Revenue (Tables)

3 Months Ended

Mar. 30, 2025

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended March 30, 2025
Sales at Company-operated restaurants	$	212,744	$	6,766	$	—	$	219,510
Franchise royalty revenue	104,406		17,269		—		121,675
Franchise fees	20,704		2,086		683		23,473
Franchise rental income	—		—		58,454		58,454
Advertising funds revenue	91,760		8,600		—		100,360
Total revenues	$	429,614	$	34,721	$	59,137	$	523,472

Three Months Ended March 31, 2024
Sales at Company-operated restaurants	$	219,468	$	5,855	$	—	$	225,323
Franchise royalty revenue	108,853		16,827		—		125,680
Franchise fees	17,826		1,889		1,105		20,820
Franchise rental income	—		—		57,986		57,986
Advertising funds revenue	96,700		8,244		—		104,944
Total revenues	$	442,847	$	32,815	$	59,091	$	534,753

Contract Balances, assets and liabilities

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


	March 30, 2025 (a)		December 29, 2024 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	60,870	$	55,601
Receivables, which are included in “Advertising funds restricted assets”	65,677		73,223
Deferred franchise fees (c)	99,001		99,411

_______________

(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 $10,944 and $88,057, respectively, as of March 30, 2025, and $11,024 and $88,387, respectively, as of December 29, 2024.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Three Months Ended
	March 30, 2025		March 31, 2024
Deferred franchise fees at beginning of period	$	99,411	$	100,805
Revenue recognized during the period	(2,345)		(2,804)
New deferrals due to cash received and other	1,935		2,263
Deferred franchise fees at end of period	$	99,001	$	100,264

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)	$	9,262
2026	6,681
2027	6,553
2028	6,423
2029	6,321
Thereafter	63,761
	$	99,001

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2025, which includes development-related franchise fees expected to be recognized over a duration of one year or less.