Revenue (Tables)

6 Months Ended

Jul. 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 July 4, 2021
Sales at Company-operated restaurants	$	193,279	$	246	$	—	$	193,525
Franchise royalty revenue	106,006		13,560		—		119,566
Franchise fees (a)	14,331		1,454		1,310		17,095
Franchise rental income	—		—		60,868		60,868
Advertising funds revenue	96,227		6,056		—		102,283
Total revenues	$	409,843	$	21,316	$	62,178	$	493,337


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Six Months Ended July 4, 2021
Sales at Company-operated restaurants	$	382,336	$	246	$	—	$	382,582
Franchise royalty revenue	202,770		25,130		—		227,900
Franchise fees (a)	26,261		2,897		2,433		31,591
Franchise rental income	—		—		119,744		119,744
Advertising funds revenue	180,430		11,293		—		191,723
Total revenues	$	791,797	$	39,566	$	122,177	$	953,540

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 (a)	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 (a)	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

_______________

(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:


	July 4, 2021 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	51,005	$	57,677
Receivables, which are included in “Advertising funds restricted assets”	62,468		63,252
Deferred franchise fees (c)	98,409		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 $9,123 and $89,286 as of July 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:


	Six Months Ended
	July 4, 2021		June 28, 2020
Deferred franchise fees at beginning of period	$	97,785	$	100,689
Revenue recognized during the period	(6,845)		(3,898)
New deferrals due to cash received and other	7,469		1,772
Deferred franchise fees at end of period	$	98,409	$	98,563

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)	$	6,073
2022	6,298
2023	6,126
2024	5,930
2025	5,746
Thereafter	68,236
	$	98,409

_______________

(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.