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Leases
 12 Months Ended
Dec. 31, 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 December 31, 2023, Wendy’s and its franchisees operated 7,240 Wendy’s restaurants. Of the 415 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 158 restaurants, owned the building and held long-term land leases for 145 restaurants and held leases covering the land and building for 112 restaurants. Wendy’s also owned 488 and leased 1,179 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 for 2023, 2022 and 2021 are as follows:
Year Ended
202320222021
Finance lease cost:
Amortization of finance lease assets$16,061 $15,440 $13,992 
Interest on finance lease liabilities42,624 42,918 41,419 
58,685 58,358 55,411 
Operating lease cost85,138 86,050 89,283 
Variable lease cost (a)66,859 64,473 63,853 
Short-term lease cost5,864 5,439 5,102 
Total operating lease cost (b)157,861 155,962 158,238 
Total lease cost$216,546 $214,320 $213,649 
_______________

(a)Includes expenses for executory costs of $39,456, $38,749, and $39,646 for 2023, 2022 and 2021, respectively, for which the Company is reimbursed by sublessees.

(b)Includes $125,180, $123,924 and $132,158 for 2023, 2022 and 2021, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $30,538, $29,648 and $23,558 for 2023, 2022 and 2021, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.

The following table includes supplemental cash flow and non-cash information related to leases:
Year Ended
202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases$42,624 $42,979 $42,277 
Operating cash flows from operating leases86,972 88,372 91,930 
Financing cash flows from finance leases21,588 17,312 13,640 
Right-of-use assets obtained in exchange for lease obligations:
Finance lease liabilities20,243 34,478 82,032 
Operating lease liabilities12,659 24,742 58,770 
The following table includes supplemental information related to leases:
Year End
December 31, 2023January 1,
2023
Weighted-average remaining lease term (years):
Finance leases14.315.1
Operating leases12.613.7
Weighted average discount rate:
Finance leases8.52 %8.66 %
Operating leases4.93 %4.90 %
Supplemental balance sheet information:
Finance lease assets, gross$318,951 $310,686 
Accumulated amortization(90,015)(76,116)
Finance lease assets228,936 234,570 
Operating lease assets705,615 754,498 

The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of December 31, 2023:
Finance
Leases		Operating
Leases
Fiscal YearCompany-OperatedFranchise
and Other		Company-OperatedFranchise
and Other
2024$6,904 $55,492 $22,052 $64,636 
20257,104 56,121 22,048 64,432 
20267,249 57,817 22,500 63,967 
20277,293 58,702 22,439 63,678 
20287,350 59,919 22,223 63,869 
Thereafter78,045 563,716 169,965 469,484 
Total minimum payments$113,945 $851,767 $281,227 $790,066 
Less interest
(36,660)(340,035)(71,529)(211,071)
Present value of minimum lease payments (a) (b)$77,285 $511,732 $209,698 $578,995 
_______________

(a)The present value of minimum finance lease payments of $20,250 and $568,767 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.

(b)The present value of minimum operating lease payments of $49,353 and $739,340 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Leases, Company as Lessor
Company as Lessor

The components of lease income for 2023, 2022 and 2021 are as follows:
Year Ended
202320222021
Sales-type and direct-financing leases:
Selling profit$2,466 $2,981 $4,244 
Interest income (a)31,412 31,298 30,648 
Operating lease income163,927 170,633 173,442 
Variable lease income66,241 63,832 63,213 
Franchise rental income (b)$230,168 $234,465 $236,655 
_______________

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

(b)Includes sublease income of $170,112, $175,053 and $174,327 recognized during 2023, 2022 and 2021, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $39,350, $38,733 and $39,650 for 2023, 2022 and 2021, respectively.

The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of December 31, 2023:
Sales-Type and
Direct Financing Leases		Operating
Leases
Fiscal YearSubleasesOwned PropertiesSubleasesOwned Properties
2024$38,890 $2,087 $106,470 $54,946 
202537,826 2,194 106,616 55,549 
202639,136 2,364 106,840 57,308 
202739,719 2,244 107,263 56,954 
202840,684 1,999 107,652 56,741 
Thereafter399,480 25,730 783,633 542,967 
Total future minimum receipts595,735 36,618 $1,318,474 $824,465 
Unearned interest income(288,461)(19,449)
Net investment in sales-type and direct financing leases (a)$307,274 $17,169 
_______________

(a)The present value of minimum sales-type and direct financing rental receipts of $10,779 and $313,664 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $590.
Properties owned by the Company and leased to franchisees and other third parties under operating leases include:
Year End
December 31, 2023January 1, 2023
Land$260,125 $260,650 
Buildings and improvements296,242 291,659 
Restaurant equipment1,701 1,701 
558,068 554,010 
Accumulated depreciation and amortization(198,429)(187,269)
$359,639 $366,741