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System Optimization Gains, Net
 12 Months Ended
Dec. 28, 2025
System optimization gains, net  
System Optimization Gains, Net Properties
Year End
December 28, 2025December 29, 2024
Land$386,231 $379,581 
Buildings and improvements541,240 534,054 
Leasehold improvements480,303 453,381 
Office, restaurant and transportation equipment395,510 362,312 
1,803,284 1,729,328 
Accumulated depreciation and amortization(865,489)(821,541)
$937,795 $907,787 

Depreciation and amortization expense related to properties was $80,061, $75,575 and $70,108 during 2025, 2024 and 2023, respectively.
System Optimization  
System optimization gains, net  
System Optimization Gains, Net System Optimization Gains, Net
The Company optimizes the Wendy’s system by facilitating Franchise Flips, evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees and, at times, closing certain underperforming restaurants, to further strengthen the franchisee base, support franchisee economics and drive new restaurant development. During 2025, 2024 and 2023, the Company facilitated one, 50 and 99 Franchise Flips, respectively. During 2025 and 2024, the Company completed the sale of five and three Company-operated restaurants to franchisees, respectively. No Company-operated restaurants were sold to franchisees during 2023. See Note 16 for further information regarding the Company’s acquisition of 35 franchise-operated restaurants during 2025.

Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs.” All other costs incurred related to facilitating Franchise Flips are recorded to “Franchise support and other costs.”

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
Year Ended
202520242023
Number of restaurants sold to franchisees5 3 — 
Proceeds from sales of restaurants$180 $1,808 $— 
Net assets sold (a)(169)(1,081)— 
Other(150)(1)— 
(139)726 — 
Post-closing adjustments on sales of restaurants (b)(16)694 858 
(Loss) gain on sales of restaurants, net(155)1,420 858 
Gain (loss) on sales of other assets, net (c)1,185 (201)22 
System optimization gains, net$1,030 $1,219 $880 
_______________

(a)Net assets sold during 2025 consisted primarily of equipment. Net assets sold during 2024 consisted primarily of land and equipment.

(b)2024 and 2023 include the recognition of deferred gains of $800 and $858, respectively, as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees.

(c)During 2025, 2024 and 2023, the Company received cash proceeds of $4,230, $3,138 and $2,115, respectively, primarily from the sale of surplus and other properties.

Assets Held for Sale

As of December 28, 2025 and December 29, 2024, the Company had assets held for sale of $3,696 and $2,833, respectively, primarily consisting of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.”