The Wendy's Company (WEN) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 01, 2018	Aug. 01, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	WENDY'S CO
Entity Central Index Key	30,697
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 1, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		236,991,883

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 194,939	$ 171,447
Restricted cash	30,000	32,633
Accounts and notes receivable, net	95,121	114,390
Inventories	3,283	3,156
Prepaid expenses and other current assets	22,414	20,125
Advertising funds restricted assets	87,688	62,602
Total current assets	433,445	404,353
Properties	1,226,961	1,263,059
Goodwill	741,783	743,334
Other intangible assets	1,301,463	1,321,585
Investments	52,144	56,002
Net investment in direct financing leases	228,838	229,089
Other assets	95,545	79,516
Total assets	4,080,179	4,096,938
Current liabilities:
Current portion of long-term debt	31,118	30,172
Accounts payable	21,321	22,764
Accrued expenses and other current liabilities	103,351	111,624
Advertising funds restricted liabilities	96,972	62,602
Total current liabilities	252,762	227,162
Long-term debt	2,771,660	2,724,230
Deferred income taxes	274,344	299,053
Deferred franchise fees	93,139	10,881
Other liabilities	257,735	262,409
Total liabilities	3,649,640	3,523,735
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 238,083 and 240,512 shares outstanding, respectively	47,042	47,042
Additional paid-in capital	2,883,167	2,885,955
Accumulated deficit	(224,120)	(163,289)
Common stock held in treasury, at cost; 232,341 and 229,912 shares, respectively	(2,219,100)	(2,150,307)
Accumulated other comprehensive loss	(56,450)	(46,198)
Total stockholders’ equity	430,539	573,203
Total liabilities and stockholders’ equity	$ 4,080,179	$ 4,096,938

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets Balance Sheet Parentheticals - $ / shares shares in Thousands	Jul. 01, 2018	Dec. 31, 2017
Common Stock, Par Value	$ 0.10	$ 0.10
Common Stock, Shares Authorized	1,500,000	1,500,000
Common Stock, Shares Issued	470,424	470,424
Common Stock, Shares, Outstanding	238,083	240,512
Treasury Stock, Shares	232,341	229,912

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Revenues:
Sales	$ 167,344	$ 160,859	$ 320,993	$ 309,071
Franchise royalty revenue and fees	107,559	112,548	205,467	207,238
Franchise rental income	51,529	46,935	101,636	89,852
Advertising funds revenue	84,570	0	163,470	0
Revenues	411,002	320,342	791,566	606,161
Costs and expenses:
Cost of sales	138,154	130,581	270,373	255,124
Franchise support and other costs	7,031	3,789	13,204	7,432
Franchise rental expense	24,306	21,897	47,569	40,765
Advertising funds expense	84,570	0	163,470	0
General and administrative	49,163	50,059	99,519	101,373
Depreciation and amortization	33,427	31,309	65,579	60,474
System optimization (gains) losses, net	(92)	41,050	478	39,643
Reorganization and realignment costs	3,124	17,699	5,750	17,880
Impairment of long-lived assets	1,603	253	1,809	763
Other operating income, net	(1,767)	(2,089)	(2,930)	(3,807)
Costs and expenses	339,519	294,548	664,821	519,647
Operating profit	71,483	25,794	126,745	86,514
Interest expense, net	(30,136)	(28,935)	(60,314)	(57,910)
Loss on early extinguishment of debt	0	0	(11,475)	0
Other income, net	917	2,844	1,661	3,233
Income (loss) before income taxes	42,264	(297)	56,617	31,837
Provision for income taxes	(12,388)	(1,548)	(6,582)	(11,341)
Net income (loss)	$ 29,876	$ (1,845)	$ 50,035	$ 20,496
Earnings per share
Earnings Per Share, Basic	$ 0.13	$ (0.01)	$ 0.21	$ 0.08
Earnings Per Share, Diluted	0.12	(0.01)	0.20	0.08
Dividends
Dividends per share	$ 0.085	$ 0.07	$ 0.17	$ 0.14

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Net income	$ 29,876	$ (1,845)	$ 50,035	$ 20,496
Other comprehensive (loss) income, net:
Foreign currency translation adjustment	(4,325)	6,065	(10,369)	8,010
Change in unrecognized pension loss; Unrealized gains arising during the period	0	0	156	156
Change in unrecognized pension loss; Income tax provision	0	0	(39)	(60)
Change in unrecognized pension loss; Unrealized gains arising during the period, net of tax	0	0	117	96
Effect of cash flow hedges; Reclassification of losses into Net income	0	724	0	1,447
Effect of cash flow hedge; Income tax provision	0	(281)	0	(559)
Effect of cash flow hedges; Reclassification of losses into Net income, net of tax	0	443	0	888
Other comprehensive (loss) income, net	(4,325)	6,508	(10,252)	8,994
Comprehensive income	$ 25,551	$ 4,663	$ 39,783	$ 29,490

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017
Cash flows from operating activities:
Net income	$ 50,035	$ 20,496
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	65,579	60,474
Share-based compensation	9,591	11,372
Impairment of long-lived assets	1,809	763
Deferred income tax	(2,508)	(2,496)
Non-cash rental income, net	(6,239)	(5,286)
Net receipt of deferred vendor incentives	4,904	7,077
System optimization losses, net	478	39,643
Gain on sale of investments, net	0	(2,553)
Distributions received from TimWen joint venture	5,756	5,524
Equity in earnings in joint ventures, net	(3,648)	(3,786)
Long-term debt-related activities, net	15,036	6,038
Other, net	(1,093)	3,296
Changes in operating assets and liabilities:
Accounts and notes receivable, net	8,315	(9,557)
Inventories	(150)	(71)
Prepaid expenses and other current assets	(891)	(2,116)
Advertising funds restricted assets and liabilities	6,734	(14,522)
Accounts payable	747	(4,484)
Accrued expenses and other current liabilities	(6,034)	(4,051)
Net cash provided by operating activities	148,421	105,761
Cash flows from investing activities:
Capital expenditures	(23,898)	(32,117)
Acquisitions	0	86,788
Dispositions	1,814	77,980
Proceeds from sale of investments	0	3,282
Notes receivable, net	(538)	(2,225)
Payments for investments	(13)	(375)
Net cash used in investing activities	(22,635)	(40,243)
Cash flows from financing activities:
Proceeds from long-term debt	930,809	6,359
Repayments of long-term debt	(881,633)	(18,262)
Deferred financing costs	(17,340)	(740)
Repurchases of common stock	(84,307)	(50,527)
Dividends	(40,645)	(34,447)
Proceeds from stock option exercises	13,197	6,385
Payments related to tax withholding for share-based compensation	(9,269)	(2,956)
Contingent consideration payment	(6,100)	0
Net cash used in financing activities	(95,288)	(94,188)
Net cash provided by (used in) operations before effect of exchange rate changes on cash	30,498	(28,670)
Effect of exchange rate changes on cash	(4,401)	3,267
Net increase (decrease) in cash, cash equivalents and restricted cash	26,097	(25,403)
Cash, cash equivalents and restricted cash at beginning of period	212,824	275,949
Cash, cash equivalents and restricted cash at end of period	238,921	250,546
Detail of cash flows from operating activities:
Loss on early extinguishment of debt	11,475	0
Accretion of long-term debt	625	617
Amortization of deferred financing costs	2,936	3,974
Reclassification of unrealized losses on cash flow hedges	0	1,447
Long-term debt-related activities, net	15,036	6,038
Cash paid for:
Interest	70,005	62,090
Income taxes, net of refunds	3,813	12,886
Supplemental non-cash investing and financing activities:
Capital expenditures included in accounts payable	7,463	8,965
Capitalized lease obligations	1,904	238,201
Accrued debt issuance costs	332	0
Reconciliation of cash, cash equivalents and restricted cash at end of period:
Total cash, cash equivalents and restricted cash	$ 212,824	$ 275,949

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 01, 2018
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 of a normal recurring nature necessary to present fairly our financial position as of July 1, 2018 , the results of our operations for the three and six months ended July 1, 2018 and July 2, 2017 and cash flows for the six months ended July 1, 2018 and July 2, 2017 . The results of operations for the three and six months ended July 1, 2018 are not necessarily indicative of the results to be expected for the full 2018 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 31, 2017 (the “Form 10-K”). The principal subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business geographically. The operation and franchising of Wendy’s ® restaurants in North America (defined as the United States of America (“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 or on December 31. All three- and six-month periods presented herein contain 13 weeks and 26 weeks, respectively. All references to years and quarters relate to fiscal periods rather than calendar periods. Certain reclassifications have been made to the prior year presentation to conform to the current year presentation. The Company has reclassified certain costs associated with the Company’s franchise operations to “Franchise support and other costs,” which were previously recorded to “Other operating expense (income), net.” The costs reclassified include costs incurred to provide direct support services to our franchisees, as well as certain other direct and incremental costs for the Company’s franchise operations. Also, the Company reclassified certain restaurant operational costs from “General and administrative” to “Cost of sales.” The Company believes this new presentation will aid users in understanding its results of operations. The prior periods reflect the reclassifications of these expenses to conform to the current year presentation. There was no impact to operating profit, income (loss) before income taxes or net income (loss) as a result of these reclassifications. The following tables illustrate the expense reclassifications made to the condensed consolidated statements of operations for the three and six months ended July 2, 2017 : Three Months Ended Reclassifications As Previously Reported Franchise support and other costs Restaurant operational costs As Currently Reported Cost of sales $ 129,360 $ — $ 1,221 $ 130,581 Franchise support and other costs — 3,789 — 3,789 General and administrative 51,280 — (1,221 ) 50,059 Other operating expense (income), net 1,700 (3,789 ) — (2,089 ) $ 182,340 $ — $ — $ 182,340 Six Months Ended Reclassifications As Previously Reported Franchise support and other costs Restaurant operational costs As Currently Reported Cost of sales $ 252,767 $ — $ 2,357 $ 255,124 Franchise support and other costs — 7,432 — 7,432 General and administrative 103,730 — (2,357 ) 101,373 Other operating expense (income), net 3,625 (7,432 ) — (3,807 ) $ 360,122 $ — $ — $ 360,122

