Investments

12 Months Ended

Dec. 29, 2024

The following is a summary of the carrying value of our investments:


	Year End
	December 29, 2024		December 31, 2023
Equity method investments	$	27,288	$	32,727
Other investments in equity securities	1,718		1,718
	$	29,006	$	34,445

Equity Method Investments

Wendy’s has a 50% share in the TimWen real estate joint venture and a 20% share in the Brazil JV, both of which are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.”

A wholly-owned subsidiary of Wendy’s entered into the Brazil JV during the second quarter of 2015 for the operation of Wendy’s restaurants in Brazil. Wendy’s, Starboard International Holdings B.V. and Infinity Holding E Participações Ltda. contributed $1, $2 and $2, respectively, each receiving proportionate equity interests of 20%, 40% and 40%, respectively. The Brazil JV ceased operations in 2021 and no income or loss was recorded during 2024, 2023 and 2022. A wholly-owned subsidiary of Wendy’s had receivables outstanding related to the Brazil JV totaling $5,837 and $6,837 as of December 29, 2024 and December 31, 2023, respectively. The total receivables outstanding as of December 29, 2024 were due in 2024. As of December 29, 2024 and December 31, 2023, the Company had reserves of $2,149 and $1,149, respectively, on the receivables related to the Brazil JV. The Company is currently pursuing collection of certain of the past due amounts. See Note 2 for further information.

The carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by $10,575 and $14,086 as of December 29, 2024 and December 31, 2023, respectively, primarily due to purchase price adjustments from the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”).

Presented below is activity related to our investment in TimWen included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended December 29, 2024, December 31, 2023 and January 1, 2023.


	Year Ended
	2024		2023		2022
Balance at beginning of period	$	32,727	$	33,921	$	39,870

Equity in earnings for the period	14,084		13,493		12,267
Amortization of purchase price adjustments (a)	(2,477)		(2,674)		(2,845)
	11,607		10,819		9,422
Distributions received	(14,408)		(12,901)		(12,612)
Foreign currency translation adjustment included in “Other comprehensive (loss) income”	(2,638)		888		(2,759)
Balance at end of period	$	27,288	$	32,727	$	33,921

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(a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.

Other Investments in Equity Securities

During 2021, the Company made an investment in equity securities of $10,000. During the year ended January 1, 2023, the Company recognized a gain of $2,107 as a result of an observable price change for a similar investment of the same issuer. During the year ended December 31, 2023, the Company recorded impairment charges of $10,389 for the difference between the estimated fair value and the carrying value of the investment.