Investments

12 Months Ended

Dec. 31, 2023

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


	Year End
	December 31, 2023		January 1, 2023
Equity method investments	$	32,727	$	33,921
Other investments in equity securities	1,718		12,107
	$	34,445	$	46,028

Equity Method Investments

Wendy’s has a 50% share in the TimWen real estate joint venture and a 20% share in the Brazil JV, both of which are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.”

A wholly-owned subsidiary of Wendy’s entered into the Brazil JV during the second quarter of 2015 for the operation of Wendy’s restaurants in Brazil. Wendy’s, Starboard International Holdings B.V. and Infinity Holding E Participações Ltda. contributed $1, $2 and $2, respectively, each receiving proportionate equity interests of 20%, 40% and 40%, respectively. The Brazil JV ceased operations in 2021 and no income or loss was recorded during 2023, 2022 and 2021. A wholly-owned subsidiary of Wendy’s had receivables outstanding related to the Brazil JV totaling $6,837 and $16,975 as of December 31, 2023 and January 1, 2023, respectively. The total receivables outstanding as of December 31, 2023 are due in 2024. As of December 31, 2023 and January 1, 2023, the Company had reserves of $1,149 and $4,640, respectively, on the receivables related to the Brazil JV. See Note 7 for further information.

The carrying value of our investment in TimWen exceeded our interest in the underlying equity of the joint venture by $14,086 and $16,423 as of December 31, 2023 and January 1, 2023, respectively, primarily due to purchase price adjustments from the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”).

Presented below is activity related to our investment in TimWen included in our consolidated balance sheets and consolidated statements of operations as of and for the years ended December 31, 2023, January 1, 2023 and January 2, 2022.


	Year Ended
	2023		2022		2021
Balance at beginning of period	$	33,921	$	39,870	$	44,574

Equity in earnings for the period	13,493		12,267		14,329
Amortization of purchase price adjustments (a)	(2,674)		(2,845)		(3,126)
	10,819		9,422		11,203
Distributions received	(12,901)		(12,612)		(16,337)
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other	888		(2,759)		430
Balance at end of period	$	32,727	$	33,921	$	39,870

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(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. During the year ended January 1, 2023, the Company recognized a gain of $2,107 as a result of an observable price change for a similar investment of the same issuer. During the year ended December 31, 2023, the Company recorded impairment charges of $10,389 for the difference between the estimated fair value and the carrying value of the investment.