Revenue (Tables)

6 Months Ended

Jun. 30, 2024

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended June 30, 2024
Sales at Company-operated restaurants	$	231,151	$	6,204	$	—	$	237,355
Franchise royalty revenue	117,997		18,321		—		136,318
Franchise fees	17,826		2,389		1,137		21,352
Franchise rental income	—		—		60,638		60,638
Advertising funds revenue	105,617		9,447		—		115,064
Total revenues	$	472,591	$	36,361	$	61,775	$	570,727

Three Months Ended July 2, 2023
Sales at Company-operated restaurants	$	234,862	$	5,826	$	—	$	240,688
Franchise royalty revenue	114,921		17,207		—		132,128
Franchise fees	17,461		1,395		2,064		20,920
Franchise rental income	—		—		58,033		58,033
Advertising funds revenue	101,509		8,287		—		109,796
Total revenues	$	468,753	$	32,715	$	60,097	$	561,565


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Six Months Ended June 30, 2024
Sales at Company-operated restaurants	$	450,619	$	12,059	$	—	$	462,678
Franchise royalty revenue	226,850		35,148		—		261,998
Franchise fees	35,652		4,278		2,242		42,172
Franchise rental income	—		—		118,624		118,624
Advertising funds revenue	202,317		17,691		—		220,008
Total revenues	$	915,438	$	69,176	$	120,866	$	1,105,480

Six Months Ended July 2, 2023
Sales at Company-operated restaurants	$	457,494	$	11,143	$	—	$	468,637
Franchise royalty revenue	221,260		33,018		—		254,278
Franchise fees	34,733		2,918		2,796		40,447
Franchise rental income	—		—		115,840		115,840
Advertising funds revenue	196,254		14,916		—		211,170
Total revenues	$	909,741	$	61,995	$	118,636	$	1,090,372

Contract Balances, assets and liabilities

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


	June 30, 2024 (a)		December 31, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	63,662	$	55,293
Receivables, which are included in “Advertising funds restricted assets”	77,075		76,838
Deferred franchise fees (c)	100,008		100,805

_______________

(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)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $10,954 and $89,054, respectively, as of June 30, 2024, and $10,673 and $90,132, respectively, as of December 31, 2023.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Six Months Ended
	June 30, 2024		July 2, 2023
Deferred franchise fees at beginning of period	$	100,805	$	99,208
Revenue recognized during the period	(6,051)		(6,591)
New deferrals due to cash received and other	5,254		7,622
Deferred franchise fees at end of period	$	100,008	$	100,239

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:


Estimate for fiscal year:
2024 (a)	$	7,650
2025	6,556
2026	6,418
2027	6,311
2028	6,192
Thereafter	66,881
	$	100,008

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2024, which includes development-related franchise fees expected to be recognized over a duration of one year or less.