Segment Information (Tables)

6 Months Ended

Jul. 02, 2023

Segment Reporting [Abstract]

Reconciliation of Revenue from Segments to Consolidated

Revenues by segment are as follows:

	Three Months Ended				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Wendy’s U.S.	$	468,753	$	450,440	$	909,741	$	857,751
Wendy’s International	32,715		27,463		61,995		50,369
Global Real Estate & Development	60,097		59,880		118,636		118,306
Total revenues	$	561,565	$	537,783	$	1,090,372	$	1,026,426

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				Six Months Ended
	July 2, 2023		July 3, 2022		July 2, 2023		July 3, 2022
Wendy’s U.S. (a)	$	142,947	$	126,999	$	268,177	$	231,823
Wendy’s International (b)	8,531		9,350		15,977		14,803
Global Real Estate & Development	26,534		27,283		51,602		54,890
Total segment profit	178,012		163,632		$	335,756	$	301,516
Unallocated franchise support and other costs	23		—		23		6
Advertising funds surplus (deficit)	1,315		(1,375)		2,421		(2,618)
Unallocated general and administrative (c)	(33,653)		(30,989)		(65,814)		(61,994)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(33,498)		(33,428)		(66,970)		(66,659)
Amortization of cloud computing arrangements	(2,266)		—		(3,848)		—
System optimization (losses) gains, net	(6)		152		(1)		3,686
Reorganization and realignment costs	(681)		(156)		(7,489)		(620)
Impairment of long-lived assets	(78)		(1,860)		(454)		(2,476)
Unallocated other operating income, net	106		305		128		321
Interest expense, net	(31,136)		(32,125)		(62,841)		(58,490)
Loss on early extinguishment of debt	—		—		(1,266)		—
Investment (loss) income, net	(6,827)		(4)		(10,389)		2,107
Other income, net	7,573		1,238		14,909		1,445
Income before income taxes	$	78,884	$	65,390	$	134,165	$	116,224

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(a)Wendy’s U.S. includes advertising funds expense of $2,766 and $5,322 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising funds expense of $658 and $1,206 for the three and six months ended July 2, 2023, respectively, and $1,084 and $1,922 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $479 and $1,324 for the three and six months ended July 2, 2023, respectively, and $880 and $1,522 for the three and six months ended July 3, 2022, respectively.

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