Debt and Equity

Debt

The Wendy’s Restaurants senior secured term loan facility (the “Term Loan”), which is part of the credit agreement entered into in May 2010 (the “Credit Agreement”) and is further described in the Form 10-K, requires prepayments of principal amounts resulting from certain events and on an annual basis from Wendy’s Restaurants excess cash flow as defined under the Term Loan. An excess cash flow payment for fiscal 2010 of $24,874 was paid in the first quarter of 2011. An excess cash flow payment was not required for fiscal 2011.

See Note 14 for information related to a proposed credit facility that will replace the current Term Loan and revolving credit arrangement and the related anticipated redemption and repurchase of $565,000 principal amount of Senior Notes issued by Wendy’s Restaurants in June 2009 (the “Senior Notes”).

(The Wendy’s Company)

The Wendy’s Company’s aircraft financing facility, as further described in the Form 10-K, includes a requirement that the outstanding principal balance be no more than 85% of the appraised value of the aircraft. During the first quarter of 2012, the Company made a $3,911 prepayment on the loan to comply with this provision. See Note 6 for information regarding impairment charges related to this aircraft.

Stockholders’ Equity

(The Wendy’s Company)

The following is a summary of the changes in stockholders’ equity:



	Three Months Ended
	April 1, 2012			April 3, 2011
Balance, beginning of year	$	1,996,069		$	2,163,174
Comprehensive income	16,875			6,194
Share-based compensation	2,597			3,241
Exercises of stock options	654			2,838
Dividends paid	(7,795		)	(8,374		)
Other	(1,059		)	40
Balance, end of the period	$	2,007,341		$	2,167,113

Invested Equity

(Wendy’s Restaurants)

The following is a summary of the changes in invested equity:



	Three Months Ended
	April 1, 2012		April 3, 2011
Balance, beginning of year	$	1,799,664	$	1,776,630
Comprehensive income	4,015		8,619
Share-based compensation	2,356		2,999
Balance, end of the period	$	1,806,035	$	1,788,248