Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 29, 2013 | Nov. 01, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'WENDY'S CO | ' |
Entity Central Index Key | '0000030697 | ' |
Current Fiscal Year End Date | '--12-29 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Document Type | '10-Q | ' |
Document Period End Date | 29-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 391,675,340 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $513,431 | $453,361 |
Accounts and notes receivable | 62,620 | 61,164 |
Inventories | 9,127 | 13,805 |
Prepaid expenses and other current assets | 118,680 | 24,231 |
Deferred income tax benefit | 86,173 | 91,489 |
Advertising funds restricted assets | 68,768 | 65,777 |
Total current assets | 858,799 | 709,827 |
Properties | 1,156,320 | 1,250,338 |
Goodwill | 868,057 | 876,201 |
Other intangible assets | 1,300,035 | 1,301,537 |
Investments | 106,636 | 113,283 |
Deferred costs and other assets | 34,108 | 52,013 |
Total assets | 4,323,955 | 4,303,199 |
Current liabilities: | ' | ' |
Current portion of long-term debt | 38,260 | 12,911 |
Accounts payable | 89,743 | 70,826 |
Accrued expenses and other current liabilities | 156,075 | 137,348 |
Advertising funds restricted liabilities | 68,768 | 65,777 |
Total current liabilities | 352,846 | 286,862 |
Long-term debt | 1,433,662 | 1,444,651 |
Deferred income taxes | 454,524 | 438,217 |
Other liabilities | 161,614 | 147,614 |
Commitments and contingencies | ' | ' |
The Wendy’s Company stockholders’ equity: | ' | ' |
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued | 47,042 | 47,042 |
Additional paid-in capital | 2,788,479 | 2,782,765 |
Accumulated deficit | -505,657 | -467,007 |
Common stock held in treasury, at cost; 78,853 and 78,051 shares | -404,484 | -382,926 |
Accumulated other comprehensive (loss) income | -1,658 | 5,981 |
Total stockholders’ equity | 1,923,722 | 1,985,855 |
Stockholders' Equity Attributable to Noncontrolling Interest | ' | ' |
Noncontrolling interests | -2,413 | 0 |
Total equity | 1,921,309 | 1,985,855 |
Total liabilities and equity | $4,323,955 | $4,303,199 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets Balance Sheet Parentheticals (USD $) | Sep. 29, 2013 | Dec. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Common Stock, Par Value Per Share | $0.10 | $0.10 |
Common Stock, Shares Authorized | 1,500,000 | 1,500,000 |
Common Stock, Shares Issued | 470,424 | 470,424 |
Treasury Stock, Shares | 78,853 | 78,051 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Sales | $558,029 | $558,335 | $1,659,900 | $1,644,380 |
Franchise revenues | 82,750 | 77,973 | 235,105 | 230,983 |
Total revenues | 640,779 | 636,308 | 1,895,005 | 1,875,363 |
Costs and expenses: | ' | ' | ' | ' |
Cost of sales | 469,177 | 478,425 | 1,403,303 | 1,416,972 |
General and administrative | 76,518 | 72,175 | 216,623 | 217,824 |
Depreciation and amortization | 44,325 | 41,878 | 134,841 | 110,136 |
Impairment of long-lived assets | 5,327 | 0 | 5,327 | 7,781 |
Facilities action charges, net | 22,275 | 11,430 | 31,690 | 27,561 |
Other operating (income) expense, net | -3,653 | 1,217 | -3,043 | 4,599 |
Costs and expenses | 613,969 | 605,125 | 1,788,741 | 1,784,873 |
Operating profit | 26,810 | 31,183 | 106,264 | 90,490 |
Interest expense | -15,620 | -21,566 | -55,548 | -77,803 |
Loss on early extinguishment of debt | 0 | -49,881 | -21,019 | -75,076 |
Investment income and other income (expense), net | 2,273 | 900 | 50 | 30,471 |
Income (loss) from continuing operations before income taxes and noncontrolling interests | 13,463 | -39,364 | 29,747 | -31,918 |
(Provision for) benefit from income taxes | -15,625 | 12,672 | -17,774 | 14,467 |
(Loss) income from continuing operations | -2,162 | -26,692 | 11,973 | -17,451 |
Discontinued operations: | ' | ' | ' | ' |
Income from discontinued operations, net of income taxes | 0 | 784 | 0 | 784 |
Loss on disposal of discontinued operations, net of income taxes | 0 | -254 | 0 | -254 |
Net income from discontinued operations | 0 | 530 | 0 | 530 |
Net (loss) income | -2,162 | -26,162 | 11,973 | -16,921 |
Net loss (income) attributable to noncontrolling interests | 223 | 0 | 445 | -2,384 |
Net (loss) income attributable to The Wendy’s Company | ($1,939) | ($26,162) | $12,418 | ($19,305) |
Basic and diluted (loss) income per share attributable to The Wendy’s Company: | ' | ' | ' | ' |
Continuing operations | $0 | ($0.07) | $0.03 | ($0.05) |
Discontinued operations | $0 | $0 | $0 | $0 |
Net (loss) income | $0 | ($0.07) | $0.03 | ($0.05) |
Dividends per share | $0.05 | $0.02 | $0.13 | $0.06 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Net (loss) income | ($2,162) | ($26,162) | $11,973 | ($16,921) |
Other comprehensive income (loss), net: | ' | ' | ' | ' |
Foreign currency translation adjustment | 4,851 | 7,920 | -7,029 | 9,309 |
Change in unrecognized pension loss, net of income tax benefits of $37 and $127, respectively | 0 | 0 | -62 | -217 |
Other comprehensive income (loss), net | 4,851 | 7,920 | -7,091 | 9,092 |
Comprehensive income (loss) | 2,689 | -18,242 | 4,882 | -7,829 |
Comprehensive loss (income) attributable to noncontrolling interests | 301 | 0 | -103 | -2,384 |
Comprehensive income (loss) attributable to The Wendy’s Company | $2,990 | ($18,242) | $4,779 | ($10,213) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Change in unrecognized pension loss, income tax benefit | $37 | $127 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income (loss) | $11,973 | ($16,921) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 138,924 | 112,057 |
Loss on early extinguishment of debt | 21,019 | 75,076 |
Distributions received from TimWen joint venture | 10,148 | 10,760 |
Share-based compensation | 11,564 | 8,330 |
Impairment of long-lived assets | 5,327 | 7,781 |
System Optimization Remeasurement | 18,359 | 0 |
Net receipt of deferred vendor incentives | 14,731 | 6,239 |
Accretion of long-term debt | 5,281 | 6,060 |
Amortization of deferred financing costs | 1,893 | 3,477 |
Non-cash rent expense | 6,506 | 2,934 |
Equity in earnings in joint ventures, net | -6,980 | -7,836 |
Deferred income tax | 19,292 | -19,809 |
Loss (gain) on sale of investment, net | 799 | -27,407 |
(Gain) loss on dispositions, net (see below) | -7,712 | 254 |
Other, net | -795 | 5,882 |
Changes in operating assets and liabilities: | ' | ' |
Accounts and notes receivable | -1,643 | 3,447 |
Inventories | 2,237 | 965 |
Prepaid expenses and other current assets | -5,962 | -4,219 |
Accounts payable | -2,715 | 850 |
Accrued expenses and other current liabilities | 10,445 | -43,289 |
Net cash provided by operating activities | 252,691 | 124,631 |
Cash flows from investing activities: | ' | ' |
Capital expenditures | -130,802 | -126,325 |
Acquisitions | -1,812 | -40,594 |
Dispositions | 44,055 | 6,273 |
Franchise loans, net | 2,757 | 2,048 |
Proceeds from sales of investments | 2,680 | 24,374 |
Change in restricted cash | -22,593 | 0 |
Other, net | 0 | -374 |
Net cash used in investing activities | -105,715 | -134,598 |
Cash flows from financing activities: | ' | ' |
Proceeds from long-term debt | 350,000 | 1,113,750 |
Repayments of long-term debt | -358,364 | -1,044,011 |
Deferred financing costs | -5,827 | -15,511 |
Premium payment on redemption of Senior Notes | 0 | -43,151 |
Dividends | -51,065 | -23,406 |
Repurchase of common stock | -41,469 | 0 |
Distribution to noncontrolling interests | 0 | -3,667 |
Proceeds from stock option exercises | 20,950 | 2,526 |
Other, net | 438 | 52 |
Net cash used in financing activities | -85,337 | -13,418 |
Net cash provided by (used in) operations before effect of exchange rate changes on cash | 61,639 | -23,385 |
Effect of exchange rate changes on cash | -1,569 | 1,746 |
Net increase (decrease) in cash and cash equivalents | 60,070 | -21,639 |
Cash and cash equivalents at beginning of period | 453,361 | 475,231 |
Cash and cash equivalents at end of period | 513,431 | 453,592 |
(Gain) loss on dispositions, net: | ' | ' |
Gain on sales of restaurants, net | -2,941 | 0 |
Gain on disposal of assets, net | -4,771 | 0 |
Loss on disposal of Arby’s | 0 | 254 |
(Gain) loss on dispositions, net (see below) | -7,712 | 254 |
Cash paid for: | ' | ' |
Interest | 46,931 | 90,893 |
Income taxes, net of refunds | 1,484 | 9,593 |
Supplemental non-cash investing and financing activities: | ' | ' |
Capital expenditures included in accounts payable | 45,566 | 21,532 |
Capitalized lease obligations | $5,891 | $16,317 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 29, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments necessary to present fairly our financial position as of September 29, 2013 and the results of our operations for the three and nine months ended September 29, 2013 and September 30, 2012 and our cash flows for the nine months ended September 29, 2013 and September 30, 2012. The results of operations for the three and nine months ended September 29, 2013 are not necessarily indicative of the results to be expected for the full 2013 fiscal year. These Financial Statements should be read in conjunction with the audited consolidated financial statements for The Wendy’s Company and notes thereto, included in our Annual Report on Form 10-K for the fiscal year ended December 30, 2012 (the “Form 10-K”). | |
The principal subsidiary of the Company is Wendy’s International, Inc. (“Wendy’s”) and its subsidiaries. The Company manages and internally reports its business geographically. The operation and franchising of Wendy’s® restaurants in North America (defined as the U.S. and Canada) comprises virtually all of our current operations and represents a single reportable segment. The revenues and operating results of Wendy’s restaurants outside of North America are not material. | |
We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to December 31. All three and nine month periods presented herein contain 13 and 39 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. | |
Certain reclassifications have been made to prior year presentation to conform to the current year presentation. | |
In connection with the reimaging of restaurants as part of our Image Activation program, we have recorded $5,755 and $24,509 of accelerated depreciation and amortization during the three and nine months ended September 29, 2013, respectively, on certain long-lived assets to reflect their use over shortened estimated useful lives. We describe the circumstances under which we record accelerated depreciation and amortization for properties in our Form 10-K. | |
On July 4, 2011, Wendy’s Restaurants, LLC (“Wendy’s Restaurants”), a direct 100% owned subsidiary holding company of the Company, completed the sale of 100% of the common stock of its then wholly-owned subsidiary, Arby’s Restaurant Group, Inc. (“Arby’s”) (while indirectly retaining an 18.5% interest in Arby’s), as described in the Form 10-K. Net income from discontinued operations for the three and nine months ended September 30, 2012 includes certain post-closing Arby’s related transactions. |
Facilities_Action_Charges_Net
Facilities Action Charges, Net | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Facilities Action Charges, Net [Abstract] | ' | |||||||||||||||||||||||
Restructuring and Related Activities Disclosure | ' | |||||||||||||||||||||||
Facilities Action Charges, Net | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
System optimization initiative | $ | 21,557 | $ | — | $ | 26,356 | $ | — | ||||||||||||||||
Facilities relocation and other transition costs | 632 | 11,285 | 3,956 | 26,242 | ||||||||||||||||||||
Breakfast discontinuation | 86 | — | 1,115 | — | ||||||||||||||||||||
Arby’s transaction related costs | — | 145 | 263 | 1,319 | ||||||||||||||||||||
$ | 22,275 | $ | 11,430 | $ | 31,690 | $ | 27,561 | |||||||||||||||||
System Optimization Initiative | ||||||||||||||||||||||||
In July 2013, the Company announced a system optimization initiative, as part of its brand transformation, which includes a plan to sell approximately 425 company-owned restaurants to franchisees by mid-year 2014. The Company’s system optimization initiative also includes the consolidation of regional and divisional territories. As a result of the system optimization initiative, the Company has recorded losses on remeasuring long-lived assets to fair value upon determination that the assets will be leased and/or subleased to franchisees in connection with the sale or anticipated sale of restaurants (“System Optimization Remeasurement”). The Company does not anticipate significant changes to the System Optimization Remeasurement through the completion of the initiative, although such changes could occur if actual future rental payments differ substantially from estimated payments. In addition, the Company anticipates recognizing the following costs related to the system optimization initiative during 2013 and 2014: (1) accelerated depreciation and amortization, (2) severance and related employee costs, (3) share-based compensation, (4) professional fees and (5) other costs. These costs, as well as gains or losses recognized on sales of restaurants under the system optimization initiative will be recorded to “Facilities action charges, net” in our condensed consolidated statements of operations. The Company’s estimate for costs to be incurred under the system optimization initiative during the remainder of 2013 and 2014 totals approximately $25,900 and includes: (1) accelerated amortization of previously acquired franchise rights in territories being sold of $14,300, (2) severance and employee related costs of $7,000, (3) professional fees of $3,000 and (4) share-based compensation of $1,600. The Company cannot reasonably estimate the gains or losses resulting from future sales of restaurants. | ||||||||||||||||||||||||
The following is a summary of the activity recorded under our system optimization initiative: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
29-Sep-13 | 29-Sep-13 | |||||||||||||||||||||||
Gain on sales of restaurants, net | $ | (1,665 | ) | $ | (2,941 | ) | ||||||||||||||||||
System Optimization Remeasurement (a) | 12,421 | 18,359 | ||||||||||||||||||||||
Accelerated amortization (b) | 3,130 | 3,130 | ||||||||||||||||||||||
Severance and related employee costs | 6,131 | 6,131 | ||||||||||||||||||||||
Share-based compensation (c) | 755 | 755 | ||||||||||||||||||||||
Professional fees | 704 | 829 | ||||||||||||||||||||||
Other | 81 | 93 | ||||||||||||||||||||||
Total system optimization initiative | $ | 21,557 | $ | 26,356 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
(a) | Includes remeasurement of land, buildings, leasehold improvements and favorable lease assets at all company-owned restaurants included in our system optimization initiative. See Note 6 for more information on non-recurring fair value measurements. | |||||||||||||||||||||||
(b) | Includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that are being sold in connection with our system optimization initiative. | |||||||||||||||||||||||
(c) | Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. | |||||||||||||||||||||||
Gain on Sales of Restaurants | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 29, | September 29, | |||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||
Number of restaurants sold to franchisees | 53 | 61 | ||||||||||||||||||||||
Proceeds from sales of restaurants | $ | 22,871 | $ | 25,671 | ||||||||||||||||||||
Net assets sold (a) | (13,646 | ) | (14,489 | ) | ||||||||||||||||||||
Goodwill related to sales of restaurants | (5,621 | ) | (6,302 | ) | ||||||||||||||||||||
