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Long-Term Debt Schedule of Long Term Debt (Details)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended 7 Months Ended 12 Months Ended 7 Months Ended 1 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 12 Months Ended
Dec. 29, 2013
USD ($)
Jun. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Jul. 01, 2012
USD ($)
Dec. 29, 2013
USD ($)
Dec. 30, 2012
USD ($)
Jan. 01, 2012
USD ($)
Dec. 29, 2013
Term A Loan, 2018 [Member]
Dec. 29, 2013
Term A Loan, 2018 [Member]
Interest Rate Swap [Member]
USD ($)
Dec. 29, 2013
Term A Loan, 2018 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 29, 2013
Term A Loan, 2018 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Dec. 29, 2013
Term B Loan, 2019 [Member]
Dec. 29, 2013
Term B Loan, 2019 [Member]
Interest Rate Swap [Member]
USD ($)
Dec. 29, 2013
Term B Loan, 2019 [Member]
London Interbank Offered Rate (LIBOR) [Member]
Oct. 24, 2013
6.20% Senior Notes [Member]
Sep. 30, 2008
6.20% Senior Notes [Member]
Oct. 24, 2013
6.20% Senior Notes [Member]
Interest Rate Swap [Member]
USD ($)
Dec. 29, 2013
Letter of Credit [Member]
USD ($)
Jun. 30, 2013
Term Loan, 2012 [Member]
USD ($)
Dec. 30, 2012
Term Loan, 2012 [Member]
Interest Expense [Member]
USD ($)
May 15, 2012
Restated Credit Agreement, Revolver [Member]
Sep. 24, 2013
Incremental Term Loans [Member]
USD ($)
Dec. 29, 2013
Collateral Supporting Letters of Credit [Member]
USD ($)
Dec. 29, 2013
Term Loan, 2013 [Member]
USD ($)
Dec. 29, 2013
Term Loan, 2013 [Member]
Interest Expense [Member]
USD ($)
Sep. 30, 2012
Senior Notes, 10.0% [Member]
Jul. 16, 2012
Senior Notes, 10.0% [Member]
USD ($)
May 15, 2012
Senior Notes, 10.0% [Member]
USD ($)
Dec. 29, 2013
Letter of Credit [Member]
Credit Agreement, Revolver [Member]
May 15, 2012
Letter of Credit [Member]
Credit Agreement, Revolver [Member]
USD ($)
May 16, 2013
Letter of Credit [Member]
Restated Credit Agreement, Revolver [Member]
USD ($)
Dec. 29, 2013
Unsecured Debt [Member]
6.20% Senior Notes [Member]
USD ($)
Dec. 30, 2012
Unsecured Debt [Member]
6.20% Senior Notes [Member]
USD ($)
Dec. 29, 2013
Unsecured Debt [Member]
Debentures, 7% [Member]
USD ($)
Dec. 30, 2012
Unsecured Debt [Member]
Debentures, 7% [Member]
USD ($)
Sep. 30, 2008
Unsecured Debt [Member]
Debentures, 7% [Member]
USD ($)
Dec. 29, 2013
Capital Lease Obligations [Member]
USD ($)
Dec. 30, 2012
Capital Lease Obligations [Member]
USD ($)
Dec. 29, 2013
Secured Debt [Member]
Term A Loan, 2018 [Member]
USD ($)
May 16, 2013
Secured Debt [Member]
Term A Loan, 2018 [Member]
USD ($)
Dec. 30, 2012
Secured Debt [Member]
Term A Loan, 2018 [Member]
USD ($)
Dec. 29, 2013
Secured Debt [Member]
Term B Loan, 2019 [Member]
USD ($)
May 16, 2013
Secured Debt [Member]
Term B Loan, 2019 [Member]
USD ($)
Dec. 30, 2012
Secured Debt [Member]
Term B Loan, 2019 [Member]
USD ($)
Dec. 29, 2013
Secured Debt [Member]
Other Debt Obligations [Member]
USD ($)
Dec. 30, 2012
Secured Debt [Member]
Other Debt Obligations [Member]
USD ($)
May 16, 2013
Secured Debt [Member]
Revolving Credit Facility [Member]
USD ($)
May 15, 2012
Secured Debt [Member]
Term Loan, 2012 [Member]
USD ($)
May 24, 2010
Secured Debt [Member]
Term Loan, 2010 [Member]
USD ($)
Oct. 24, 2013
Secured Debt [Member]
Incremental Term Loans [Member]
USD ($)
May 16, 2013
Revolving Credit Facility [Member]
Restated Credit Agreement, Revolver [Member]
USD ($)
Dec. 29, 2013
Canadian Subsidiary [Member]
CAD
Debt Instrument [Line Items]                                                                                                        
Debt and Capital Lease Obligations $ 1,463,828       $ 1,463,828 $ 1,457,562                                                   $ 0 [1] $ 225,940 [1] $ 84,666 [2] $ 83,496 [2]   $ 40,732 $ 32,594 $ 570,625 [1]   $ 0 [1] $ 767,452 [1]   $ 1,114,826 [1] $ 353 $ 706            
Less amounts payable within one year (38,543)       (38,543) (12,911)                                                                                            
Long-term debt 1,425,285       1,425,285 1,444,651                                                                                            
Issuance Amount, Percent of Principal                                                                                               99.00%        
Original Issue Discount, Percentage                                                                                               1.00%        
Long-term Debt                                                                                               1,113,750        
Debt Instrument, Unamortized Discount                                                                                               11,250        
Deferred Finance Costs, Noncurrent, Gross                                       15,566         7,961                                                      
Debt Instrument, Face Amount                                                                       100,000       350,000     769,375         1,125,000 650,000 225,000    
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage                                                         0.50%                                              
Debt Instrument, Basis Spread on Variable Rate                   2.25%       2.50%                                                                            
Debt Instrument, Description of Variable Rate Basis                     Eurodollar Rate                                                                                  
