Segment Information (Notes)

9 Months Ended

Sep. 29, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Revenues by segment are as follows:

	Three Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Wendy’s U.S.	$	468,725	$	457,240	$	1,384,163	$	1,366,981
Wendy’s International	37,598		35,167		106,774		97,162
Global Real Estate & Development	60,416		58,148		181,282		176,784
Total revenues	$	566,739	$	550,555	$	1,672,219	$	1,640,927

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

	Three Months Ended				Nine Months Ended
	September 29, 2024		October 1, 2023		September 29, 2024		October 1, 2023
Wendy’s U.S. (a)	$	129,790	$	134,887	$	392,323	$	403,064
Wendy’s International (b)	11,046		10,831		32,411		26,808
Global Real Estate & Development	27,237		24,418		79,480		76,020
Total segment profit	168,073		170,136		$	504,214	$	505,892
Unallocated franchise support and other costs	(900)		(29)		(1,117)		(6)
Advertising funds deficit	190		1,088		651		3,509
Unallocated general and administrative (c)	(32,443)		(30,962)		(98,289)		(96,776)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(36,996)		(34,288)		(110,006)		(101,258)
Amortization of cloud computing arrangements	(3,576)		(3,844)		(10,637)		(7,692)
System optimization gains, net	420		120		573		119
Reorganization and realignment costs	(354)		(611)		(8,479)		(8,100)
Impairment of long-lived assets	(178)		(59)		(2,873)		(513)
Unallocated other operating income, net	439		52		1,301		180
Interest expense, net	(31,270)		(30,957)		(92,800)		(93,798)
Loss on early extinguishment of debt	—		(319)		—		(1,585)
Investment income (loss), net	—		—		11		(10,389)
Other income, net	6,246		7,637		19,382		22,546
Income before income taxes	$	69,651	$	77,964	$	201,931	$	212,129

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(a)Wendy’s U.S. includes advertising funds expense of $5,977 and $13,386 for the three and nine months ended September 29, 2024 related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising funds expense of $622 and $1,387 for the three and nine months ended September 29, 2024, respectively, and $596 and $1,802 for the three and nine months ended October 1, 2023, respectively, related to the Company’s funding of incremental advertising in Canada. In addition, Wendy’s International includes other international-related advertising (deficit) surplus of $(170) and $(640) for the three and nine months ended September 29, 2024, respectively, and $535 and $(789) for the three and nine months ended October 1, 2023, respectively.

(c)Includes corporate overhead costs, such as employee compensation and related benefits.