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jul. 01, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
New Accounting Standards	New Accounting Standards New Accounting Standards In June 2018, the Financial Accounting Standards Board (“FASB”) issued new guidance on nonemployee share-based payment arrangements. The new guidance aligns the requirements for nonemployee share-based payments with the requirements for employee share-based payments. The Company does not expect the amendment, which is effective beginning with our 2019 fiscal year, to have a material impact on our consolidated financial statements. In February 2016, the FASB issued new guidance on leases, which outlines principles for the recognition, measurement, presentation and disclosure of leases applicable to both lessors and lessees. The new guidance, which is effective beginning with our 2019 fiscal year, requires lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by finance and operating leases with lease terms of more than 12 months. The guidance allows for either (1) a modified retrospective transition method under which the standard is applied at the beginning of the earliest period presented in the financial statements or (2) an alternative transition method under which the standard is applied at the adoption date and a cumulative-effect adjustment to the opening balance of retained earnings is recognized in the period of adoption. The Company is continuing to evaluate which transition method to use. We are currently implementing a new lease management system to facilitate the adoption of this guidance. As shown in Note 13 , there are $1,544,785 in future minimum rental payments for operating leases that are not currently on our balance sheet; therefore, we expect this will have a material impact on our consolidated balance sheets and related disclosures. We do not expect the adoption of this guidance to have a material impact on our consolidated statements of operations and statements of cash flows. New Accounting Standards Adopted In May 2017, the FASB issued new guidance on the scope of modification accounting for share-based payment arrangements. The new guidance provides relief to entities that make non-substantive changes to their share-based payment arrangements. The Company adopted this amendment, prospectively, during the first quarter of 2018. The adoption of this guidance did not impact our condensed consolidated financial statements. In January 2017, the FASB issued an amendment that clarifies the definition of a business in determining whether to account for a transaction as an asset acquisition or a business combination. The Company adopted this amendment, prospectively, during the first quarter of 2018. The adoption of this guidance did not impact our condensed consolidated financial statements. In November 2016, the FASB issued an amendment that clarifies guidance for proper classification and presentation of restricted cash in the statement of cash flows. Accordingly, changes in restricted cash that have historically been included within operating, investing and financing activities have been eliminated, and restricted cash, including the restricted cash of the national advertising funds, is combined with cash and cash equivalents when reconciling the beginning and end of period balances for all periods presented. The Company adopted this amendment during the first quarter of 2018. The adoption of the amendment resulted in an increase in net cash used in investing activities of $18,711 during the six months ended July 2, 2017 . In addition, during the six months ended July 2, 2017 , net cash provided by operating activities decreased $14,822 and net cash used in financing activities decreased $1,743 , primarily due to changes in restricted cash of the national advertising funds. Because of the inclusion of restricted cash in the beginning and end of period balances, our cash, cash equivalents and restricted cash as presented in the statement of cash flows increased $46,003 and $77,709 as of July 2, 2017 and January 1, 2017 , respectively. This amendment did not impact the Company’s condensed consolidated statements of operations and condensed consolidated balance sheets. In August 2016, the FASB issued an amendment that provides guidance for proper classification of certain cash receipts and payments in the statement of cash flows. Upon adoption in the first quarter of 2018, the Company elected to use the nature of distribution approach for all distributions it receives from its equity method investees. The adoption of this guidance did not impact our condensed consolidated financial statements. In March 2016, the FASB issued an amendment that provides guidance on extinguishing financial liabilities for certain prepaid stored-value products. The Company adopted this amendment during the first quarter of 2018. The adoption of this guidance did not impact our condensed consolidated financial statements. In January 2016, the FASB issued an amendment that revises the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The Company adopted this amendment during the first quarter of 2018. The adoption of this guidance did not impact our condensed consolidated financial statements. Revenue Recognition In May 2014, the FASB issued amended guidance for revenue recognition. The new guidance outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers. The core principle of the guidance is that an entity should recognize revenue for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing and uncertainty of revenue that is recognized. The Company adopted the new guidance on January 1, 2018. As a result, the Company has changed its accounting policy for revenue recognition as detailed below. The Company applied the new guidance using the modified retrospective method, whereby the cumulative effect of initially adopting the guidance was recognized as an adjustment to the opening balance of equity at January 1, 2018. Therefore, the comparative period has not been adjusted and continues to be reported under the previous revenue recognition guidance. The details of the significant changes and quantitative impact of the changes are discussed below. See Note 3 for further information regarding our revenue policies and disaggregation of our sources of revenue. Franchise Fees Under previous revenue recognition guidance, new build technical assistance fees and development fees were recognized as revenue when a franchised restaurant opened, as all material services and conditions related to the franchise fee had been substantially performed upon the restaurant opening. In addition, under previous guidance, technical assistance fees received in connection with sales of Company-operated restaurants to franchisees and facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”), as well as renewal fees, were recognized as revenue when the license agreements were signed and the restaurant opened. Under the new guidance, these franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. As such, these franchise fees are recognized over the contractual term of the franchise agreement. National Advertising Funds The Company maintains two national advertising funds (the “Advertising Funds”) established to collect and administer funds contributed for use in advertising and promotional programs for Company-operated and franchised restaurants in the U.S. and Canada. Previously, the revenue, expenses and cash flows of such Advertising Funds were not included in the Company’s condensed consolidated statements of operations and statements of cash flows because the contributions to these Advertising Funds were designated for specific purposes and the Company acted as an agent, in substance, with regard to these contributions as a result of industry-specific guidance. Under the new guidance, which superseded the previous industry-specific guidance, the revenue, expenses and cash flows of the Advertising Funds are fully consolidated into the Company’s condensed consolidated statements of operations and statements of cash flows. In addition, the Company reclassified the total stockholders’ equity of the Advertising Funds from “ Advertising funds restricted liabilities ” to “Accumulated deficit” upon adoption of the guidance. Upon the full consolidation of the Advertising Funds, the Company also eliminated certain amounts due to and from affiliates from “Advertising funds restricted assets” and “Advertising funds restricted liabilities.” The Company allocates a portion of its advertising funds expense to “ Cost of sales ” based on a percentage of sales of Company-operated restaurants. Our significant interim accounting policies include the recognition of advertising funds expense in proportion to advertising funds revenue. Impacts on Financial Statements The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s condensed consolidated financial statements: Adjustments As Reported Franchise Fees Advertising Funds Balances Without Adoption Condensed Consolidated Balance Sheet July 1, 2018 Accrued expenses and other current liabilities $ 103,351 $ (1,733 ) $ — $ 101,618 Advertising funds restricted liabilities 96,972 — (6,645 ) 90,327 Total current liabilities 252,762 (1,733 ) (6,645 ) 244,384 Deferred income taxes 274,344 21,587 — 295,931 Deferred franchise fees 93,139 (81,999 ) — 11,140 Total liabilities 3,649,640 (62,145 ) (6,645 ) 3,580,850 Accumulated deficit (224,120 ) 62,384 6,645 (155,091 ) Accumulated other comprehensive loss (56,450 ) (239 ) — (56,689 ) Total stockholders’ equity 430,539 62,145 6,645 499,329 Condensed Consolidated Statements of Operations Three Months Ended July 1, 2018 Franchise royalty revenue and fees (a) $ 107,559 $ (724 ) $ — $ 106,835 Advertising funds revenue 84,570 — (84,570 ) — Total revenues 411,002 (724 ) (84,570 ) 325,708 Advertising funds expense 84,570 — (84,570 ) — Total costs and expenses 339,519 — (84,570 ) 254,949 Operating profit 71,483 (724 ) — 70,759 Income before income taxes 42,264 (724 ) — 41,540 Provision for income taxes (12,388 ) 187 — (12,201 ) Net income 29,876 (537 ) — 29,339 Six Months Ended July 1, 2018 Franchise royalty revenue and fees (a) $ 205,467 $ (1,590 ) $ — $ 203,877 Advertising funds revenue 163,470 — (163,470 ) — Total revenues 791,566 (1,590 ) (163,470 ) 626,506 Advertising funds expense 163,470 — (163,470 ) — Total costs and expenses 664,821 — (163,470 ) 501,351 Operating profit 126,745 (1,590 ) — 125,155 Income before income taxes 56,617 (1,590 ) — 55,027 Provision for income taxes (6,582 ) 409 — (6,173 ) Net income 50,035 (1,181 ) — 48,854 _______________ (a) The adjustments for the three and six months ended July 1, 2018 include the reversal of franchise fees recognized over time under the new revenue recognition guidance of $2,439 and $5,127 , respectively, as well as franchisee fees that would have been recognized under the previous revenue recognition guidance when the license agreements were signed and the restaurant opened of $1,715 and $3,537 , respectively. See Note 3 for further information. Adjustments As Reported Franchise Fees Advertising Funds Balances Without Adoption Condensed Consolidated Statement of Cash Flows Six Months Ended July 1, 2018 Cash flows from operating activities: Net income $ 50,035 $ (1,181 ) $ — $ 48,854 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income tax (2,508 ) (409 ) — (2,917 ) Other, net (1,093 ) (309 ) — (1,402 ) Changes in operating assets and liabilities: Accrued expenses and other current liabilities (6,034 ) 1,899 — (4,135 )

Revenue (Notes)

Revenue (Notes)	6 Months Ended
	Jul. 01, 2018
Revenue [Abstract]
Revenue from Contract with Customer	Revenue Nature of Goods and Services Wendy’s franchises and operates Wendy’s ® quick-service restaurants specializing in hamburger sandwiches throughout North America. Wendy’s also has franchised restaurants in 30 foreign countries and U.S. territories other than North America. At July 1, 2018 , Wendy’s operated and franchised 332 and 6,324 restaurants, respectively. The Company generates revenues from sales at Company-operated restaurants and earns fees and rental income from franchised restaurants. The rights and obligations governing franchised restaurants are set forth in the franchise agreement. The franchise agreement provides the franchisee the right to construct, own and operate a Wendy’s restaurant upon a site accepted by Wendy’s and to use the Wendy’s system in connection with the operation of the restaurant at that site. The franchise agreement generally provides for a 20 -year term and a 10 -year renewal subject to certain conditions. The initial term may be extended up to 25 years and the renewal extended up to 20 years for qualifying restaurants under certain new restaurant development and remodel incentive programs. The franchise agreement requires that the franchisee pay a royalty based on a percentage of sales of the franchised restaurant, as well as make contributions to the Advertising Funds based on a percentage of sales. The agreement also typically requires that the franchisee pay Wendy’s a technical assistance fee. The technical assistance fee is used to defray some of the costs to Wendy’s for training, start-up and transitional services related to new and existing franchisees acquiring restaurants and in the development and opening of new restaurants. Wendy’s also enters into development agreements with certain franchisees. The development agreement provides the franchisee with the right to develop a specified number of new Wendy’s restaurants using the Image Activation design within a stated, non-exclusive territory for a specified period, subject to the franchisee meeting interim new restaurant development requirements. Wendy’s owns and leases sites from third parties, which it leases and/or subleases to franchisees. Noncancelable lease terms are generally initially between 15 and 20 years and, in most cases, provide for rent escalations and renewal options. The lease term for properties leased or subleased to franchisees is determined based upon the economic detriment to the franchisee and includes consideration of the length of the franchise agreement, historical performance of the restaurant and the existence of bargain renewal options. Royalties and contributions to the Advertising Funds are generally due within the month subsequent to which the revenue was generated through sales of the franchised restaurant. Technical assistance fees, renewal fees and development fees are generally due upon execution of the related franchise agreement. Rental income is due in accordance with the terms of each lease, which is generally at the beginning of each month. Significant Accounting Policy “Sales” includes revenues recognized upon delivery of food to the customer at Company-operated restaurants. “Sales” excludes taxes collected from the Company’s customers. Revenue is recognized when the performance obligation is satisfied, which occurs upon delivery of food to the customer. “Sales” also includes income for gift cards. Gift card payments are recorded as deferred income when received and are recognized as revenue in proportion to actual gift card redemptions. “Franchise royalty revenue and fees” includes royalties, new build technical assistance fees, renewal fees, Franchise Flip technical assistance fees, Franchise Flip advisory fees and development fees. Royalties from franchised restaurants are based on a percentage of sales of the franchised restaurant and are recognized as earned. New build technical assistance fees, renewal fees and Franchise Flip technical assistance fees are recorded as deferred revenue when received and recognized as revenue over the contractual term of the franchise agreements, once the restaurant has opened. Development fees are deferred when received, allocated to each agreed upon restaurant, and recognized as revenue over the contractual term of each respective franchise agreement, once the restaurant has opened. These franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. Franchise Flip advisory fees include valuation services and fees for selecting pre-approved buyers for Franchise Flips. Franchise Flip advisory fees are paid by the seller and are recognized as revenue at closing of the Franchise Flip transaction. “Advertising funds revenue” includes contributions to the Advertising Funds by franchisees. Revenue related to these contributions is based on a percentage of sales of the franchised restaurants and is recognized as earned. “Franchise rental income” includes rental income from properties owned and leased by the Company and leased or subleased to franchisees. Rental income is recognized on a straight-line basis over the respective operating lease terms. Favorable and unfavorable lease amounts related to the leased and/or subleased properties are amortized to rental income on a straight-line basis over the remaining term of the leases. Disaggregation of Revenue The following table disaggregates revenue by primary geographical market and source: Three Months Ended Six Months Ended July 1, July 1, Primary geographical markets United States $ 385,945 $ 745,580 Canada 20,081 36,418 International 4,976 9,568 Total revenue $ 411,002 $ 791,566 Sources of revenue Sales at Company-operated restaurants $ 167,344 $ 320,993 Franchise royalty revenue 98,158 188,101 Franchise fees 9,401 17,366 Franchise rental income 51,529 101,636 Advertising funds revenue 84,570 163,470 Total revenue $ 411,002 $ 791,566 Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: July 1, 2018 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 45,040 Receivables, which are included in “Advertising funds restricted assets” 45,863 Deferred franchise fees (c) 103,723 _______________ (a) Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s statement of operations. (b) Includes receivables related to “ Sales ” and “ Franchise royalty revenue and fees .” (c) Deferred franchise fees of $10,584 and $93,139 are included in “ Accrued expenses and other current liabilities ” and “ Deferred franchise fees ,” respectively. Significant changes in deferred franchise fees are as follows: Six Months Ended July 1, Deferred franchise fees at beginning of period $ 102,492 Revenue recognized during the period (5,127 ) New deferrals due to cash received and other 6,358 Deferred franchise fees at end of period $ 103,723 Anticipated Future Recognition of Deferred Franchise Fees The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: Estimate for fiscal year: 2018 (a) $ 4,527 2019 7,423 2020 6,169 2021 5,704 2022 5,506 Thereafter 74,394 $ 103,723 _______________ (a) Represents franchise fees expected to be recognized for the remainder of the 2018 fiscal year, which includes development-related franchise fees expected to be recognized over a duration of one year or less.

System Optimization (Gains) Los

System Optimization (Gains) Losses, Net	6 Months Ended
	Jul. 01, 2018
Property, Plant and Equipment [Abstract]
System Optimization (Gains) Losses, Net	System Optimization (Gains) Losses, Net The Company’s system optimization initiative includes a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating Franchise Flips. The Company completed its plan to reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system as of January 1, 2017. While the Company has no plans to reduce its ownership below the 5% level, Wendy’s will continue to optimize its system through Franchise Flips, as well as evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees, to further strengthen the franchisee base and drive new restaurant development and accelerate reimages in the Image Activation format. During the six months ended July 1, 2018 , the Company completed the sale of three Company-operated restaurants to a franchisee. In addition, the Company facilitated 64 and 270 Franchise Flips during the six months ended July 1, 2018 and July 2, 2017 , respectively (excluding the DavCo and NPC Transactions discussed below). Gains and losses recognized on dispositions are recorded to “ System optimization (gains) losses, net ” in our condensed consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs,” which are further described in Note 5 . All other costs incurred related to facilitating Franchise Flips are recorded to “ Franchise support and other costs .” The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Gain on sale of restaurants, net (a) $ 89 $ — $ 89 $ — Post-closing adjustments on sales of restaurants (b) (13 ) 27 (225 ) 927 Gain (loss) on sales of other assets, net (c) 16 2,072 (342 ) 2,579 Loss on DavCo and NPC Transactions (d) — (43,149 ) — (43,149 ) System optimization gains (losses), net $ 92 $ (41,050 ) $ (478 ) $ (39,643 ) _______________ (a) During the three and six months ended July 1, 2018 , the Company received cash proceeds of $1,436 from the sale of three Company-operated restaurants. Net assets sold totaled $1,139 and consisted primarily of equipment. In addition, goodwill of $208 was written off in connection with the sale. (b) The six months ended July 1, 2018 includes cash proceeds, net of payments of $6 . The three and six months ended July 2, 2017 includes cash proceeds of $300 related to post-closing reconciliations with franchisees. The six months ended July 2, 2017 also includes the recognition of a deferred gain of $312 as a result of the resolution of certain contingencies related to the extension of lease terms for a Canadian restaurant. (c) During the three and six months ended July 1, 2018 , the Company received cash proceeds, primarily from the sale of surplus properties, of $27 and $372 , respectively, and received cash proceeds of $5,342 and $6,992 during the three and six months ended July 2, 2017 , respectively. The six months ended July 2, 2017 also includes the recognition of a deferred gain of $375 related to the sale of a share in an aircraft. (d) As part of our system optimization initiative, the Company acquired 140 Wendy’s restaurants on May 31, 2017 from DavCo Restaurants, LLC (“DavCo”) for total net cash consideration of $86,788 , which were immediately sold to NPC International, Inc. (“NPC”), an existing franchisee of the Company, for cash proceeds of $70,688 (the “DavCo and NPC Transactions”). The acquisition of Wendy’s restaurants from DavCo was not contingent on executing the sale agreement with NPC; as such, the Company accounted for the transactions as an acquisition and subsequent disposition of a business. As part of the transactions, the Company retained leases for purposes of subleasing such properties to NPC. The total consideration paid to DavCo was allocated to net tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. Refer to the Form 10-K for further information regarding the purchase price allocation. The Company finalized the purchase price allocation during 2018 with no differences from the provisional amounts previously reported. The loss on the DavCo and NPC Transactions was comprised of the write-off of goodwill of $65,503 and selling and other costs of $1,680 , partially offset by the recognition of net favorable leases of $24,034 . As part of the DavCo acquisition, the Company recognized a supplemental purchase price liability of $6,269 , of which $6,100 was settled during the six months ended July 1, 2018 . As of July 1, 2018 and December 31, 2017 , the Company had assets held for sale of $3,579 and $2,235 , respectively, primarily consisting of surplus properties. Assets held for sale are included in “ Prepaid expenses and other current assets .”

