Revenue (Tables)

3 Months Ended

Apr. 04, 2021

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended April 4, 2021
Sales at Company-operated restaurants	$	189,057	$	—	$	—	$	189,057
Franchise royalty revenue	96,764		11,570		—		108,334
Franchise fees (a)	11,930		1,443		1,123		14,496
Franchise rental income	—		—		58,876		58,876
Advertising funds revenue	84,203		5,237		—		89,440
Total revenues	$	381,954	$	18,250	$	59,999	$	460,203









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 (a)	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

_______________

(a)Includes fees for providing information technology services to franchisees, which are recognized as revenue as earned.

Contract balances, assets and liabilities

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


	April 4, 2021 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	57,546	$	57,677
Receivables, which are included in “Advertising funds restricted assets”	55,721		63,252
Deferred franchise fees (c)	95,247		97,785

_______________

(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 $8,715 and $86,532 as of April 4, 2021, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively.

Deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Three Months Ended
	April 4, 2021		March 29, 2020
Deferred franchise fees at beginning of period	$	97,785	$	100,689
Revenue recognized during the period	(4,337)		(2,144)
New deferrals due to cash received and other	1,799		1,066
Deferred franchise fees at end of period	$	95,247	$	99,611

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:
2021 (a)	$	7,204
2022	6,200
2023	6,028
2024	5,831
2025	5,644
Thereafter	64,340
	$	95,247

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2021, which includes development-related franchise fees expected to be recognized over a duration of one year or less.