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Revenue (Notes)
 12 Months Ended
Dec. 29, 2024
Revenue [Abstract]  
Revenue Revenue
Nature of Goods and Services

The Company generates revenues from sales at Company-operated restaurants and earns royalties, fees and rental income from franchised restaurants. Revenues are recognized upon delivery of food to the customer at Company-operated restaurants or upon the fulfillment of terms outlined in the franchise agreement for franchised restaurants. The franchise agreement provides the franchisee the right to construct, own and operate a Wendy’s restaurant upon a site accepted by Wendy’s and to use the Wendy’s system in connection with the operation of the restaurant at that site. The franchise agreement generally provides for a 20-year term and a 10-year renewal subject to certain conditions. The initial term may be extended up to 25 years at the franchisee’s option.

The franchise agreement requires that the franchisee pay a royalty based on a percentage of sales at the franchised restaurant, as well as make contributions to the Advertising Funds based on a percentage of sales. Wendy’s may offer development incentive programs from time to time that provide for a discount or lesser royalty amount or Advertising Fund contribution for a limited period of time. The agreement also typically requires that the franchisee pay Wendy’s a technical assistance fee. The technical assistance fee is used to defray some of the costs to Wendy’s for start-up and transitional services related to new and existing franchisees in the development and opening of new restaurants or acquiring Company-operated restaurants. The franchise agreement also requires that the franchisee pay an annual fee for technology services. The technology fee is a flat fee dependent on each restaurant’s sales.

Wendy’s also enters into development agreements with certain franchisees. The development agreement generally provides the franchisee with the right to develop a specified number of new Wendy’s restaurants using Wendy’s current design standards and specifications within a stated, non-exclusive territory for a specified period, subject to the franchisee meeting interim new restaurant development requirements.

Wendy’s owns and leases sites from third parties, which it leases and/or subleases to franchisees. Noncancelable lease terms are generally initially between 15 and 20 years and, in most cases, provide for rent escalations and renewal options. The initial lease term for properties leased or subleased to franchisees is generally set to be coterminous with the initial 20-year term of the related franchise agreement and any renewal term is coterminous with the 10-year renewal term of the related franchise agreement.
Royalties and contributions to the Advertising Funds are generally due within the month subsequent to which the revenue was generated through sales at the franchised restaurant. Technical assistance fees and renewal fees are generally due upon execution of the related franchise agreement. Annual technology fees are due in quarterly installments. Rental income is due in accordance with the terms of each lease, which is generally at the beginning of each month.

Disaggregation of Revenue

The following tables disaggregate revenue by segment and source for 2024, 2023 and 2022:
Wendy’s U.S.Wendy’s InternationalGlobal Real Estate & DevelopmentTotal
2024
Sales at Company-operated restaurants$898,886 $27,019 $— $925,905 
Franchise royalty revenue456,648 71,740 — 528,388 
Franchise fees82,703 9,347 5,564 97,614 
Franchise rental income— — 236,493 236,493 
Advertising funds revenue421,508 36,584 — 458,092 
Total revenues$1,859,745 $144,690 $242,057 $2,246,492 
2023
Sales at Company-operated restaurants$905,700 $24,383 $— $930,083 
Franchise royalty revenue444,653 67,506 — 512,159 
Franchise fees68,749 6,406 5,017 80,172 
Franchise rental income— — 230,168 230,168 
Advertising funds revenue396,743 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 revenue423,955 61,533 — 485,488 
Franchise fees63,112 5,542 4,093 72,747 
Franchise rental income— — 234,465 234,465 
Advertising funds revenue380,491 25,729 — 406,220 
Total revenues$1,750,242 $106,705 $238,558 $2,095,505 

Contract Balances

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
Year End
December 29,
2024 (a)		December 31,
2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)
$55,601 $55,293 
Receivables, which are included in “Advertising funds restricted assets”
73,223 76,838 
Deferred franchise fees (c)99,411 100,805 
_______________
(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 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 $11,024 and $88,387, respectively, as of December 29, 2024, and $10,673 and $90,132, respectively, as of December 31, 2023.

Significant changes in deferred franchise fees are as follows:
Year Ended
202420232022
Deferred franchise fees at beginning of period$100,805 $99,208 $97,186 
Revenue recognized during the period
(12,706)(12,242)(11,567)
New deferrals due to cash received and other11,312 13,839 13,589 
Deferred franchise fees at end of period$99,411 $100,805 $99,208 

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:
2025 (a)$11,024 
20266,576 
20276,459 
20286,332 
20296,233 
Thereafter62,787 
$99,411 
_______________

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