Net unfavorable lease liabilities (b) | (1,884 | ) | (1,884 | ) | ||||||||||||||||||||
Other | (22 | ) | (22 | ) | ||||||||||||||||||||
1,698 | 2,974 | |||||||||||||||||||||||
Post-closing adjustments on prior sales of restaurants | (33 | ) | (33 | ) | ||||||||||||||||||||
Gain on sales of restaurants, net | $ | 1,665 | $ | 2,941 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
(a) | Net assets sold consisted primarily of cash, inventory and equipment. | |||||||||||||||||||||||
(b) | The Company recorded favorable lease assets of $8,789 and unfavorable lease liabilities of $10,673 as a result of the lease and/or sublease of land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. | |||||||||||||||||||||||
Restaurant Assets Held for Sale | ||||||||||||||||||||||||
September 29, | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Number of restaurants classified as held for sale | 367 | |||||||||||||||||||||||
Restaurant net assets held for sale | $ | 56,569 | ||||||||||||||||||||||
As of September 29, 2013, the Company determined that all of the remaining restaurants which are part of the system optimization initiative meet the criteria to be classified as held for sale. Restaurant net assets held for sale consist primarily of cash, inventory and property and are included in “Prepaid expenses and other current assets” as of September 29, 2013. | ||||||||||||||||||||||||
Subsequent Events | ||||||||||||||||||||||||
Subsequent to the end of the third quarter of 2013, the Company completed the sale of certain assets used in the operation of 37 Wendy’s restaurants for cash proceeds of approximately $25,685, subject to customary purchase price adjustments. These sales are expected to result in an estimated pre-tax gain of approximately $4,047. | ||||||||||||||||||||||||
Facilities Relocation and Other Transition Costs | ||||||||||||||||||||||||
The relocation of the Company’s Atlanta restaurant support center to Ohio was substantially completed during 2012. All of the remaining costs related to the relocation, which are anticipated to aggregate approximately $800, will be recorded during the fourth quarter of 2013. | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Total Incurred Since Inception | Total Expected to be Incurred | |||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
Severance, retention and other payroll costs | $ | 394 | $ | 2,236 | $ | 1,760 | $ | 9,552 | $ | 17,057 | $ | 17,176 | ||||||||||||
Relocation costs | 303 | 1,776 | 1,564 | 3,857 | 6,786 | 7,447 | ||||||||||||||||||
Atlanta facility closure costs | (92 | ) | 4,224 | 303 | 4,401 | 4,844 | 4,844 | |||||||||||||||||
Consulting and professional fees | — | 1,676 | 128 | 4,494 | 5,056 | 5,056 | ||||||||||||||||||
Other | 27 | 752 | 201 | 2,017 | 2,341 | 2,359 | ||||||||||||||||||
632 | 10,664 | 3,956 | 24,321 | 36,084 | 36,882 | |||||||||||||||||||
Accelerated depreciation expense | — | 621 | — | 1,921 | 2,118 | 2,118 | ||||||||||||||||||
Share-based compensation | — | — | — | — | 271 | 271 | ||||||||||||||||||
Total | $ | 632 | $ | 11,285 | $ | 3,956 | $ | 26,242 | $ | 38,473 | $ | 39,271 | ||||||||||||
The table below presents a rollforward of our accruals for facility relocation costs, which are included in “Accrued expenses and other current liabilities” and “Other liabilities.” | ||||||||||||||||||||||||
Balance | Charges | Payments | Balance | |||||||||||||||||||||
30-Dec-12 | September 29, | |||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Severance, retention and other payroll costs | $ | 4,121 | $ | 1,760 | $ | (4,114 | ) | $ | 1,767 | |||||||||||||||
Relocation costs | 500 | 1,564 | (2,064 | ) | — | |||||||||||||||||||
Atlanta facility closure costs | 4,170 | 303 | (1,287 | ) | 3,186 | |||||||||||||||||||
Consulting and professional fees | 80 | 128 | (208 | ) | — | |||||||||||||||||||
Other | 9 | 201 | (210 | ) | — | |||||||||||||||||||
$ | 8,880 | $ | 3,956 | $ | (7,883 | ) | $ | 4,953 | ||||||||||||||||
Breakfast Discontinuation | ||||||||||||||||||||||||
In January 2013, Wendy’s announced that it was discontinuing the breakfast daypart at certain restaurants. During the three and nine months ended September 29, 2013, we reflected $86 and $1,115, respectively, of costs for such discontinuance, primarily representing the remaining carrying value of breakfast related equipment no longer being used. | ||||||||||||||||||||||||
Arby’s Transaction Related Costs | ||||||||||||||||||||||||
As disclosed in our Form 10-K, the remaining Arby’s transaction related costs were associated with the relocation of a corporate executive that were being expensed over the three year period following the executive’s relocation in accordance with the terms of the agreement. In accordance with the terms of a separation agreement with such executive, the remaining unamortized costs were recorded to severance expense and included in “General and administrative” during the second quarter of 2013. The Company does not expect to incur additional costs related to the sale of Arby’s. |
Acquisitions_and_Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 29, 2013 | |
Acquisitions and Dispositions [Abstract] | ' |
Acquisitions and Other Dispositions | ' |
Acquisitions and Dispositions | |
Consolidation of a Joint Venture in Japan | |
A wholly-owned subsidiary of Wendy’s owned a 49% share in a joint venture for the operation of Wendy’s restaurants in Japan (the “Japan JV”) with Ernest M. Higa and Higa Industries, Ltd., a corporation organized under the laws of Japan (collectively, the “Higa Partners”). In January 2013, Wendy’s and the Higa Partners agreed to fund approximately $3,000 and $657, respectively, of future anticipated cash requirements of the Japan JV, of which $1,000 and $219, respectively, were contributed in April 2013. In conjunction with the additional capital contributions in April 2013, the partners executed an amendment to the original joint venture agreement which includes revised rights and obligations of the partners and changes to the ownership and profit distribution percentages. In August 2013, additional contributions of $1,000 and $219 were made by Wendy’s and the Higa Partners, respectively. The ownership and profit distribution percentages, as defined, are 66.8% and 62.2% and 33.2% and 37.8%, respectively for Wendy’s and the Higa Partners as of September 29, 2013 and will change as future contributions are made to fund the Japan JV. As a result of the changes in the ownership rights and obligations of the partners in April 2013, Wendy’s consolidated the Japan JV beginning in the second quarter of 2013 and we have reflected our capital contributions of $2,000, net of cash acquired of $188, in “Acquisitions” in our condensed consolidated statements of cash flows. Prior to our acquisition of this additional interest, the Japan JV was accounted for as an unconsolidated affiliate under the equity method of accounting. | |
Under the equity method of accounting, we previously reported our 49% share of the net loss of the Japan JV in “Other operating (income) expense, net.” Beginning in the second quarter of 2013, we have reported the Japan JV’s results of operations in the appropriate line items in our condensed consolidated statements of operations. Net loss attributable to the Higa Partners’ ownership percentage is recorded in “Net loss (income) attributable to noncontrolling interests.” The consolidation of the Japan JV’s existing three restaurants did not have a material impact on our condensed consolidated financial statements. | |
Acquisitions | |
During the nine months ended September 29, 2013, Wendy’s acquired one franchised restaurant; such transaction was not significant. | |
On June 11, 2012, Wendy’s acquired 30 franchised restaurants in the Austin, Texas area from Pisces Foods, L.P. and Near Holdings, L.P. The allocation of the total purchase price of $18,915, including closing adjustments, to the fair value of assets acquired and liabilities assumed was finalized during the first quarter of 2013 and unchanged from our Form 10-K disclosure. | |
On July 13, 2012, Wendy’s acquired 24 franchised restaurants in the Albuquerque, New Mexico area from Double Cheese Corporation and Double Cheese Realty Corporation (collectively “Double Cheese”), pursuant to the terms of an Asset Purchase Agreement dated as of July 6, 2012 (the “Double Cheese Acquisition”). The allocation of the total purchase price of $19,181, including closing adjustments, to the fair value of assets acquired and liabilities assumed, was finalized during the fourth quarter of 2012. | |
In addition, during the nine months ended September 30, 2012, Wendy’s acquired two franchised restaurants along with certain other equipment and franchise rights. The total net cash consideration for this acquisition was $2,594. The total consideration was allocated to net tangible and identifiable intangible assets acquired, primarily properties, and liabilities assumed based on their estimated fair values, with the excess of $485 recognized as goodwill. | |
Dispositions | |
During the nine months ended September 29, 2013, Wendy’s received cash proceeds of $18,384 from dispositions, consisting of (1) $9,731 primarily from the sale of surplus properties and (2) $8,653 resulting from franchisees exercising options to purchase previously leased properties. These sales resulted in a net gain of $4,771 which is included in “Other operating (income) expense, net.” See Note 2 for discussion of restaurant dispositions in connection with our system optimization initiative. | |
During the nine months ended September 30, 2012, Wendy’s received cash proceeds of $6,273 and $400 in promissory notes from dispositions, consisting of (1) $2,293 from the sale of three company-owned restaurants to franchisees, (2) $1,874 from the sale of a restaurant to an unrelated third party, (3) $1,591 resulting from franchisees exercising options to purchase previously subleased properties and (4) $515, as well as $400 in promissory notes, from the sale of surplus properties and other equipment. These sales resulted in a net gain of $974. |
Investments
Investments | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Investments [Abstract] | ' | ||||||||
Investments | ' | ||||||||
Investments | |||||||||
Investment in Joint Venture with Tim Hortons Inc. | |||||||||
Wendy’s is a partner in a Canadian restaurant real estate joint venture (“TimWen”) with Tim Hortons Inc. Wendy’s 50% share of the joint venture is accounted for using the equity method of accounting. Our equity in earnings from TimWen is included in “Other operating (income) expense, net.” | |||||||||
Presented below is an unaudited summary of activity related to our investment in TimWen included in our unaudited condensed consolidated financial statements: | |||||||||
Nine Months Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | 89,370 | $ | 91,742 | |||||
Equity in earnings for the period | 10,357 | 10,254 | |||||||
Amortization of purchase price adjustments (a) | (2,288 | ) | (2,340 | ) | |||||
8,069 | 7,914 | ||||||||
Distributions received | (10,148 | ) | (10,760 | ) | |||||
Foreign currency translation adjustment included in | (3,052 | ) | 3,570 | ||||||
“Other comprehensive income (loss), net” | |||||||||
Balance at end of period (b) | $ | 84,239 | $ | 92,466 | |||||
_____________________ | |||||||||
(a) | Based upon an average original aggregate life of 21 years. | ||||||||
(b) | Included in “Investments.” | ||||||||
Presented below is a summary of certain unaudited interim income statement information of TimWen: | |||||||||
Nine Months Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Revenues | $ | 29,113 | $ | 29,655 | |||||
Income before income taxes and net income | 20,714 | 20,508 | |||||||
Sale of Investment in Jurlique International Pty Ltd. | |||||||||
On February 2, 2012, Jurl Holdings, LLC (“Jurl”), a 99.7% owned subsidiary, completed the sale of our investment in Jurlique International Pty Ltd. (“Jurlique”) for which we received proceeds of $27,287, net of the amount held in escrow and recorded a gain on sale of this investment of $27,407, which included a loss of $2,913 on the settlement of a related derivative transaction. The gain was included in “Investment income and other income (expense), net” in our condensed consolidated statement of operations for the nine months ended September 30, 2012. During the three months ended September 29, 2013, $1,166 of the escrow from the sale was collected. In addition, we determined that $799 of the remaining escrow would not be received and as a result recorded the reduction of our receivable to “Investment income and other income (expense), net.” The remaining escrow of $1,012, as of September 29, 2013, is included in “Deferred costs and other assets” and has been adjusted for foreign currency translation. | |||||||||
We have reflected net income attributable to noncontrolling interests of $2,384, net of an income tax benefit of $1,283, for the nine months ended September 30, 2012 in connection with the equity and profit interests discussed below. As a result of this sale and the distributions to the minority shareholders, there are no remaining noncontrolling interests in this consolidated subsidiary. | |||||||||
Prior to 2009 when our predecessor entity was a diversified company active in investments, we had provided our Chairman, who was also our then Chief Executive Officer, and our Vice Chairman, who was our then President and Chief Operating Officer (the “Former Executives”), and certain other former employees, equity and profit interests in Jurl. In connection with the gain on sale of Jurlique, we distributed, based on the related agreement, approximately $3,667 to Jurl’s minority shareholders, including approximately $2,296 to the Former Executives. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt [Text Block] | ' | |||||||
Long-Term Debt | ||||||||
Except as described below, the Company did not have any significant changes to its long-term debt as disclosed in the notes to our consolidated financial statements included in the Form 10-K. | ||||||||
Long-term debt consisted of the following: | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Term A Loan, due in 2018 | $ | 350,000 | $ | — | ||||
Term B Loan, due in 2019 | 769,375 | 1,114,826 | ||||||
6.20% Senior Notes, due in 2014 | 225,586 | 225,940 | ||||||
7% debentures, due in 2025 | 84,373 | 83,496 | ||||||
Capital lease obligations, due through 2040 | 37,538 | 32,594 | ||||||
Other (a) | 5,050 | 706 | ||||||
1,471,922 | 1,457,562 | |||||||
Less amounts payable within one year | (38,260 | ) | (12,911 | ) | ||||
Total long-term debt | $ | 1,433,662 | $ | 1,444,651 | ||||
_______________ | ||||||||
(a) Other includes $4,696 of debt resulting from the consolidation of the Japan JV in the second quarter of 2013. The carrying amount of the long-term debt approximates fair value. | ||||||||
Refinancings of the Credit Agreement and Other Indebtedness | ||||||||
On May 16, 2013, Wendy’s amended and restated (the “Restated Credit Agreement”) its Credit Agreement, dated as of May 15, 2012 (the “Credit Agreement”). The Restated Credit Agreement is comprised of (1) a $350,000 senior secured term loan facility (“Term A Loan”) which will mature on May 15, 2018 and bears interest at the Eurodollar Rate (as defined in the Restated Credit Agreement) plus 2.25%, (2) a $769,375 senior secured term loan facility (“Term B Loan”) which will mature on May 15, 2019 and bears interest at the Eurodollar Rate plus 2.50% with a floor of 0.75% and (3) a $200,000 senior secured revolving credit facility which will mature on May 15, 2018. The proceeds from the Term A Loan were used to refinance a portion of our existing Term B Loan (formerly described in our Form 10-K as the “Term Loan”). The terms and amounts of the senior secured revolving credit facility are unchanged with the exception of the maturity date which was extended from May 15, 2017. | ||||||||