Reorganization and Realignment

Reorganization and Realignment Costs	6 Months Ended
	Jul. 01, 2018
Restructuring and Related Activities [Abstract]
Restructuring and Related Activities Disclosure	Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, G&A realignment $ 3,120 $ 17,245 $ 5,746 $ 17,245 System optimization initiative 4 454 4 635 Reorganization and realignment costs $ 3,124 $ 17,699 $ 5,750 $ 17,880 General and Administrative ( “ G&A ”) Realignment In May 2017, the Company initiated a plan to further reduce its G&A expenses. The Company expects to incur total costs aggregating approximately $30,000 to $33,000 related to the plan. The Company recognized costs totaling $5,746 during the six months ended July 1, 2018 , which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $5,000 , comprised of (1) severance and related employee costs of approximately $1,000 , (2) recruitment and relocation costs of approximately $2,500 , (3) third-party and other costs of approximately $500 and (4) share-based compensation of approximately $1,000 . The Company expects to continue to recognize costs associated with the plan into 2019. The following is a summary of the activity recorded as a result of the G&A realignment plan: Three Months Ended Six Months Ended Total July 1, July 2, July 1, July 2, Severance and related employee costs $ 1,052 $ 13,226 $ 3,111 $ 13,226 $ 18,067 Recruitment and relocation costs 360 — 508 — 997 Third-party and other costs 604 325 932 325 2,023 2,016 13,551 4,551 13,551 21,087 Share-based compensation (a) 1,104 3,694 1,195 3,694 6,322 Total G&A realignment $ 3,120 $ 17,245 $ 5,746 $ 17,245 $ 27,409 _______________ (a) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A realignment plan. As of July 1, 2018 , the accruals for our G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $7,985 and $2,107 , respectively. The tables below present a rollforward of our accruals for the plan. Balance December 31, 2017 Charges Payments Balance July 1, 2018 Severance and related employee costs $ 12,093 $ 3,111 $ (5,326 ) $ 9,878 Recruitment and relocation costs 177 508 (471 ) 214 Third-party and other costs — 932 (932 ) — $ 12,270 $ 4,551 $ (6,729 ) $ 10,092 Balance January 1, 2017 Charges Payments Balance July 2, 2017 Severance and related employee costs $ — $ 13,226 $ (507 ) $ 12,719 Recruitment and relocation costs — — — — Third-party and other costs — 325 (246 ) 79 $ — $ 13,551 $ (753 ) $ 12,798 System Optimization Initiative The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. The Company incurred costs of $71,913 since inception and expects to incur additional costs of approximately $300 during the remainder of 2018, which are primarily comprised of professional fees.

Investments

Investments	6 Months Ended
	Jul. 01, 2018
Equity Method Investments and Joint Ventures [Abstract]
Investments	Investments Equity Investments Wendy’s has a 50% share in a partnership in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons ® brand. (Tim Hortons is a registered trademark of Tim Hortons USA Inc.) In addition, a wholly-owned subsidiary of Wendy’s has a 20% share in a joint venture for the operation of Wendy’s restaurants in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “ Other operating income, net .” Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements: Six Months Ended July 1, July 2, Balance at beginning of period $ 55,363 $ 54,545 Investment 13 375 Equity in earnings for the period 4,827 4,915 Amortization of purchase price adjustments (a) (1,179 ) (1,129 ) 3,648 3,786 Distributions received (5,756 ) (5,524 ) Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” and other (1,763 ) 2,110 Balance at end of period $ 51,505 $ 55,292 _______________ (a) Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.

Long-Term Debt (Notes)

Long-Term Debt (Notes)	6 Months Ended
	Jul. 01, 2018
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following: July 1, December 31, Series 2018-1 Class A-2 Notes: 3.573% Series 2018-1 Class A-2-I Notes, anticipated repayment date 2025 $ 447,750 $ — 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 472,625 — Series 2015-1 Class A-2 Notes: 3.371% Series 2015-1 Class A-2-I Notes, repaid with 2018 refinancing — 855,313 4.080% Series 2015-1 Class A-2-II Notes, anticipated repayment date 2022 875,250 879,750 4.497% Series 2015-1 Class A-2-III Notes, anticipated repayment date 2025 486,250 488,750 7% debentures, due in 2025 90,139 89,514 Capital lease obligations, due through 2045 466,080 467,964 Unamortized debt issuance costs (35,316 ) (26,889 ) 2,802,778 2,754,402 Less amounts payable within one year (31,118 ) (30,172 ) Total long-term debt $ 2,771,660 $ 2,724,230 On January 17, 2018, Wendy’s Funding, LLC (the “Master Issuer”), a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of the Company, completed a refinancing transaction under which the Master Issuer issued fixed rate senior secured notes in the following 2018-1 series: Class A-2-I with an initial principal amount of $450,000 and Class A-2-II with an initial principal amount of $475,000 (collectively, the “Series 2018-1 Class A-2 Notes”). Interest payments on the Series 2018-1 Class A-2 Notes are payable on a quarterly basis. The legal final maturity date of the Series 2018-1 Class A-2 Notes is in March 2048. If the Master Issuer has not repaid or redeemed the Series 2018-1 Class A-2 Notes prior to the respective anticipated repayment date, additional interest will accrue on these notes equal to the greater of (1) 5.00% per annum and (2) a per annum interest rate equal to the excess, if any, by which the sum of (a) the yield to maturity (adjusted to a quarterly bond-equivalent basis) on such anticipated repayment date of the United States Treasury Security having a term closest to 10 years, plus (b) 5.00% , plus (c) (i) with respect to the Series 2018-1 Class A-2-I Notes, 1.35% , and (ii) with respect to the Series 2018-1 Class A-2-II Notes, 1.58% , exceeds the original interest rate with respect to such tranche. The net proceeds from the sale of the Series 2018-1 Class A-2 Notes were used to redeem the Master Issuer’s outstanding Series 2015-1 Class A-2-I Notes, to pay prepayment and transaction costs, and for general corporate purposes. As a result, the Company recorded a loss on early extinguishment of debt of $11,475 during the six months ended July 1, 2018 , which was comprised of the write-off of certain deferred financing costs and a specified make-whole payment. The Series 2018-1 Class A-2 Notes have scheduled principal payments of $9,250 annually from 2018 through 2024, $423,250 in 2025, $4,750 in each 2026 through 2027 and $427,500 in 2028. Concurrently, the Master Issuer entered into a revolving financing facility of Series 2018-1 Variable Funding Senior Secured Notes, Class A-1 (the “Series 2018-1 Class A-1 Notes” and, together with the Series 2018-1 Class A-2 Notes, the “Series 2018-1 Senior Notes”), which allows for the drawing of up to $150,000 using various credit instruments, including a letter of credit facility. No amounts were borrowed under the Series 2018-1 Class A-1 Notes during the six months ended July 1, 2018 . The Series 2015-1 Class A-1 Notes were canceled on the closing date and the letters of credit outstanding against the Series 2015-1 Class A-1 Notes were transferred to the Series 2018-1 Class A-1 Notes. The Series 2018-1 Senior Notes are secured by substantially all of the assets of the Master Issuer and certain other limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiaries of the Company that act as guarantors (the “Guarantors”), excluding certain real estate assets and subject to certain limitations. The Series 2018-1 Senior Notes are subject to the same series of covenants and restrictions as the Series 2015-1 Senior Notes. During the six months ended July 1, 2018 , the Company incurred debt issuance costs of $17,672 in connection with the issuance of the Series 2018-1 Senior Notes, respectively. The debt issuance costs will be amortized to “Interest expense, net” through the anticipated repayment dates of the Series 2018-1 Senior Notes utilizing the effective interest rate method. Wendy’s U.S. advertising fund has a revolving line of credit of $25,000 . Neither the Company, nor Wendy’s, is the guarantor of the debt. The advertising fund facility was established to fund the advertising fund operations. During the six months ended July 1, 2018 , the Company borrowed and repaid $5,809 and $7,096 under the line of credit, respectively. During the six months ended July 2, 2017 , the Company borrowed and repaid $6,359 and $4,616 under the line of credit, respectively.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 01, 2018
Fair Value Disclosures [Abstract]
Fair Value Measurements	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: July 1, December 31, Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 9,584 $ 9,584 $ 338 $ 338 Level 1 Non-current cost method investments (a) 639 327,477 639 327,710 Level 3 Financial liabilities Series 2018-1 Class A-2-I Notes (b) 447,750 430,736 — — Level 2 Series 2018-1 Class A-2-II Notes (b) 472,625 455,138 — — Level 2 Series 2015-1 Class A-2-I Notes (b) — — 855,313 856,510 Level 2 Series 2015-1 Class A-2-II Notes (b) 875,250 876,038 879,750 897,961 Level 2 Series 2015-1 Class A-2-III Notes (b) 486,250 487,368 488,750 513,188 Level 2 7% debentures, due in 2025 (b) 90,139 104,750 89,514 107,000 Level 2 Guarantees of franchisee loan obligations (c) 27 27 37 37 Level 3 _______________ (a) On February 5, 2018, a subsidiary of ARG Holding Corporation (“ARG Parent”) acquired Buffalo Wild Wings, Inc. As a result, our ownership interest was diluted to 12.3% and now includes both the Arby’s and Buffalo Wild Wings brands under the newly formed combined company, Inspire Brands. The fair value of our indirect investment in Inspire Brands is primarily based on a price per share that was determined at the time that ARG Parent financed the acquisition of Buffalo Wild Wings. In the future, the fair value is expected to be calculated by applying a multiple to Inspire Brand’s adjusted earnings before income taxes, depreciation and amortization. The carrying value of our indirect investment was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are 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 quoted market prices in markets that are not considered active markets. (c) Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for equipment financing. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage. 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, net (both current and non-current) approximated fair value due to the effect of the related allowance for doubtful accounts. Our cash and cash equivalents and guarantees are the only financial assets and liabilities measured and recorded at fair value on a recurring basis. Non-Recurring Fair Value Measurements Assets and liabilities remeasured to fair value on a non-recurring basis resulted in impairment that we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations. Total impairment losses may reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements and favorable lease assets) to fair value as a result of (1) declines in operating performance at Company-operated restaurants and (2) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants. The fair value of long-lived assets held and used presented in the tables below represents the remaining carrying value and was estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future Company-operated restaurant performance. Total impairment losses may also include the impact of remeasuring long-lived assets held for sale, which primarily include surplus properties. The fair values of long-lived assets held for sale presented in the tables below represents the remaining carrying value and were estimated based on current market values. See Note 9 for further information on impairment of our long-lived assets. Fair Value Measurements July 1, Level 1 Level 2 Level 3 Held and used $ 161 $ — $ — $ 161 Held for sale 427 — — 427 Total $ 588 $ — $ — $ 588 Fair Value Measurements December 31, Level 1 Level 2 Level 3 Held and used $ 757 $ — $ — $ 757 Held for sale 1,560 — — 1,560 Total $ 2,317 $ — $ — $ 2,317 Total impairment losses included remeasuring long-lived assets held and used for the three and six months ended July 1, 2018 of $1,603 and $1,768 , respectively, and remeasuring long-lived assets held for sale for the six months ended July 1, 2018 of $41 . Total impairment losses for the three and six months ended July 2, 2017 included remeasuring long-lived assets held and used of $201 and $218 , respectively, and remeasuring long-lived assets held for sale of $52 and $545 , respectively.

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets	6 Months Ended
	Jul. 01, 2018
Asset Impairment Charges [Abstract]
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets During the three and six months ended July 1, 2018 and July 2, 2017 , the Company recorded impairment charges on long-lived assets as a result of the deterioration in operating performance of certain Company-operated restaurants and charges for capital improvements in previously impaired restaurants that did not subsequently recover. During the six months ended July 1, 2018 and the three and six months ended July 2, 2017, the Company recorded impairment charges on long-lived assets as a result of closing Company-operated restaurants and classifying such surplus properties as held for sale. Additionally, during the six months ended July 1, 2018 , the Company recorded impairment charges on long-lived assets as a result of the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of Company-operated restaurants. The following is a summary of impairment losses recorded, which represent 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 Six Months Ended July 1, July 2, July 1, July 2, Company-operated restaurants $ 1,603 $ 201 $ 1,603 $ 218 Restaurants leased or subleased to franchisees — — 165 — Surplus properties — 52 41 545 $ 1,603 $ 253 $ 1,809 $ 763

Income Taxes

Income Taxes	6 Months Ended
	Jul. 01, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the three months ended July 1, 2018 was 29.3% . For the three months ended July 2, 2017 , the Company had a loss before income taxes of $297 and a provision for income taxes of $1,548 ; as such, our effective tax rate for the three months ended July 2, 2017 was not meaningful. The Company’s effective tax rate varies from the U.S. federal statutory rate of 21% and 35% in the second quarter of 2018 and 2017, respectively, primarily due to (1) state income taxes, (2) valuation allowance changes, net of federal benefit, (3) the impact of the comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”), (4) net excess tax benefits related to share-based payments, which resulted in a benefit of $798 in the second quarter of 2018, and (5) the system optimization initiative provision of $2,166 in 2017, reflecting goodwill adjustments, changes to valuation allowances on state net operating loss carryforwards and state deferred taxes (including a correction to prior years identified and recorded in the second quarter of 2017, which resulted in a benefit of $2,248 ). The Company’s effective tax rate for the six months ended July 1, 2018 and July 2, 2017 was 11.6% and 35.6% , respectively. The Company’s effective tax rate varies from the U.S. federal statutory rate of 21% and 35% for the first six months of 2018 and 2017, respectively, primarily due to (1) net excess tax benefits related to share-based payments, which resulted in a benefit of $6,891 in the first six months of 2018, (2) state income taxes and (3) the impact of the Tax Act and (4) the system optimization initiative in 2017, reflecting goodwill adjustments, changes to valuation allowances on state net operating loss carryforwards and state deferred taxes (including a correction to prior years identified and recorded in the first six months of 2017, which resulted in a benefit of $2,248 ). On December 22, 2017, the U.S. government enacted the Tax Act. In our continued analysis of the impact of the Tax Act in the first and second quarters of 2018 under Staff Accounting Bulletin 118, we have adjusted our provisional amounts for a discrete net tax benefit of $2,795 . This net benefit includes $4,750 for the tax benefit of foreign tax credits, partially offset by a net expense of $1,955 related to the impact of the corporate rate reduction on our net deferred tax liabilities. The ultimate impact of the Tax Act may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made and additional regulatory guidance that may be issued. There were no significant changes to unrecognized tax benefits or related interest and penalties for the Company during the three and six months ended July 1, 2018 . The current portion of refundable income taxes was $17,768 and $26,262 as of July 1, 2018 and December 31, 2017 , respectively, and is included in “Accounts and notes receivable, net” in the condensed consolidated balance sheets. Long-term refundable income taxes are included in “Other assets” and amounted to $5,523 as of July 1, 2018 . There were no long-term refundable income taxes as of December 31, 2017 .

