supplemental Cash Flow Information Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
|
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract] | ||
Capital expenditures included in accounts payable | $ 10,856 | $ 7,232 |
Finance leases | $ 13,436 | $ 24,212 |
Supplemental Cash Flow Information Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands |
Oct. 01, 2023 |
Jan. 01, 2023 |
Oct. 02, 2022 |
Jan. 02, 2022 |
---|---|---|---|---|
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 598,025 | $ 745,889 | ||
Restricted cash | 36,727 | 35,203 | ||
Restricted cash, included in Advertising funds restricted assets | 38,125 | 50,709 | ||
Total cash, cash equivalents and restricted cash | $ 672,877 | $ 831,801 | $ 820,858 | $ 366,966 |
Guarantees and Other Commitments and Contingencies Franchisee Image Activation Programs (Details) |
9 Months Ended |
---|---|
Oct. 01, 2023 | |
Maximum | 2023 New Build Incentive Program | |
Other commitments | |
Years of reduction in royalty payment attributable to new builds | 3 years |
Maximum | 2021 New Build Incentive Program | |
Other commitments | |
Years of reduction in royalty payment attributable to new builds | 2 years |
Maximum | Remodel Incentive Program | |
Other commitments | |
Years of early franchise agreement renewal attributable to incentive programs | 25 years |
Minimum | Remodel Incentive Program | |
Other commitments | |
Years of early franchise agreement renewal attributable to incentive programs | 20 years |
Guarantees and Other Commitments and Contingencies Lease Guarantees (Details) $ in Thousands |
Oct. 01, 2023
USD ($)
|
---|---|
Property Lease Guarantee | |
Guarantor Obligations | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 92,673 |
Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands |
Oct. 01, 2023
USD ($)
|
---|---|
Guarantor Obligations | |
Letters of Credit Outstanding, Amount | $ 28,843 |
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Oct. 01, 2023 |
Oct. 02, 2022 |
Oct. 01, 2023 |
Oct. 02, 2022 |
|
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | $ 550,555 | $ 532,569 | $ 1,640,927 | $ 1,558,995 |
Wendy's U.S. | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | 457,240 | 445,934 | 1,366,981 | 1,303,685 |
Wendy's International | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | 35,167 | 27,547 | 97,162 | 77,916 |
Global Real Estate & Development | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | $ 58,148 | $ 59,088 | $ 176,784 | $ 177,394 |
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