Revenue (Tables)

3 Months Ended

Mar. 31, 2024

The following tables disaggregate revenue by segment and source:


	Wendy’s U.S.		Wendy’s International		Global Real Estate & Development		Total
Three Months Ended March 31, 2024
Sales at Company-operated restaurants	$	219,468	$	5,855	$	—	$	225,323
Franchise royalty revenue	108,853		16,827		—		125,680
Franchise fees	17,826		1,889		1,105		20,820
Franchise rental income	—		—		57,986		57,986
Advertising funds revenue	96,700		8,244		—		104,944
Total revenues	$	442,847	$	32,815	$	59,091	$	534,753

Three Months Ended April 2, 2023
Sales at Company-operated restaurants	$	222,632	$	5,317	$	—	$	227,949
Franchise royalty revenue	106,339		15,811		—		122,150
Franchise fees	17,272		1,523		732		19,527
Franchise rental income	—		—		57,807		57,807
Advertising funds revenue	94,745		6,629		—		101,374
Total revenues	$	440,988	$	29,280	$	58,539	$	528,807

Contract Balances, assets and liabilities

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:


	March 31, 2024 (a)		December 31, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)	$	62,000	$	55,293
Receivables, which are included in “Advertising funds restricted assets”	74,614		76,838
Deferred franchise fees (c)	100,264		100,805

_______________

(a)Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations.

(b)Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $10,933 and $89,331, respectively, as of March 31, 2024, and $10,673 and $90,132, respectively, as of December 31, 2023.

Contract Balances, deferred franchise fee rollforward

Significant changes in deferred franchise fees are as follows:


	Three Months Ended
	March 31, 2024		April 2, 2023
Deferred franchise fees at beginning of period	$	100,805	$	99,208
Revenue recognized during the period	(2,804)		(2,814)
New deferrals due to cash received and other	2,263		1,300
Deferred franchise fees at end of period	$	100,264	$	97,694

Anticipated Future Recognition of Deferred Franchise Fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:


Estimate for fiscal year:
2024 (a)	$	9,345
2025	6,526
2026	6,390
2027	6,290
2028	6,169
Thereafter	65,544
	$	100,264

_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2024, which includes development-related franchise fees expected to be recognized over a duration of one year or less.