Revenue (Tables)

6 Months Ended

Jun. 28, 2020

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended June 28, 2020
Sales at Company-operated restaurants	$	164,217	$	—	$	—	$	164,217
Franchise royalty revenue	88,121		9,070		—		97,191
Franchise fees	5,308		433		188		5,929
Franchise rental income	—		—		56,857		56,857
Advertising funds revenue	73,612		4,500		—		78,112
Total revenues	$	331,258	$	14,003	$	57,045	$	402,306

Six Months Ended June 28, 2020
Sales at Company-operated restaurants	$	331,015	$	—	$	—	$	331,015
Franchise royalty revenue	172,954		19,593		—		192,547
Franchise fees	10,593		906		779		12,278
Franchise rental income	—		—		114,713		114,713
Advertising funds revenue	147,737		8,976		—		156,713
Total revenues	$	662,299	$	29,475	$	115,492	$	807,266

Three Months Ended June 30, 2019
Sales at Company-operated restaurants	$	181,050	$	—	$	—	$	181,050
Franchise royalty revenue	91,430		11,391		—		102,821
Franchise fees	5,238		464		602		6,304
Franchise rental income	—		—		58,561		58,561
Advertising funds revenue	81,437		5,175		—		86,612
Total revenues	$	359,155	$	17,030	$	59,163	$	435,348


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Six Months Ended June 30, 2019
Sales at Company-operated restaurants	$	348,747	$	—	$	—	$	348,747
Franchise royalty revenue	175,808		21,856		—		197,664
Franchise fees	10,668		1,497		1,249		13,414
Franchise rental income	—		—		117,013		117,013
Advertising funds revenue	157,418		9,675		—		167,093
Total revenues	$	692,641	$	33,028	$	118,262	$	843,931

Contract balances, assets and liabilities

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


	June 28, 2020 (a)		December 29, 2019 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b) (c)	$	86,834	$	39,188
Receivables, which are included in “Advertising funds restricted assets” (c)	83,891		54,394
Deferred franchise fees (d)	98,563		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) The increase in receivables as of June 28, 2020 was primarily due to extending payment terms for royalties and national advertising funds contributions by 45 days beginning in April for a three month period in response to the COVID-19 pandemic. See Note 7 for further information.

(d) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,179 and $89,384 as of June 28, 2020, respectively, and $8,899 and $91,790 as of December 29, 2019, respectively.

Deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Six Months Ended
	June 28, 2020		June 30, 2019
Deferred franchise fees at beginning of period	$	100,689	$	102,205
Revenue recognized during the period	(3,898)		(4,609)
New deferrals due to cash received and other	1,772		3,671
Deferred franchise fees at end of period	$	98,563	$	101,267

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

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)	$	6,091
2021	6,195
2022	5,991
2023	5,819
2024	5,616
Thereafter	68,851
	$	98,563

_______________

(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.