Revenue (Tables)

9 Months Ended

Oct. 03, 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 October 3, 2021
Sales at Company-operated restaurants	$	169,961	$	1,117	$	—	$	171,078
Franchise royalty revenue	102,603		13,918		—		116,521
Franchise fees (a)	19,759		1,144		1,331		22,234
Franchise rental income	—		—		62,446		62,446
Advertising funds revenue	91,481		6,495		—		97,976
Total revenues	$	383,804	$	22,674	$	63,777	$	470,255


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Nine Months Ended October 3, 2021
Sales at Company-operated restaurants	$	552,297	$	1,363	$	—	$	553,660
Franchise royalty revenue	305,373		39,048		—		344,421
Franchise fees (a)	46,020		4,041		3,764		53,825
Franchise rental income	—		—		182,190		182,190
Advertising funds revenue	271,911		17,788		—		289,699
Total revenues	$	1,175,601	$	62,240	$	185,954	$	1,423,795

Three Months Ended September 27, 2020
Sales at Company-operated restaurants	$	191,946	$	—	$	—	$	191,946
Franchise royalty revenue	98,128		11,216		—		109,344
Franchise fees (a)	5,651		463		1,362		7,476
Franchise rental income	—		—		58,721		58,721
Advertising funds revenue	79,170		5,585		—		84,755
Total revenues	$	374,895	$	17,264	$	60,083	$	452,242

Nine Months Ended September 27, 2020
Sales at Company-operated restaurants	$	522,961	$	—	$	—	$	522,961
Franchise royalty revenue	271,082		30,809		—		301,891
Franchise fees (a)	16,244		1,369		2,141		19,754
Franchise rental income	—		—		173,434		173,434
Advertising funds revenue	226,907		14,561		—		241,468
Total revenues	$	1,037,194	$	46,739	$	175,575	$	1,259,508

_______________

(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:


	October 3, 2021 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	46,747	$	57,677
Receivables, which are included in “Advertising funds restricted assets”	57,222		63,252
Deferred franchise fees (c)	99,057		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 $8,971 and $90,086 as of October 3, 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:


	Nine Months Ended
	October 3, 2021		September 27, 2020
Deferred franchise fees at beginning of period	$	97,785	$	100,689
Revenue recognized during the period	(14,001)		(6,286)
New deferrals due to cash received and other	15,273		3,642
Deferred franchise fees at end of period	$	99,057	$	98,045

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)	$	4,428
2022	6,293
2023	6,128
2024	5,938
2025	5,758
Thereafter	70,512
	$	99,057

_______________

(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.