During the three months ended June 30, 2013, Wendy’s incurred $5,579 in fees related to refinancing activities, which are being amortized to “Interest expense” utilizing the effective interest rate method through the maturities of the related debt instruments. | ||||||||
As a result of the refinancing of its existing Credit Agreement, described above, Wendy’s incurred a loss on the early extinguishment of debt as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 29, | September 29, | |||||||
2013 | 2013 | |||||||
Unaccreted discount on Term B Loan | $ | — | $ | 9,561 | ||||
Deferred costs associated with the Credit Agreement | — | 11,458 | ||||||
Loss on early extinguishment of debt | $ | — | $ | 21,019 | ||||
The Company incurred a loss on the early extinguishment of debt in 2012 related to the repayment of debt from the proceeds of the 2012 term loan under the May 15, 2012 Credit Agreement, as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-12 | 30-Sep-12 | |||||||
Premium payment to redeem/purchase Wendy’s Restaurants 10.00% Senior Notes due in 2016 (the “Senior Notes”) | $ | 33,058 | $ | 43,151 | ||||
Unaccreted discount on the Senior Notes | 7,186 | 9,272 | ||||||
Deferred costs associated with the Senior Notes | 9,637 | 12,433 | ||||||
Unaccreted discount on the 2010 term loan | — | 1,695 | ||||||
Deferred costs associated with the 2010 term loan | — | 8,525 | ||||||
Loss on early extinguishment of debt | $ | 49,881 | $ | 75,076 | ||||
The Credit Agreement includes a revolving credit facility which includes a sub-facility for the issuance of up to $70,000 of letters of credit. The Restated Credit Agreement also allows Wendy’s to have liens in the form of cash collateralized letters of credit up to an additional $40,000. During the three months ended September 29, 2013, Wendy’s transitioned the security for all of its outstanding letters of credit from the revolving credit facility to cash collateral. As of September 29, 2013, Wendy’s had outstanding cash collateralized letters of credit of $22,593. The related cash collateral is classified as restricted cash and included in “Prepaid expenses and other current assets” in the condensed consolidated balance sheet as of September 29, 2013. | ||||||||
On September 24, 2013, Wendy’s entered into an amendment (the “Amendment”) to its Restated Credit Agreement to borrow additional Term A Loans (“Incremental Term Loans”) in an aggregate principal amount up to $225,000. As a result of the execution of the Amendment, the outstanding Wendy’s 6.20% Senior Notes due in 2014 (the “6.20% Senior Notes”) have been classified as long-term debt in our condensed consolidated balance sheet as of September 29, 2013. The Amendment does not contain any material changes to existing covenants or other terms of the Restated Credit Agreement, except as described above. During the three months ended September 29, 2013, Wendy’s incurred $2,293 in fees related to the refinancing, which have been capitalized and included in “Deferred costs and other assets” in the condensed consolidated balance sheet. The interest rates on Term A Loan and Term B Loan were 2.43% and 3.25%, respectively, as of September 29, 2013. | ||||||||
Subsequent Events | ||||||||
On October 24, 2013, Wendy’s borrowed $225,000 of Incremental Term Loans under the Amendment, further described above. Proceeds from the Incremental Term Loans, plus cash on hand, were used to redeem all amounts outstanding on the aggregate principal amount of the 6.20% Senior Notes at a price equal to 103.8%, as defined in the 6.20% Senior Notes and accrued and unpaid interest to the redemption date. In connection with the redemption of the 6.20% Senior Notes, during the fourth quarter we terminated the related interest rate swaps with notional amounts totaling $225,000 which had been designated as fair value hedges. Consequently, during the fourth quarter of 2013, Wendy’s will recognize a loss on the early extinguishment of debt of approximately $7,544 which will primarily include (1) a premium payment, as defined in the 6.20% Senior Notes, totaling $8,439, (2) the remaining $3,168 of the fair value adjustment previously recorded in connection with the Wendy’s merger, partially offset by (3) a $4,063 benefit from the cumulative effect of our fair value hedges. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value Disclosures [Text Block] | ' | |||||||||||||||||||
Fair Value Measurements | ||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy: | ||||||||||||||||||||
Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets. | ||||||||||||||||||||
Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. | ||||||||||||||||||||
Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. | ||||||||||||||||||||
Financial Instruments | ||||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at September 29, 2013 and December 30, 2012: | ||||||||||||||||||||
September 29, | December 30, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | Fair Value | ||||||||||||||||
Amount | Value | Amount | Value | Measurements | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash equivalents | $ | 317,058 | $ | 317,058 | $ | 264,925 | $ | 264,925 | Level 1 | |||||||||||
Non-current cost method investments (a) | 22,397 | 47,121 | 23,913 | 50,761 | Level 3 | |||||||||||||||
Interest rate swaps (b) | 4,123 | 4,123 | 8,169 | 8,169 | Level 2 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Term A Loan, due in 2018 (c) | 350,000 | 349,563 | — | — | Level 2 | |||||||||||||||
Term B Loan, due in 2019 (c) | 769,375 | 766,490 | 1,114,826 | 1,130,434 | Level 2 | |||||||||||||||
6.20% Senior Notes, due in 2014 (c) | 225,586 | 233,438 | 225,940 | 240,750 | Level 2 | |||||||||||||||
7% debentures, due in 2025 (c) | 84,373 | 97,750 | 83,496 | 99,900 | Level 2 | |||||||||||||||
Capital lease obligations (d) | 37,538 | 36,080 | 32,594 | 33,299 | Level 3 | |||||||||||||||
Guarantees of franchisee loan | 892 | 892 | 940 | 940 | Level 3 | |||||||||||||||
obligations (e) | ||||||||||||||||||||
_______________ | ||||||||||||||||||||
(a) | The fair value of our indirect investment in Arby’s is based on a review of its most recent unaudited financial information. The fair values of our remaining investments were based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. | |||||||||||||||||||
(b) | The fair values were based on information provided by the bank counterparties that is model-driven and where inputs were observable or where significant value drivers were observable. | |||||||||||||||||||
(c) | The fair values were based on quoted market prices in markets that are not considered active markets. See Note 5 for information on the redemption of the 6.20% Senior Notes subsequent to the third quarter of 2013. | |||||||||||||||||||
(d) | The fair values were determined by discounting the future scheduled principal payments using an interest rate assuming the same original issuance spread over a current U.S. Treasury bond yield for securities with similar durations. | |||||||||||||||||||
(e) | Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into pooled debt facility arrangements for new restaurant development and equipment financing. In 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. | |||||||||||||||||||
The carrying amounts of cash, accounts payable and accrued expenses approximated fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable (both current and non-current) approximated fair value due to the effect of the related allowance for doubtful accounts. | ||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||
Our derivative instruments for the periods presented included interest rate swaps on our 6.20% Senior Notes with notional amounts totaling $225,000 that were all designated as fair value hedges. The fair value of our interest rate swaps of $4,123 and $8,169 at September 29, 2013 and December 30, 2012, respectively, are included in “Deferred costs and other assets” and as an adjustment to the carrying amount of our 6.20% Senior Notes. Interest income on the interest rate swaps was $1,429 and $4,319 for the three and nine months ended September 29, 2013, respectively, and $1,283 and $4,013 for the three and nine months ended September 30, 2012, respectively. No ineffectiveness has been recorded to net income related to our fair value hedges for the nine months ended September 29, 2013 and September 30, 2012. | ||||||||||||||||||||
In connection with the redemption of the 6.20% Senior Notes on October 24, 2013, during the fourth quarter we terminated the related interest rate swaps with notional amounts totaling $225,000. See Note 5 for more information on our redemption of the 6.20% Senior Notes and the termination of the interest rate swaps. | ||||||||||||||||||||
Non-Recurring Fair Value Measurements | ||||||||||||||||||||
The following tables present the fair values for those assets and liabilities measured at fair value on a non-recurring basis during the nine months ended September 29, 2013 and the year ended December 30, 2012 and the resulting impact on the consolidated statements of operations. | ||||||||||||||||||||
Total losses for the nine months ended September 29, 2013 reflect the impact of remeasuring long-lived assets (including land, buildings, leasehold improvements and favorable lease assets) at certain company-owned restaurants to fair value as a result of the Company’s decision to lease and/or sublease the land and/or buildings and sell certain other restaurant assets to franchisees. Such losses totaling $18,359 have been presented as System Optimization Remeasurement and included in “Facilities action charges, net” in our condensed consolidated statement of operations for the nine months ended September 29, 2013. The fair value of long-lived assets presented in the table below represents the remaining carrying value of the long-lived assets discussed above and was based upon discounted cash flows of future anticipated lease and sublease income. See Note 2 for more information on our system optimization initiative and the related activity included in “Facilities action charges, net” including System Optimization Remeasurement. | ||||||||||||||||||||
Total losses for the nine months ended September 29, 2013 also includes the impact of remeasuring our company-owned aircraft to fair value as a result of the Company’s decision to sell these aircraft and classify them as held for sale. Additionally, total losses includes $500 resulting from remeasuring land and buildings to fair value in connection with closing company-owned restaurants and classifying such properties as held for sale. Such losses have been presented as “Impairment of long-lived assets” in our condensed consolidated statements of operations. The fair values of long-lived assets and the aircraft presented in the table below represent the remaining carrying value and were estimated based on current market values. See Note 7 for more information on the impairment of our long-lived assets. | ||||||||||||||||||||
Total losses for the year ended December 30, 2012 reflect the impact of remeasuring long-lived assets at company-owned restaurants and a company-owned aircraft to fair value and were recorded to “Impairment of long-lived assets” in the consolidated statements of operations. The fair value of long-lived assets presented in the table below substantially represents the remaining carrying value of land for Wendy’s properties that were impaired in 2012 and were estimated based on current market values as determined by sales prices of comparable properties and current market trends. As of December 30, 2012, the carrying value of the aircraft, which reflected current market conditions, approximated its fair value. | ||||||||||||||||||||
Fair Value Measurements | Nine Months Ended | |||||||||||||||||||
29-Sep-13 | ||||||||||||||||||||
September 29, 2013 | Level 1 | Level 2 | Level 3 | Total Losses | ||||||||||||||||
Long-lived assets | $ | 7,803 | $ | — | $ | — | $ | 7,803 | $ | 18,859 | ||||||||||
Aircraft | 9,000 | — | — | 9,000 | 4,827 | |||||||||||||||
Total | $ | 16,803 | $ | — | $ | — | $ | 16,803 | $ | 23,686 | ||||||||||
Fair Value Measurements | 2012 | |||||||||||||||||||
December 30, 2012 | Level 1 | Level 2 | Level 3 | Total Losses | ||||||||||||||||
Long-lived assets | $ | 7,311 | $ | — | $ | — | $ | 7,311 | $ | 19,469 | ||||||||||
Aircraft | 5,926 | — | — | 5,926 | 1,628 | |||||||||||||||
Total | $ | 13,237 | $ | — | $ | — | $ | 13,237 | $ | 21,097 | ||||||||||
Impairment_of_LongLived_Assets
Impairment of Long-Lived Assets | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Asset Impairment Charges [Abstract] | ' | ||||||||||||||||
Asset Impairment Charges [Text Block] | ' | ||||||||||||||||
Impairment of Long-Lived Assets | |||||||||||||||||
During the three months ended September 29, 2013, the Company decided to sell its company-owned aircraft and recorded an impairment charge of $4,827 to reflect the aircraft at fair value based on current market values. The aircraft are classified as held for sale and included in “Prepaid expenses and other current assets” in our condensed consolidated balance sheet as of September 29, 2013. Additionally, our impairment losses include $500 resulting from remeasuring land and buildings to fair value in connection with closing company-owned restaurants and classifying such properties as held for sale. | |||||||||||||||||
During the three months ended July 1, 2012, we closed 15 company-owned restaurants in connection with our review of certain underperforming locations, which resulted in an impairment charge of $3,270. In addition, we incurred costs related to these restaurant closings of $1,477, primarily for continuing lease obligations, which are included in “Other operating (income) expense, net.” Our company-owned restaurant impairment losses of $2,883 during the three months ended April 1, 2012 predominantly reflected impairment charges on restaurant-level assets resulting from the deterioration in operating performance of certain restaurants and additional charges for capital improvements in restaurants impaired in prior years which did not subsequently recover. In addition, during the three months ended April 1, 2012, we recorded an impairment charge of $1,628 to reflect a company-owned aircraft at fair value as a result of classifying the aircraft as held for sale. During the three months ended July 1, 2012, the Company decided to lease the aircraft and as a result reclassified the aircraft to held and used. | |||||||||||||||||
These impairment losses, as detailed in the following table, represented the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets.” | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Properties and intangible assets | $ | 500 | $ | — | $ | 500 | $ | 6,153 | |||||||||
Aircraft | 4,827 | — | 4,827 | 1,628 | |||||||||||||
$ | 5,327 | $ | — | $ | 5,327 | $ | 7,781 | ||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 29, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company’s effective tax rate and effective tax rate benefit for the three months ended September 29, 2013 and September 30, 2012 was 116.1% and 32.2%, respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 35% due to the effect of (1) the system optimization initiative described in Note 2 above, (2) employment tax credits, (3) foreign rate differential, (4) state income taxes net of federal benefit and (5) corrections related to prior year tax matters which were identified and recorded during the three months ended September 30, 2012. | |