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jul. 01, 2018
Earnings Per Share [Abstract]
Net Income Per Share	Net Income (Loss) Per Share Basic net income (loss) per share was computed by dividing net income (loss) amounts by the weighted average number of common shares outstanding. The weighted average number of shares used to calculate basic and diluted net income (loss) per share were as follows: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Common stock: Weighted average basic shares outstanding 238,991 245,261 239,459 245,933 Dilutive effect of stock options and restricted shares 7,161 — 7,826 7,963 Weighted average diluted shares outstanding 246,152 245,261 247,285 253,896 Diluted net income (loss) per share for the three and six months ended July 1, 2018 and July 2, 2017 was computed by dividing net income (loss) by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. For the three and six months ended July 1, 2018 , we excluded potential common shares of 27 and 1,369 , respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects. Diluted net loss per share for the three months ended July 2, 2017 was the same as basic net loss per share since the Company reported a net loss and, therefore, the effect of all potentially dilutive securities would have been anti-dilutive. For the six months ended July 2, 2017 , we excluded potential common shares of 119 from our diluted net income per share calculation as they would have had anti-dilutive effects.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jul. 01, 2018
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Stockholders’ Equity The following is a summary of the changes in stockholders’ equity: Six Months Ended July 1, July 2, Balance at beginning of period $ 573,203 $ 527,736 Comprehensive income 39,783 29,490 Cash dividends (40,645 ) (34,447 ) Repurchases of common stock (85,194 ) (52,501 ) Share-based compensation 9,591 11,372 Exercises of stock options 6,814 6,161 Vesting of restricted shares (2,921 ) (2,732 ) Cumulative effect of change in accounting principle (a) (70,210 ) 1,880 Other 118 90 Balance at end of period $ 430,539 $ 487,049 _______________ (a) During the six months ended July 1, 2018, the Company recognized a net increase to “Accumulated deficit” of $70,210 as a result of adoption of amended guidance for revenue recognition. The net increase resulted from an increase to deferred franchise fees of $85,561 and a decrease to “ Deferred income taxes ” of $21,996 as a result of now deferring franchise fees over the contractual term of the franchise agreements. Additionally, an increase to “ Advertising funds restricted liabilities ” of $6,645 was recognized as a result of a reclassification of the total stockholders’ deficit of the Advertising Funds as of December 31, 2017. See Note 2 for further information. During the six months ended July 2, 2017, the Company recognized a tax benefit as a reduction to the Company’s deferred tax liability with an equal offsetting increase to “Accumulated deficit.” The adjustment was recognized as a result of adoption of an amendment to the accounting for employee share-based payment transactions. Repurchases of Common Stock In February 2018, our Board of Directors authorized a repurchase program for up to $175,000 of our common stock through March 3, 2019, when and if market conditions warrant and to the extent legally permissible. During the six months ended July 1, 2018 , the Company repurchased 3,675 shares with an aggregate purchase price of $62,490 , of which $2,146 was accrued at July 1, 2018 , and excluding commissions of $52 . As of July 1, 2018 , the Company had $112,510 of availability remaining under its February 2018 authorization. Subsequent to July 1, 2018 through August 1, 2018 , the Company repurchased 1,129 shares with an aggregate purchase price of $19,395 , excluding commissions of $16 . In February 2017, our Board of Directors authorized a repurchase program for up to $150,000 of our common stock through March 4, 2018, when and if market conditions warranted and to the extent legally permissible. During the six months ended July 1, 2018 , the Company completed the $150,000 program with the repurchase of 1,385 shares with an aggregate purchase price of $22,633 , excluding commissions of $19 . During the six months ended July 2, 2017 , the Company repurchased 3,611 shares with an aggregate purchase price of $52,448 , of which $1,974 was accrued at July 2, 2017 , and excluding commissions of $53 . Accumulated Other Comprehensive Loss The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges (a) Pension Total Balance at December 31, 2017 $ (45,149 ) $ — $ (1,049 ) $ (46,198 ) Current-period other comprehensive (loss) income (10,369 ) — 117 (10,252 ) Balance at July 1, 2018 $ (55,518 ) $ — $ (932 ) $ (56,450 ) Balance at January 1, 2017 $ (60,299 ) $ (1,797 ) $ (1,145 ) $ (63,241 ) Current-period other comprehensive income 8,010 888 96 8,994 Balance at July 2, 2017 $ (52,289 ) $ (909 ) $ (1,049 ) $ (54,247 ) _______________ (a) Current-period other comprehensive income included the reclassification of unrealized losses on cash flow hedges from “Accumulated other comprehensive loss” to our condensed consolidated statements of operations of $443 and $888 for the three and six months ended July 2, 2017, respectively. The reclassification of unrealized losses on cash flow hedges consisted of $724 and $1,447 for the three and six months ended July 2, 2017, respectively, recorded to “Interest expense, net,” net of the related income tax benefit of $281 and $559 for the three and six months ended July 2, 2017, respectively, recorded to “Provision for income taxes.”

Leases (Notes)

Leases (Notes)	6 Months Ended
	Jul. 01, 2018
Leases [Abstract]
Leases of Lessee Disclosure	Leases At July 1, 2018 , Wendy’s and its franchisees operated 6,656 Wendy’s restaurants. Of the 332 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 144 restaurants, owned the building and held long-term land leases for 139 restaurants and held leases covering land and building for 49 restaurants. Wendy’s also owned 520 and leased 1,293 properties that were either leased or subleased principally to franchisees. Rental expense for operating leases consists of the following components: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Rental expense: Minimum rentals $ 25,070 $ 22,786 $ 49,924 $ 42,704 Contingent rentals 5,390 4,722 9,461 9,010 Total rental expense (a) (b) $ 30,460 $ 27,508 $ 59,385 $ 51,714 _______________ (a) Amounts include rental expense related to (1) leases for Company-operated restaurants recorded to “Cost of sales,” (2) leased properties that are subsequently leased to franchisees recorded to “Franchise rental expense” and (3) leases for corporate offices and equipment recorded to “General and administrative.” (b) Amounts exclude sublease income of $34,950 and $69,256 recognized during the three and six months ended July 1, 2018 , respectively, and $30,849 and $57,412 recognized during the three and six months ended July 2, 2017 , respectively. Rental income for operating leases and subleases consists of the following components: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Rental income: Minimum rentals $ 45,930 $ 41,560 $ 92,258 $ 80,165 Contingent rentals 5,599 5,375 9,378 9,687 Total rental income $ 51,529 $ 46,935 $ 101,636 $ 89,852 The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of July 1, 2018 . Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease. Rental Payments Rental Receipts Fiscal Year Capital Leases Operating Leases Capital Leases Operating Leases Owned Properties 2018 (a) $ 24,412 $ 48,499 $ 32,627 $ 37,599 $ 26,980 2019 45,681 94,249 65,695 75,456 54,827 2020 46,610 93,136 66,792 75,213 55,435 2021 48,228 92,635 68,609 75,196 57,027 2022 49,339 92,355 69,810 75,652 58,600 Thereafter 760,160 1,123,911 1,056,005 919,959 948,646 Total minimum payments $ 974,430 $ 1,544,785 $ 1,359,538 $ 1,259,075 $ 1,201,515 Less interest (508,350 ) Present value of minimum capital lease payments (b) $ 466,080 _______________ (a) Represents future minimum rental payments and rental receipts for non-cancelable leases and subleases for the remainder of the 2018 fiscal year. (b) The present value of minimum capital lease payments of $7,868 and $458,212 are included in “Current portion of long-term debt” and “Long-term debt,” respectively. Properties owned by the Company and leased to franchisees and other third parties under operating leases include: July 1, December 31, 2017 Land $ 272,626 $ 272,411 Buildings and improvements 313,470 313,108 Restaurant equipment 2,443 2,444 588,539 587,963 Accumulated depreciation and amortization (135,601 ) (128,003 ) $ 452,938 $ 459,960 Our net investment in direct financing leases is as follows: July 1, December 31, 2017 Future minimum rental receipts $ 649,893 $ 662,889 Unearned interest income (420,417 ) (433,175 ) Net investment in direct financing leases 229,476 229,714 Net current investment in direct financing leases (a) (638 ) (625 ) Net non-current investment in direct financing leases $ 228,838 $ 229,089 _______________ (a) Included in “Accounts and notes receivable, net.” During the three and six months ended July 1, 2018 , the Company recognized $6,976 and $14,017 in interest income related to our direct financing leases, respectively, and $5,389 and $9,845 recognized during the three and six months ended July 2, 2017 , respectively, which is included in “ Interest expense, net ,”

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jul. 01, 2018
Related Party Transactions [Abstract]
Transactions with Related Parties	Transactions with Related Parties Except as described below, the Company did not have any significant changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K. TimWen Lease and Management Fee Payments A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen for the operation of Wendy’s/Tim Hortons combo units in Canada. During the six months ended July 1, 2018 and July 2, 2017 , Wendy’s paid TimWen $6,504 and $5,915 , respectively, under these lease agreements. In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $108 and $103 during the six months ended July 1, 2018 and July 2, 2017 , respectively, which has been included as a reduction to “General and administrative.”

Guarantees and Other Commitment

Guarantees and Other Commitments and Contingencies	6 Months Ended
	Jul. 01, 2018
Commitments and Contingencies Disclosure [Abstract]
Guarantees and Other Commitments and Contingencies	Guarantees and Other Commitments and Contingencies The Company did not have any significant changes in guarantees and other commitments and contingencies during the current fiscal period since those reported in the Form 10-K. Refer to the Form 10-K for further information regarding the Company’s additional commitments and obligations. Franchisee Image Activation Incentive Programs In order to promote Image Activation new restaurant development, Wendy’s has an incentive program for franchisees that provides for reductions in royalty and national advertising payments for up to the first two years of operation for qualifying new restaurants opened by December 31, 2020, with the value of the incentives declining in the later years of the program. Wendy’s also had incentive programs for 2017 available to franchisees that commenced Image Activation restaurant remodels by December 15, 2017. The remodel incentive programs provide for reductions in royalty payments for one year after the completion of construction. Lease Guarantees Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $53,903 as of July 1, 2018 . These leases extend through 2056. We have not received any notice of default related to these leases as of July 1, 2018 . In the event of default by a franchise owner, Wendy’s generally retains the right to acquire possession of the related restaurant locations. Wendy’s is contingently liable for certain other leases which have been assigned to unrelated third parties who have indemnified Wendy’s against future liabilities amounting to $398 as of July 1, 2018 . These leases expire on various dates through 2021. Letters of Credit As of July 1, 2018 , the Company had outstanding letters of credit with various parties totaling $27,094 . The outstanding letters of credit include amounts outstanding against the Series 2018-1 Class A-1 Notes. We do not expect any material loss to result from these letters of credit.

Legal and Environmental Matters

Legal and Environmental Matters	6 Months Ended
	Jul. 01, 2018
Loss Contingency [Abstract]
Legal and Environmental Matters	Legal and Environmental 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. 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. We previously described certain legal proceedings in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2018. There were no material developments in those legal proceedings during the three months ended July 1, 2018.

Revenue (Policies)

Revenue (Policies)	6 Months Ended
	Jul. 01, 2018
Revenue [Abstract]
Revenue Recognition, Policy	Significant Accounting Policy “Sales” includes revenues recognized upon delivery of food to the customer at Company-operated restaurants. “Sales” excludes taxes collected from the Company’s customers. Revenue is recognized when the performance obligation is satisfied, which occurs upon delivery of food to the customer. “Sales” also includes income for gift cards. Gift card payments are recorded as deferred income when received and are recognized as revenue in proportion to actual gift card redemptions. “Franchise royalty revenue and fees” includes royalties, new build technical assistance fees, renewal fees, Franchise Flip technical assistance fees, Franchise Flip advisory fees and development fees. Royalties from franchised restaurants are based on a percentage of sales of the franchised restaurant and are recognized as earned. New build technical assistance fees, renewal fees and Franchise Flip technical assistance fees are recorded as deferred revenue when received and recognized as revenue over the contractual term of the franchise agreements, once the restaurant has opened. Development fees are deferred when received, allocated to each agreed upon restaurant, and recognized as revenue over the contractual term of each respective franchise agreement, once the restaurant has opened. These franchise fees are considered highly dependent upon and interrelated with the franchise right granted in the franchise agreement. Franchise Flip advisory fees include valuation services and fees for selecting pre-approved buyers for Franchise Flips. Franchise Flip advisory fees are paid by the seller and are recognized as revenue at closing of the Franchise Flip transaction. “Advertising funds revenue” includes contributions to the Advertising Funds by franchisees. Revenue related to these contributions is based on a percentage of sales of the franchised restaurants and is recognized as earned. “Franchise rental income” includes rental income from properties owned and leased by the Company and leased or subleased to franchisees. Rental income is recognized on a straight-line basis over the respective operating lease terms. Favorable and unfavorable lease amounts related to the leased and/or subleased properties are amortized to rental income on a straight-line basis over the remaining term of the leases.

