Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 03, 2021 | Nov. 03, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-2207 | |
Entity Registrant Name | THE WENDY’S COMPANY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-0471180 | |
Entity Address, Address Line One | One Dave Thomas Blvd. | |
Entity Address, City or Town | Dublin | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43017 | |
City Area Code | 614 | |
Local Phone Number | 764-3100 | |
Title of 12(b) Security | Common Stock, $.10 par value | |
Trading Symbol | WEN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000030697 | |
Current Fiscal Year End Date | --01-02 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 220,634,432 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 571,502 | $ 306,989 |
Restricted cash | 36,321 | 33,973 |
Accounts and notes receivable, net | 100,265 | 109,891 |
Inventories | 4,257 | 4,732 |
Prepaid expenses and other current assets | 23,820 | 89,732 |
Advertising funds restricted assets | 107,320 | 142,306 |
Total current assets | 843,485 | 687,623 |
Properties | 873,250 | 915,889 |
Finance lease assets | 210,660 | 206,153 |
Operating lease assets | 783,986 | 821,480 |
Goodwill | 751,805 | 751,049 |
Other intangible assets | 1,209,695 | 1,224,960 |
Investments | 41,356 | 44,574 |
Net investment in sales-type and direct financing leases | 305,242 | 268,221 |
Other assets | 137,468 | 120,057 |
Total assets | 5,156,947 | 5,040,006 |
Current liabilities: | ||
Current portion of long-term debt | 32,750 | 28,962 |
Current portion of finance lease liabilities | 15,915 | 12,105 |
Current portion of operating lease liabilities | 45,541 | 45,346 |
Accounts payable | 26,506 | 31,063 |
Accrued expenses and other current liabilities | 158,800 | 155,321 |
Advertising funds restricted liabilities | 127,673 | 140,511 |
Total current liabilities | 407,185 | 413,308 |
Long-term debt | 2,360,763 | 2,218,163 |
Long-term finance lease liabilities | 528,775 | 506,076 |
Long-term operating lease liabilities | 830,488 | 865,325 |
Deferred income taxes | 279,813 | 280,755 |
Deferred franchise fees | 90,086 | 89,094 |
Other liabilities | 117,083 | 117,689 |
Total liabilities | 4,614,193 | 4,490,410 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 221,301 and 224,268 shares outstanding, respectively | 47,042 | 47,042 |
Additional paid-in capital | 2,911,552 | 2,899,276 |
Retained earnings | 317,956 | 238,674 |
Common stock held in treasury, at cost; 249,123 and 246,156 shares, respectively | (2,685,063) | (2,585,755) |
Accumulated other comprehensive loss | (48,733) | (49,641) |
Total stockholders’ equity | 542,754 | 549,596 |
Total liabilities and stockholders’ equity | $ 5,156,947 | $ 5,040,006 |
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 | 221,301 | 224,268 |
Treasury Stock, Shares | 249,123 | 246,156 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Revenues | ||||
Franchise rental income | $ 62,446 | $ 58,721 | $ 182,190 | $ 173,434 |
Revenues | 470,255 | 452,242 | 1,423,795 | 1,259,508 |
Costs and expenses | ||||
Cost of sales | 146,436 | 159,545 | 457,440 | 450,170 |
Franchise support and other costs | 10,509 | 5,960 | 27,080 | 19,427 |
Franchise rental expense | 34,424 | 32,426 | 101,058 | 93,024 |
Advertising funds expense | 108,529 | 92,048 | 310,642 | 253,353 |
General and administrative | 62,840 | 47,322 | 178,576 | 147,553 |
Depreciation and amortization | 30,940 | 32,966 | 93,243 | 98,726 |
System optimization gains, net | (1,437) | (23) | (32,719) | (2,333) |
Reorganization and realignment costs | 345 | 3,375 | 7,381 | 10,196 |
Impairment of long-lived assets | 566 | 23 | 1,831 | 4,727 |
Other operating income, net | (3,092) | (2,748) | (10,800) | (6,076) |
Costs and expenses | 390,060 | 370,894 | 1,133,732 | 1,068,767 |
Operating profit | 80,195 | 81,348 | 290,063 | 190,741 |
Interest expense, net | (26,000) | (29,086) | (82,990) | (86,696) |
Loss on early extinguishment of debt | 0 | 0 | (17,917) | 0 |
Other income, net | 171 | 181 | 461 | 1,113 |
Income before income taxes | 54,366 | 52,443 | 189,617 | 105,158 |
Provision for income taxes | (13,195) | (12,690) | (41,356) | (26,060) |
Net income | $ 41,171 | $ 39,753 | $ 148,261 | $ 79,098 |
Earnings per share | ||||
Earnings Per Share, Basic | $ 0.19 | $ 0.18 | $ 0.67 | $ 0.35 |
Earnings Per Share, Diluted | $ 0.18 | $ 0.17 | $ 0.66 | $ 0.35 |
Sales | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 171,078 | $ 191,946 | $ 553,660 | $ 522,961 |
Franchise royalty revenue and fees | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 138,755 | 116,820 | 398,246 | 321,645 |
Advertising funds revenue | ||||
Revenues | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 97,976 | $ 84,755 | $ 289,699 | $ 241,468 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Net income | $ 41,171 | $ 39,753 | $ 148,261 | $ 79,098 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (4,659) | 3,220 | 908 | (5,138) |
Other comprehensive income (loss) | (4,659) | 3,220 | 908 | (5,138) |
Comprehensive income | $ 36,512 | $ 42,973 | $ 149,169 | $ 73,960 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Common Stock Held in Treasury | Accumulated Other Comprehensive Loss |
