Segment Information (Tables)

9 Months Ended

Oct. 01, 2023

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Revenues by segment are as follows:

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Wendy’s U.S.	$	457,240	$	445,934	$	1,366,981	$	1,303,685
Wendy’s International	35,167		27,547		97,162		77,916
Global Real Estate & Development	58,148		59,088		176,784		177,394
Total revenues	$	550,555	$	532,569	$	1,640,927	$	1,558,995

Reconciliation of Profit from Segments to Consolidated

The following table reconciles profit by segment to the Company’s consolidated income before income taxes:

	Three Months Ended				Nine Months Ended
	October 1, 2023		October 2, 2022		October 1, 2023		October 2, 2022
Wendy’s U.S. (a)	$	134,887	$	123,696	$	403,064	$	355,519
Wendy’s International (b)	10,831		8,560		26,808		23,363
Global Real Estate & Development	24,418		25,905		76,020		80,795
Total segment profit	170,136		158,161		$	505,892	$	459,677
Unallocated franchise support and other costs	(29)		(756)		(6)		(750)
Advertising funds surplus (deficit)	1,088		(1,441)		3,509		(4,059)
Unallocated general and administrative (c)	(30,962)		(31,517)		(96,776)		(93,511)
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)
Unallocated other operating income, net	52		8,590		180		8,911
Interest expense, net	(30,957)		(31,916)		(93,798)		(90,406)
Loss on early extinguishment of debt	(319)		—		(1,585)		—
Investment (loss) income, net	—		—		(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

_______________

(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.