Basis of Presentation Basis of

Basis of Presentation Basis of Presentation (Tables)	6 Months Ended
	Jul. 01, 2018
Prior Period Adjustments Restatement
Schedule of Prior Period Adjustments	The following tables illustrate the expense reclassifications made to the condensed consolidated statements of operations for the three and six months ended July 2, 2017 : Three Months Ended Reclassifications As Previously Reported Franchise support and other costs Restaurant operational costs As Currently Reported Cost of sales $ 129,360 $ — $ 1,221 $ 130,581 Franchise support and other costs — 3,789 — 3,789 General and administrative 51,280 — (1,221 ) 50,059 Other operating expense (income), net 1,700 (3,789 ) — (2,089 ) $ 182,340 $ — $ — $ 182,340 Six Months Ended Reclassifications As Previously Reported Franchise support and other costs Restaurant operational costs As Currently Reported Cost of sales $ 252,767 $ — $ 2,357 $ 255,124 Franchise support and other costs — 7,432 — 7,432 General and administrative 103,730 — (2,357 ) 101,373 Other operating expense (income), net 3,625 (7,432 ) — (3,807 ) $ 360,122 $ — $ — $ 360,122

New Accounting Standards Revenu

New Accounting Standards Revenue Recognition (Tables)	6 Months Ended
	Jul. 01, 2018
Adoption for Topic 606 Revenue Recognition [Abstract]
Schedule of New Accounting Pronouncements	The following tables summarize the impacts of adopting the revenue recognition standard on the Company’s condensed consolidated financial statements: Adjustments As Reported Franchise Fees Advertising Funds Balances Without Adoption Condensed Consolidated Balance Sheet July 1, 2018 Accrued expenses and other current liabilities $ 103,351 $ (1,733 ) $ — $ 101,618 Advertising funds restricted liabilities 96,972 — (6,645 ) 90,327 Total current liabilities 252,762 (1,733 ) (6,645 ) 244,384 Deferred income taxes 274,344 21,587 — 295,931 Deferred franchise fees 93,139 (81,999 ) — 11,140 Total liabilities 3,649,640 (62,145 ) (6,645 ) 3,580,850 Accumulated deficit (224,120 ) 62,384 6,645 (155,091 ) Accumulated other comprehensive loss (56,450 ) (239 ) — (56,689 ) Total stockholders’ equity 430,539 62,145 6,645 499,329 Condensed Consolidated Statements of Operations Three Months Ended July 1, 2018 Franchise royalty revenue and fees (a) $ 107,559 $ (724 ) $ — $ 106,835 Advertising funds revenue 84,570 — (84,570 ) — Total revenues 411,002 (724 ) (84,570 ) 325,708 Advertising funds expense 84,570 — (84,570 ) — Total costs and expenses 339,519 — (84,570 ) 254,949 Operating profit 71,483 (724 ) — 70,759 Income before income taxes 42,264 (724 ) — 41,540 Provision for income taxes (12,388 ) 187 — (12,201 ) Net income 29,876 (537 ) — 29,339 Six Months Ended July 1, 2018 Franchise royalty revenue and fees (a) $ 205,467 $ (1,590 ) $ — $ 203,877 Advertising funds revenue 163,470 — (163,470 ) — Total revenues 791,566 (1,590 ) (163,470 ) 626,506 Advertising funds expense 163,470 — (163,470 ) — Total costs and expenses 664,821 — (163,470 ) 501,351 Operating profit 126,745 (1,590 ) — 125,155 Income before income taxes 56,617 (1,590 ) — 55,027 Provision for income taxes (6,582 ) 409 — (6,173 ) Net income 50,035 (1,181 ) — 48,854 _______________ (a) The adjustments for the three and six months ended July 1, 2018 include the reversal of franchise fees recognized over time under the new revenue recognition guidance of $2,439 and $5,127 , respectively, as well as franchisee fees that would have been recognized under the previous revenue recognition guidance when the license agreements were signed and the restaurant opened of $1,715 and $3,537 , respectively. See Note 3 for further information. Adjustments As Reported Franchise Fees Advertising Funds Balances Without Adoption Condensed Consolidated Statement of Cash Flows Six Months Ended July 1, 2018 Cash flows from operating activities: Net income $ 50,035 $ (1,181 ) $ — $ 48,854 Adjustments to reconcile net income to net cash provided by operating activities: Deferred income tax (2,508 ) (409 ) — (2,917 ) Other, net (1,093 ) (309 ) — (1,402 ) Changes in operating assets and liabilities: Accrued expenses and other current liabilities (6,034 ) 1,899 — (4,135 )

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 01, 2018
Revenue [Abstract]
Disaggregation of Revenue	The following table disaggregates revenue by primary geographical market and source: Three Months Ended Six Months Ended July 1, July 1, Primary geographical markets United States $ 385,945 $ 745,580 Canada 20,081 36,418 International 4,976 9,568 Total revenue $ 411,002 $ 791,566 Sources of revenue Sales at Company-operated restaurants $ 167,344 $ 320,993 Franchise royalty revenue 98,158 188,101 Franchise fees 9,401 17,366 Franchise rental income 51,529 101,636 Advertising funds revenue 84,570 163,470 Total revenue $ 411,002 $ 791,566
Contract balances, assets and liabilities	The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: July 1, 2018 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 45,040 Receivables, which are included in “Advertising funds restricted assets” 45,863 Deferred franchise fees (c) 103,723 _______________ (a) Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s statement of operations. (b) Includes receivables related to “ Sales ” and “ Franchise royalty revenue and fees .” (c) Deferred franchise fees of $10,584 and $93,139 are included in “ Accrued expenses and other current liabilities ” and “ Deferred franchise fees ,” respectively.
Deferred franchise fee rollforward	Significant changes in deferred franchise fees are as follows: Six Months Ended July 1, Deferred franchise fees at beginning of period $ 102,492 Revenue recognized during the period (5,127 ) New deferrals due to cash received and other 6,358 Deferred franchise fees at end of period $ 103,723
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction	The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period: Estimate for fiscal year: 2018 (a) $ 4,527 2019 7,423 2020 6,169 2021 5,704 2022 5,506 Thereafter 74,394 $ 103,723 _______________ (a) Represents franchise fees expected to be recognized for the remainder of the 2018 fiscal year, which includes development-related franchise fees expected to be recognized over a duration of one year or less.

System Optimization (Gains) L27

System Optimization (Gains) Losses, Net (Tables)	6 Months Ended
	Jul. 01, 2018
System optimization gains (losses), net
Summary of Disposition Activity	The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Gain on sale of restaurants, net (a) $ 89 $ — $ 89 $ — Post-closing adjustments on sales of restaurants (b) (13 ) 27 (225 ) 927 Gain (loss) on sales of other assets, net (c) 16 2,072 (342 ) 2,579 Loss on DavCo and NPC Transactions (d) — (43,149 ) — (43,149 ) System optimization gains (losses), net $ 92 $ (41,050 ) $ (478 ) $ (39,643 ) _______________ (a) During the three and six months ended July 1, 2018 , the Company received cash proceeds of $1,436 from the sale of three Company-operated restaurants. Net assets sold totaled $1,139 and consisted primarily of equipment. In addition, goodwill of $208 was written off in connection with the sale. (b) The six months ended July 1, 2018 includes cash proceeds, net of payments of $6 . The three and six months ended July 2, 2017 includes cash proceeds of $300 related to post-closing reconciliations with franchisees. The six months ended July 2, 2017 also includes the recognition of a deferred gain of $312 as a result of the resolution of certain contingencies related to the extension of lease terms for a Canadian restaurant. (c) During the three and six months ended July 1, 2018 , the Company received cash proceeds, primarily from the sale of surplus properties, of $27 and $372 , respectively, and received cash proceeds of $5,342 and $6,992 during the three and six months ended July 2, 2017 , respectively. The six months ended July 2, 2017 also includes the recognition of a deferred gain of $375 related to the sale of a share in an aircraft. (d) As part of our system optimization initiative, the Company acquired 140 Wendy’s restaurants on May 31, 2017 from DavCo Restaurants, LLC (“DavCo”) for total net cash consideration of $86,788 , which were immediately sold to NPC International, Inc. (“NPC”), an existing franchisee of the Company, for cash proceeds of $70,688 (the “DavCo and NPC Transactions”). The acquisition of Wendy’s restaurants from DavCo was not contingent on executing the sale agreement with NPC; as such, the Company accounted for the transactions as an acquisition and subsequent disposition of a business. As part of the transactions, the Company retained leases for purposes of subleasing such properties to NPC. The total consideration paid to DavCo was allocated to net tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. Refer to the Form 10-K for further information regarding the purchase price allocation. The Company finalized the purchase price allocation during 2018 with no differences from the provisional amounts previously reported. The loss on the DavCo and NPC Transactions was comprised of the write-off of goodwill of $65,503 and selling and other costs of $1,680 , partially offset by the recognition of net favorable leases of $24,034 . As part of the DavCo acquisition, the Company recognized a supplemental purchase price liability of $6,269 , of which $6,100 was settled during the six months ended July 1, 2018 .

Reorganization and Realignmen28

Reorganization and Realignment Costs (Tables)	6 Months Ended
	Jul. 01, 2018
Restructuring Cost and Reserve
Restructuring and Related Costs	The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, G&A realignment $ 3,120 $ 17,245 $ 5,746 $ 17,245 System optimization initiative 4 454 4 635 Reorganization and realignment costs $ 3,124 $ 17,699 $ 5,750 $ 17,880
G&A Realignment – May 2017 Plan
Restructuring Cost and Reserve
Restructuring and Related Costs	The following is a summary of the activity recorded as a result of the G&A realignment plan: Three Months Ended Six Months Ended Total July 1, July 2, July 1, July 2, Severance and related employee costs $ 1,052 $ 13,226 $ 3,111 $ 13,226 $ 18,067 Recruitment and relocation costs 360 — 508 — 997 Third-party and other costs 604 325 932 325 2,023 2,016 13,551 4,551 13,551 21,087 Share-based compensation (a) 1,104 3,694 1,195 3,694 6,322 Total G&A realignment $ 3,120 $ 17,245 $ 5,746 $ 17,245 $ 27,409 _______________ (a) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A realignment plan.
Schedule of Restructuring Reserve by Type of Cost	As of July 1, 2018 , the accruals for our G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $7,985 and $2,107 , respectively. The tables below present a rollforward of our accruals for the plan. Balance December 31, 2017 Charges Payments Balance July 1, 2018 Severance and related employee costs $ 12,093 $ 3,111 $ (5,326 ) $ 9,878 Recruitment and relocation costs 177 508 (471 ) 214 Third-party and other costs — 932 (932 ) — $ 12,270 $ 4,551 $ (6,729 ) $ 10,092 Balance January 1, 2017 Charges Payments Balance July 2, 2017 Severance and related employee costs $ — $ 13,226 $ (507 ) $ 12,719 Recruitment and relocation costs — — — — Third-party and other costs — 325 (246 ) 79 $ — $ 13,551 $ (753 ) $ 12,798

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jul. 01, 2018
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Method Investments	Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements: Six Months Ended July 1, July 2, Balance at beginning of period $ 55,363 $ 54,545 Investment 13 375 Equity in earnings for the period 4,827 4,915 Amortization of purchase price adjustments (a) (1,179 ) (1,129 ) 3,648 3,786 Distributions received (5,756 ) (5,524 ) Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” and other (1,763 ) 2,110 Balance at end of period $ 51,505 $ 55,292 _______________ (a) Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jul. 01, 2018
Debt Instrument
Schedule of Long-term Debt Instruments	Long-term debt consisted of the following: July 1, December 31, Series 2018-1 Class A-2 Notes: 3.573% Series 2018-1 Class A-2-I Notes, anticipated repayment date 2025 $ 447,750 $ — 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 472,625 — Series 2015-1 Class A-2 Notes: 3.371% Series 2015-1 Class A-2-I Notes, repaid with 2018 refinancing — 855,313 4.080% Series 2015-1 Class A-2-II Notes, anticipated repayment date 2022 875,250 879,750 4.497% Series 2015-1 Class A-2-III Notes, anticipated repayment date 2025 486,250 488,750 7% debentures, due in 2025 90,139 89,514 Capital lease obligations, due through 2045 466,080 467,964 Unamortized debt issuance costs (35,316 ) (26,889 ) 2,802,778 2,754,402 Less amounts payable within one year (31,118 ) (30,172 ) Total long-term debt $ 2,771,660 $ 2,724,230

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 01, 2018
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: July 1, December 31, Carrying Amount Fair Value Carrying Amount Fair Value Fair Value Measurements Financial assets Cash equivalents $ 9,584 $ 9,584 $ 338 $ 338 Level 1 Non-current cost method investments (a) 639 327,477 639 327,710 Level 3 Financial liabilities Series 2018-1 Class A-2-I Notes (b) 447,750 430,736 — — Level 2 Series 2018-1 Class A-2-II Notes (b) 472,625 455,138 — — Level 2 Series 2015-1 Class A-2-I Notes (b) — — 855,313 856,510 Level 2 Series 2015-1 Class A-2-II Notes (b) 875,250 876,038 879,750 897,961 Level 2 Series 2015-1 Class A-2-III Notes (b) 486,250 487,368 488,750 513,188 Level 2 7% debentures, due in 2025 (b) 90,139 104,750 89,514 107,000 Level 2 Guarantees of franchisee loan obligations (c) 27 27 37 37 Level 3 _______________ (a) On February 5, 2018, a subsidiary of ARG Holding Corporation (“ARG Parent”) acquired Buffalo Wild Wings, Inc. As a result, our ownership interest was diluted to 12.3% and now includes both the Arby’s and Buffalo Wild Wings brands under the newly formed combined company, Inspire Brands. The fair value of our indirect investment in Inspire Brands is primarily based on a price per share that was determined at the time that ARG Parent financed the acquisition of Buffalo Wild Wings. In the future, the fair value is expected to be calculated by applying a multiple to Inspire Brand’s adjusted earnings before income taxes, depreciation and amortization. The carrying value of our indirect investment was reduced to zero during 2013 in connection with the receipt of a dividend. The fair values of our remaining investments are not significant and are 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 quoted market prices in markets that are not considered active markets. (c) Wendy’s has provided loan guarantees to various lenders on behalf of franchisees entering into debt arrangements for equipment financing. We have accrued a liability for the fair value of these guarantees, the calculation of which was based upon a weighted average risk percentage.
Fair value of assets and liabilities (other than cash and cash equivalents) measure at fair value on a nonrecurring basis	Fair Value Measurements July 1, Level 1 Level 2 Level 3 Held and used $ 161 $ — $ — $ 161 Held for sale 427 — — 427 Total $ 588 $ — $ — $ 588 Fair Value Measurements December 31, Level 1 Level 2 Level 3 Held and used $ 757 $ — $ — $ 757 Held for sale 1,560 — — 1,560 Total $ 2,317 $ — $ — $ 2,317

