(2) Discontinued Operations

3 Months Ended

Apr. 01, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

On July 4, 2011, Wendy’s Restaurants completed the sale of 100% of the common stock of its then wholly owned subsidiary, Arby’s Restaurant Group, Inc. (“Arby’s”) (while indirectly retaining an 18.5% interest in Arby’s), as described in the Form 10-K. Information related to Arby’s has been reflected in the accompanying unaudited condensed consolidated financial statements as follows:

• Statement of operations - Arby’s loss from operations for the three months ended April 3, 2011 has been classified as discontinued operations.

• Statement of cash flows - Arby’s cash flows for the three months ended April 3, 2011 have been included in, and not separately reported from, our consolidated cash flows.

Our unaudited condensed consolidated statement of operations for the three months ended April 3, 2011 (prior to the sale of Arby’s) includes certain indirect corporate overhead costs in “General and administrative,” which for segment reporting purposes had previously been allocated to Arby’s. These indirect corporate overhead costs do not qualify for classification within discontinued operations, and therefore are included in “General and administrative” in continuing operations. Interest expense on Arby’s debt that was assumed by the buyer in the sale has been included in discontinued operations; however, interest expense on Wendy’s Restaurants’ credit agreement, which was not required to be repaid as a result of the sale, continues to be included in “Interest expense” in continuing operations.

During the three months ended April 1, 2012 and April 3, 2011, Wendy’s Restaurants incurred “Transaction related costs” of $612 and $1,279 (which are included in the total $1,884 recorded by The Wendy’s Company), respectively, resulting from the sale of Arby’s.

The following table details Arby’s revenues and loss from operations for the three months ended April 3, 2011, which have been reported in discontinued operations:

Revenues	$	265,359
Loss from discontinued operations, net of      income taxes:
Loss from discontinued operations before      income taxes	$	(2,193	)
Benefit from income taxes	1,080
Loss from discontinued operations	$	(1,113	)