Segment Information (Notes)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Segment Information

Segment Information

Revenues by segment are as follows:

	Three Months Ended
	March 31, 2024		April 2, 2023
Wendy’s U.S.	$	442,847	$	440,988
Wendy’s International	32,815		29,280
Global Real Estate & Development	59,091		58,539
Total revenues	$	534,753	$	528,807

The following table reconciles profit by segment to the Company’s consolidated income before income taxes:

	Three Months Ended
	March 31, 2024		April 2, 2023
Wendy’s U.S. (a)	$	125,824	$	125,230
Wendy’s International (b)	10,690		7,446
Global Real Estate & Development	24,061		25,068
Total segment profit	160,575		157,744
Unallocated franchise support and other costs	(26)		—
Advertising funds deficit	207		1,106
Unallocated general and administrative (c)	(33,390)		(32,161)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(35,518)		(33,472)
Amortization of cloud computing arrangements	(3,542)		(1,582)
System optimization (losses) gains, net	(127)		5
Reorganization and realignment costs	(5,673)		(6,808)
Impairment of long-lived assets	(2,006)		(376)
Unallocated other operating income, net	656		22
Interest expense, net	(30,535)		(31,705)
Loss on early extinguishment of debt	—		(1,266)
Investment loss, net	—		(3,562)
Other income, net	6,836		7,336
Income before income taxes	$	57,457	$	55,281

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(a)Wendy’s U.S. includes advertising funds expense of $2,325 for the three months ended March 31, 2024 related to the Company’s funding of incremental advertising.

(b)Wendy’s International includes advertising funds expense of $162 and $548 for the three months ended March 31, 2024 and April 2, 2023, respectively, related to the Company’s funding of incremental advertising in Canada. In addition, Wendy’s International includes other international-related advertising deficit of $150 and $845 for the three months ended March 31, 2024 and April 2, 2023, respectively.

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