Impairment of Long-Lived Asse32

Impairment of Long-Lived Assets (Tables)	6 Months Ended
	Jul. 01, 2018
Asset Impairment Charges [Abstract]
Impairment of Long-Lived Assets by Type	The following is a summary of impairment losses recorded, which represent 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 Six Months Ended July 1, July 2, July 1, July 2, Company-operated restaurants $ 1,603 $ 201 $ 1,603 $ 218 Restaurants leased or subleased to franchisees — — 165 — Surplus properties — 52 41 545 $ 1,603 $ 253 $ 1,809 $ 763

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jul. 01, 2018
Earnings Per Share [Abstract]
Weighted average number of shares used to calculate basic and diluted net income per share	The weighted average number of shares used to calculate basic and diluted net income (loss) per share were as follows: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Common stock: Weighted average basic shares outstanding 238,991 245,261 239,459 245,933 Dilutive effect of stock options and restricted shares 7,161 — 7,826 7,963 Weighted average diluted shares outstanding 246,152 245,261 247,285 253,896

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 01, 2018
Equity [Abstract]
Summary of Stockholders' Equity	The following is a summary of the changes in stockholders’ equity: Six Months Ended July 1, July 2, Balance at beginning of period $ 573,203 $ 527,736 Comprehensive income 39,783 29,490 Cash dividends (40,645 ) (34,447 ) Repurchases of common stock (85,194 ) (52,501 ) Share-based compensation 9,591 11,372 Exercises of stock options 6,814 6,161 Vesting of restricted shares (2,921 ) (2,732 ) Cumulative effect of change in accounting principle (a) (70,210 ) 1,880 Other 118 90 Balance at end of period $ 430,539 $ 487,049 _______________ (a) During the six months ended July 1, 2018, the Company recognized a net increase to “Accumulated deficit” of $70,210 as a result of adoption of amended guidance for revenue recognition. The net increase resulted from an increase to deferred franchise fees of $85,561 and a decrease to “ Deferred income taxes ” of $21,996 as a result of now deferring franchise fees over the contractual term of the franchise agreements. Additionally, an increase to “ Advertising funds restricted liabilities ” of $6,645 was recognized as a result of a reclassification of the total stockholders’ deficit of the Advertising Funds as of December 31, 2017. See Note 2 for further information. During the six months ended July 2, 2017, the Company recognized a tax benefit as a reduction to the Company’s deferred tax liability with an equal offsetting increase to “Accumulated deficit.” The adjustment was recognized as a result of adoption of an amendment to the accounting for employee share-based payment transactions.
Schedule of Accumulated Other Comprehensive Loss	The following table provides a rollforward of the components of accumulated other comprehensive loss, net of tax as applicable: Foreign Currency Translation Cash Flow Hedges (a) Pension Total Balance at December 31, 2017 $ (45,149 ) $ — $ (1,049 ) $ (46,198 ) Current-period other comprehensive (loss) income (10,369 ) — 117 (10,252 ) Balance at July 1, 2018 $ (55,518 ) $ — $ (932 ) $ (56,450 ) Balance at January 1, 2017 $ (60,299 ) $ (1,797 ) $ (1,145 ) $ (63,241 ) Current-period other comprehensive income 8,010 888 96 8,994 Balance at July 2, 2017 $ (52,289 ) $ (909 ) $ (1,049 ) $ (54,247 ) _______________ (a) Current-period other comprehensive income included the reclassification of unrealized losses on cash flow hedges from “Accumulated other comprehensive loss” to our condensed consolidated statements of operations of $443 and $888 for the three and six months ended July 2, 2017, respectively. The reclassification of unrealized losses on cash flow hedges consisted of $724 and $1,447 for the three and six months ended July 2, 2017, respectively, recorded to “Interest expense, net,” net of the related income tax benefit of $281 and $559 for the three and six months ended July 2, 2017, respectively, recorded to “Provision for income taxes.”

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 01, 2018
Leases [Abstract]
Schedule of Rent Expense	Rental expense for operating leases consists of the following components: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Rental expense: Minimum rentals $ 25,070 $ 22,786 $ 49,924 $ 42,704 Contingent rentals 5,390 4,722 9,461 9,010 Total rental expense (a) (b) $ 30,460 $ 27,508 $ 59,385 $ 51,714 _______________ (a) Amounts include rental expense related to (1) leases for Company-operated restaurants recorded to “Cost of sales,” (2) leased properties that are subsequently leased to franchisees recorded to “Franchise rental expense” and (3) leases for corporate offices and equipment recorded to “General and administrative.” (b) Amounts exclude sublease income of $34,950 and $69,256 recognized during the three and six months ended July 1, 2018 , respectively, and $30,849 and $57,412 recognized during the three and six months ended July 2, 2017 , respectively.
Schedule of Rent Income	Rental income for operating leases and subleases consists of the following components: Three Months Ended Six Months Ended July 1, July 2, July 1, July 2, Rental income: Minimum rentals $ 45,930 $ 41,560 $ 92,258 $ 80,165 Contingent rentals 5,599 5,375 9,378 9,687 Total rental income $ 51,529 $ 46,935 $ 101,636 $ 89,852
Schedule of Future Minimum Rental Payments for Operating Leases	The following table illustrates the Company’s future minimum rental payments and rental receipts for non-cancelable leases and subleases, including rental receipts for direct financing leases as of July 1, 2018 . Rental receipts below are presented separately for owned properties and for leased properties based on the classification of the underlying lease. Rental Payments Rental Receipts Fiscal Year Capital Leases Operating Leases Capital Leases Operating Leases Owned Properties 2018 (a) $ 24,412 $ 48,499 $ 32,627 $ 37,599 $ 26,980 2019 45,681 94,249 65,695 75,456 54,827 2020 46,610 93,136 66,792 75,213 55,435 2021 48,228 92,635 68,609 75,196 57,027 2022 49,339 92,355 69,810 75,652 58,600 Thereafter 760,160 1,123,911 1,056,005 919,959 948,646 Total minimum payments $ 974,430 $ 1,544,785 $ 1,359,538 $ 1,259,075 $ 1,201,515 Less interest (508,350 ) Present value of minimum capital lease payments (b) $ 466,080 _______________ (a) Represents future minimum rental payments and rental receipts for non-cancelable leases and subleases for the remainder of the 2018 fiscal year. (b) The present value of minimum capital lease payments of $7,868 and $458,212 are included in “Current portion of long-term debt” and “Long-term debt,” respectively.
Schedule of Property Subject to or Available for Operating Lease	Properties owned by the Company and leased to franchisees and other third parties under operating leases include: July 1, December 31, 2017 Land $ 272,626 $ 272,411 Buildings and improvements 313,470 313,108 Restaurant equipment 2,443 2,444 588,539 587,963 Accumulated depreciation and amortization (135,601 ) (128,003 ) $ 452,938 $ 459,960
Schedule of Capital Leased Assets	Our net investment in direct financing leases is as follows: July 1, December 31, 2017 Future minimum rental receipts $ 649,893 $ 662,889 Unearned interest income (420,417 ) (433,175 ) Net investment in direct financing leases 229,476 229,714 Net current investment in direct financing leases (a) (638 ) (625 ) Net non-current investment in direct financing leases $ 228,838 $ 229,089 _______________ (a) Included in “Accounts and notes receivable, net.”

Basis of Presentation Basis o36

Basis of Presentation Basis of Presentation Schedule of Prior Period Adjustments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Prior Period Adjustments Restatement
Cost of sales	$ 138,154	$ 130,581	$ 270,373	$ 255,124
Franchise support and other costs	7,031	3,789	13,204	7,432
General and administrative	49,163	50,059	99,519	101,373
Other operating income, net	$ (1,767)	(2,089)	$ (2,930)	(3,807)
Total of income statement line items affected by prior period reclassifications		182,340		360,122
Prior period reclassifications to Franchise support and other costs		0		0
Prior period reclassifications for Restaurant operational costs		0		0
Previously Reported
Prior Period Adjustments Restatement
Cost of sales		129,360		252,767
Franchise support and other costs		0		0
General and administrative		51,280		103,730
Other operating income, net		1,700		3,625
Total of income statement line items affected by prior period reclassifications		182,340		360,122
Cost of sales
Prior Period Adjustments Restatement
Prior period reclassifications to Franchise support and other costs		0		0
Prior period reclassifications for Restaurant operational costs		1,221		2,357
Franchise support and other costs
Prior Period Adjustments Restatement
Prior period reclassifications to Franchise support and other costs		3,789		7,432
Prior period reclassifications for Restaurant operational costs		0		0
General and administrative
Prior Period Adjustments Restatement
Prior period reclassifications to Franchise support and other costs		0		0
Prior period reclassifications for Restaurant operational costs		(1,221)		(2,357)
Other operating expense (income), net
Prior Period Adjustments Restatement
Prior period reclassifications to Franchise support and other costs		(3,789)		(7,432)
Prior period reclassifications for Restaurant operational costs		$ 0		$ 0

New Accounting Standards New Ac

New Accounting Standards New Accounting Standards (Details) $ in Thousands	Jul. 01, 2018USD ($)
New Accounting Standards [Abstract]
Operating Leases, Future Minimum Payments Due	$ 1,544,785

New Accounting Standards New 38

New Accounting Standards New Accounting Standards Adopted (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017	Jan. 01, 2017
New Accounting Pronouncements or Change in Accounting Principle
Change in net cash used in investing activities	$ 22,635	$ 40,243
Change in net cash provided by operating activities	148,421	105,761
Change in net cash used in financing activities	95,288	94,188
Change in cash, cash equivalents and restricted cash	$ 238,921	250,546	$ 212,824	$ 275,949
Restricted cash guidance
New Accounting Pronouncements or Change in Accounting Principle
Change in net cash used in investing activities		18,711
Change in net cash provided by operating activities		(14,822)
Change in net cash used in financing activities		(1,743)
Change in cash, cash equivalents and restricted cash		$ 46,003		$ 77,709

New Accounting Standards Adopti

New Accounting Standards Adoption for Topic 606 Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017	Jan. 01, 2017
New Accounting Pronouncements or Change in Accounting Principle
Accrued expenses and other current liabilities	$ 103,351		$ 103,351		$ 111,624
Advertising funds restricted liabilities	96,972		96,972		62,602
Total current liabilities	252,762		252,762		227,162
Deferred income taxes	274,344		274,344		299,053
Deferred franchise fees	93,139		93,139		10,881
Total liabilities	3,649,640		3,649,640		3,523,735
Accumulated deficit	(224,120)		(224,120)		(163,289)
Accumulated other comprehensive loss	(56,450)	$ (54,247)	(56,450)	$ (54,247)	(46,198)	$ (63,241)
Total stockholders' equity	430,539	487,049	430,539	487,049	$ 573,203	$ 527,736
Franchise royalty revenue and fees	107,559	112,548	205,467	207,238
Advertising funds revenue	84,570	0	163,470	0
Total revenues	411,002	320,342	791,566	606,161
Advertising funds expense	84,570	0	163,470	0
Total costs and expenses	339,519	294,548	664,821	519,647
Operating profit	71,483	25,794	126,745	86,514
Income before income taxes	42,264	(297)	56,617	31,837
Provision for income taxes	(12,388)	(1,548)	(6,582)	(11,341)
Net income	29,876	$ (1,845)	50,035	20,496
Revenue recognized during the period related to deferred franchise fees	2,439		5,127
Deferred income tax			(2,508)	(2,496)
Other, net			(1,093)	3,296
Accrued expenses and other current liabilities			(6,034)	$ (4,051)
Revenue recognition guidance
New Accounting Pronouncements or Change in Accounting Principle
Advertising funds restricted liabilities	6,645		6,645
Deferred income taxes	(21,996)		(21,996)
Deferred franchise fees	85,561		85,561
Adjustments for franchise fees | Revenue recognition guidance
New Accounting Pronouncements or Change in Accounting Principle
Accrued expenses and other current liabilities	(1,733)		(1,733)
Advertising funds restricted liabilities	0		0
Total current liabilities	(1,733)		(1,733)
Deferred income taxes	21,587		21,587
Deferred franchise fees	(81,999)		(81,999)
Total liabilities	(62,145)		(62,145)
Accumulated deficit	62,384		62,384
Accumulated other comprehensive loss	(239)		(239)
Total stockholders' equity	62,145		62,145
Franchise royalty revenue and fees	(724)		(1,590)
Advertising funds revenue	0		0
Total revenues	(724)		(1,590)
Advertising funds expense	0		0
Total costs and expenses	0		0
Operating profit	(724)		(1,590)
Income before income taxes	(724)		(1,590)
Provision for income taxes	187		409
Net income	(537)		(1,181)
Deferred income tax			(409)
Other, net			(309)
Accrued expenses and other current liabilities			1,899
Adjustments for advertising funds | Revenue recognition guidance
New Accounting Pronouncements or Change in Accounting Principle
Accrued expenses and other current liabilities	0		0
Advertising funds restricted liabilities	(6,645)		(6,645)
Total current liabilities	(6,645)		(6,645)
Deferred income taxes	0		0
Deferred franchise fees	0		0
Total liabilities	(6,645)		(6,645)
Accumulated deficit	6,645		6,645
Accumulated other comprehensive loss	0		0
Total stockholders' equity	6,645		6,645
Franchise royalty revenue and fees	0		0
Advertising funds revenue	(84,570)		(163,470)
Total revenues	(84,570)		(163,470)
Advertising funds expense	(84,570)		(163,470)
Total costs and expenses	(84,570)		(163,470)
Operating profit	0		0
Income before income taxes	0		0
Provision for income taxes	0		0
Net income	0		0
Deferred income tax			0
Other, net			0
Accrued expenses and other current liabilities			0
Balances without adoption | Revenue recognition guidance
New Accounting Pronouncements or Change in Accounting Principle
Accrued expenses and other current liabilities	101,618		101,618
Advertising funds restricted liabilities	90,327		90,327
Total current liabilities	244,384		244,384
Deferred income taxes	295,931		295,931
Deferred franchise fees	11,140		11,140
Total liabilities	3,580,850		3,580,850
Accumulated deficit	(155,091)		(155,091)
Accumulated other comprehensive loss	(56,689)		(56,689)
Total stockholders' equity	499,329		499,329
Franchise royalty revenue and fees	106,835		203,877
Advertising funds revenue	0		0
Total revenues	325,708		626,506
Advertising funds expense	0		0
Total costs and expenses	254,949		501,351
Operating profit	70,759		125,155
Income before income taxes	41,540		55,027
Provision for income taxes	(12,201)		(6,173)
Net income	29,339		48,854
Revenue recognized during the period related to deferred franchise fees	$ 1,715		3,537
Deferred income tax			(2,917)
Other, net			(1,402)
Accrued expenses and other current liabilities			$ (4,135)

