Revenue (Tables)

12 Months Ended

Dec. 31, 2023

The following tables disaggregate revenue by segment and source for 2023, 2022 and 2021:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
2023
Sales at Company-operated restaurants	$	905,700	$	24,383	$	—	$	930,083
Franchise royalty revenue	444,653		67,506		—		512,159
Franchise fees	68,749		6,406		5,017		80,172
Franchise rental income	—		—		230,168		230,168
Advertising funds revenue	396,743		32,253		—		428,996
Total revenues	$	1,815,845	$	130,548	$	235,185	$	2,181,578

2022

Sales at Company-operated restaurants	$	882,684	$	13,901	$	—	$	896,585
Franchise royalty revenue	423,955		61,533		—		485,488
Franchise fees	63,112		5,542		4,093		72,747
Franchise rental income	—		—		234,465		234,465
Advertising funds revenue	380,491		25,729		—		406,220
Total revenues	$	1,750,242	$	106,705	$	238,558	$	2,095,505

2021
Sales at Company-operated restaurants	$	730,415	$	3,659	$	—	$	734,074
Franchise royalty revenue	407,317		53,392		—		460,709
Franchise fees	64,170		5,391		6,478		76,039
Franchise rental income	—		—		236,655		236,655
Advertising funds revenue	365,594		23,927		—		389,521
Total revenues	$	1,567,496	$	86,369	$	243,133	$	1,896,998

Contract Balances, assets and liabilities

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


	Year End
	December 31, 2023 (a)		January 1, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	55,293	$	54,497
Receivables, which are included in “Advertising funds restricted assets”	76,838		70,422
Deferred franchise fees (c)	100,805		99,208

_______________

(a)Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s consolidated statements of operations.

(b)Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $10,673 and $90,132, respectively, as of December 31, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Year Ended
	2023		2022		2021
Deferred franchise fees at beginning of period	$	99,208	$	97,186	$	97,785
Revenue recognized during the period	(12,242)		(11,567)		(19,838)
New deferrals due to cash received and other	13,839		13,589		19,239
Deferred franchise fees at end of period	$	100,805	$	99,208	$	97,186

Anticipated Future Recognition of Deferred Franchise Fee

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:


Estimate for fiscal year:
2024 (a)	$	10,673
2025	6,483
2026	6,354
2027	6,255
2028	6,136
Thereafter	64,904
	$	100,805

_______________

(a)Includes development-related franchise fees expected to be recognized over a duration of one year or less.