Stockholders' Equity, beginning of period at Dec. 29, 2019 | $ 516,359 | $ 47,042 | $ 2,874,001 | $ 185,725 | $ (2,536,581) | $ (53,828) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 14,441 | 0 | 0 | 14,441 | 0 | 0 |
Other comprehensive income (loss) | (12,507) | 0 | 0 | 0 | 0 | (12,507) |
Cash dividends | (26,793) | 0 | 0 | (26,793) | 0 | 0 |
Repurchases of common stock | (43,336) | 0 | 15,000 | 0 | (58,336) | 0 |
Share-based compensation | 4,539 | 0 | 4,539 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 1,610 | 0 | 280 | 0 | 1,330 | 0 |
Common stock issued upon vesting of restricted shares | (3,291) | 0 | (4,017) | 0 | 726 | 0 |
Other | 53 | 0 | 33 | (7) | 27 | 0 |
Stockholders' Equity, end of period at Mar. 29, 2020 | 451,075 | 47,042 | 2,889,836 | 173,366 | (2,592,834) | (66,335) |
Stockholders' Equity, beginning of period at Dec. 29, 2019 | 516,359 | 47,042 | 2,874,001 | 185,725 | (2,536,581) | (53,828) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 79,098 | |||||
Other comprehensive income (loss) | (5,138) | |||||
Stockholders' Equity, end of period at Sep. 27, 2020 | 521,535 | 47,042 | 2,896,767 | 215,635 | (2,578,943) | (58,966) |
Stockholders' Equity, beginning of period at Mar. 29, 2020 | 451,075 | 47,042 | 2,889,836 | 173,366 | (2,592,834) | (66,335) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 24,904 | 0 | 0 | 24,904 | 0 | 0 |
Other comprehensive income (loss) | 4,149 | 0 | 0 | 0 | 0 | 4,149 |
Cash dividends | (11,181) | 0 | 0 | (11,181) | 0 | 0 |
Share-based compensation | 4,787 | 0 | 4,787 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 10,459 | 0 | (902) | 0 | 11,361 | 0 |
Common stock issued upon vesting of restricted shares | (268) | 0 | (1,041) | 0 | 773 | 0 |
Other | 58 | 0 | 19 | (3) | 42 | 0 |
Stockholders' Equity, end of period at Jun. 28, 2020 | 483,983 | 47,042 | 2,892,699 | 187,086 | (2,580,658) | (62,186) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 39,753 | 0 | 0 | 39,753 | 0 | 0 |
Other comprehensive income (loss) | 3,220 | 0 | 0 | 0 | 0 | 3,220 |
Cash dividends | (11,202) | 0 | 0 | (11,202) | 0 | 0 |
Repurchases of common stock | (1,708) | 0 | 0 | 0 | (1,708) | 0 |
Share-based compensation | 5,786 | 0 | 5,786 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 3,303 | 0 | 838 | 0 | 2,465 | 0 |
Common stock issued upon vesting of restricted shares | (1,682) | 0 | (2,600) | 0 | 918 | 0 |
Other | 82 | 0 | 44 | (2) | 40 | 0 |
Stockholders' Equity, end of period at Sep. 27, 2020 | 521,535 | 47,042 | 2,896,767 | 215,635 | (2,578,943) | (58,966) |
Stockholders' Equity, beginning of period at Jan. 03, 2021 | 549,596 | 47,042 | 2,899,276 | 238,674 | (2,585,755) | (49,641) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 41,366 | 0 | 0 | 41,366 | 0 | 0 |
Other comprehensive income (loss) | 2,220 | 0 | 0 | 0 | 0 | 2,220 |
Cash dividends | (20,156) | 0 | 0 | (20,156) | 0 | 0 |
Repurchases of common stock | (56,084) | 0 | 0 | 0 | (56,084) | 0 |
Share-based compensation | 5,151 | 0 | 5,151 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 663 | 0 | (20) | 0 | 683 | 0 |
Common stock issued upon vesting of restricted shares | (2,179) | 0 | (2,996) | 0 | 817 | 0 |
Other | 88 | 0 | 49 | (5) | 44 | 0 |
Stockholders' Equity, end of period at Apr. 04, 2021 | 520,665 | 47,042 | 2,901,460 | 259,879 | (2,640,295) | (47,421) |
Stockholders' Equity, beginning of period at Jan. 03, 2021 | 549,596 | 47,042 | 2,899,276 | 238,674 | (2,585,755) | (49,641) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 148,261 | |||||
Other comprehensive income (loss) | 908 | |||||
Stockholders' Equity, end of period at Oct. 03, 2021 | 542,754 | 47,042 | 2,911,552 | 317,956 | (2,685,063) | (48,733) |
Stockholders' Equity, beginning of period at Apr. 04, 2021 | 520,665 | 47,042 | 2,901,460 | 259,879 | (2,640,295) | (47,421) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 65,724 | 0 | 0 | 65,724 | 0 | 0 |
Other comprehensive income (loss) | 3,347 | 0 | 0 | 0 | 0 | 3,347 |
Cash dividends | (22,123) | 0 | 0 | (22,123) | 0 | 0 |
Repurchases of common stock | (27,291) | 0 | 0 | 0 | (27,291) | 0 |
Share-based compensation | 5,882 | 0 | 5,882 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 24,316 | 0 | 850 | 0 | 23,466 | 0 |
Common stock issued upon vesting of restricted shares | (245) | 0 | (959) | 0 | 714 | 0 |
Other | 81 | 0 | 41 | (5) | 45 | 0 |
Stockholders' Equity, end of period at Jul. 04, 2021 | 570,356 | 47,042 | 2,907,274 | 303,475 | (2,643,361) | (44,074) |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 41,171 | 0 | 0 | 41,171 | 0 | 0 |
Other comprehensive income (loss) | (4,659) | 0 | 0 | 0 | 0 | (4,659) |
Cash dividends | (26,684) | 0 | 0 | (26,684) | 0 | 0 |
Repurchases of common stock | (43,857) | 0 | 0 | 0 | (43,857) | 0 |
Share-based compensation | 5,702 | 0 | 5,702 | 0 | 0 | 0 |
Common stock issued upon exercises of stock options | 1,816 | 0 | 351 | 0 | 1,465 | 0 |
Common stock issued upon vesting of restricted shares | (1,193) | 0 | (1,835) | 0 | 642 | 0 |
Other | 102 | 0 | 60 | (6) | 48 | 0 |