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum                           0.75%                                                                            
Line of Credit Facility, Maximum Borrowing Capacity                                                           70,000 40,000                               200,000         6,000
Loss on early extinguishment of debt 7,544 21,019 49,881 25,195 28,563 75,076 0                       21,019         7,544                                                        
Uncommitted Available Increase in Borrowing Capacity                                                                                                     275,000  
Foreign Subsidiary Stock Securing Debt, Percentage                                         65.00%                                                              
Debt Instrument, Unused Borrowing Capacity, Amount                                           225,000                                                            
Letters of Credit Outstanding, Amount                                   18,829         18,593                                                          
Debt Instrument, Interest Rate at Period End               2.419%       3.25%                                                                                
Debt Instrument, Interest Rate, Stated Percentage                               6.20%                       10.00%                                                
Debt Instrument, Redemption Price, Percentage                             103.80%                     107.50%                                                    
Derivative, Notional Amount                 350,000       100,000       225,000                                                                      
Debt Instrument, Redemption Amount                                                     440,775                                                  
Debt Instrument, Repurchase Amount                                                       $ 124,225                                                
Debt Instrument, Repurchase Price, Percentage                                                       108.125%                                                
Debt Instrument, Interest Rate, Effective Percentage                                                                       8.60%                                
[1] On May 15, 2012, Wendy’s entered into a Credit Agreement, as amended (the “Credit Agreement”) which included, among other instruments, a senior secured term loan facility of $1,125,000 (“Term B Loans”). The Term B Loans were issued at 99.0% of the principal amount, representing an original issue discount of 1.0% resulting in net proceeds of $1,113,750. The discount of $11,250 was accreted and the related charge included in “Interest expense” through the subsequent refinancing described below. During the year ended December 30, 2012, Wendy’s incurred $15,566 in costs related to the Credit Agreement, which were amortized to “Interest expense” through the subsequent refinancing described below utilizing the effective interest rate method. The Credit Agreement replaced the $650,000 credit agreement and the amended senior secured term loan (the “2010 Term Loan”) executed in 2010. On May 16, 2013, Wendy’s amended and restated the Credit Agreement (the “Restated Credit Agreement”). The Restated Credit Agreement is comprised of (1) a $350,000 senior secured term loan facility (“Term A Loans”) which will mature on May 15, 2018 and bears interest at the Eurodollar Rate (as defined in the Restated Credit Agreement) plus 2.25%, (2) $769,375 Term B Loans which will mature on May 15, 2019 and bear interest at the Eurodollar Rate plus 2.50% with a floor of 0.75% and (3) a $200,000 senior secured revolving credit facility which will mature on May 15, 2018. The proceeds from the Term A Loans were used to refinance a portion of our existing Term B Loans. As a result of this refinancing, Wendy’s incurred a loss on the early extinguishment of debt of $21,019 during the second quarter of 2013 which consisted of the write-off of the unaccreted discount on Term B Loans and the deferred costs associated with the Credit Agreement, as illustrated in the table below. The Restated Credit Agreement also contains provisions for an uncommitted increase of up to $275,000 principal amount of the Term B Loans subject to the satisfaction of certain conditions. The revolving credit facility includes a sub-facility for the issuance of up to $70,000 of letters of credit and allows for liens in the form of cash collateralized letters of credit up to an additional $40,000. The obligations under the Restated Credit Agreement are secured by substantially all of the non-real estate assets and stock of Wendy’s and its domestic subsidiaries (other than certain unrestricted subsidiaries) and 65% of the stock of certain of its foreign subsidiaries in each case subject to certain limitations and exceptions.On September 24, 2013, Wendy’s entered into an amendment (the “Amendment”) to its Restated Credit Agreement to borrow an aggregate principal amount of up to $225,000 of additional Term A Loans (“Incremental Term Loans”). The Amendment does not contain any material changes to existing covenants or other terms of the Restated Credit Agreement, except as described in the