Revenue (Tables)

3 Months Ended

Mar. 29, 2026

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 29, 2026
Sales at Company-operated restaurants	$	219,295	$	6,202	$	—	$	225,497
Franchise royalty revenue	97,308		18,882		—		116,190
Franchise fees	28,283		2,775		647		31,705
Franchise rental income	—		—		58,904		58,904
Advertising funds revenue	99,273		9,068		—		108,341
Total revenues	$	444,159	$	36,927	$	59,551	$	540,637

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

Contract Balances, assets and liabilities

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


	March 29, 2026 (a)		December 28, 2025 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	71,918	$	59,060
Receivables, which are included in “Advertising funds restricted assets”	73,825		75,083
Deferred franchise fees (c)	94,185		98,496

_______________

(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 $9,759 and $84,426, respectively, as of March 29, 2026, and $10,540 and $87,956, respectively, as of December 28, 2025.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Three Months Ended
	March 29, 2026		March 30, 2025
Deferred franchise fees at beginning of period	$	98,496	$	99,411
Revenue recognized during the period	(4,832)		(2,345)
New deferrals due to cash received and other	521		1,935
Deferred franchise fees at end of period	$	94,185	$	99,001

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:
2026 (a)	$	9,759
2027	6,650
2028	6,492
2029	6,386
2030	6,283
Thereafter	58,615
	$	94,185

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2026, which includes development-related franchise fees expected to be recognized over a duration of one year or less.