Segment Information (Tables)

12 Months Ended

Jan. 01, 2023

Reconciliation of Revenue from Segments to Consolidated

Revenues by segment are as follows:


	Year Ended
	2022		2021		2020
Wendy’s U.S.	$	1,750,242	$	1,567,496	$	1,431,382
Wendy’s International	106,705		86,369		65,642
Global Real Estate & Development	238,558		243,133		236,801
Total revenues	$	2,095,505	$	1,896,998	$	1,733,825

Reconciliation of Profit from Segments to Consolidated

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


	Year Ended
	2022		2021		2020
Wendy’s U.S. (a)	$	480,498	$	450,117	$	393,314
Wendy’s International (b)	30,432		27,386		20,119
Global Real Estate & Development	108,700		106,113		100,731
Total segment profit	619,630		583,616		514,164
Unallocated franchise support and other costs	(742)		(753)		—
Advertising funds (deficit) surplus	(8,325)		2,770		2,904
Unallocated general and administrative (c)	(130,103)		(116,273)		(94,256)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(133,414)		(125,540)		(132,775)
Amortization of cloud computing arrangements	(2,394)		—		—
System optimization gains, net	6,779		33,545		3,148
Reorganization and realignment costs	(698)		(8,548)		(16,030)
Impairment of long-lived assets	(6,420)		(2,251)		(8,037)
Unallocated other operating income, net	9,001		394		190
Interest expense, net	(122,319)		(109,185)		(117,737)
Loss on early extinguishment of debt	—		(17,917)		—
Investment income (loss), net	2,107		39		(225)
Other income, net	10,403		681		1,449
Income before income taxes	$	243,505	$	240,578	$	152,795

_______________

(a)Wendy’s U.S. includes advertising funds expense of $11,000, $25,000 and $14,600 for 2022, 2021 and 2020, respectively, related to the Company funding of incremental advertising.

(b)Wendy’s International includes advertising fund expense of $4,116 for 2022 related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $1,099 for 2022.

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

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated

Net income (loss) of our equity method investments for the Brazil JV and TimWen are included in segment profit for the Wendy’s International and Global Real Estate & Development segments, respectively. Net income (loss) of equity method investments by segment was as follows:


	Year Ended
	2022		2021		2020
Wendy’s International	$	—	$	—	$	(417)
Global Real Estate & Development	9,422		11,203		6,513
Total net income of equity method investments	$	9,422	$	11,203	$	6,096