Segment Information (Notes)

3 Months Ended

Apr. 03, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

Revenues by segment were as follows:

	Three Months Ended
	April 3, 2022		April 4, 2021
Wendy’s U.S.	$	407,311	$	381,954
Wendy’s International	22,906		18,250
Global Real Estate & Development	58,426		59,999
Total revenues	$	488,643	$	460,203

The following table reconciles profit by segment to the Company’s consolidated income before income taxes:

	Three Months Ended
	April 3, 2022		April 4, 2021
Wendy’s U.S. (a)	$	104,824	$	112,087
Wendy’s International (a)	5,453		7,684
Global Real Estate & Development	27,607		26,253
Total segment profit	$	137,884	$	146,024
Unallocated franchise support and other costs	6		—
Advertising funds deficit	(1,243)		(1,264)
Unallocated general and administrative (b)	(31,005)		(25,107)
Depreciation and amortization	(33,231)		(31,542)
System optimization gains, net	3,534		516
Reorganization and realignment costs	(464)		(4,934)
Impairment of long-lived assets	(616)		(635)
Unallocated other operating income, net	16		64
Interest expense, net	(26,365)		(28,786)
Investment income, net	2,111		3
Other income, net	207		126
Income before income taxes	$	50,834	$	54,465

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(a)Wendy’s U.S. includes advertising fund expense of $2,556 and $3,534 for the three months ended April 3, 2022 and April 4, 2021, respectively, and Wendy’s International includes advertising fund expense of $838 for the three months ended April 3, 2022, all of which related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising expense of $642 for the three months ended April 3, 2022.

(b)Includes corporate overhead costs, such as employee compensation and related benefits.