Stockholders' Equity, end of period at Oct. 03, 2021 | $ 542,754 | $ 47,042 | $ 2,911,552 | $ 317,956 | $ (2,685,063) | $ (48,733) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 03, 2021USD ($) | Oct. 03, 2021USD ($) | Sep. 27, 2020USD ($) | |
Cash flows from operating activities: | |||
Net income | $ 41,171 | $ 148,261 | $ 79,098 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 30,940 | 93,243 | 98,726 |
Share-based compensation | 16,735 | 15,112 | |
Impairment of long-lived assets | 566 | 1,831 | 4,727 |
Deferred income tax | (25) | 5,878 | |
Non-cash rental expense, net | 28,421 | 19,967 | |
Change in operating lease liabilities | (34,220) | (29,539) | |
Net receipt of deferred vendor incentives | 1,906 | 5,061 | |
System optimization gains, net | (1,437) | (32,719) | (2,333) |
Distributions received from joint ventures, net of equity in earnings | 3,561 | 1,187 | |
Long-term debt-related activities, net | 23,043 | 4,866 | |
Changes in operating assets and liabilities and other, net | 26,636 | 3,009 | |
Net cash provided by operating activities | 276,673 | 205,759 | |
Cash flows from investing activities: | |||
Capital expenditures | (43,401) | (44,876) | |
Acquisitions | 4,879 | 0 | |
Dispositions | 52,657 | 3,570 | |
Proceeds from sale of investments | 0 | (169) | |
Notes receivable, net | 907 | 138 | |
Net cash provided by (used in) investing activities | 15,042 | (40,999) | |
Cash flows from financing activities: | |||
Proceeds from long-term debt | 1,100,000 | 153,315 | |
Repayments of long-term debt | (955,782) | (174,959) | |
Repayments of finance lease liabilities | (9,021) | (5,850) | |
Deferred financing costs | (20,873) | (2,122) | |
Repurchases of common stock | (125,656) | (46,667) | |
Dividends | (68,963) | (49,176) | |
Proceeds from stock option exercises | 27,204 | 15,540 | |
Payments related to tax withholding for share-based compensation | (4,390) | (5,409) | |
Net cash used in financing activities | (57,481) | (115,328) | |
Net cash provided by operations before effect of exchange rate changes on cash | 234,234 | 49,432 | |
Effect of exchange rate changes on cash | 177 | (1,715) | |
Net increase in cash, cash equivalents and restricted cash | 234,411 | 47,717 | |
Cash, cash equivalents and restricted cash at beginning of period | 418,241 | 358,707 | |
Cash, cash equivalents and restricted cash at end of period | 652,652 | 652,652 | 406,424 |
Supplemental non-cash investing and financing activities: | |||
Capital expenditures included in accounts payable | 4,363 | 4,789 | |
Finance leases | 43,277 | 24,617 | |
Reconciliation of cash, cash equivalents and restricted cash at end of period: | |||
Cash and cash equivalents | 571,502 | 571,502 | |
Restricted cash | 36,321 | 36,321 | |
Restricted cash, included in Advertising funds restricted assets | 44,829 | 44,829 | |
Total cash, cash equivalents and restricted cash | $ 652,652 | $ 652,652 | $ 406,424 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 03, 2021 | |
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 October 3, 2021, the results of our operations for the three and nine months ended October 3, 2021 and September 27, 2020 and cash flows for the nine months ended October 3, 2021 and September 27, 2020. The results of operations for the nine months ended October 3, 2021 are not necessarily indicative of the results to be expected for the full 2021 fiscal year. The 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 January 3, 2021 (the “Form 10-K”). On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic. We continue to monitor the dynamic nature of the COVID-19 pandemic on our business, results and financial condition; however, we cannot predict the ultimate duration, scope or severity of the COVID-19 pandemic or its ultimate impact on our results of operations, financial condition and prospects. The principal 100% owned subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business in the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. See Note 17 for further information. 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 nine-month periods presented herein contain 13 weeks and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods. Our significant interim accounting policies include the recognition of advertising funds expense in proportion to advertising funds revenue. |
Revenue (Notes)
Revenue (Notes) | 9 Months Ended |
Oct. 03, 2021 | |
Revenue [Abstract] | |
Revenue from Contract with Customer | Revenue Disaggregation of Revenue The following tables disaggregate revenue by segment and source: Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Three Months Ended October 3, 2021 Sales at Company-operated restaurants $ 169,961 $ 1,117 $ — $ 171,078 Franchise royalty revenue 102,603 13,918 — 116,521 Franchise fees (a) 19,759 1,144 1,331 22,234 Franchise rental income — — 62,446 62,446 Advertising funds revenue 91,481 6,495 — 97,976 Total revenues $ 383,804 $ 22,674 $ 63,777 $ 470,255 Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Nine Months Ended October 3, 2021 Sales at Company-operated restaurants $ 552,297 $ 1,363 $ — $ 553,660 Franchise royalty revenue 305,373 39,048 — 344,421 Franchise fees (a) 46,020 4,041 3,764 53,825 Franchise rental income — — 