preceding sentence. On October 24, 2013, Wendy’s borrowed $225,000 of Incremental Term Loans under the Amendment. The Term B Loans, Term A Loans and Incremental Term Loans (collectively, the “Term Loans”) are payable in quarterly installments which commenced on December 31, 2012, September 30, 2013 and December 31, 2013, respectively, with the remaining balances payable upon maturity. In addition, the Term Loans require prepayments of principal amounts resulting from certain events and excess cash flow on an annual basis from Wendy’s as defined under the Restated Credit Agreement. An excess cash flow payment was not required for fiscal 2013 or 2012. An unused commitment fee of 50 basis points per annum is payable quarterly on the average unused amount of the revolving credit facility until the maturity date. During the third quarter of 2013, Wendy’s transitioned the security for all of its outstanding letters of credit from the revolving credit facility to cash collateral. Therefore, as of December 29, 2013, there were no amounts outstanding under the revolving credit facility. As of December 29, 2013, the Company had outstanding cash collateralized letters of credit with various parties of $18,593. The interest rates on Term A Loans and Term B Loans were 2.42% and 3.25%, respectively, as of December 29, 2013. During the year ended December 29, 2013, Wendy’s incurred $7,961 in costs related to the Restated Credit Agreement and the Amendment, which are being amortized to “Interest expense” through the maturity of the Term Loans utilizing the effective interest rate method. Proceeds from the Incremental Term Loans, plus cash on hand, were used to redeem all amounts outstanding on the aggregate principal amount of the Wendy’s 6.20% Senior Notes due in 2014 (the “6.20% Senior Notes”) at a price equal to 103.8%, as defined in the 6.20% Senior Notes and accrued and unpaid interest to the redemption date. In connection with the redemption of the 6.20% Senior Notes, Wendy’s terminated the related interest rate swaps with notional amounts totaling $225,000 which had been designated as fair value hedges. See Note 11 for more information on the interest rate swaps. As a result, Wendy’s recognized a loss on the early extinguishment of debt of $7,544 during the fourth quarter of 2013 which consisted of (1) a premium payment, as defined in the 6.20% Senior Notes, (2) the remaining fair value adjustment previously recorded in connection with the Wendy’s merger, partially offset by (3) a benefit from the cumulative effect of our fair value hedges, as illustrated in the table below.During the year ended December 30, 2012, proceeds from the Term B Loans were used (1) to repay all amounts outstanding under the 2010 Term Loan, (2) to redeem the Wendy’s Restaurants 10.00% Senior Notes due 2016 (the “Senior Notes”) in the amounts of $440,775 aggregate principal at a redemption price of 107.5% of the principal amount in July 2012 and to purchase $124,225 aggregate principal at a purchase price of 108.125% of the principal amount in May 2012, both plus accrued and unpaid interest and (3) to pay substantially all of the Credit Agreement fees and expenses.As a result of the refinancings described above, the Company incurred losses on the early extinguishment of debt as follows: Year Ended 2013 Year Ended 2012Unaccreted discount on Term B Loans$9,561 $—Deferred costs associated with the Credit Agreement11,458 —Unaccreted fair value adjustment associated with the 6.20% Senior Notes3,168 —Benefit from cumulative effect of the fair value hedges(4,063) —Premium payment to redeem/purchase the 6.20% Senior Notes and the Senior Notes, respectively8,439 43,151Unaccreted discount on the Senior Notes— 9,272Deferred costs associated with the Senior Notes— 12,433Unaccreted discount on the 2010 Term Loan— 1,695Deferred costs associated with the 2010 Term Loan— 8,525Loss on early extinguishment of debt$28,563 $75,076The affirmative and negative covenants in the Restated Credit Agreement include, among others, preservation of corporate existence; payment of taxes; maintenance of insurance; and limitations on: indebtedness (including guarantee obligations of other indebtedness); liens; mergers, consolidations, liquidations and dissolutions; sales of assets; dividends and other payments in respect of capital stock; investments; payments of certain indebtedness; transactions with affiliates; changes in fiscal year; negative pledge clauses and clauses restricting subsidiary distributions; and material changes in lines of business. The financial covenants contained in the Restated Credit Agreement are (1) a consolidated interest coverage ratio and (2) a consolidated senior secured leverage ratio. Wendy’s was in compliance with the covenants of the Restated Credit Agreement as of December 29, 2013. The covenants generally do not restrict The Wendy’s Company or any of its subsidiaries that are not subsidiaries of Wendy’s.
[2] Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the Wendy’s merger based on their outstanding principal of $100,000 and an effective interest rate of 8.6%. The fair value adjustment is being accreted and the related charge included in “Interest expense” until the debentures mature. These debentures contain covenants that restrict the incurrence of indebtedness secured by liens and certain capitalized lease transactions. Wendy’s was in compliance with these covenants as of December 29, 2013.