Investments

9 Months Ended

Oct. 01, 2023

The following is a summary of the carrying value of our investments:


	October 1, 2023		January 1, 2023
Equity method investments	$	32,723	$	33,921
Other investments in equity securities	1,718		12,107
	$	34,441	$	46,028

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:


	Nine Months Ended
	October 1, 2023		October 2, 2022
Balance at beginning of period	$	33,921	$	39,870

Equity in earnings for the period	10,012		9,091
Amortization of purchase price adjustments (a)	(2,051)		(2,163)
	7,961		6,928
Distributions received	(9,310)		(10,396)
Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other	151		(3,027)
Balance at end of period	$	32,723	$	33,375

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(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.