182,190 182,190 Advertising funds revenue 271,911 17,788 — 289,699 Total revenues $ 1,175,601 $ 62,240 $ 185,954 $ 1,423,795 Three Months Ended September 27, 2020 Sales at Company-operated restaurants $ 191,946 $ — $ — $ 191,946 Franchise royalty revenue 98,128 11,216 — 109,344 Franchise fees (a) 5,651 463 1,362 7,476 Franchise rental income — — 58,721 58,721 Advertising funds revenue 79,170 5,585 — 84,755 Total revenues $ 374,895 $ 17,264 $ 60,083 $ 452,242 Nine Months Ended September 27, 2020 Sales at Company-operated restaurants $ 522,961 $ — $ — $ 522,961 Franchise royalty revenue 271,082 30,809 — 301,891 Franchise fees (a) 16,244 1,369 2,141 19,754 Franchise rental income — — 173,434 173,434 Advertising funds revenue 226,907 14,561 — 241,468 Total revenues $ 1,037,194 $ 46,739 $ 175,575 $ 1,259,508 _______________ (a) Includes fees for providing information technology services to franchisees, which are recognized as revenue as earned. Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: October 3, January 3, 2021 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 46,747 $ 57,677 Receivables, which are included in “Advertising funds restricted assets” 57,222 63,252 Deferred franchise fees (c) 99,057 97,785 _______________ (a) Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations. (b) Includes receivables related to “Sales” and “Franchise royalty revenue and fees.” (c) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $8,971 and $90,086 as of October 3, 2021, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively. Significant changes in deferred franchise fees are as follows: Nine Months Ended October 3, September 27, Deferred franchise fees at beginning of period $ 97,785 $ 100,689 Revenue recognized during the period (14,001) (6,286) New deferrals due to cash received and other 15,273 3,642 Deferred franchise fees at end of period $ 99,057 $ 98,045 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: 2021 (a) $ 4,428 2022 6,293 2023 6,128 2024 5,938 2025 5,758 Thereafter 70,512 $ 99,057 _______________ (a) Represents franchise fees expected to be recognized for the remainder of 2021, which includes development-related franchise fees expected to be recognized over a duration of one year or less. |
Acquisitions (Notes)
Acquisitions (Notes) | 9 Months Ended |
Oct. 03, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions No restaurants were acquired from franchisees during the nine months ended October 3, 2021 and September 27, 2020. NPC Quality Burgers, Inc. (“NPC”) As previously announced, NPC, formerly the Company’s largest franchisee, filed for chapter 11 bankruptcy in July 2020 and commenced a process to sell all or substantially all of its assets, including its interest in approximately 393 Wendy’s restaurants across eight different markets, pursuant to a court-approved auction process. On November 18, 2020, the Company submitted a consortium bid together with a group of pre-qualified franchisees to acquire NPC’s Wendy’s restaurants. Under the terms of the consortium bid, several existing and new franchisees would have been the ultimate purchasers of seven of the NPC markets, while the Company would have acquired one market. As part of the consortium bid, the Company submitted a deposit of $43,240, which was included in “Prepaid expenses and other current assets” as of January 3, 2021. The deposit included $38,361 received from the group of prequalified franchisees, which was payable to the franchisees and included in “Accrued expenses and other current liabilities” as of January 3, 2021 pending resolution of the bankruptcy sale process. During the three months ended April 4, 2021, following a court-approved mediation process, NPC and certain affiliates of Flynn Restaurant Group (“FRG”) and the Company entered into separate asset purchase agreements under which all of NPC’s Wendy’s restaurants were sold to Wendy’s approved franchisees. Under the transaction, FRG acquired approximately half of NPC’s Wendy’s restaurants in four markets, while several existing Wendy’s franchisees that were part of the Company’s consortium bid acquired the other half of NPC’s Wendy’s restaurants in the other four markets. The Company did not acquire any restaurants as part of this transaction. In addition, the deposits outstanding as of January 3, 2021 were settled during the three months ended April 4, 2021 upon resolution of the bankruptcy sale process. The net settlement of deposits of $4,879 is included in “Acquisitions” in the condensed consolidated statements of cash flows. |
System Optimization Gains, Net
System Optimization Gains, Net | 9 Months Ended |
Oct. 03, 2021 | |
System Optimization | |
Property, Plant and Equipment | |