The Company’s effective tax rate and effective tax rate benefit for the nine months ended September 29, 2013 and September 30, 2012 was 59.8% and 45.3%, respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 35% due to the effect of (1) the system optimization initiative described in Note 2 above, (2) employment tax credits, (3) foreign rate differential, (4) the reversal of deferred tax liabilities on temporary differences related to investments in foreign subsidiaries which the Company now considers permanently invested outside of the U.S. and (5) corrections related to prior year tax matters which were identified and recorded during the nine months ended September 30, 2012. | |
In connection with the Company’s system optimization initiative described in Note 2 above, the Company recorded a tax provision of $14,183 during the third quarter of 2013 for (1) the effect of goodwill included in the gain on sales of restaurants which is not deductible for tax purposes and (2) an increase in net deferred state taxes due to changes in the Company’s expected future state taxes. | |
During the first quarter of 2013, the Company finalized its long-term investment plan with respect to the Company’s non-U.S. earnings. There are no plans to repatriate cash from, and Wendy’s intends to indefinitely reinvest undistributed earnings of, its non-U.S. subsidiaries. As such, the Company reversed $1,934 of deferred tax liabilities during the first quarter of 2013 relating to investments in foreign subsidiaries which the Company now considers permanently invested outside of the U.S. During the third quarter of 2013, $102 of the first quarter reversal was restored as a result of the completion of the Company’s U.S. tax return. | |
There were no significant changes to unrecognized tax benefits or related interest and penalties for the Company during the nine months ended September 29, 2013 and September 30, 2012. | |
The Company participates in the Internal Revenue Service Compliance Assurance Process. During the first quarter of 2013, we concluded, without adjustment, the examination of our January 1, 2012 tax return. |
Loss_Income_Per_Share
(Loss) Income Per Share | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
(Loss) Income Per Share | ' | ||||||||||||||||
(Loss) Income Per Share | |||||||||||||||||
Basic (loss) income per share for the three and nine months ended September 29, 2013 and September 30, 2012 was computed by dividing (loss) income amounts attributable to The Wendy’s Company by the weighted average number of common shares outstanding. (Loss) income amounts attributable to The Wendy’s Company used to calculate basic and diluted (loss) income per share were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Amounts attributable to The Wendy’s Company: | |||||||||||||||||
(Loss) income from continuing operations | $ | (1,939 | ) | $ | (26,692 | ) | $ | 12,418 | $ | (19,835 | ) | ||||||
Net income from discontinued operations | — | 530 | — | 530 | |||||||||||||
Net (loss) income | $ | (1,939 | ) | $ | (26,162 | ) | $ | 12,418 | $ | (19,305 | ) | ||||||
The weighted average number of shares used to calculate basic and diluted (loss) income per share were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Common stock: | |||||||||||||||||
Weighted average basic shares outstanding | 392,579 | 390,406 | 392,750 | 390,028 | |||||||||||||
Dilutive effect of stock options and restricted shares | — | — | 5,351 | — | |||||||||||||
Weighted average diluted shares outstanding | 392,579 | 390,406 | 398,101 | 390,028 | |||||||||||||
Diluted income per share for the nine months ended September 29, 2013 was computed by dividing income attributable to The Wendy’s Company by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. For the nine months ended September 29, 2013, we excluded 12,103 of potential common shares from our diluted income per share calculation as they would have had anti-dilutive effects. Diluted loss per share for the three months ended September 29, 2013 and the three and nine months ended September 30, 2012 was the same as basic loss per share since the Company reported a loss from continuing operations and therefore, the effect of all potentially dilutive securities would have been anti-dilutive. |
Equity
Equity | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Equity | ' | |||||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||||||
The following tables present the changes in equity attributable to The Wendy’s Company and noncontrolling interest for the nine months ended September 29, 2013 and September 30, 2012: | ||||||||||||||||||||||||||||
Attributable to The Wendy’s Company | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||||||||
Balance at December 30, 2012 | $ | 47,042 | $ | 2,782,765 | $ | (467,007 | ) | $ | (382,926 | ) | $ | 5,981 | $ | — | $ | 1,985,855 | ||||||||||||
Consolidation of the Japan JV | — | — | — | — | — | (2,735 | ) | (2,735 | ) | |||||||||||||||||||
Net income (loss) | — | — | 12,418 | — | — | (445 | ) | 11,973 | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (7,577 | ) | 548 | (7,029 | ) | |||||||||||||||||||
Unrecognized pension loss | — | — | — | — | (62 | ) | — | (62 | ) | |||||||||||||||||||
Cash dividends | — | — | (51,065 | ) | — | — | — | (51,065 | ) | |||||||||||||||||||
Share-based compensation expense | — | 11,564 | — | — | — | — | 11,564 | |||||||||||||||||||||
Common stock issued related to share-based compensation | — | (2,895 | ) | — | 19,772 | — | — | 16,877 | ||||||||||||||||||||
Tax charge from share-based compensation | — | (2,967 | ) | — | — | — | — | (2,967 | ) | |||||||||||||||||||
Repurchases of common stock | — | — | — | (41,469 | ) | — | — | (41,469 | ) | |||||||||||||||||||
Contribution from non-controlling | — | — | — | — | — | 219 | 219 | |||||||||||||||||||||
interests | ||||||||||||||||||||||||||||
Other | — | 12 | (3 | ) | 139 | — | — | 148 | ||||||||||||||||||||
Balance at September 29, 2013 | $ | 47,042 | $ | 2,788,479 | $ | (505,657 | ) | $ | (404,484 | ) | $ | (1,658 | ) | $ | (2,413 | ) | $ | 1,921,309 | ||||||||||
Attributable to The Wendy’s Company | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||||||||
Balance at January 1, 2012 | $ | 47,042 | $ | 2,779,871 | $ | (434,999 | ) | $ | (395,947 | ) | $ | 102 | $ | — | $ | 1,996,069 | ||||||||||||
Net (loss) income | — | — | (19,305 | ) | — | — | 2,384 | (16,921 | ) | |||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | (2,384 | ) | (2,384 | ) | |||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 9,309 | — | 9,309 | |||||||||||||||||||||
Unrecognized pension loss | — | — | — | — | (217 | ) | — | (217 | ) | |||||||||||||||||||
Cash dividends | — | — | (23,406 | ) | — | — | — | (23,406 | ) | |||||||||||||||||||
Share-based compensation expense | — | 8,330 | — | — | — | — | 8,330 | |||||||||||||||||||||
Common stock issued related to share-based compensation | — | (4,337 | ) | — | 5,874 | — | — | 1,537 | ||||||||||||||||||||
Tax charge from share-based compensation | — | (676 | ) | — | — | — | — | (676 | ) | |||||||||||||||||||
Other | — | (26 | ) | (32 | ) | 161 | — | — | 103 | |||||||||||||||||||
Balance at September 30, 2012 | $ | 47,042 | $ | 2,783,162 | $ | (477,742 | ) | $ | (389,912 | ) | $ | 9,194 | $ | — | $ | 1,971,744 | ||||||||||||
Repurchases of Common Stock | ||||||||||||||||||||||||||||
In November 2012, our Board of Directors authorized the repurchase of up to $100,000 of our common stock through December 29, 2013, when and if market conditions warrant and to the extent legally permissible. During the third quarter of 2013, the Company repurchased 5,482 shares with an aggregate purchase price of $41,373, excluding commissions of $96. No repurchases were made subsequent to the third quarter through November 1, 2013. |
Guarantees_and_Other_Commitmen
Guarantees and Other Commitments and Contingencies | 9 Months Ended |
Sep. 29, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments Contingencies and Guarantees | ' |
Guarantees and Other Commitments and Contingencies | |
Except as described below, the Company did not have any significant changes to its guarantees, other commitments and contingencies as disclosed in the notes to our consolidated financial statements included in the Form 10-K. | |
Franchise Image Activation Incentive Program | |
As disclosed in our Form 10-K, Wendy’s initiated a cash incentive program to encourage franchisees to participate in Wendy’s Image Activation program, which includes innovative exterior and interior restaurant designs for new and reimaged restaurants. The cash incentive program is for the reimaging of restaurants commenced in 2013 and totals up to $10,000. The Company has recognized expense for such incentives of $3,775 and $5,075 in general and administrative during the three and nine months ended September 29, 2013, respectively. | |
Franchisee Image Activation Financing Program | |
In order to encourage franchisees to participate in our Image Activation program, Wendy’s has executed an agreement to partner with a third party lender to establish a financing program. Under the program, the lender will provide loans to franchisees to be used for the reimaging of restaurants according to the guidelines and specifications under the Image Activation initiative. To support the program, Wendy’s has provided to the lender a $6,000 irrevocable stand-by letter of credit, which was issued on July 1, 2013. | |
Japan JV Guarantee | |
Wendy’s and the Higa Partners have provided guarantees to certain lenders to the Japan JV. Both Wendy’s and Higa Partners have agreed to reimburse and indemnify the other party, should it become necessary, for their respective share of each other’s guarantees. Wendy’s and the Higa Partners’ share of each guarantee is based upon ownership percentages in effect at the time of the agreement. As of September 29, 2013, our portion of these contingent obligations totaled approximately $2,800 based upon then current rates of exchange. The fair value of our guarantees is immaterial. | |
In January 2013, Wendy’s and the Higa Partners agreed to finance approximately $3,000 and $657, respectively, of future anticipated cash requirements of the Japan JV, of which $1,000 and $219, respectively, were contributed in April 2013. In August 2013, additional contributions of $1,000 and $219 were made by Wendy’s and the Higa Partners, respectively. | |
Our obligations, including the remaining funding of anticipated future cash requirements of the Japan JV of approximately $1,000, could total up to approximately $5,700 if the Higa Partners are unable to perform their reimbursement and indemnify obligations to us. |
Transactions_with_Related_Part
Transactions with Related Parties | 9 Months Ended |
Sep. 29, 2013 | |
Related Party Transactions [Abstract] | ' |
Transactions with Related Parties | ' |
Transactions with Related Parties | |
Except as described below, the Company did not have any changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K. | |
Transactions with Purchasing Cooperative | |
Wendy’s received $142 and $145 of lease income from its purchasing cooperative, Quality Supply Chain Co-op, Inc. (“QSCC”) during the nine months ended September 29, 2013 and September 30, 2012, respectively, which has been recorded as a reduction of “General and administrative.” | |
Transactions with a Management Company | |
The Wendy’s Company, through a wholly-owned subsidiary, is party to an aircraft management and lease agreement, which is expected to expire in March 2014, with CitationAir, a subsidiary of Cessna Aircraft Company, pursuant to which the Company leases a corporate aircraft to CitationAir to use as part of its Jet Card program fleet. The Company entered into the lease agreement as a means of offsetting the cost of owning and operating the corporate aircraft by receiving revenue from third parties’ use of such aircraft. Under the terms of the lease agreement, the Company pays annual management and flight crew fees to CitationAir and reimburses CitationAir for maintenance costs and fuel usage related to the corporate aircraft. In return, CitationAir pays a negotiated fee to the Company based on the number of hours that the corporate aircraft is used by Jet Card members. This fee is reduced based on the number of hours that (1) the Company uses other aircraft in the Jet Card program fleet and (2) Jet Card members who are affiliated with the Company use the corporate aircraft or other aircraft in the Jet Card program fleet. The Company’s participation in the aircraft management and lease agreement reduces the aggregate costs that the Company would otherwise incur in connection with owning and operating the corporate aircraft. Under the terms of the lease agreement, the Company’s directors have the opportunity to become Jet Card members and to use aircraft in the Jet Card program fleet at the same negotiated fee paid by the Company as provided for under the lease agreement. During the nine months ended September 29, 2013 and September 30, 2012, the Former Executives and a director, who was our former Vice Chairman, and members of their immediate families, used their Jet Card agreements for business and personal travel on aircraft in the Jet Card program fleet. A management company formed by the Former Executives and a director, who was our former Vice Chairman, paid CitationAir directly, and the Company received credit from CitationAir for charges related to such travel of approximately $1,195 and $730 during the nine months ended September 29, 2013 and September 30, 2012, respectively. |
Legal_Environmental_and_Other_
Legal, Environmental and Other Matters | 9 Months Ended |
Sep. 29, 2013 | |
Legal and Environmental Matters [Abstract] | ' |
Legal, Environmental and Other Matters | ' |
Legal, Environmental and Other Matters | |
We are involved in litigation and claims incidental to our current and prior businesses. We provide accruals for such litigation and claims when payment is probable and reasonably estimable. As of September 29, 2013, the Company had accruals for all of its legal and environmental matters aggregating $3,783. We cannot estimate the aggregate possible range of loss due to most proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur, and significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult. Based on currently available information, including legal defenses available to us, and given the aforementioned accruals and our insurance coverage, we do not believe that the outcome of these legal and environmental matters will have a material effect on our consolidated financial position or results of operations. | |
The Company had previously described in the Form 10-K a dispute between Wendy’s and Tim Hortons Inc. related to a tax sharing agreement entered into in 2006. As described in the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2013, the dispute was resolved by mutual agreement of the parties on April 25, 2013 and was recorded in the first quarter of 2013. The terms of the agreement were not material to the Company. |
Multiemployer_Pension_Plan
Multiemployer Pension Plan | 9 Months Ended |
Sep. 29, 2013 | |
Multiemployer Plans [Abstract] | ' |
Multiemployer Pension Plan | ' |
Multiemployer Pension Plan | |
