Revenue

9 Months Ended

Sep. 29, 2024

Revenue [Abstract]

Revenue

Revenue

Disaggregation of Revenue

The following tables disaggregate revenue by segment and source:

	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended September 29, 2024
Sales at Company-operated restaurants	$	222,745	$	7,658	$	—	$	230,403
Franchise royalty revenue	114,379		18,222		—		132,601
Franchise fees	17,859		2,306		1,102		21,267
Franchise rental income	—		—		59,314		59,314
Advertising funds revenue	113,742		9,412		—		123,154
Total revenues	$	468,725	$	37,598	$	60,416	$	566,739
Three Months Ended October 1, 2023
Sales at Company-operated restaurants	$	227,674	$	7,047	$	—	$	234,721
Franchise royalty revenue	112,698		17,390		—		130,088
Franchise fees	17,079		1,597		581		19,257
Franchise rental income	—		—		57,567		57,567
Advertising funds revenue	99,789		9,133		—		108,922
Total revenues	$	457,240	$	35,167	$	58,148	$	550,555

	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Nine Months Ended September 29, 2024
Sales at Company-operated restaurants	$	673,364	$	19,717	$	—	$	693,081
Franchise royalty revenue	341,229		53,370		—		394,599
Franchise fees	53,511		6,584		3,344		63,439
Franchise rental income	—		—		177,938		177,938
Advertising funds revenue	316,059		27,103		—		343,162
Total revenues	$	1,384,163	$	106,774	$	181,282	$	1,672,219
Nine Months Ended October 1, 2023
Sales at Company-operated restaurants	$	685,168	$	18,190	$	—	$	703,358
Franchise royalty revenue	333,958		50,408		—		384,366
Franchise fees	51,812		4,515		3,377		59,704
Franchise rental income	—		—		173,407		173,407
Advertising funds revenue	296,043		24,049		—		320,092
Total revenues	$	1,366,981	$	97,162	$	176,784	$	1,640,927

Contract Balances

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

	September 29, 2024 (a)		December 31, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	54,814	$	55,293
Receivables, which are included in “Advertising funds restricted assets”	68,354		76,838
Deferred franchise fees (c)	100,754		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 $11,454 and $89,300, respectively, as of September 29, 2024, and $10,673 and $90,132, respectively, as of December 31, 2023.

Significant changes in deferred franchise fees are as follows:

	Nine Months Ended
	September 29, 2024		October 1, 2023
Deferred franchise fees at beginning of period	$	100,805	$	99,208
Revenue recognized during the period	(8,873)		(9,016)
New deferrals due to cash received and other	8,822		9,697
Deferred franchise fees at end of period	$	100,754	$	99,889

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)	$	6,427
2025	6,685
2026	6,546
2027	6,439
2028	6,320
Thereafter	68,337
	$	100,754

_______________

(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.