Revenue Disaggregation of Reven

Revenue Disaggregation of Revenue (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018USD ($)countriesRestaurant	Jul. 02, 2017USD ($)	Jul. 01, 2018USD ($)countriesRestaurant	Jul. 02, 2017USD ($)
Disaggregation of Revenue
Number of Restaurants | Restaurant	6,656		6,656
Franchise agreement term			20 years
Franchise agreement renewal term			10 years
Franchise agreement extension term			25 years
Franchise agreement renewal term extension			20 years
Revenues	$ 411,002	$ 320,342	$ 791,566	$ 606,161
Sales	167,344	160,859	320,993	309,071
Royalty Revenue	98,158		188,101
Franchise fees	9,401		17,366
Franchise rental income	51,529	46,935	101,636	89,852
Advertising funds revenue	84,570	$ 0	163,470	$ 0
United States
Disaggregation of Revenue
Revenues	385,945		745,580
Canada
Disaggregation of Revenue
Revenues	20,081		36,418
Other International
Disaggregation of Revenue
Revenues	$ 4,976		$ 9,568
Entity Operated Units
Disaggregation of Revenue
Number of Restaurants | Restaurant	332		332
Franchised Units
Disaggregation of Revenue
Number of Restaurants | Restaurant	6,324		6,324
Franchised Units | Other International
Disaggregation of Revenue
Number of Countries in which Entity Operates | countries	30		30
Minimum | Lessee Disclosure
Disaggregation of Revenue
Lessee, Operating Lease, Term of Contract			15 years
Maximum | Lessee Disclosure
Disaggregation of Revenue
Lessee, Operating Lease, Term of Contract			20 years

Revenue Contract Balances (Deta

Revenue Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 01, 2018	Jul. 01, 2018	Dec. 31, 2017
Contract balances
Receivables for franchise royalties and fees	$ 45,040	$ 45,040
Restricted Accounts and Notes Receivable	45,863	45,863
Deferred franchise fees at beginning of period		102,492
Deferred franchisee fees, current	10,584	10,584
Deferred franchise fees, noncurrent	93,139	93,139	$ 10,881
Revenue recognized during the period	(2,439)	(5,127)
New deferrals due to cash received and other		6,358
Deferred franchise fees at end of period	$ 103,723	$ 103,723

Revenue Revenue, Remaining Perf

Revenue Revenue, Remaining Performance Obligation (Details) $ in Thousands	Jul. 01, 2018USD ($)
Revenue [Abstract]
Anticipated recognition of revenue for the remainder of 2018	$ 4,527
Anticipated recognition of revenue in 2019	7,423
Anticipated recognition of revenue in 2020	6,169
Anticipated recognition of revenue in 2021	5,704
Anticipated recognition of revenue in 2022	5,506
Anticipated recognition of revenue thereafter	74,394
Revenue, Remaining Performance Obligation	$ 103,723

System Optimization (Gains) L43

System Optimization (Gains) Losses, Net Summary of Disposition Activity (Details) $ in Thousands	May 31, 2017USD ($)Restaurant	Jul. 01, 2018USD ($)Restaurant	Jul. 02, 2017USD ($)	Jul. 01, 2018USD ($)Restaurant	Jul. 02, 2017USD ($)Restaurant	Dec. 31, 2017USD ($)
System optimization gains (losses), net
Company-operated restaurant ownership percentage		5.00%		5.00%
System optimization gains (losses), net		$ 92	$ (41,050)	$ (478)	$ (39,643)
Proceeds from sales				1,814	77,980
Payment for supplemental purchase price				$ 6,100	0
Sale of Company-operated restaurants to franchisees
System optimization gains (losses), net
Number of restaurants sold to franchisees | Restaurant		3		3
System optimization gains (losses), net		$ 89	0	$ 89	0
Post closing adjustments on sales of restaurants		(13)	27	(225)	927
Proceeds from sales		1,436		1,436
Net Assets Sold		(1,139)		(1,139)
Goodwill		(208)		(208)
Cash proceeds from post closing adjustments, net of payments			300	$ 6	300
Recognition of deferred gain on sale of property					$ 312
Sale of franchise-operated restaurant to franchisee
System optimization gains (losses), net
Number of restaurants sold to franchisees | Restaurant				64	270
Sale of Other Assets
System optimization gains (losses), net
System optimization gains (losses), net		16	2,072	$ (342)	$ 2,579
Proceeds from sales		27	5,342	372	6,992
Recognition of deferred gain on sale of property					375
NPC Disposition
System optimization gains (losses), net
Number of restaurants sold to franchisees | Restaurant	140
System optimization gains (losses), net		$ 0	$ (43,149)	0	(43,149)
Proceeds from sales	$ 70,688
Goodwill					(65,503)
Selling and other costs					(1,680)
Net favorable leases					$ 24,034
DavCo Acquisition
System optimization gains (losses), net
Restaurants acquired from franchisees | Restaurant	140
Total consideration paid	$ 86,788
Supplemental purchase price						$ 6,269
Payment for supplemental purchase price				$ 6,100

System Optimization (Gains) L44

System Optimization (Gains) Losses, Net Assets Held for Sale (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Property, Plant and Equipment [Abstract]
Assets held for sale	$ 3,579	$ 2,235

Reorganization and Realignmen45

Reorganization and Realignment Costs Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 3,124	$ 17,699	$ 5,750	$ 17,880
G&A Realignment – May 2017 Plan
Restructuring Cost and Reserve
Reorganization and realignment costs	3,120	17,245	5,746	17,245
System Optimization
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 4	$ 454	$ 4	$ 635

Reorganization and Realignmen46

Reorganization and Realignment Costs G&A Realignment - May 2017 Plan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Restructuring Cost and Reserve
Restructuring Charges	$ 3,124	$ 17,699	$ 5,750	$ 17,880
G&A Realignment – May 2017 Plan
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost Remaining	5,000		5,000
Restructuring and Related Cost, Incurred Cost	2,016	13,551	4,551	13,551
Restructuring and Related Cost, Cost Incurred to Date	21,087		21,087
Restructuring Charges	3,120	17,245	5,746	17,245
Restructuring Charges, Cost Incurred to Date	27,409		27,409
G&A Realignment – May 2017 Plan | Severance and related employee costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost Remaining	1,000		1,000
Restructuring and Related Cost, Incurred Cost	1,052	13,226	3,111	13,226
Restructuring and Related Cost, Cost Incurred to Date	18,067		18,067
G&A Realignment – May 2017 Plan | Recruitment and relocation costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost Remaining	2,500		2,500
Restructuring and Related Cost, Incurred Cost	360	0	508	0
Restructuring and Related Cost, Cost Incurred to Date	997		997
G&A Realignment – May 2017 Plan | Third-party and other costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost Remaining	500		500
Restructuring and Related Cost, Incurred Cost	604	325	932	325
Restructuring and Related Cost, Cost Incurred to Date	2,023		2,023
G&A Realignment – May 2017 Plan | Share based compensation
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost Remaining	1,000		1,000
Restructuring and Related Cost, Incurred Cost	1,104	$ 3,694	1,195	$ 3,694
Restructuring and Related Cost, Cost Incurred to Date	6,322		6,322
G&A Realignment – May 2017 Plan | Minimum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	30,000		30,000
G&A Realignment – May 2017 Plan | Maximum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	$ 33,000		$ 33,000

Reorganization and Realignmen47

Reorganization and Realignment Costs G&A Realignment - May 2017 Plan Accrual Rollforward (Details) - G&A Realignment – May 2017 Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Restructuring Cost and Reserve
Beginning balance			$ 12,270	$ 0
Charges	$ 2,016	$ 13,551	4,551	13,551
Payments for Restructuring			(6,729)	(753)
Ending balance	10,092	12,798	10,092	12,798
Severance and related employee costs
Restructuring Cost and Reserve
Beginning balance			12,093	0
Charges	1,052	13,226	3,111	13,226
Payments for Restructuring			(5,326)	(507)
Ending balance	9,878	12,719	9,878	12,719
Recruitment and relocation costs
Restructuring Cost and Reserve
Beginning balance			177	0
Charges	360	0	508	0
Payments for Restructuring			(471)	0
Ending balance	214	0	214	0
Third-party and other costs
Restructuring Cost and Reserve
Beginning balance			0	0
Charges	604	325	932	325
Payments for Restructuring			(932)	(246)
Ending balance	0	$ 79	0	$ 79
Accrued expenses and other current liabilities
Restructuring Cost and Reserve
Ending balance	7,985		7,985
Other Liabilities
Restructuring Cost and Reserve
Ending balance	$ 2,107		$ 2,107

Reorganization and Realignmen48

Reorganization and Realignment Costs System Optimization Costs (Details) - System Optimization $ in Thousands	Jul. 01, 2018USD ($)
Restructuring Cost and Reserve
Restructuring and Related Cost, Cost Incurred to Date	$ 71,913
Restructuring and Related Cost, Expected Cost Remaining	$ 300

Investments (Details)

Investments (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018USD ($)years	Jul. 02, 2017USD ($)years	Jul. 01, 2018USD ($)years	Jul. 02, 2017USD ($)years
Schedule of Equity Method Investments
Investment			$ 13	$ 375
Equity in earnings for the period, net of amortization of purchase price adjustments			3,648	3,786
Distributions received			(5,756)	(5,524)
Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” and other	$ (4,325)	$ 6,065	$ (10,369)	$ 8,010
TimWen
Schedule of Equity Method Investments
Equity Method Investment, Ownership Percentage	50.00%		50.00%
Equity Method Investment, Purchase Price Adjustment, Amortization Period | years	21	21	21	21
Brazil JV
Schedule of Equity Method Investments
Equity Method Investment, Ownership Percentage	20.00%		20.00%
TimWen and Brazil JV
Schedule of Equity Method Investments
Balance at beginning of period			$ 55,363	$ 54,545
Investment			13	375
Equity in earnings for the period			4,827	4,915
Amortization of Purchase Price Adjustment			(1,179)	(1,129)
Equity in earnings for the period, net of amortization of purchase price adjustments			3,648	3,786
Distributions received			(5,756)	(5,524)
Foreign currency translation adjustment included in “Other comprehensive (loss) income, net” and other			(1,763)	2,110
Balance at end of period	$ 51,505	$ 55,292	$ 51,505	$ 55,292

Long-Term Debt (Details)

Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Jan. 17, 2018	Dec. 31, 2017
Debt Instrument
Debt and Capital Lease Obligations	$ 2,802,778		$ 2,802,778			$ 2,754,402
Less amounts payable within one year	(31,118)		(31,118)			(30,172)
Long-term debt	2,771,660		2,771,660			2,724,230
Loss on early extinguishment of debt	0	$ 0	11,475	$ 0
Wendy's U.S. Advertising Fund
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity	25,000		25,000
Proceeds from Lines of Credit			5,809	6,359
Repayments of Lines of Credit			7,096	$ 4,616
Capital lease obligations, due through 2045
Debt Instrument
Debt and Capital Lease Obligations	$ 466,080		$ 466,080			467,964
Series 2018-1 Class A-2-I Notes
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	3.573%		3.573%
Debt and Capital Lease Obligations	$ 447,750		$ 447,750		$ 450,000	0
Additional Interest Rate On Debt, After Anticipated Repayment Date					1.35%
Series 2018-1 Class A-2-II Notes
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	3.884%		3.884%
Debt and Capital Lease Obligations	$ 472,625		$ 472,625		$ 475,000	0
Additional Interest Rate On Debt, After Anticipated Repayment Date					1.58%
Series 2015-1 Class A-2-I Notes
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	3.371%		3.371%
Debt and Capital Lease Obligations	$ 0		$ 0			855,313
Series 2015-1 Class A-2-II Notes
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	4.08%		4.08%
Debt and Capital Lease Obligations	$ 875,250		$ 875,250			879,750
Series 2015-1 Class A-2-III Notes
Debt Instrument
Debt Instrument, Interest Rate, Stated Percentage	4.497%		4.497%
Debt and Capital Lease Obligations	$ 486,250		$ 486,250			488,750
7% Debentures
Debt Instrument
Debt and Capital Lease Obligations	90,139		90,139			89,514
Other Debt Obligations
Debt Instrument
Unamortized debt issuance costs	(35,316)		(35,316)			$ (26,889)
Series 2018-1 Class A-2 Notes
Debt Instrument
Additional Interest Rate On Debt, After Anticipated Repayment Date					5.00%
Long-term Debt, Maturities, Repayments of Principal Annually for the Next Seven Years					$ 9,250
Long-term Debt, Maturities, Repayments of Principal in 2025					423,250
Long-term Debt, Maturities, Repayments of Principal in 2026 and 2027					4,750
Long-term Debt, Maturities, Repayments of Principal in 2028					427,500
Series 2018-1 Class A-1 Notes | Letter of Credit
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity					$ 150,000
Line of credit, amount borrowed	0		0
Series 2018-1 Senior Notes
Debt Instrument
Incurred Debt Issuance Costs	$ 17,672		$ 17,672