As further described in the Form 10-K, the unionized employees at The New Bakery Co. of Ohio, Inc. (the “Bakery”), a 100% owned subsidiary of Wendy’s, are covered by the Bakery and Confectionery Union and Industry International Pension Fund (the “Union Pension Fund”), a multiemployer pension plan with a plan year end of December 31 that provides defined benefits to certain employees covered by a collective bargaining agreement (the “CBA”) which expired on March 31, 2013. The completion of the current negotiations for a new CBA will determine our future pension costs. | |
There have been no changes to the critical status of the Union Pension Fund as further described in the Form 10-K. |
New_Accounting_Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 29, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
Recent Accounting Pronouncements | |
In July 2013, the Financial Accounting Standards Board issued an amendment that requires companies to present unrecognized tax benefits as a reduction to deferred tax assets when a net operating loss carryforward, a similar tax loss or a tax credit carryforward exists, with limited exceptions. The amendment is effective commencing with our 2014 fiscal year. The Company does not expect the adoption to have a material impact on the consolidated financial statements. |
Facilities_Action_Charges_Net_
Facilities Action Charges, Net (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
System optimization initiative | $ | 21,557 | $ | — | $ | 26,356 | $ | — | ||||||||||||||||
Facilities relocation and other transition costs | 632 | 11,285 | 3,956 | 26,242 | ||||||||||||||||||||
Breakfast discontinuation | 86 | — | 1,115 | — | ||||||||||||||||||||
Arby’s transaction related costs | — | 145 | 263 | 1,319 | ||||||||||||||||||||
$ | 22,275 | $ | 11,430 | $ | 31,690 | $ | 27,561 | |||||||||||||||||
System Optimization [Member] | ' | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||||||||||
The following is a summary of the activity recorded under our system optimization initiative: | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
29-Sep-13 | 29-Sep-13 | |||||||||||||||||||||||
Gain on sales of restaurants, net | $ | (1,665 | ) | $ | (2,941 | ) | ||||||||||||||||||
System Optimization Remeasurement (a) | 12,421 | 18,359 | ||||||||||||||||||||||
Accelerated amortization (b) | 3,130 | 3,130 | ||||||||||||||||||||||
Severance and related employee costs | 6,131 | 6,131 | ||||||||||||||||||||||
Share-based compensation (c) | 755 | 755 | ||||||||||||||||||||||
Professional fees | 704 | 829 | ||||||||||||||||||||||
Other | 81 | 93 | ||||||||||||||||||||||
Total system optimization initiative | $ | 21,557 | $ | 26,356 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
(a) | Includes remeasurement of land, buildings, leasehold improvements and favorable lease assets at all company-owned restaurants included in our system optimization initiative. See Note 6 for more information on non-recurring fair value measurements. | |||||||||||||||||||||||
(b) | Includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that are being sold in connection with our system optimization initiative. | |||||||||||||||||||||||
(c) | Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. | |||||||||||||||||||||||
Restaurant Assets Held for Sale | ' | |||||||||||||||||||||||
Restaurant Assets Held for Sale | ||||||||||||||||||||||||
September 29, | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Number of restaurants classified as held for sale | 367 | |||||||||||||||||||||||
Restaurant net assets held for sale | $ | 56,569 | ||||||||||||||||||||||
As of September 29, 2013, the Company determined that all of the remaining restaurants which are part of the system optimization initiative meet the criteria to be classified as held for sale. Restaurant net assets held for sale consist primarily of cash, inventory and property and are included in “Prepaid expenses and other current assets” as of September 29, 2013. | ||||||||||||||||||||||||
System Optimization [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | ' | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||||||||||
Gain (Loss) on Sale of Property, Plant, Equipment [Table Text Block] | ' | |||||||||||||||||||||||
Gain on Sales of Restaurants | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 29, | September 29, | |||||||||||||||||||||||
2013 | 2013 | |||||||||||||||||||||||
Number of restaurants sold to franchisees | 53 | 61 | ||||||||||||||||||||||
Proceeds from sales of restaurants | $ | 22,871 | $ | 25,671 | ||||||||||||||||||||
Net assets sold (a) | (13,646 | ) | (14,489 | ) | ||||||||||||||||||||
Goodwill related to sales of restaurants | (5,621 | ) | (6,302 | ) | ||||||||||||||||||||
Net unfavorable lease liabilities (b) | (1,884 | ) | (1,884 | ) | ||||||||||||||||||||
Other | (22 | ) | (22 | ) | ||||||||||||||||||||
1,698 | 2,974 | |||||||||||||||||||||||
Post-closing adjustments on prior sales of restaurants | (33 | ) | (33 | ) | ||||||||||||||||||||
Gain on sales of restaurants, net | $ | 1,665 | $ | 2,941 | ||||||||||||||||||||
_______________ | ||||||||||||||||||||||||
(a) | Net assets sold consisted primarily of cash, inventory and equipment. | |||||||||||||||||||||||
(b) | The Company recorded favorable lease assets of $8,789 and unfavorable lease liabilities of $10,673 as a result of the lease and/or sublease of land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. | |||||||||||||||||||||||
Facilities Relocation and Other Transition Costs [Member] | ' | |||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | |||||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | ' | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Total Incurred Since Inception | Total Expected to be Incurred | |||||||||||||||||||||
September 29, 2013 | September 30, 2012 | September 29, 2013 | September 30, 2012 | |||||||||||||||||||||
Severance, retention and other payroll costs | $ | 394 | $ | 2,236 | $ | 1,760 | $ | 9,552 | $ | 17,057 | $ | 17,176 | ||||||||||||
Relocation costs | 303 | 1,776 | 1,564 | 3,857 | 6,786 | 7,447 | ||||||||||||||||||
Atlanta facility closure costs | (92 | ) | 4,224 | 303 | 4,401 | 4,844 | 4,844 | |||||||||||||||||
Consulting and professional fees | — | 1,676 | 128 | 4,494 | 5,056 | 5,056 | ||||||||||||||||||
Other | 27 | 752 | 201 | 2,017 | 2,341 | 2,359 | ||||||||||||||||||
632 | 10,664 | 3,956 | 24,321 | 36,084 | 36,882 | |||||||||||||||||||
Accelerated depreciation expense | — | 621 | — | 1,921 | 2,118 | 2,118 | ||||||||||||||||||
Share-based compensation | — | — | — | — | 271 | 271 | ||||||||||||||||||
Total | $ | 632 | $ | 11,285 | $ | 3,956 | $ | 26,242 | $ | 38,473 | $ | 39,271 | ||||||||||||
The table below presents a rollforward of our accruals for facility relocation costs, which are included in “Accrued expenses and other current liabilities” and “Other liabilities.” | ||||||||||||||||||||||||
Balance | Charges | Payments | Balance | |||||||||||||||||||||
30-Dec-12 | September 29, | |||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
Severance, retention and other payroll costs | $ | 4,121 | $ | 1,760 | $ | (4,114 | ) | $ | 1,767 | |||||||||||||||
Relocation costs | 500 | 1,564 | (2,064 | ) | — | |||||||||||||||||||
Atlanta facility closure costs | 4,170 | 303 | (1,287 | ) | 3,186 | |||||||||||||||||||
Consulting and professional fees | 80 | 128 | (208 | ) | — | |||||||||||||||||||
Other | 9 | 201 | (210 | ) | — | |||||||||||||||||||
$ | 8,880 | $ | 3,956 | $ | (7,883 | ) | $ | 4,953 | ||||||||||||||||
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||
Sep. 29, 2013 | |||||||||
Investments [Abstract] | ' | ||||||||
Schedule of Equity Method Investments [Table Text Block] | ' | ||||||||
Presented below is an unaudited summary of activity related to our investment in TimWen included in our unaudited condensed consolidated financial statements: | |||||||||
Nine Months Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Balance at beginning of period | $ | 89,370 | $ | 91,742 | |||||
Equity in earnings for the period | 10,357 | 10,254 | |||||||
Amortization of purchase price adjustments (a) | (2,288 | ) | (2,340 | ) | |||||
8,069 | 7,914 | ||||||||
Distributions received | (10,148 | ) | (10,760 | ) | |||||
Foreign currency translation adjustment included in | (3,052 | ) | 3,570 | ||||||
“Other comprehensive income (loss), net” | |||||||||
Balance at end of period (b) | $ | 84,239 | $ | 92,466 | |||||
_____________________ | |||||||||
(a) | Based upon an average original aggregate life of 21 years. | ||||||||
(b) | Included in “Investments.” | ||||||||
Schedule of Summarized Financial Information of Equity Method Investments [Table Text Block] | ' | ||||||||
Presented below is a summary of certain unaudited interim income statement information of TimWen: | |||||||||
Nine Months Ended | |||||||||
September 29, | September 30, | ||||||||
2013 | 2012 | ||||||||
Revenues | $ | 29,113 | $ | 29,655 | |||||
Income before income taxes and net income | 20,714 | 20,508 | |||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 29, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
Long-term debt consisted of the following: | ||||||||
September 29, | December 30, | |||||||
2013 | 2012 | |||||||
Term A Loan, due in 2018 | $ | 350,000 | $ | — | ||||
Term B Loan, due in 2019 | 769,375 | 1,114,826 | ||||||
6.20% Senior Notes, due in 2014 | 225,586 | 225,940 | ||||||
7% debentures, due in 2025 | 84,373 | 83,496 | ||||||
Capital lease obligations, due through 2040 | 37,538 | 32,594 | ||||||
Other (a) | 5,050 | 706 | ||||||
1,471,922 | 1,457,562 | |||||||
Less amounts payable within one year | (38,260 | ) | (12,911 | ) | ||||
Total long-term debt | $ | 1,433,662 | $ | 1,444,651 | ||||
_______________ | ||||||||
(a) Other includes $4,696 of debt resulting from the consolidation of the Japan JV in the second quarter of 2013. The carrying amount of the long-term debt approximates fair value. | ||||||||
Schedule of Extinguishment of Debt [Table Text Block] | ' | |||||||
As a result of the refinancing of its existing Credit Agreement, described above, Wendy’s incurred a loss on the early extinguishment of debt as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
September 29, | September 29, | |||||||
2013 | 2013 | |||||||
Unaccreted discount on Term B Loan | $ | — | $ | 9,561 | ||||
Deferred costs associated with the Credit Agreement | — | 11,458 | ||||||
Loss on early extinguishment of debt | $ | — | $ | 21,019 | ||||
The Company incurred a loss on the early extinguishment of debt in 2012 related to the repayment of debt from the proceeds of the 2012 term loan under the May 15, 2012 Credit Agreement, as follows: | ||||||||
Three Months Ended | Nine Months Ended | |||||||
30-Sep-12 | 30-Sep-12 | |||||||
Premium payment to redeem/purchase Wendy’s Restaurants 10.00% Senior Notes due in 2016 (the “Senior Notes”) | $ | 33,058 | $ | 43,151 | ||||
Unaccreted discount on the Senior Notes | 7,186 | 9,272 | ||||||
Deferred costs associated with the Senior Notes | 9,637 | 12,433 | ||||||
Unaccreted discount on the 2010 term loan | — | 1,695 | ||||||
Deferred costs associated with the 2010 term loan | — | 8,525 | ||||||
Loss on early extinguishment of debt | $ | 49,881 | $ | 75,076 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | |||||||||||||||||||
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments at September 29, 2013 and December 30, 2012: | ||||||||||||||||||||
September 29, | December 30, | |||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Carrying | Fair | Carrying | Fair | Fair Value | ||||||||||||||||
Amount | Value | Amount | Value | Measurements | ||||||||||||||||
Financial assets | ||||||||||||||||||||
Cash equivalents | $ | 317,058 | $ | 317,058 | $ | 264,925 | $ | 264,925 | Level 1 | |||||||||||
Non-current cost method investments (a) | 22,397 | 47,121 | 23,913 | 50,761 | Level 3 | |||||||||||||||
Interest rate swaps (b) | 4,123 | 4,123 | 8,169 | 8,169 | Level 2 | |||||||||||||||
Financial liabilities | ||||||||||||||||||||
Term A Loan, due in 2018 (c) | 350,000 | 349,563 | — | — | Level 2 | |||||||||||||||
Term B Loan, due in 2019 (c) | 769,375 | 766,490 | 1,114,826 | 1,130,434 | Level 2 | |||||||||||||||
6.20% Senior Notes, due in 2014 (c) | 225,586 | 233,438 | 225,940 | 240,750 | Level 2 | |||||||||||||||
7% debentures, due in 2025 (c) | 84,373 | 97,750 | 83,496 | 99,900 | Level 2 | |||||||||||||||
Capital lease obligations (d) | 37,538 | 36,080 | 32,594 | 33,299 | Level 3 | |||||||||||||||
Guarantees of franchisee loan | 892 | 892 | 940 | 940 | Level 3 | |||||||||||||||
obligations (e) | ||||||||||||||||||||
_______________ | ||||||||||||||||||||
(a) | The fair value of our indirect investment in Arby’s is based on a review of its most recent unaudited financial information. The fair values of our remaining investments were based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. | |||||||||||||||||||
(b) | The fair values were based on information provided by the bank counterparties that is model-driven and where inputs were observable or where significant value drivers were observable. | |||||||||||||||||||
(c) | The fair values were based on quoted market prices in markets that are not considered active markets. See Note 5 for information on the redemption of the 6.20% Senior Notes subsequent to the third quarter of 2013. | |||||||||||||||||||
(d) | The fair values were determined by discounting the future scheduled principal payments using an interest rate assuming the same original issuance spread over a current U.S. Treasury bond yield for securities with similar durations. | |||||||||||||||||||
(e) | Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into pooled debt facility arrangements for new restaurant development and equipment financing. In 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. | |||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | |||||||||||||||||||
s | ||||||||||||||||||||
The following tables present the fair values for those assets and liabilities measured at fair value on a non-recurring basis during the nine months ended September 29, 2013 and the year ended December 30, 2012 and the resulting impact on the consolidated statements of operations. | ||||||||||||||||||||
Total losses for the nine months ended September 29, 2013 reflect the impact of remeasuring long-lived assets (including land, buildings, leasehold improvements and favorable lease assets) at certain company-owned restaurants to fair value as a result of the Company’s decision to lease and/or sublease the land and/or buildings and sell certain other restaurant assets to franchisees. Such losses totaling $18,359 have been presented as System Optimization Remeasurement and included in “Facilities action charges, net” in our condensed consolidated statement of operations for the nine months ended September 29, 2013. The fair value of long-lived assets presented in the table below represents the remaining carrying value of the long-lived assets discussed above and was based upon discounted cash flows of future anticipated lease and sublease income. See Note 2 for more information on our system optimization initiative and the related activity included in “Facilities action charges, net” including System Optimization Remeasurement. | ||||||||||||||||||||
