Revenue (Notes)

3 Months Ended

Mar. 29, 2020

Revenue [Abstract]

Revenue from Contract with Customer

Revenue

Disaggregation of Revenue

The following tables disaggregate revenue by segment and source:

	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended March 29, 2020
Sales at Company-operated restaurants	$	166,798	$	—	$	—	$	166,798
Franchise royalty revenue	84,833		10,523		—		95,356
Franchise fees	5,285		473		591		6,349
Franchise rental income	—		—		57,856		57,856
Advertising funds revenue	74,125		4,476		—		78,601
Total revenues	$	331,041	$	15,472	$	58,447	$	404,960
Three Months Ended March 31, 2019
Sales at Company-operated restaurants	$	167,697	$	—	$	—	$	167,697
Franchise royalty revenue	84,378		10,465		—		94,843
Franchise fees	5,430		1,033		647		7,110
Franchise rental income	—		—		58,452		58,452
Advertising funds revenue	75,981		4,500		—		80,481
Total revenues	$	333,486	$	15,998	$	59,099	$	408,583

Contract Balances

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:

	March 29, 2020 (a)		December 29, 2019 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	35,450	$	39,188
Receivables, which are included in “Advertising funds restricted assets”	44,635		54,394
Deferred franchise fees (c)	99,611		100,689

_______________

(a) Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations.

(b) Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $8,983 and $90,628 as of March 29, 2020, respectively, and $8,899 and $91,790 as of December 29, 2019, respectively.

Significant changes in deferred franchise fees are as follows:

	Three Months Ended
	March 29, 2020			March 31, 2019
Deferred franchise fees at beginning of period	$	100,689		$	102,205
Revenue recognized during the period	(2,144		)	(2,772		)
New deferrals due to cash received and other	1,066			2,036
Deferred franchise fees at end of period	$	99,611		$	101,469

Anticipated Future Recognition of Deferred Franchise Fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:

Estimate for fiscal year:
2020 (a)	$	7,434
2021	6,301
2022	5,971
2023	5,798
2024	5,594
Thereafter	68,513
	$	99,611

_______________

(a)

Represents franchise fees expected to be recognized for the remainder of 2020, which includes development-related franchise fees expected to be recognized over a duration of one year or less.