Segment Information (Tables)

6 Months Ended

Jul. 03, 2022

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Revenues by segment were as follows:

	Three Months Ended				Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Wendy’s U.S.	$	450,440	$	409,843	$	857,751	$	791,797
Wendy’s International	27,463		21,316		50,369		39,566
Global Real Estate & Development	59,880		62,178		118,306		122,177
Total revenues	$	537,783	$	493,337	$	1,026,426	$	953,540

Reconciliation of Profit from Segments to Consolidated

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

	Three Months Ended				Six Months Ended
	July 3, 2022		July 4, 2021		July 3, 2022		July 4, 2021
Wendy’s U.S. (a)	$	126,999	$	126,650	$	231,823	$	238,737
Wendy’s International (b)	9,350		6,528		14,803		14,212
Global Real Estate & Development	27,283		26,569		54,890		52,822
Total segment profit	$	163,632	$	159,747	$	301,516	$	305,771
Unallocated franchise support and other costs	—		—		6		—
Advertising funds deficit	(1,375)		(1,602)		(2,618)		(2,866)
Unallocated general and administrative (c)	(30,989)		(28,864)		(61,994)		(53,971)
Depreciation and amortization	(33,428)		(30,761)		(66,659)		(62,303)
System optimization gains, net	152		30,766		3,686		31,282
Reorganization and realignment costs	(156)		(2,102)		(620)		(7,036)
Impairment of long-lived assets	(1,860)		(630)		(2,476)		(1,265)
Unallocated other operating income, net	305		192		321		256
Interest expense, net	(32,125)		(28,204)		(58,490)		(56,990)
Loss on early extinguishment of debt	—		(17,917)		—		(17,917)
Investment (loss) income, net	(4)		3		2,107		6
Other income, net	1,238		158		1,445		284
Income before income taxes	$	65,390	$	80,786	$	116,224	$	135,251

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(a)Wendy’s U.S. includes advertising fund expense of $2,766 and $5,322 for the three and six months ended July 3, 2022, respectively, and $3,990 and $7,524 for the three and six months ended July 4, 2021, respectively, related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising fund expense of $1,084 and $1,922 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising expense of $880 and $1,522 for the three and six months ended July 3, 2022, respectively.

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