Total losses for the nine months ended September 29, 2013 also includes the impact of remeasuring our company-owned aircraft to fair value as a result of the Company’s decision to sell these aircraft and classify them as held for sale. Additionally, total losses includes $500 resulting from remeasuring land and buildings to fair value in connection with closing company-owned restaurants and classifying such properties as held for sale. Such losses have been presented as “Impairment of long-lived assets” in our condensed consolidated statements of operations. The fair values of long-lived assets and the aircraft presented in the table below represent the remaining carrying value and were estimated based on current market values. See Note 7 for more information on the impairment of our long-lived assets. | ||||||||||||||||||||
Total losses for the year ended December 30, 2012 reflect the impact of remeasuring long-lived assets at company-owned restaurants and a company-owned aircraft to fair value and were recorded to “Impairment of long-lived assets” in the consolidated statements of operations. The fair value of long-lived assets presented in the table below substantially represents the remaining carrying value of land for Wendy’s properties that were impaired in 2012 and were estimated based on current market values as determined by sales prices of comparable properties and current market trends. As of December 30, 2012, the carrying value of the aircraft, which reflected current market conditions, approximated its fair value. | ||||||||||||||||||||
Fair Value Measurements | Nine Months Ended | |||||||||||||||||||
29-Sep-13 | ||||||||||||||||||||
September 29, 2013 | Level 1 | Level 2 | Level 3 | Total Losses | ||||||||||||||||
Long-lived assets | $ | 7,803 | $ | — | $ | — | $ | 7,803 | $ | 18,859 | ||||||||||
Aircraft | 9,000 | — | — | 9,000 | 4,827 | |||||||||||||||
Total | $ | 16,803 | $ | — | $ | — | $ | 16,803 | $ | 23,686 | ||||||||||
Fair Value Measurements | 2012 | |||||||||||||||||||
December 30, 2012 | Level 1 | Level 2 | Level 3 | Total Losses | ||||||||||||||||
Long-lived assets | $ | 7,311 | $ | — | $ | — | $ | 7,311 | $ | 19,469 | ||||||||||
Aircraft | 5,926 | — | — | 5,926 | 1,628 | |||||||||||||||
Total | $ | 13,237 | $ | — | $ | — | $ | 13,237 | $ | 21,097 | ||||||||||
Impairment_of_LongLived_Assets1
Impairment of Long-Lived Assets (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Asset Impairment Charges [Abstract] | ' | ||||||||||||||||
Details of impairment of long-lived assets by asset | ' | ||||||||||||||||
These impairment losses, as detailed in the following table, represented the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets.” | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Properties and intangible assets | $ | 500 | $ | — | $ | 500 | $ | 6,153 | |||||||||
Aircraft | 4,827 | — | 4,827 | 1,628 | |||||||||||||
$ | 5,327 | $ | — | $ | 5,327 | $ | 7,781 | ||||||||||
Loss_Income_Per_Share_Tables
(Loss) Income Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 29, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings (Loss) used to Calculate Basic and Diluted Earnings (Loss) per Share [Table Text Block] | ' | ||||||||||||||||
(Loss) income amounts attributable to The Wendy’s Company used to calculate basic and diluted (loss) income per share were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Amounts attributable to The Wendy’s Company: | |||||||||||||||||
(Loss) income from continuing operations | $ | (1,939 | ) | $ | (26,692 | ) | $ | 12,418 | $ | (19,835 | ) | ||||||
Net income from discontinued operations | — | 530 | — | 530 | |||||||||||||
Net (loss) income | $ | (1,939 | ) | $ | (26,162 | ) | $ | 12,418 | $ | (19,305 | ) | ||||||
Number of shares used to calculate basic and diluted income per share | ' | ||||||||||||||||
The weighted average number of shares used to calculate basic and diluted (loss) income per share were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 29, | September 30, | September 29, | September 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Common stock: | |||||||||||||||||
Weighted average basic shares outstanding | 392,579 | 390,406 | 392,750 | 390,028 | |||||||||||||
Dilutive effect of stock options and restricted shares | — | — | 5,351 | — | |||||||||||||
Weighted average diluted shares outstanding | 392,579 | 390,406 | 398,101 | 390,028 | |||||||||||||
Equity_Tables
Equity (Tables) | 9 Months Ended | |||||||||||||||||||||||||||
Sep. 29, 2013 | ||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||
Summary of Stockholders' Equity | ' | |||||||||||||||||||||||||||
The following tables present the changes in equity attributable to The Wendy’s Company and noncontrolling interest for the nine months ended September 29, 2013 and September 30, 2012: | ||||||||||||||||||||||||||||
Attributable to The Wendy’s Company | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||||||||
Balance at December 30, 2012 | $ | 47,042 | $ | 2,782,765 | $ | (467,007 | ) | $ | (382,926 | ) | $ | 5,981 | $ | — | $ | 1,985,855 | ||||||||||||
Consolidation of the Japan JV | — | — | — | — | — | (2,735 | ) | (2,735 | ) | |||||||||||||||||||
Net income (loss) | — | — | 12,418 | — | — | (445 | ) | 11,973 | ||||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | (7,577 | ) | 548 | (7,029 | ) | |||||||||||||||||||
Unrecognized pension loss | — | — | — | — | (62 | ) | — | (62 | ) | |||||||||||||||||||
Cash dividends | — | — | (51,065 | ) | — | — | — | (51,065 | ) | |||||||||||||||||||
Share-based compensation expense | — | 11,564 | — | — | — | — | 11,564 | |||||||||||||||||||||
Common stock issued related to share-based compensation | — | (2,895 | ) | — | 19,772 | — | — | 16,877 | ||||||||||||||||||||
Tax charge from share-based compensation | — | (2,967 | ) | — | — | — | — | (2,967 | ) | |||||||||||||||||||
Repurchases of common stock | — | — | — | (41,469 | ) | — | — | (41,469 | ) | |||||||||||||||||||
Contribution from non-controlling | — | — | — | — | — | 219 | 219 | |||||||||||||||||||||
interests | ||||||||||||||||||||||||||||
Other | — | 12 | (3 | ) | 139 | — | — | 148 | ||||||||||||||||||||
Balance at September 29, 2013 | $ | 47,042 | $ | 2,788,479 | $ | (505,657 | ) | $ | (404,484 | ) | $ | (1,658 | ) | $ | (2,413 | ) | $ | 1,921,309 | ||||||||||
Attributable to The Wendy’s Company | ||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Common Stock Held in Treasury | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total | ||||||||||||||||||||||
Balance at January 1, 2012 | $ | 47,042 | $ | 2,779,871 | $ | (434,999 | ) | $ | (395,947 | ) | $ | 102 | $ | — | $ | 1,996,069 | ||||||||||||
Net (loss) income | — | — | (19,305 | ) | — | — | 2,384 | (16,921 | ) | |||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | (2,384 | ) | (2,384 | ) | |||||||||||||||||||
Foreign currency translation adjustment | — | — | — | — | 9,309 | — | 9,309 | |||||||||||||||||||||
Unrecognized pension loss | — | — | — | — | (217 | ) | — | (217 | ) | |||||||||||||||||||
Cash dividends | — | — | (23,406 | ) | — | — | — | (23,406 | ) | |||||||||||||||||||
Share-based compensation expense | — | 8,330 | — | — | — | — | 8,330 | |||||||||||||||||||||
Common stock issued related to share-based compensation | — | (4,337 | ) | — | 5,874 | — | — | 1,537 | ||||||||||||||||||||
Tax charge from share-based compensation | — | (676 | ) | — | — | — | — | (676 | ) | |||||||||||||||||||
Other | — | (26 | ) | (32 | ) | 161 | — | — | 103 | |||||||||||||||||||
Balance at September 30, 2012 | $ | 47,042 | $ | 2,783,162 | $ | (477,742 | ) | $ | (389,912 | ) | $ | 9,194 | $ | — | $ | 1,971,744 | ||||||||||||
Basis_of_Presentation_Accelera
Basis of Presentation Accelerated Depreciation on Image Activation (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 |
Accelerated Depreciation IA [Abstract] | ' | ' |
Accelerated Depreciation Image Activation | $5,755 | $24,509 |
Basis_of_Presentation_Sale_of_
Basis of Presentation Sale of Arby's (Details) (Arby's Restaurant Group, Inc [Member]) | Jul. 31, 2011 |
Arby's Restaurant Group, Inc [Member] | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' |
Percentage of Stock Divested | 100.00% |
Proceeds from Divestiture of Business, Percentage of Buyer Stock Received | 18.50% |
Facilities_Action_Charges_Net_1
Facilities Action Charges, Net Summary Table (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities action charges, net | $22,275 | $11,430 | $31,690 | $27,561 |
System Optimization [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 21,557 | 0 | 26,356 | 0 |
Facilities Relocation and Other Transition Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 632 | 10,664 | 3,956 | 24,321 |
Facilities relocation costs and other transactions, Incurred cost, Net of accelerated depreciation expense and share-based compensation expense | 632 | 11,285 | 3,956 | 26,242 |
Breakfast Discontinuation [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 86 | 0 | 1,115 | 0 |
Arby's Transaction Related Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities relocation costs and other transactions, Incurred cost, Net of share based-compensation expense | $0 | $145 | $263 | $1,319 |
Facilities_Action_Charges_Net_2
Facilities Action Charges, Net System Optimization (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Nov. 06, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | |||||||||
stores | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Office and Restaurant Equipment [Member] | Subsequent Event [Member] | Accelerated Depreciation Expense [Member] | Accelerated Depreciation Expense [Member] | Severance, Retention and Other Payroll Costs [Member] | Severance, Retention and Other Payroll Costs [Member] | Consulting and Professional Fees [Member] | Consulting and Professional Fees [Member] | Other [Member] | Other [Member] | Share Based Compensation Expense [Member] | Share Based Compensation Expense [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | |||||||||||
stores | stores | System Optimization [Member] | System Optimization [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | System Optimization [Member] | |||||||||||||||||
stores | stores | System Optimization [Member] | |||||||||||||||||||||||||||||||
stores | |||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Company Owned Restaurants to be Sold to Franchisees | ' | ' | 425 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Restructuring and Related Cost, Expected Cost | ' | ' | $25,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $14,300 | ' | $7,000 | ' | $3,000 | ' | ' | ' | $1,600 | ' | ' | ' | |||||||||
Impairment of Long-Lived System Optimization Assets Held for Use | 18,359 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,421 | [1] | 18,359 | [1] | |||||||
Restructuring and Related Cost, Incurred Cost | ' | ' | 21,557 | 0 | 26,356 | 0 | ' | ' | ' | ' | ' | ' | 3,130 | [2] | 3,130 | [2] | 6,131 | 6,131 | 704 | 829 | 81 | 93 | 755 | [3] | 755 | [3] | ' | ' | |||||
Significant Changes, Franchises Sold | ' | ' | ' | ' | ' | ' | ' | 3 | 53 | 61 | ' | 37 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Proceeds from Sale of Property, Plant, and Equipment | 18,384 | 6,273 | ' | ' | ' | ' | ' | 2,293 | 22,871 | 25,671 | ' | 25,685 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Net Assets Sold | ' | ' | ' | ' | ' | ' | ' | ' | -13,646 | [4] | -14,489 | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Goodwill, Period Increase (Decrease) | ' | ' | ' | ' | ' | ' | ' | ' | -5,621 | -6,302 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Net Lease Assets (Liabilities) | ' | ' | ' | ' | ' | ' | ' | ' | -1,884 | [5] | -1,884 | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||
Other Costs | ' | ' | ' | ' | ' | ' | ' | ' | -22 | -22 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Gain (Loss) on Disposition of Property Plant Equipment Before Post Closing Purchase Price Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | 1,698 | 2,974 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Post Closing Purchase Price Adjustments | ' | ' | ' | ' | ' | ' | ' | ' | -33 | -33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Gain on sales of restaurants, net | 2,941 | 0 | ' | ' | ' | ' | ' | ' | 1,665 | 2,941 | ' | 4,047 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Favorable Lease Assets | ' | ' | ' | ' | ' | ' | 8,789 | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unfavorable Lease Liabilities | ' | ' | ' | ' | ' | ' | -10,673 | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of Restaurants Classified as Assets Held for Sale | 367 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
Assets Held-for-sale, Long Lived | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $56,569 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||
[1] | Includes remeasurement of land, buildings, leasehold improvements and favorable lease assets at all company-owned restaurants included in our system optimization initiative. See Note 6 for more information on non-recurring fair value measurements. | ||||||||||||||||||||||||||||||||
[2] | Includes accelerated amortization of previously acquired franchise rights related to company-owned restaurants in territories that are being sold in connection with our system optimization initiative. | ||||||||||||||||||||||||||||||||
[3] | Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. | ||||||||||||||||||||||||||||||||
[4] | Net assets sold consisted primarily of cash, inventory and equipment. | ||||||||||||||||||||||||||||||||
[5] | The Company recorded favorable lease assets of $8,789 and unfavorable lease liabilities of $10,673 as a result of the lease and/or sublease of land, buildings, and/or leasehold improvements to franchisees, in connection with sales of restaurants. |
Facilities_Action_Charges_Net_3
Facilities Action Charges, Net Facilities Relocation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 22 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 |
Facilities Relocation and Other Transition Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | $632 | $10,664 | $3,956 | $24,321 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 36,084 |
Facilities relocation costs and other transactions, Incurred cost, Net of accelerated depreciation expense and share-based compensation expense | 632 | 11,285 | 3,956 | 26,242 | ' |
Restructuring and Related Costs Incurred To Date Net of Accelerated Depreciation Expense and Share-Based Compensation Expense | ' | ' | ' | ' | 38,473 |
Facilities Relocation and Other Transition Costs [Member] | Severance, Retention and Other Payroll Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 394 | 2,236 | 1,760 | 9,552 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 17,057 |
Facilities Relocation and Other Transition Costs [Member] | Relocation Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 303 | 1,776 | 1,564 | 3,857 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 6,786 |
Facilities Relocation and Other Transition Costs [Member] | Facility Closing [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | -92 | 4,224 | 303 | 4,401 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 4,844 |
Facilities Relocation and Other Transition Costs [Member] | Consulting and Professional Fees [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 0 | 1,676 | 128 | 4,494 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 5,056 |
Facilities Relocation and Other Transition Costs [Member] | Other [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 27 | 752 | 201 | 2,017 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 2,341 |
Facilities Relocation and Other Transition Costs [Member] | Accelerated Depreciation Expense [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 0 | 621 | 0 | 1,921 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 2,118 |