System Optimization Gains, Net | System Optimization Gains, 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 franchisee-to-franchisee restaurant transfers (“Franchise Flips”). As of January 1, 2017, the Company completed its plan to reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system. While the Company has no plans to reduce its ownership below the approximately 5% level, the Company expects to continue to optimize the Wendy’s 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, drive new restaurant development and accelerate reimages. During the nine months ended October 3, 2021 and September 27, 2020, the Company facilitated 34 and 22 Franchise Flips, respectively. In addition, during the nine months ended October 3, 2021, the Company completed the sale of 47 Company-operated restaurants in New York (including Manhattan) to franchisees. No Company-operated restaurants were sold to franchisees during the nine months ended September 27, 2020. Gains and losses recognized on dispositions are recorded to “System optimization gains, 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 Nine Months Ended October 3, September 27, October 3, September 27, Number of restaurants sold to franchisees — — 47 — Proceeds from sales of restaurants (a) $ — $ — $ 50,518 $ — Net assets sold (b) — — (16,939) — Goodwill related to sales of restaurants — — (4,847) — Net unfavorable leases (c) — — (2,939) — Gain on sales-type leases — — 7,156 — Other (d) — — (2,148) — — — 30,801 — Post-closing adjustments on sales of restaurants (e) 5 23 520 368 Gain on sales of restaurants, net 5 23 31,321 368 (Loss) gain on sales of other assets, net (f) 1,432 — 1,398 1,965 System optimization gains, net $ 1,437 $ 23 $ 32,719 $ 2,333 _______________ (a) In addition to the proceeds noted herein, the Company received cash proceeds of $26 during the three and nine months ended October 3, 2021 related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. (b) Net assets sold consist primarily of equipment. (c) During the nine months ended October 3, 2021, the Company recorded favorable lease assets of $3,799 and unfavorable lease liabilities of $6,738 as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with the sale of the New York Company-operated restaurants (including Manhattan). (d) The nine months ended October 3, 2021 include a deferred gain of $3,500 as a result of certain contingencies related to the extension of lease terms. (e) The nine months ended October 3, 2021 includes the recognition of deferred gains of $515 as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. The three and nine months ended September 27, 2020 represent the recognition of such deferred gains. (f) During the three and nine months ended October 3, 2021, the Company received net cash proceeds of $2,100 and $2,113, respectively, primarily from the sale of surplus and other properties. During the nine months ended September 27, 2020, the Company received net cash proceeds of $3,570, primarily from the sale of surplus and other properties. Assets Held for Sale October 3, January 3, Number of restaurants classified as held for sale — 43 Net restaurant assets held for sale (a) $ — $ 20,587 Other assets held for sale (b) $ 3,749 $ 1,732 _______________ (a) Net restaurant assets held for sale as of January 3, 2021 included New York Company-operated restaurants (excluding Manhattan) and consisted primarily of cash, inventory, property and an estimate of allocable goodwill. During the three months ended April 4, 2021, the Company also classified its four Manhattan restaurants as held for sale. (b) Other assets held for sale primarily consist of surplus properties. |
Reorganization and Realignment
Reorganization and Realignment Costs | 9 Months Ended |
Oct. 03, 2021 | |
Restructuring and Related Activities [Abstract] | |
Reorganization and Realignment Costs | Reorganization and Realignment Costs The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Operations and field realignment $ 74 $ 3,021 $ 1,563 $ 3,021 IT realignment (17) 403 (11) 6,809 G&A realignment (7) (49) (41) 282 System optimization initiative 295 — 5,870 84 Reorganization and realignment costs $ 345 $ 3,375 $ 7,381 $ 10,196 Operations and Field Realignment In September 2020, the Company initiated a plan to reallocate resources to better support the long-term growth strategies for Company and franchise operations (the “Operations and Field Realignment Plan”). The Operations and Field Realignment Plan realigned the Company’s restaurant operations team, including transitioning from separate leaders of Company and franchise operations to a single leader of all U.S. restaurant operations. The Operations and Field Realignment Plan also includes contract terminations, including the closure of certain field offices. The Company expects to incur total costs aggregating approximately $5,500 to $6,000 related to the Operations and Field Realignment Plan. During the nine months ended October 3, 2021, the Company recognized costs totaling $1,563, which primarily included third-party and other costs. During the three and nine months ended September 27, 2020, the Company recognized costs totaling $3,021, which included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating up to approximately $500, comprised primarily of third-party and other costs. The Company expects to recognize the majority of the remaining costs associated with the Operations and Field Realignment Plan during the remainder of 2021. The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs $ — $ 2,502 $ 333 $ 2,502 $ 3,446 Third-party and other costs 74 — 