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Transactions with Related Parties
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
Transactions with Related Parties Transactions with Related Parties
The following is a summary of transactions between the Company and its related parties:
Year Ended
202320222021
Transactions with QSCC:
Wendy’s Co-op (a)$363 $427 $279 
Rental receipts (b)231 198 217 
TimWen lease and management fee payments, net (c)$20,653 $19,694 $18,687 
Transactions with Yellow Cab (d)$14,757 $13,404 $9,869 
Transactions with AMC (e)$2,366 $— $— 
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Transactions with QSCC

(a)Wendy’s has a purchasing co-op relationship structure (the “Wendy’s Co-op”) with its franchisees that establishes Quality Supply Chain Co-op, Inc. (“QSCC”). QSCC manages, for the Wendy’s system in the U.S. and Canada, contracts for the purchase and distribution of food, proprietary paper, operating supplies and equipment under national agreements with pricing based upon total system volume. QSCC’s supply chain management facilitates continuity of supply and provides consolidated purchasing efficiencies while monitoring and seeking to minimize possible obsolete inventory throughout the Wendy’s supply chain in the U.S. and Canada.

Wendy’s and its franchisees pay sourcing fees to third-party vendors on certain products sourced by QSCC. Such sourcing fees are remitted by these vendors to QSCC and are the primary means of funding QSCC’s operations. Should QSCC’s sourcing fees exceed its expected needs, QSCC’s board of directors may return some or all of the excess to its members in the form of a patronage dividend. Wendy’s recorded its share of patronage dividends of $363, $427 and $279 in 2023, 2022 and 2021, respectively, which are included as a reduction of “Cost of sales.”

(b)Pursuant to a lease agreement, Wendy’s leased 14,493 square feet of office space to QSCC for an annual base rent of $217. The lease was amended in June 2021 to increase both the leased square footage to 18,774 and the annual base rent to $250 beginning in 2023, subject to annual increases, and to extend the lease term through January 31, 2027. The Company received lease payments from QSCC of $231, $198 and $217 during 2023, 2022 and 2021, respectively, which has been recorded to “Franchise rental income.”

TimWen Lease and Management Fee Payments

(c)A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen, which are then subleased to franchisees for the operation of Wendy’s/Tim Hortons combo units in Canada. Wendy’s paid TimWen $20,894, $19,927 and $18,906 under these lease agreements during 2023, 2022 and 2021, respectively, which has been recorded to “Franchise rental expense.” In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $241, $233 and $219 during 2023, 2022 and 2021, respectively, which has been included as a reduction to “General and administrative.”
Transactions with Yellow Cab

(d)Certain family members and affiliates of Mr. Nelson Peltz, our Chairman, and Mr. Peter May, our Senior Vice Chairman, as well as Mr. Matthew Peltz, our Vice Chairman, hold indirect, minority ownership interests in Yellow Cab Holdings, LLC (“Yellow Cab”) and operating companies managed by Yellow Cab, a Wendy’s franchisee, that as of December 31, 2023 owned and operated 83 Wendy’s restaurants (including 54 restaurants acquired from NPC during the first quarter of 2021). During 2023, 2022 and 2021, the Company recognized $14,757, $13,404 and $9,869, respectively, in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of December 31, 2023 and January 1, 2023, $1,153 and $1,125, respectively, was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.”

Transactions with AMC

(e)In February 2023, Ms. Kristin Dolan, a director of the Company, was appointed as Chief Executive Officer of AMC Networks Inc. (“AMC”). During 2023, the Company purchased approximately $2,366 of advertising time from a subsidiary of AMC. The Company’s advertising spend with AMC was made in the ordinary course of business and approved on an arm’s-length basis, consistent with the Company’s comparable advertising decisions. As of December 31, 2023, approximately $584 was due to AMC for advertising time, which is included in “Advertising funds restricted liabilities.”