Segment Information (Tables)

9 Months Ended

Oct. 02, 2022

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Revenues by segment were as follows:

	Three Months Ended				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Wendy’s U.S.	$	445,934	$	383,804	$	1,303,685	$	1,175,601
Wendy’s International	27,547		22,674		77,916		62,240
Global Real Estate & Development	59,088		63,777		177,394		185,954
Total revenues	$	532,569	$	470,255	$	1,558,995	$	1,423,795

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				Nine Months Ended
	October 2, 2022		October 3, 2021		October 2, 2022		October 3, 2021
Wendy’s U.S. (a)	$	123,696	$	108,878	$	355,519	$	347,615
Wendy’s International (b)	8,560		6,949		23,363		21,161
Global Real Estate & Development	25,905		27,027		80,795		79,849
Total segment profit	$	158,161	$	142,854	$	459,677	$	448,625
Unallocated franchise support and other costs	(756)		(70)		(750)		(70)
Advertising funds deficit	(1,441)		(1,574)		(4,059)		(4,440)
Unallocated general and administrative (c)	(31,517)		(30,744)		(93,511)		(84,715)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(34,252)		(30,940)		(100,911)		(93,243)
Amortization of cloud computing arrangements	(888)		—		(888)		—
System optimization gains, net	452		1,437		4,138		32,719
Reorganization and realignment costs	(8)		(345)		(628)		(7,381)
Impairment of long-lived assets	(206)		(566)		(2,682)		(1,831)
Unallocated other operating income, net	8,590		143		8,911		399
Interest expense, net	(31,916)		(26,000)		(90,406)		(82,990)
Loss on early extinguishment of debt	—		—		—		(17,917)
Investment income, net	—		—		2,107		6
Other income, net	2,910		171		4,355		455
Income before income taxes	$	69,129	$	54,366	$	185,353	$	189,617

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(a)Wendy’s U.S. includes advertising fund expense of $2,779 and $8,101 for the three and nine months ended October 2, 2022, respectively, and $8,979 and $16,503 for the three and nine months ended October 3, 2021, respectively, related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising fund expense of $1,002 and $2,924 for the three and nine months ended October 2, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising surplus (deficit) of $538 and $(984) for the three and nine months ended October 2, 2022, respectively.

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