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Leases
 6 Months Ended
Jul. 02, 2023
Leases [Abstract]  
Leases, Company as Lessee Leases
Nature of Leases

The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. At July 2, 2023, Wendy’s and its franchisees operated 7,115 Wendy’s restaurants. Of the 414 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 159 restaurants, owned the building and held long-term land leases for 144 restaurants and held leases covering the land and building for 111 restaurants. Wendy’s also owned 488 and leased 1,189 properties that were either leased or subleased principally to franchisees. The Company also leases restaurant, office and transportation equipment.

Company as Lessee

The components of lease cost are as follows:
Three Months EndedSix Months Ended
July 2,
2023		July 3,
2022		July 2,
2023		July 3,
2022
Finance lease cost:
Amortization of finance lease assets$4,058 $4,106 $8,121 $8,170 
Interest on finance lease liabilities10,743 10,693 21,493 21,338 
14,801 14,799 29,614 29,508 
Operating lease cost21,429 22,324 42,878 42,985 
Variable lease cost (a)17,519 16,456 33,600 31,259 
Short-term lease cost1,461 1,405 2,967 2,838 
Total operating lease cost (b)40,409 40,185 79,445 77,082 
Total lease cost$55,210 $54,984 $109,059 $106,590 
_______________

(a)Includes expenses for executory costs of $10,172 and $9,245 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $20,020 and $18,853 for the six months ended July 2, 2023 and July 3, 2022, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $32,329 and $32,071 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $62,927 and $60,996 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,546 and $7,479 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $15,411 and $14,773 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Leases, Company as Lessor
Company as Lessor

The components of lease income are as follows:
Three Months EndedSix Months Ended
July 2,
2023		July 3,
2022		July 2,
2023		July 3,
2022
Sales-type and direct-financing leases:
Selling profit$1,072 $1,677 $1,201 $2,157 
Interest income (a)7,868 7,753 15,730 15,493 
Operating lease income40,629 42,174 82,785 85,488 
Variable lease income17,404 16,436 33,055 30,993 
Franchise rental income (b)$58,033 $58,610 $115,840 $116,481 
_______________

(a)Included in “Interest expense, net.”

(b)Includes sublease income of $42,961 and $43,689 recognized during the three months ended July 2, 2023 and July 3, 2022, respectively, and $85,912 and $86,854 recognized during the six months ended July 2, 2023 and July 3, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,115 and $9,250 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $19,893 and $18,785 for the six months ended July 2, 2023 and July 3, 2022, respectively.