1,230 — 1,297 74 2,502 1,563 2,502 4,743 Share-based compensation (a) — 519 — 519 621 Total operations and field realignment $ 74 $ 3,021 $ 1,563 $ 3,021 $ 5,364 _______________ (a) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan. The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of October 3, 2021. Balance Charges Payments Balance Severance and related employee costs $ 2,600 $ 333 $ (2,377) $ 556 Third-party and other costs — 1,230 (1,230) — $ 2,600 $ 1,563 $ (3,607) $ 556 Balance Charges Payments Balance Severance and related employee costs $ — $ 2,502 $ — $ 2,502 Information Technology ( “ IT ”) Realignment In December 2019, our Board of Directors approved a plan to realign and reinvest resources in the Company’s IT organization to strengthen its ability to accelerate growth (the “IT Realignment Plan”). The Company has partnered with a third-party global IT consultant on this new structure to leverage their global capabilities, enabling a more seamless integration between its digital and corporate IT assets. The IT Realignment Plan has reduced certain employee compensation and other related costs that the Company has reinvested back into IT to drive additional capabilities and capacity across all of its technology platforms. Additionally, in June 2020, the Company made changes to its leadership structure that included the elimination of the Chief Digital Experience Officer position and the creation of a Chief Information Officer position, for which the Company completed the hiring process in October 2020. During the nine months ended September 27, 2020, the Company recognized costs totaling $6,809, which primarily included third-party and other costs and severance and related employee costs. The Company does not expect to incur any material additional costs under the IT Realignment Plan. The following is a summary of the activity recorded as a result of the IT Realignment Plan: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs (a) $ (32) $ 34 $ (151) $ 1,009 $ 8,240 Recruitment and relocation costs 12 345 133 659 1,429 Third-party and other costs 3 24 7 5,141 6,542 (17) 403 (11) 6,809 16,211 Share-based compensation (b) — — — — 193 Total IT realignment $ (17) $ 403 $ (11) $ 6,809 $ 16,404 _______________ (a) The three and nine months ended October 3, 2021 include a reversal of an accrual as a result of a change in estimate. (b) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the IT Realignment Plan. As of October 3, 2021, the accruals for the IT Realignment Plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the IT Realignment Plan were included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,739 and $178, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan. Balance Charges Payments Balance Severance and related employee costs $ 1,508 $ (151) $ (1,115) $ 242 Recruitment and relocation costs — 133 (133) — Third-party and other costs — 7 (7) — $ 1,508 $ (11) $ (1,255) $ 242 Balance Charges Payments Balance Severance and related employee costs $ 7,548 $ 1,009 $ (5,640) $ 2,917 Recruitment and relocation costs — 659 (659) — Third-party and other costs 1,076 5,141 (6,217) — $ 8,624 $ 6,809 $ (12,516) $ 2,917 General and Administrative ( “ G&A ”) Realignment In May 2017, the Company initiated a plan to further reduce its G&A expenses (the “G&A Realignment Plan”). Additionally, in May 2019, the Company announced changes to its management and operating structure that included the creation of two new positions, a President, U.S. and Chief Commercial Officer and a President, International and Chief Development Officer, and the elimination of the Chief Operations Officer position. During the nine months ended September 27, 2020, the Company recognized costs totaling $282, which primarily included share-based compensation. The Company does not expect to incur any material additional costs under the G&A Realignment Plan. The following is a summary of the activity recorded as a result of the G&A Realignment Plan: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs (a) $ (8) $ (116) $ (61) $ 30 $ 24,205 Recruitment and relocation costs 1 27 1 42 2,877 Third-party and other costs — 9 — 10 2,223 (7) (80) (60) 82 29,305 Share-based compensation (b) — 31 19 200 8,130 Termination of defined benefit plans — — — — 1,335 Total G&A realignment $ (7) $ (49) $ (41) $ 282 $ 38,770 _______________ (a) The three and nine months ended October 3, 2021 and September 27, 2020 include a reversal of an accrual as a result of a change in estimate. (b) 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 October 3, 2021, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled and $1,705 and $18, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan. Balance Charges Payments Balance Severance and related employee costs $ 932 $ (61) $ (828) $ 43 Recruitment and relocation costs — 1 (1) — Third-party and other costs — — — — $ 932 $ (60) $ (829) $ 43 Balance Charges Payments Balance Severance and related employee costs $ 5,276 $ 30 $ (3,627) $ 1,679 Recruitment and relocation costs 83 42 (81) 44 Third-party and other costs — 10 (10) — $ 5,359 $ 82 $ (3,718) $ 1,723 System Optimization Initiative