Investments

3 Months Ended

Apr. 02, 2023

Investments [Abstract]

Investments

Investments

The following is a summary of the carrying value of our investments:

	April 2, 2023		January 1, 2023
Equity method investments	$	33,537	$	33,921
Other investments in equity securities	8,545		12,107
	$	42,082	$	46,028

Equity Method Investments

Wendy’s has a 50% share in a partnership in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons® brand (Tim Hortons is a registered trademark of Tim Hortons USA Inc.). In addition, the Company has a 20% share in a joint venture in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.”

Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements:

	Three Months Ended
	April 2, 2023		April 3, 2022
Balance at beginning of period	$	33,921	$	39,870
Equity in earnings for the period	2,783		2,508
Amortization of purchase price adjustments (a)	(684)		(731)
	2,099		1,777
Distributions received	(2,493)		(2,675)
Foreign currency translation adjustment included in “Other comprehensive income” and other	10		374
Balance at end of period	$	33,537	$	39,346

_______________

(a)Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.

Other Investments in Equity Securities

During 2021, the Company made an investment in equity securities of $10,000 and, during the three months ended April 3, 2022, recognized a gain of $2,107 as a result of an observable price change for a similar investment of the same issuer. During the three months ended April 2, 2023, the Company recorded an impairment charge of $3,562 for the difference between the estimated fair value and the carrying value of the investment. The Company will continue to monitor its investment in equity securities and it is possible that additional impairment charges will be recorded in future periods if there are further declines in fair value of the investment.