Fair Value Measurements Financi

Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017	Dec. 29, 2013
Inspire Brands, Inc
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Ownership of cost method investment	12.30%
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash equivalents	$ 9,584	$ 338
Non-current cost method investments	639	639
Guarantees of franchisee loan obligations	27	37
Reported Value Measurement | Series 2018-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	447,750	0
Reported Value Measurement | Series 2018-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	472,625	0
Reported Value Measurement | Series 2015-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	0	855,313
Reported Value Measurement | Series 2015-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	875,250	879,750
Reported Value Measurement | Series 2015-1 Class A-2-III Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	486,250	488,750
Reported Value Measurement | 7% Debentures
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	90,139	89,514
Reported Value Measurement | Inspire Brands, Inc
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Inspire Brands carrying value			$ 0
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash equivalents	9,584	338
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Non-current cost method investments	327,477	327,710
Guarantees of franchisee loan obligations	27	37
Estimate of Fair Value Measurement | Series 2018-1 Class A-2-I Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	430,736	0
Estimate of Fair Value Measurement | Series 2018-1 Class A-2-II Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	455,138	0
Estimate of Fair Value Measurement | Series 2015-1 Class A-2-I Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	0	856,510
Estimate of Fair Value Measurement | Series 2015-1 Class A-2-II Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	876,038	897,961
Estimate of Fair Value Measurement | Series 2015-1 Class A-2-III Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	487,368	513,188
Estimate of Fair Value Measurement | 7% Debentures | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	$ 104,750	$ 107,000

Fair Value Measurements Non-Rec

Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Impairment of Long-Lived Assets Held-for-use	$ 1,603	$ 201	$ 1,768	$ 218
Impairment of Long-Lived Assets to be Disposed of		$ 52	41	$ 545
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and Used, Long Lived, Fair Value Disclosure	161		161		$ 757
Assets Held-for-sale, Long Lived, Fair Value Disclosure	427		427		1,560
Total	588		588		2,317
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and Used, Long Lived, Fair Value Disclosure	0		0		0
Assets Held-for-sale, Long Lived, Fair Value Disclosure	0		0		0
Total	0		0		0
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and Used, Long Lived, Fair Value Disclosure	0		0		0
Assets Held-for-sale, Long Lived, Fair Value Disclosure	0		0		0
Total	0		0		0
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and Used, Long Lived, Fair Value Disclosure	161		161		757
Assets Held-for-sale, Long Lived, Fair Value Disclosure	427		427		1,560
Total	$ 588		$ 588		$ 2,317

Impairment of Long-Lived Asse53

Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Impaired Long-Lived Assets Held and Used
Impairment of long-lived assets	$ 1,603	$ 253	$ 1,809	$ 763
Company-operated restaurants
Impaired Long-Lived Assets Held and Used
Impairment of long-lived assets	1,603	201	1,603	218
Restaurants leased or subleased to franchisees
Impaired Long-Lived Assets Held and Used
Impairment of long-lived assets	0	0	165	0
Surplus Properties
Impaired Long-Lived Assets Held and Used
Impairment of long-lived assets	$ 0	$ 52	$ 41	$ 545

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent	29.30%		11.60%	35.60%
Income (loss) before income taxes	$ 42,264	$ (297)	$ 56,617	$ 31,837
(Provision for) benefit from income taxes	$ (12,388)	$ (1,548)	$ (6,582)	$ (11,341)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	35.00%	21.00%	35.00%
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options	$ 798		$ 6,891
Quantifying Misstatement in Current Year Financial Statements, Amount		$ 2,248		$ 2,248
Accounts and notes receivable, net
Income Taxes Receivable	17,768		17,768		$ 26,262
Income Taxes Receivable, Noncurrent	$ 5,523		5,523		$ 0
Tax Act
(Provision for) benefit from income taxes			2,795
Release of valuation allowances on foreign tax credits			4,750
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount			$ (1,955)
System Optimization
(Provision for) benefit from income taxes		$ (2,166)

Net Income Per Share (Details)

Net Income Per Share (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Common Stock:
Weighted average basic shares outstanding	238,991	245,261	239,459	245,933
Dilutive effect of stock options and restricted shares	7,161	0	7,826	7,963
Weighted average diluted shares outstanding	246,152	245,261	247,285	253,896
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	27		1,369	119

Stockholders' Equity Rollforwar

Stockholders' Equity Rollforward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Balance at beginning of period			$ 573,203	$ 527,736
Comprehensive income	$ 25,551	$ 4,663	39,783	29,490
Cash dividends			(40,645)	(34,447)
Repurchases of common stock			(85,194)	(52,501)
Share-based compensation			9,591	11,372
Exercises of stock options			6,814	6,161
Vesting of restricted shares			(2,921)	(2,732)
Cumulative Effect of New Accounting Principle in Period of Adoption	(70,210)	1,880	(70,210)	1,880
Other			118	90
Balance at end of period	430,539	$ 487,049	430,539	$ 487,049
Deferred franchise fees	(93,139)		(93,139)		$ (10,881)
Deferred income taxes	(274,344)		(274,344)		(299,053)
Advertising funds restricted liabilities	(96,972)		(96,972)		$ (62,602)
Revenue recognition guidance
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption	(70,210)		(70,210)
Deferred franchise fees	(85,561)		(85,561)
Deferred income taxes	21,996		21,996
Advertising funds restricted liabilities	$ (6,645)		$ (6,645)

Stockholders' Equity Repurchase

Stockholders' Equity Repurchases of Common Stock (Details) - USD ($) shares in Thousands, $ in Thousands	1 Months Ended	6 Months Ended
	Aug. 01, 2018	Jul. 01, 2018	Jul. 02, 2017	Feb. 15, 2018	Feb. 22, 2017
Subsequent Event
Equity, Class of Treasury Stock
Treasury Stock, Shares, Acquired	1,129
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions	$ 19,395
Stock Repurchase Program, Cost Incurred	$ 16
$175,000 Share Repurch Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount				$ 175,000
Treasury Stock, Shares, Acquired		3,675
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions		$ 62,490
Stock Repurchase Program, Repurchase Accrual		2,146
Stock Repurchase Program, Cost Incurred		52
Stock Repurchase Program, Remaining Authorized Repurchase Amount		$ 112,510
$150,000 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount					$ 150,000
Treasury Stock, Shares, Acquired		1,385	3,611
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions		$ 22,633	$ 52,448
Stock Repurchase Program, Repurchase Accrual			1,974
Stock Repurchase Program, Cost Incurred		$ 19	$ 53

Stockholders' Equity Accumulate

Stockholders' Equity Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning of year			$ (46,198)	$ (63,241)
Current-period other comprehensive income (loss)	$ (4,325)	$ 6,508	(10,252)	8,994
Balance, end of the period	(56,450)	(54,247)	(56,450)	(54,247)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax		443		888
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax		724		1,447
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax		(281)		(559)
Foreign Currency Translation
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning of year			(45,149)	(60,299)
Current-period other comprehensive income (loss)			(10,369)	8,010
Balance, end of the period	(55,518)	(52,289)	(55,518)	(52,289)
Cash Flow Hedges
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning of year			0	(1,797)
Current-period other comprehensive income (loss)			0	888
Balance, end of the period	0	(909)	0	(909)
Pension
Accumulated Other Comprehensive Loss, Net of Tax [Roll Forward]
Balance, beginning of year			(1,049)	(1,145)
Current-period other comprehensive income (loss)			117	96
Balance, end of the period	$ (932)	$ (1,049)	$ (932)	$ (1,049)

Leases Lease Disclosure (Detail

Leases Lease Disclosure (Details)	Jul. 01, 2018PropertyRestaurant
Property Subject to or Available for Operating Lease
Number of Restaurants | Restaurant	6,656
Entity Operated Units
Property Subject to or Available for Operating Lease
Number of Restaurants | Restaurant	332
Lessee Disclosure | Land and Building
Property Subject to or Available for Operating Lease
Property Subject to or Available for Operating Lease, Number of Units	144
Lessee Disclosure | Land and Building | Property Subject to Operating Lease
Property Subject to or Available for Operating Lease
Property Subject to or Available for Operating Lease, Number of Units	49
Lessee Disclosure | Land | Property Subject to Operating Lease
Property Subject to or Available for Operating Lease
Property Subject to or Available for Operating Lease, Number of Units	139
Lessor Disclosure | Property Subject to Operating Lease
Property Subject to or Available for Operating Lease
Property Subject to or Available for Operating Lease, Number of Units	1,293
Lessor Disclosure | Assets Leased to Others | Property Subject to Operating Lease
Property Subject to or Available for Operating Lease
Property Subject to or Available for Operating Lease, Number of Units	520

Leases Operating Lease Rent Exp

Leases Operating Lease Rent Expense and Rent Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017
Operating Leased Assets
Rental expense, Minimum rentals	$ 25,070	$ 22,786	$ 49,924	$ 42,704
Rental expense, Contingent rentals	5,390	4,722	9,461	9,010
Total rental expense	30,460	27,508	59,385	51,714
Sublease income	34,950	30,849	69,256	57,412
Rental income, Minimum rentals	45,930	41,560	92,258	80,165
Rental income, Contingent rentals	5,599	5,375	9,378	9,687
Total rental income	$ 51,529	$ 46,935	$ 101,636	$ 89,852

Leases Future Minimum Rent (Det

Leases Future Minimum Rent (Details) $ in Thousands	Jul. 01, 2018USD ($)
Operating Leased Assets
Rental payments, Capital leases, 2018	$ 24,412
Rental payments, Capital leases, 2019	45,681
Rental payments, Capital leases, 2020	46,610
Rental payments, Capital leases, 2021	48,228
Rental payments, Capital leases, 2022	49,339
Rental payments, Capital leases, Thereafter	760,160
Rental payments, Capital leases, Total minimum payments	974,430
Less interest	(508,350)
Present value of minimum capital lease payments	466,080
Rental payments, Operating leases, 2018	48,499
Rental payments, Operating leases, 2019	94,249
Rental payments, Operating leases, 2020	93,136
Rental payments, Operating leases, 2021	92,635
Rental payments, Operating leases, 2022	92,355
Rental payments, Operating leases, Thereafter	1,123,911
Rental payments, Operating leases, Total minimum payments	1,544,785
Rental receipts, Capital leases, 2018	32,627
Rental receipts, Capital leases, 2019	65,695
Rental receipts, Capital leases, 2020	66,792
Rental receipts, Capital leases, 2021	68,609
Rental receipts, Capital leases, 2022	69,810
Rental receipts, Capital leases, Thereafter	1,056,005
Rental receipts, Capital leases, Total minimum payments	1,359,538
Rental receipts, Operating leases, 2018	37,599
Rental receipts, Operating leases, 2019	75,456
Rental receipts, Operating leases, 2020	75,213
Rental receipts, Operating leases, 2021	75,196
Rental receipts, Operating leases, 2022	75,652
Rental receipts, Operating leases, Thereafter	919,959
Rental receipts, Operating leases, Total minimum payments	1,259,075
Rental receipts, Owned properties, 2018	26,980
Rental receipts, Owned properties, 2019	54,827
Rental receipts, Owned properties, 2020	55,435
Rental receipts, Owned properties, 2021	57,027
Rental receipts, Owned properties, 2022	58,600
Rental receipts, Owned properties, Thereafter	948,646
Rental receipts, Owned properties, Total minimum payments	1,201,515
Current portion of long-term debt
Operating Leased Assets
Capital Lease Obligations, Current	7,868
Long-term Debt
Operating Leased Assets
Capital Lease Obligations, Noncurrent	$ 458,212

Leases Properties Leased to Thi

Leases Properties Leased to Third Parties (Details) - Property Subject to Operating Lease - USD ($) $ in Thousands	Jul. 01, 2018	Dec. 31, 2017
Property Subject to or Available for Operating Lease
Property Leased to Others	$ 588,539	$ 587,963
Property Leased to Others, Accumulated Depreciation	(135,601)	(128,003)
Property Leased to Others, Net	452,938	459,960
Land
Property Subject to or Available for Operating Lease
Property Leased to Others	272,626	272,411
Buildings and improvements
Property Subject to or Available for Operating Lease
Property Leased to Others	313,470	313,108
Restaurant equipment
Property Subject to or Available for Operating Lease
Property Leased to Others	$ 2,443	$ 2,444

Leases Net Investment in Direct

Leases Net Investment in Direct Financing Leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017	Jul. 01, 2018	Jul. 02, 2017	Dec. 31, 2017
Capital Leased Assets
Future minimum rental receipts	$ 649,893		$ 649,893		$ 662,889
Unearned interest income	(420,417)		(420,417)		(433,175)
Net investment in direct financing leases	229,476		229,476		229,714
Net current investment in direct financing leases	(638)		(638)		(625)
Net non-current investment in direct financing leases	228,838		228,838		$ 229,089
Interest income, Direct financing leases	$ 6,976	$ 5,389	$ 14,017	$ 9,845

Transactions with Related Par64

Transactions with Related Parties (Details) - TimWen - USD ($) $ in Thousands	6 Months Ended
	Jul. 01, 2018	Jul. 02, 2017
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 6,504	$ 5,915
General and administrative
Related Party Transaction [Line Items]
Related Party Transaction, Other Revenues from Transactions with Related Party	$ 108	$ 103

Guarantees and Other Commitme65

Guarantees and Other Commitments and Contingencies Franchisee Image Activation Incentive Programs (Details) - Maximum	6 Months Ended
	Jul. 01, 2018
Guarantor Obligations
Years of reduction in royalty payment attributable to new builds	2 years
Years of reduction in royalty payment attributable to incentive program	1 year

Guarantees and Other Commitme66

Guarantees and Other Commitments and Contingencies Lease Guarantees (Details) $ in Thousands	Jul. 01, 2018USD ($)
Property Lease Guarantee
Guarantor Obligations
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 53,903
Indirect Guarantee of Indebtedness
Guarantor Obligations
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 398

Guarantees and Other Commitme67

Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands	Jul. 01, 2018USD ($)
Guarantor Obligations
Letters of Credit Outstanding	$ 27,094

Uncategorized Items - wen-20180

Label	Element	Value
Restricted cash included in advertising funds restricted assets	wen_Restrictedcashincludedinadvertisingfundsrestrictedassets	$ 8,579,000
Restricted cash included in advertising funds restricted assets	wen_Restrictedcashincludedinadvertisingfundsrestrictedassets	13,982,000
Restricted Cash, Noncurrent	us-gaap_RestrictedCashNoncurrent	165,000
Restricted Cash, Noncurrent	us-gaap_RestrictedCashNoncurrent	$ 0