Goodwill And Other Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill activity for 2023 and 2022 was as follows:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Balance at January 2, 2022:
Goodwill, gross	$	620,863	$	41,264	$	122,548	$	784,675
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	620,863		31,867		122,548		775,278
Changes in goodwill:
Restaurant acquisitions (b)	(260)		—		—		(260)
Restaurant dispositions	—		—		—		—
Currency translation adjustment and other	—		(1,930)		—		(1,930)
Balance at January 1, 2023:
Goodwill, gross	620,603		39,334		122,548		782,485
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	620,603		29,937		122,548		773,088
Changes in goodwill:
Restaurant acquisitions	—		—		—		—
Restaurant dispositions	—		—		—		—
Currency translation adjustment and other	—		639		—		639
Balance at December 31, 2023:
Goodwill, gross	620,603		39,973		122,548		783,124
Accumulated impairment losses (a)	—		(9,397)		—		(9,397)
Goodwill, net	$	620,603	$	30,576	$	122,548	$	773,727

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(a)Accumulated impairment losses resulted from the full impairment of goodwill of the Wendy’s international franchise restaurants during the fourth quarter of 2013.

(b)Includes an adjustment to the fair value of net assets acquired in connection with the acquisition of franchised restaurants during 2021. See Note 3 for further information.

The following is a summary of the components of other intangible assets and the related amortization expense:


	Year End
	December 31, 2023						January 1, 2023
	Cost		Accumulated Amortization		Net		Cost		Accumulated Amortization		Net
Indefinite-lived:
Trademarks	$	903,000	$	—	$	903,000	$	903,000	$	—	$	903,000
Definite-lived:
Franchise agreements	348,657		(253,398)		95,259		348,293		(236,536)		111,757
Favorable leases	152,558		(75,502)		77,056		154,048		(67,928)		86,120
Reacquired rights under franchise agreements	90,509		(17,157)		73,352		90,509		(10,536)		79,973
Software	286,269		(215,807)		70,462		263,282		(195,332)		67,950
	$	1,780,993	$	(561,864)	$	1,219,129	$	1,759,132	$	(510,332)	$	1,248,800


Aggregate amortization expense:
Actual for fiscal year:
2021	$	55,236
2022	58,690
2023	59,356
Estimate for fiscal year:
2024	$	55,722
2025	48,132
2026	42,306
2027	37,711
2028	32,687
Thereafter	99,571
	$	316,129