Revenue

3 Months Ended

Apr. 03, 2022

Revenue [Abstract]

Revenue from Contract with Customer

Revenue

Disaggregation of Revenue

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 3, 2022
Sales at Company-operated restaurants	$	206,501	$	2,774	$	—	$	209,275
Franchise royalty revenue	97,920		13,825		—		111,745
Franchise fees	15,405		1,271		555		17,231
Franchise rental income	—		—		57,871		57,871
Advertising funds revenue	87,485		5,036		—		92,521
Total revenues	$	407,311	$	22,906	$	58,426	$	488,643

	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	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

Contract Balances

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

	April 3, 2022 (a)		January 2, 2022 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	52,032	$	49,168
Receivables, which are included in “Advertising funds restricted assets”	59,596		65,497
Deferred franchise fees (c)	98,429		97,186

_______________

(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 $9,953 and $88,476, respectively, as of April 3, 2022, and $9,084 and $88,102, respectively, as of January 2, 2022.

Significant changes in deferred franchise fees are as follows:

	Three Months Ended
	April 3, 2022		April 4, 2021
Deferred franchise fees at beginning of period	$	97,186	$	97,785
Revenue recognized during the period	(2,283)		(4,337)
New deferrals due to cash received and other	3,526		1,799
Deferred franchise fees at end of period	$	98,429	$	95,247

Anticipated Future Recognition of Deferred Franchise Fees

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:
2022 (a)	$	8,550
2023	6,367
2024	6,184
2025	5,999
2026	5,886
Thereafter	65,443
	$	98,429

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2022, which includes development-related franchise fees expected to be recognized over a duration of one year or less.