Facilities Relocation and Other Transition Costs [Member] | Share Based Compensation Expense [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 0 | 0 | ' |
Facilities relocation costs and other transactions since inception | ' | ' | ' | ' | 271 |
Fiscal Year 2013 [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | ' | ' | 800 | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 36,882 | ' | ' | ' | ' |
Restructuring And Related Cost, Expected Cost, Net of Accelerated Depreciation Expense and Share-Based Compensation Expense | 39,271 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Severance, Retention and Other Payroll Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 17,176 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Relocation Costs [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 7,447 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Facility Closing [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 4,844 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Consulting and Professional Fees [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 5,056 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Other [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 2,359 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Accelerated Depreciation Expense [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | 2,118 | ' | ' | ' | ' |
Fiscal Year 2013 [Member] | Facilities Relocation and Other Transition Costs [Member] | Share Based Compensation Expense [Member] | ' | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' |
Restructuring and Related Cost, Expected Cost | $271 | ' | ' | ' | ' |
Facilities_Action_Charges_Net_4
Facilities Action Charges, Net Facilities Relocation Rollforward (Details) (Facilities Relocation and Other Transition Costs [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | $8,880 | ' |
Restructuring and Related Cost, Incurred Cost | 632 | 10,664 | 3,956 | 24,321 |
Payments | ' | ' | -7,883 | ' |
Facilities Relocation, ending balance | 4,953 | ' | 4,953 | ' |
Severance, Retention and Other Payroll Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | 4,121 | ' |
Restructuring and Related Cost, Incurred Cost | 394 | 2,236 | 1,760 | 9,552 |
Payments | ' | ' | -4,114 | ' |
Facilities Relocation, ending balance | 1,767 | ' | 1,767 | ' |
Relocation Costs [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | 500 | ' |
Restructuring and Related Cost, Incurred Cost | 303 | 1,776 | 1,564 | 3,857 |
Payments | ' | ' | -2,064 | ' |
Facilities Relocation, ending balance | 0 | ' | 0 | ' |
Facility Closing [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | 4,170 | ' |
Restructuring and Related Cost, Incurred Cost | -92 | 4,224 | 303 | 4,401 |
Payments | ' | ' | -1,287 | ' |
Facilities Relocation, ending balance | 3,186 | ' | 3,186 | ' |
Consulting and Professional Fees [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | 80 | ' |
Restructuring and Related Cost, Incurred Cost | 0 | 1,676 | 128 | 4,494 |
Payments | ' | ' | -208 | ' |
Facilities Relocation, ending balance | 0 | ' | 0 | ' |
Other [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities Relocation, beginning balance | ' | ' | 9 | ' |
Restructuring and Related Cost, Incurred Cost | 27 | 752 | 201 | 2,017 |
Payments | ' | ' | -210 | ' |
Facilities Relocation, ending balance | $0 | ' | $0 | ' |
Facilities_Action_Charges_Net_5
Facilities Action Charges, Net Breakfast Discontinuation (Details) (Breakfast Discontinuation [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Breakfast Discontinuation [Member] | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Facilities relocation costs and other transactions, Incurred Cost | $86 | $0 | $1,115 | $0 |
Acquisitions_and_Dispositions_
Acquisitions and Dispositions (Details) (USD $) | 9 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Jun. 11, 2012 | Dec. 30, 2012 | Jul. 13, 2012 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Sep. 29, 2013 | Mar. 31, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 29, 2013 | Sep. 29, 2013 |
Franchised Units [Member] | Franchised Units [Member] | Pisces Acquisition [Member] | Pisces Acquisition [Member] | Double Cheese Acquisition [Member] | Double Cheese Acquisition [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Surplus Properties [Member] | Surplus Properties [Member] | Notes Receivable [Member] | Franchisees Exercising Options to Purchase Previously Subleased Properties [Member] | Sale of Restaurant to Unrelated Third Party [Member] | Property, Plant and Equipment [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | Japan JV [Member] | System Optimization [Member] | System Optimization [Member] | ||||
stores | stores | stores | stores | stores | Wendy's [Member] | Wendy's [Member] | Wendy's [Member] | Wendy's [Member] | Higa Partners [Member] | Higa Partners [Member] | Higa Partners [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | Sale of Company-Owned Restaurants to Franchiees [Member] | ||||||||||||||
stores | stores | ||||||||||||||||||||||||||
Significant Acquisitions and Disposals [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 49.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total Amount To Be Funded Under Plan To Finance Future Cash Requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $3,000 | ' | ' | $657 | ' | ' |
Amount Funded During The Period Under Plan To Finance Future Cash Requirements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | 1,000 | 2,000 | ' | 219 | 219 | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 66.80% | ' | 66.80% | ' | ' | ' | ' | ' | ' |
Profit Distribution Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62.20% | ' | 62.20% | ' | 37.80% | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 33.20% | ' | ' | ' | ' |
Cash Acquired from Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 188 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Changes, Franchises Purchased During Period | ' | ' | ' | 1 | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Restaurants | ' | ' | ' | ' | ' | ' | 30 | ' | 24 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business Acquisition, Cost of Acquired Entity, Cash Paid | ' | ' | ' | ' | ' | 18,915 | ' | 19,181 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 1,812 | 40,594 | ' | ' | 2,594 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 868,057 | ' | 876,201 | ' | 485 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Sale of Property, Plant, and Equipment | 18,384 | 6,273 | ' | ' | ' | ' | ' | ' | ' | 2,293 | 9,731 | 515 | 400 | 8,653 | 1,874 | 1,591 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,871 | 25,671 |
Gain (Loss) on Sale of Property Plant Equipment | $4,771 | $974 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Significant Changes, Franchises Sold | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53 | 61 |
Investments_TIMWEN_Details
Investments TIMWEN (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 30, 2008 | ||
TimWen [Member] | TimWen [Member] | TimWen [Member] | |||||||
Y | |||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ||
Equity Method Investment, Ownership Percentage | ' | ' | ' | ' | 50.00% | ' | ' | ||
Investment in Joint Venture [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ||
Balance at beginning of period | ' | ' | ' | ' | $89,370 | $91,742 | ' | ||
Equity in earnings for the period | ' | ' | ' | ' | 10,357 | 10,254 | ' | ||
Amortization of purchase price adjustments (a) | ' | ' | ' | ' | -2,288 | [1] | -2,340 | [1] | ' |
Equity in earnings for the period, net of amortization of purchase price adjustment | ' | ' | 6,980 | 7,836 | 8,069 | 7,914 | ' | ||
Distributions received | ' | ' | -10,148 | -10,760 | -10,148 | -10,760 | ' | ||
Foreign currency translation adjustment included in “Other comprehensive (loss) income, net†| 4,851 | 7,920 | -7,029 | 9,309 | -3,052 | 3,570 | ' | ||
Balance at end of period (b) | ' | ' | ' | ' | 84,239 | [2] | 92,466 | [2] | ' |
Purchase price adjustment, amortization period | ' | ' | ' | ' | ' | ' | 21 | ||
Equity Method Investment, Summarized Financial Information, Income Statement | ' | ' | ' | ' | ' | ' | ' | ||
Revenues | ' | ' | ' | ' | 29,113 | 29,655 | ' | ||
Income before income taxes and net income | ' | ' | ' | ' | $20,714 | $20,508 | ' | ||
[1] | Based upon an average original aggregate life of 21 years. | ||||||||
[2] | Included in “Investments.†|
Investments_Jurlique_Details
Investments Jurlique (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | ||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Feb. 02, 2012 | Sep. 30, 2012 |
Jurlique International Pty Ltd [Member] | Jurlique International Pty Ltd [Member] | Jurlique International Pty Ltd [Member] | Former Management [Member] | Investments in Majority-owned Subsidiaries [Member] | Investment Income [Member] | |||||
Deferred Costs and Other Assets [Member] | Jurlique International Pty Ltd [Member] | Jurlique International Pty Ltd [Member] | Foreign Exchange Contract [Member] | |||||||
Jurlique International Pty Ltd [Member] | ||||||||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment Subsidiary, Ownership Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 99.70% | ' |
Proceeds from sale of investment | ' | ' | $2,680 | $24,374 | $1,166 | $27,287 | ' | ' | ' | ' |
Loss (gain) on sale of investment, net | ' | ' | 799 | -27,407 | 799 | -27,407 | ' | ' | ' | ' |
Loss on Derivative Instruments, Pretax | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,913 |
Escrow Deposit | ' | ' | ' | ' | ' | ' | 1,012 | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest | -223 | 0 | -445 | 2,384 | ' | 2,384 | ' | ' | ' | ' |
Net Income (Loss) Attributable to Noncontrolling Interest, Income Tax Benefit | ' | ' | ' | ' | ' | 1,283 | ' | ' | ' | ' |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | ' | ' | ' | ($2,384) | ' | $3,667 | ' | $2,296 | ' | ' |
LongTerm_Debt_Schedule_of_Long
Long-Term Debt Schedule of Long-Term Debt Instruments (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | $1,471,922 | $1,457,562 | |
Current portion of long-term debt | 38,260 | 12,911 | |
Total long-term debt | 1,433,662 | 1,444,651 | |
Term A Loan, 2018 [Member] | Secured Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 350,000 | 0 | |
Term B Loan, 2019 [Member] | Secured Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 769,375 | 1,114,826 | |
6.20% Senior Notes [Member] | Unsecured Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 225,586 | 225,940 | |
7% Debentures [Member] | Unsecured Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 84,373 | 83,496 | |
Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 37,538 | 32,594 | |
Other Debt Obligations [Member] | Secured Debt [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | 5,050 | [1] | 706 |
Reported Value Measurement [Member] | Japan JV [Member] | Other Debt Obligations [Member] | ' | ' | |
Debt Instrument [Line Items] | ' | ' | |
Debt and Capital Lease Obligations | $4,696 | ' | |
[1] | Other includes $4,696 of debt resulting from the consolidation of the Japan JV in the second quarter of 2013. The carrying amount of the long-term debt approximates fair value. |
LongTerm_Debt_Credit_Agreement
Long-Term Debt Credit Agreement (Details) (USD $) | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | 16-May-13 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | 16-May-13 | 16-May-13 | Jun. 30, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 24, 2013 | 15-May-12 | 16-May-13 |
In Thousands, unless otherwise specified | Term A Loan, 2018 [Member] | Term A Loan, 2018 [Member] | Term A Loan, 2018 [Member] | Term A Loan, 2018 [Member] | Term B Loan, 2019 [Member] | Term B Loan, 2019 [Member] | Term B Loan, 2019 [Member] | Term B Loan, 2019 [Member] | Revolving Credit Facility [Member] | Term Loan, 2013 [Member] | Term Loan, 2013 [Member] | Letter of Credit [Member] | Incremental Term Loans [Member] | Credit Agreement, Revolver [Member] | Restated Credit Agreement, Revolver [Member] |
London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | Secured Debt [Member] | Interest Expense [Member] | Deferred Costs and Other Assets [Member] | Letter of Credit [Member] | Letter of Credit [Member] | |||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | $350,000 | ' | ' | ' | $769,375 | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Description of Variable Rate Basis | ' | ' | 'Eurodollar Rate | ' | ' | ' | 'Eurodollar Rate | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | 2.25% | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | ' | ' | ' | ' | ' | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | 70,000 | 40,000 |
Debt Issuance Cost | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,579 | 2,293 | ' | ' | ' | ' |
Letters of Credit Outstanding, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,593 | ' | ' | ' |
Debt Instrument, Unused Borrowing Capacity, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $225,000 | ' | ' |
Debt Instrument, Interest Rate at Period End | 2.43% | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Early_Extinguish
Long-Term Debt Early Extinguishment of Debt (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Extinguishment of Debt [Line Items] | ' | ' | ' | ' |
Loss on early extinguishment of debt | $0 | $49,881 | $21,019 | $75,076 |
Term Loan, 2012 [Member] | ' | ' | ' | ' |
Extinguishment of Debt [Line Items] | ' | ' | ' | ' |
Write Off of Unaccreted Discount | 0 | ' | 9,561 | ' |
Write off of Deferred Debt Issuance Cost | 0 | ' | 11,458 | ' |
Senior Notes, 10.0% [Member] | ' | ' | ' | ' |
Extinguishment of Debt [Line Items] | ' | ' | ' | ' |
Required premium payment to redeem/purchase Senior Notes | ' | 33,058 | ' | 43,151 |
Write Off of Unaccreted Discount | ' | 7,186 | ' | 9,272 |
Write off of Deferred Debt Issuance Cost | ' | 9,637 | ' | 12,433 |
Term Loan, 2010 [Member] | ' | ' | ' | ' |
Extinguishment of Debt [Line Items] | ' | ' | ' | ' |
Write Off of Unaccreted Discount | ' | 0 | ' | 1,695 |
Write off of Deferred Debt Issuance Cost | ' | $0 | ' | $8,525 |
LongTerm_Debt_Redemption_of_Se
Long-Term Debt Redemption of Senior Notes (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 | Oct. 24, 2013 |
6.20% Senior Notes [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Loss on early extinguishment of debt [Member] | Loss on early extinguishment of debt [Member] | |||||
Interest Rate Swap [Member] | Incremental Term Loans [Member] | 6.20% Senior Notes [Member] | Term Loan, 2013 [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Interest Rate Swap [Member] | 6.20% Senior Notes [Member] | 6.20% Senior Notes [Member] | |||||||||
Interest Rate Swap [Member] | |||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Face Amount | ' | ' | ' | ' | ' | ' | $225,000 | ' | ' | ' | ' |
Debt Instrument, Redemption Price, Percentage | ' | ' | ' | ' | ' | 103.80% | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | 225,000 | ' | ' | 225,000 | ' | ' | ' |
Loss on early extinguishment of debt | 0 | -49,881 | -21,019 | -75,076 | ' | ' | ' | ' | 7,544 | ' | ' |
Required premium payment to redeem/purchase Senior Notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,439 | ' |
Loss on Effect of Fair Value Adjustment on Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,168 | ' |
Effect on Cancellation of Fair Value Interest Rate Swaps | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,063 |
Fair_Value_Measurements_Financ
Fair Value Measurements Financial Instruments (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | $317,058 | $264,925 | ||
