Segment Information (Notes)

3 Months Ended

Apr. 02, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

Revenues by segment are as follows:

	Three Months Ended
	April 2, 2023		April 3, 2022
Wendy’s U.S.	$	440,988	$	407,311
Wendy’s International	29,280		22,906
Global Real Estate & Development	58,539		58,426
Total revenues	$	528,807	$	488,643

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

	Three Months Ended
	April 2, 2023		April 3, 2022
Wendy’s U.S. (a)	$	125,230	$	104,824
Wendy’s International (b)	7,446		5,453
Global Real Estate & Development	25,068		27,607
Total segment profit	157,744		137,884
Unallocated franchise support and other costs	—		6
Advertising funds surplus (deficit)	1,106		(1,243)
Unallocated general and administrative (c)	(32,161)		(31,005)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(33,472)		(33,231)
Amortization of cloud computing arrangements	(1,582)		—
System optimization gains, net	5		3,534
Reorganization and realignment costs	(6,808)		(464)
Impairment of long-lived assets	(376)		(616)
Unallocated other operating income, net	22		16
Interest expense, net	(31,705)		(26,365)
Loss on early extinguishment of debt	(1,266)		—
Investment (loss) income, net	(3,562)		2,111
Other income, net	7,336		207
Income before income taxes	$	55,281	$	50,834

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(a)Wendy’s U.S. includes advertising funds expense of $2,556 for the three months ended April 3, 2022 related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising funds expense of $548 and $838 for the three months ended April 2, 2023 and April 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $845 and $642 for the three months ended April 2, 2023 and April 3, 2022, respectively.

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