The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During the nine months ended October 3, 2021, the Company recognized costs totaling $5,870, which were primarily comprised of the write-off of certain lease assets and lease termination fees associated with the NPC bankruptcy sale process. See Note 3 for further information. The Company expects to recognize a gain of approximately $1,000 related to the write-off of certain NPC-related lease liabilities upon final termination of the leases. The following is a summary of the costs recorded as a result of our system optimization initiative: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs $ — $ — $ 661 $ — $ 18,898 Professional fees 277 — 1,016 80 23,123 Other (a) — — 1,354 4 7,207 277 — 3,031 84 49,228 Accelerated depreciation and amortization (b) — — — — 25,398 NPC lease termination costs (c) 18 — 2,839 — 2,839 Share-based compensation (d) — — — — 5,013 Total system optimization initiative $ 295 $ — $ 5,870 $ 84 $ 82,478 _______________ (a) The nine months ended October 3, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process. (b) Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative. (c) The nine months ended October 3, 2021 includes the write-off of lease assets of $1,359 and lease termination fees paid of $1,480. (d) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. The table below presents a rollforward of our accruals for our system optimization initiative, which were included in “Accrued expenses and other current liabilities” as of January 3, 2021. Balance Charges Payments Balance Severance and related employee costs $ — $ 661 $ (661) $ — Professional fees 1,230 1,016 (2,246) — Other — 1,354 (1,354) — $ 1,230 $ 3,031 $ (4,261) $ — |
Investments
Investments | 9 Months Ended |
Oct. 03, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment | (6) Investments Equity Method 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: Nine Months Ended October 3, September 27, Balance at beginning of period $ 44,574 $ 45,310 Equity in earnings for the period 8,005 6,113 Amortization of purchase price adjustments (a) (2,392) (1,671) 5,613 4,442 Distributions received (9,174) (5,629) Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other 343 (701) Balance at end of period $ 41,356 $ 43,422 _______________ (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) | 9 Months Ended |
Oct. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: October 3, January 3, Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 $ 448,875 $ — 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 648,375 — Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 373,000 386,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 419,625 434,250 Series 2018-1 Class A-2 Notes: 3.573% Series 2018-1 Class A-2-I Notes, repaid in connection with the June 2021 refinancing — 436,500 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 457,188 460,750 Series 2015-1 Class A-2 Notes: 4.497% Series 2015-1 Class A-2-III Notes, repaid in connection with the June 2021 refinancing — 473,750 Canadian revolving credit facility — 1,962 7% debentures, due in 2025 84,880 83,998 Unamortized debt issuance costs (38,430) (30,085) 2,393,513 2,247,125 Less amounts payable within one year (32,750) (28,962) Total long-term debt $ 2,360,763 $ 2,218,163 Senior Notes Wendy’s Funding, LLC, a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of The Wendy’s Company, is the master issuer (the “Master Issuer”) of outstanding senior secured notes under a securitized financing facility that was entered into in June 2015. In June 2021, the Master Issuer completed a refinancing transaction with respect to this facility under which the Master Issuer issued fixed rate senior secured notes in the following 2021-1 series: Class A-2-I with an initial principal amount of $450,000 and Class A-2-II with an initial principal amount of $650,000 (collectively, the “Series 2021-1 Class A-2 Notes”). Interest and principal payments on the Series 2021-1 Class A-2 Notes are payable on a quarterly basis. The legal final maturity date of the Series 2021-1 Class A-2 Notes is in June 2051. If the Master Issuer has not repaid or refinanced the Series 2021-1 Class A-2 Notes prior to their respective anticipated repayment dates, additional interest will accrue pursuant to the indenture governing the Series 2021-1 Class A-2 Notes. The net proceeds from the sale of the Series 2021-1 Class A-2 Notes were used to repay in full the Master Issuer’s outstanding Series 2015-1 Class A-2-III Notes and Series 2018-1 Class A-2-I Notes, including the payment of prepayment and transaction costs. The remaining funds will be used for general corporate purposes, which may include funding for growth initiatives, return of capital to shareholders, or additional debt retirement. As a result of the refinancing, the Company recorded a loss on early extinguishment of debt of $17,917 during the nine months ended October 3, 2021, which was comprised of a specified make-whole payment of $9,632 and the write-off of certain unamortized deferred financing costs of $8,285. The Series 2021-1 Class A-2 Notes have scheduled principal