(2) Discontinued Operations

6 Months Ended

Jul. 01, 2012

Discontinued Operations [Abstract]

Discontinued Operations

Discontinued Operations

On July 4, 2011, Wendy’s Restaurants, LLC (“Wendy’s Restaurants”), a direct 100% owned subsidiary holding company of the Company, 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:

• Statements of operations - Arby’s income from operations for the three months and six months ended July 3, 2011 have been classified as discontinued operations.

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

Our unaudited condensed consolidated statements of operations for the three months and six months ended July 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, continued to be included in “Interest expense” in continuing operations.

We incurred “Transaction related costs” resulting from the sale of Arby’s of $562 and $1,174 during the three and six months ended July 1, 2012, respectively, and $5,039 and $6,923 during the three and six months ended July 3, 2011, respectively.

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

	Three Months Ended July 3, 2011			Six Months Ended July 3, 2011
Revenues	$	281,094		$	546,453
Income from discontinued operations, net of      income taxes:
Income from discontinued operations before      income taxes	$	6,472		$	4,279
Provision for income taxes	(2,800		)	(1,720		)
	3,672			2,559
Loss on disposal of discontinued operations,      net of income tax benefit	(3,780		)	(3,780		)
Net loss from discontinued operations	$	(108	)	$	(1,221	)