Acquisitions and Dispositions

6 Months Ended

Jun. 29, 2014

Acquisitions and Dispositions [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

Acquisitions

During the six months ended June 29, 2014, the Company acquired three franchised restaurants for total net cash consideration of $2,335. The total consideration was allocated to net tangible and identifiable intangible assets acquired, primarily properties and franchise rights, based on their estimated fair values. The fair value of the assets acquired exceeded the total consideration and resulted in income of $616 which is included in “Other operating expense (income), net.”

During the six months ended June 30, 2013, Wendy’s acquired one franchised restaurant; such transaction was not material.

Dispositions

During the six months ended June 29, 2014, Wendy’s received cash proceeds of $21,213 from dispositions, which were not part of the system optimization initiative, consisting of (1) $6,569 from the sale of four company-owned restaurants to a franchisee, (2) $6,042 primarily from the sale of surplus properties and (3) $8,602 from the sale of company-owned aircraft. These sales resulted in a net gain of $13,021 which is included in “Other operating expense (income), net,” and included the effect of (1) favorable lease assets of $4,060 in connection with leasing and/or subleasing the restaurant properties to the franchisee and (2) a reduction to goodwill of $1,015 related to the sale of company-owned restaurants.

During the six months ended June 30, 2013, Wendy’s received cash proceeds of $13,211 from dispositions, consisting of (1) $8,653 resulting from franchisees exercising options to purchase previously subleased properties and (2) $4,558 primarily from the sale of surplus properties. These sales resulted in a net gain of $3,163. See Note 2 for discussion of restaurant dispositions in connection with our system optimization initiative.