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cash and Cash Equivalents, Fair Value Disclosure | 317,058 | 264,925 | ||
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cost Method Investments, Fair Value Disclosure | 22,397 | [1] | 23,913 | [1] |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Cost Method Investments, Fair Value Disclosure | 47,121 | [1] | 50,761 | [1] |
Fair Value, Inputs, Level 2 [Member] | Swap [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivative Asset | 4,123 | [2] | 8,169 | [2] |
Fair Value, Inputs, Level 2 [Member] | Swap [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Derivative Asset | 4,123 | [2] | 8,169 | [2] |
Secured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Term A Loan, 2018 [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 350,000 | [3] | 0 | [3] |
Secured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Term A Loan, 2018 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 349,563 | [3] | 0 | [3] |
Secured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Term B Loan, 2019 [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 769,375 | [3] | 1,114,826 | [3] |
Secured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | Term B Loan, 2019 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 766,490 | [3] | 1,130,434 | [3] |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | 6.20% Senior Notes [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 225,586 | [3] | 225,940 | [3] |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | 6.20% Senior Notes [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 233,438 | [3] | 240,750 | [3] |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | 7% Debentures [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 84,373 | [3] | 83,496 | [3] |
Unsecured Debt [Member] | Fair Value, Inputs, Level 2 [Member] | 7% Debentures [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 97,750 | [3] | 99,900 | [3] |
Capital Lease Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Capital Lease Obligations [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 37,538 | [4] | 32,594 | [4] |
Capital Lease Obligations [Member] | Fair Value, Inputs, Level 3 [Member] | Capital Lease Obligations [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Debt Instrument, Fair Value Disclosure | 36,080 | [4] | 33,299 | [4] |
Financial Guarantee [Member] | Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Guarantees of franchisee loans obligations | 892 | [5] | 940 | [5] |
Financial Guarantee [Member] | Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ' | ' | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ||
Guarantees of franchisee loans obligations | $892 | [5] | $940 | [5] |
[1] | The fair value of our indirect investment in Arby’s is based on a review of its most recent unaudited financial information. The fair values of our remaining investments were based on our review of information provided by the investment managers or investees which was based on (1) valuations performed by the investment managers or investees, (2) quoted market or broker/dealer prices for similar investments and (3) quoted market or broker/dealer prices adjusted by the investment managers for legal or contractual restrictions, risk of nonperformance or lack of marketability, depending upon the underlying investments. | |||
[2] | The fair values were based on information provided by the bank counterparties that is model-driven and where inputs were observable or where significant value drivers were observable. | |||
[3] | The fair values were based on quoted market prices in markets that are not considered active markets. See Note 5 for information on the redemption of the 6.20% Senior Notes subsequent to the third quarter of 2013. | |||
[4] | The fair values were determined by discounting the future scheduled principal payments using an interest rate assuming the same original issuance spread over a current U.S. Treasury bond yield for securities with similar durations. | |||
[5] | Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into pooled debt facility arrangements for new restaurant development and equipment financing. In 2012, Wendy’s provided a guarantee to a lender for a franchisee in connection with the refinancing of the franchisee’s debt. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage established at inception adjusted for a history of defaults. |
Fair_Value_Measurements_Deriva
Fair Value Measurements Derivative Instruments (Details) (USD $) | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 30, 2008 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Oct. 24, 2013 | ||
In Thousands, unless otherwise specified | Swap [Member] | Swap [Member] | 6.20% Senior Notes [Member] | 6.20% Senior Notes [Member] | 6.20% Senior Notes [Member] | 6.20% Senior Notes [Member] | 6.20% Senior Notes [Member] | Subsequent Event [Member] | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | 6.20% Senior Notes [Member] | ||||
Estimate of Fair Value, Fair Value Disclosure [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Interest Rate Swap [Member] | ||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | 6.20% | ' | ' | ' | ' | ' | ||
Derivative, Notional Amount | ' | ' | ' | $225,000 | ' | $225,000 | ' | $225,000 | ||
Derivative Asset | 4,123 | [1] | 8,169 | [1] | ' | ' | ' | ' | ' | ' |
Interest income on interest rate swaps | ' | ' | ' | $1,429 | $1,283 | $4,319 | $4,013 | ' | ||
[1] | The fair values were based on information provided by the bank counterparties that is model-driven and where inputs were observable or where significant value drivers were observable. |
Fair_Value_Measurements_Fair_V
Fair Value Measurements Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Dec. 30, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Apr. 01, 2012 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Sep. 30, 2012 | Dec. 30, 2012 | ||
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Properties and Other Intangibles and Corporate Aircraft [Member] | System Optimization [Member] | System Optimization [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | ||||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Measurements, Nonrecurring [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | ||||||||||||||||||||||||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-Lived Assets, Fair Value Disclosure | ' | ' | ' | ' | ' | $16,803 | $13,237 | $0 | $0 | $0 | $0 | $16,803 | $13,237 | ' | ' | $7,803 | $7,311 | $0 | $0 | $0 | $0 | $7,803 | $7,311 | ' | ' | $9,000 | $5,926 | $0 | $0 | $0 | $0 | $9,000 | $5,926 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Impairment of Long-Lived System Optimization Assets Held for Use | ' | ' | 18,359 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,421 | [1] | 18,359 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | ' | 0 | ' | 7,781 | 21,097 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,628 | 1,628 | 1,628 | 0 | 3,270 | 2,883 | 6,153 | 19,469 | ||
Impairment of long-lived assets | $5,327 | $0 | $5,327 | $7,781 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500 | $500 | ' | ' | ' | ' | ' | ' | ' | ' | $4,827 | $4,827 | ' | ' | ' | ' | ' | ' | ' | ' | $23,686 | ' | $18,859 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Includes remeasurement of land, buildings, leasehold improvements and favorable lease assets at all company-owned restaurants included in our system optimization initiative. See Note 6 for more information on non-recurring fair value measurements. |
Impairment_of_LongLived_Assets2
Impairment of Long-Lived Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Dec. 30, 2012 | Jul. 01, 2012 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 30, 2012 | Jul. 01, 2012 | Apr. 01, 2012 | Sep. 30, 2012 | Dec. 30, 2012 | Sep. 30, 2012 | Apr. 01, 2012 | Sep. 30, 2012 | Dec. 30, 2012 |
Closed | Other Operating Expense, Net [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Properties and Other Intangible Assets [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | Corporate Aircraft [Member] | ||||||
Details of Impairment of Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | ' | $0 | ' | ' | $7,781 | $21,097 | ' | ' | ' | ' | ' | $0 | $3,270 | $2,883 | $6,153 | $19,469 | $0 | $1,628 | $1,628 | $1,628 |
Business Exit Costs | ' | ' | ' | ' | ' | ' | 1,477 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Impairment of long-lived assets | $5,327 | $0 | ' | $5,327 | $7,781 | ' | ' | $500 | $500 | $4,827 | $4,827 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Restaurants Closed | ' | ' | 15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Effective Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $15,625 | ' | ($12,672) | $17,774 | ($14,467) |
Effective Income Tax Rate, Continuing Operations | 116.10% | ' | 32.20% | 59.80% | 45.30% |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | ' | ' | ' | 35.00% | ' |
Reversal Of Deferred Tax Liability Relating To Investment In Foreign Subsidiaries | ' | 1,934 | ' | ' | ' |
Deferred Income Tax Expense (Benefit) | 102 | ' | ' | 102 | ' |
Effect of Goodwill and Change in Future Deferred State Taxes [Member] | ' | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation [Line Items] | ' | ' | ' | ' | ' |
Income Tax Expense (Benefit) | $14,183 | ' | ' | ' | ' |
Loss_Income_Per_Share_Details
(Loss) Income Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
(Loss) income from continuing operations | ($1,939) | ($26,692) | $12,418 | ($19,835) |
Net income from discontinued operations | 0 | 530 | 0 | 530 |
Net (loss) income attributable to The Wendy’s Company | ($1,939) | ($26,162) | $12,418 | ($19,305) |
Common Stock: | ' | ' | ' | ' |
Weighted average basic shares outstanding | 392,579 | 390,406 | 392,750 | 390,028 |
Dilutive effect of stock options and restricted shares | 0 | 0 | 5,351 | 0 |
Weighted average diluted shares outstanding | 392,579 | 390,406 | 398,101 | 390,028 |
Potential common shares excluded from diluted per share calculation | ' | ' | 12,103 | ' |
Equity_Details
Equity (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||
In Thousands, except Share data, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Sep. 29, 2013 | Sep. 30, 2012 | Nov. 01, 2013 |
Common Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Deficit [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member] | Noncontrolling Interest [Member] | Noncontrolling Interest [Member] | Subsequent Event [Member] | |||||
Equity: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Balance, beginning of year | ' | ' | $1,985,855 | $1,996,069 | $47,042 | $47,042 | $2,782,765 | $2,779,871 | ($467,007) | ($434,999) | ($382,926) | ($395,947) | $5,981 | $102 | $0 | $0 | ' |
Consolidation of the Japan JV | ' | ' | -2,735 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | -2,735 | ' | ' |
Net income (loss) | -2,162 | -26,162 | 11,973 | -16,921 | 0 | 0 | 0 | 0 | 12,418 | -19,305 | 0 | 0 | 0 | 0 | -445 | 2,384 | ' |
Distribution to noncontrolling interests | ' | ' | ' | -2,384 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | -2,384 | ' |
Foreign currency translation adjustment | 4,851 | 7,920 | -7,029 | 9,309 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -7,577 | 9,309 | 548 | 0 | ' |
Unrecognized pension loss | 0 | 0 | -62 | -217 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -62 | -217 | 0 | 0 | ' |
Cash dividends | ' | ' | -51,065 | -23,406 | 0 | 0 | 0 | 0 | -51,065 | -23,406 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Share-based compensation expense | ' | ' | 11,564 | 8,330 | 0 | 0 | 11,564 | 8,330 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Common stock issued related to share-based compensation | ' | ' | 16,877 | 1,537 | 0 | 0 | -2,895 | -4,337 | 0 | 0 | 19,772 | 5,874 | 0 | 0 | 0 | 0 | ' |
Tax charge from share-based compensation | ' | ' | -2,967 | -676 | 0 | 0 | -2,967 | -676 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ' |
Repurchases of common stock | ' | ' | -41,469 | ' | 0 | ' | 0 | ' | 0 | ' | -41,469 | ' | 0 | ' | 0 | ' | ' |
Noncontrolling Interest, Increase due to Contributions from Noncontrolling Interest Holders | ' | ' | 219 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 0 | ' | 219 | ' | ' |
Other | ' | ' | 148 | 103 | 0 | 0 | 12 | -26 | -3 | -32 | 139 | 161 | 0 | 0 | 0 | 0 | ' |
Balance, end of period | 1,921,309 | 1,971,744 | 1,921,309 | 1,971,744 | 47,042 | 47,042 | 2,788,479 | 2,783,162 | -505,657 | -477,742 | -404,484 | -389,912 | -1,658 | 9,194 | -2,413 | 0 | ' |
Stock Repurchase Program, Authorized Amount | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Treasury Stock, Shares, Acquired | ' | ' | 5,482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Stock Repurchase Program, Aggregate Purchase Price | ' | ' | 41,373 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Repurchase Program, Purchase Commissions | ' | ' | $96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Guarantees_and_Other_Commitmen1
Guarantees and Other Commitments and Contingencies Franchisee Image Activation Financing Agreement (Details) (USD $) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 29, 2013 |
Guarantor Obligations [Line Items] | ' | ' |
Incentive Program Expense Recognized | $3,775 | $5,075 |
Standby Letters of Credit [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Letters of Credit Outstanding, Amount | 6,000 | 6,000 |
Fiscal Year 2013 [Member] | ' | ' |
Guarantor Obligations [Line Items] | ' | ' |
Program Maximum Potential Cash Incentive For Franchisees | $10,000 | $10,000 |
Guarantees_and_Other_Commitmen2
Guarantees and Other Commitments and Contingencies Japan JV Guarantee (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 29, 2013 | Jun. 30, 2013 | Sep. 29, 2013 | Mar. 31, 2013 |
Total Guarantee Obligations, Including Anticipated Future Cash Requirements [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | $5,700 | ' | $5,700 | ' |
Additional Guarantees Expected Subsequent to Additional Investment [Member] | Japan JV [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 1,000 | ' | 1,000 | ' |
Japan JV [Member] | Guarantee of Indebtedness of Others [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Guarantor Obligations, Maximum Exposure, Undiscounted | 2,800 | ' | 2,800 | ' |
Wendy's [Member] | Japan JV [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Total Amount To Be Funded Under Plan To Finance Future Cash Requirements | ' | ' | ' | 3,000 |
Amount Funded During The Period Under Plan To Finance Future Cash Requirements | 1,000 | 1,000 | 2,000 | ' |
Higa Partners [Member] | Japan JV [Member] | ' | ' | ' | ' |
Guarantor Obligations [Line Items] | ' | ' | ' | ' |
Total Amount To Be Funded Under Plan To Finance Future Cash Requirements | ' | ' | ' | 657 |
Amount Funded During The Period Under Plan To Finance Future Cash Requirements | $219 | $219 | ' | ' |
Transactions_with_Related_Part1
Transactions with Related Parties (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 29, 2013 | Sep. 30, 2012 |
QSCC [Member] | General and Administrative Expense [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Sublease Income, Related Party | $142 | $145 |
Former Management [Member] | ' | ' |
Related Party Transaction [Line Items] | ' | ' |
Credit for aircraft fees paid by related party | $1,195 | $730 |
Legal_Environmental_and_Other_1
Legal, Environmental and Other Matters (Details) (Legal and Environmental Matters [Member], USD $) | Sep. 29, 2013 |
In Thousands, unless otherwise specified | |
Legal and Environmental Matters [Member] | ' |
Loss Contingencies [Line Items] | ' |
Accruals for legal and environmental matters | $3,783 |