payments of $5,500 in 2021 (of which $2,750 was paid during the three months ended October 3, 2021), $11,000 annually from 2022 through 2028, $422,750 in 2029, $6,500 in 2030 and $588,250 in 2031. In connection with the issuance of the Series 2021-1 Class A-2 Notes, the Master Issuer also entered into a revolving financing facility of Series 2021-1 Variable Funding Senior Secured Notes, Class A-1 (the “Series 2021-1 Class A-1 Notes” and, together with the Series 2021-1 Class A-2 Notes, the “Series 2021-1 Senior Notes”), which allows for the drawing of up to $300,000 on a revolving basis using various credit instruments, including a letter of credit facility. No amounts were borrowed under the Series 2021-1 Class A-1 Notes during the nine months ended October 3, 2021. The Series 2021-1 Class A-1 Notes replaced the Company’s $150,000 Series 2019-1 Class A-1 Notes and $100,000 Series 2020-1 Class A-1 Notes, which were canceled on the closing date, and the letters of credit outstanding against the Series 2019-1 Class A-1 Notes were transferred to the Series 2021-1 Class A-1 Notes. The Series 2021-1 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, except for certain real estate assets and subject to certain limitations. The Series 2021-1 Senior Notes are subject to substantially the same series of covenants and restrictions as the Company’s outstanding Series 2019-1 Class A-2 Notes and Series 2018-1 Class A-2 Notes. During the nine months ended October 3, 2021, the Company incurred debt issuance costs of $20,873 in connection with the issuance of the Series 2021-1 Senior Notes. The debt issuance costs will be amortized to “Interest expense, net” through the anticipated repayment dates of the Series 2021-1 Senior Notes utilizing the effective interest rate method. Other Long-Term Debt A Canadian subsidiary of Wendy’s has a revolving credit facility of C$6,000, which bears interest at the Bank of Montreal Prime Rate. Borrowings under the facility are guaranteed by Wendy’s. In March 2020, the Company drew down C$5,500 under the revolving credit facility, which the Company fully repaid through repayments of C$3,000 in the fourth quarter of 2020 and C$2,500 in the first quarter of 2021. As a result, as of October 3, 2021, the Company had no outstanding borrowings under the Canadian revolving credit facility. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Oct. 03, 2021 | |
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: October 3, January 3, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 125,042 $ 125,042 $ 75,067 $ 75,067 Level 1 Financial liabilities Series 2021-1 Class A-2-I Notes (a) 448,875 454,441 — — Level 2 Series 2021-1 Class A-2-II Notes (a) 648,375 663,806 — — Level 2 Series 2019-1 Class A-2-I Notes (a) 373,000 395,641 386,000 409,778 Level 2 Series 2019-1 Class A-2-II Notes (a) 419,625 454,874 434,250 469,555 Level 2 Series 2018-1 Class A-2-I Notes (a) — — 436,500 450,381 Level 2 Series 2018-1 Class A-2-II Notes (a) 457,188 486,037 460,750 491,021 Level 2 Series 2015-1 Class A-2-III Notes (a) — — 473,750 481,851 Level 2 Canadian revolving credit facility — — 1,962 1,962 Level 2 7% debentures, due in 2025 (a) 84,880 100,800 83,998 98,775 Level 2 _______________ (a) The fair values were based on quoted market prices in markets that are not considered active markets. The carrying amounts of cash, accounts payable and accrued expenses approximate 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) approximate fair value due to the effect of the related allowance for doubtful accounts. Our cash equivalents are the only financial assets 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, favorable lease assets and right-of-use 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, including any subsequent lease modifications. The fair values of long-lived assets held and used presented in the tables below represent the remaining carrying value and were estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future anticipated Company-operated restaurant performance. Total impairment losses may also include the impact of remeasuring long-lived assets held for sale. The fair values of long-lived assets held for sale presented in the tables below represent 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 October 3, Level 1 Level 2 Level 3 Held and used $ 1,256 $ — $ — $ 1,256 Held for sale 340 — — 340 Total $ 1,596 $ — $ — $ 1,596 Fair Value Measurements January 3, Level 1 Level 2 Level 3 Held and used $ 2,653 $ — $ — $ 2,653 Held for sale 855 — — 855 Total $ 3,508 $ — $ — $ 3,508 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 9 Months Ended |
Oct. 03, 2021 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company records impairment charges as a result of (1) the deterioration in operating performance of certain Company-operated restaurants, (2) the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of Company-operated restaurants, including any subsequent lease modifications, and (3) closing Company-operated restaurants and classifying such surplus properties as held for sale. Impairment charges during the nine months ended September 27, 2020 were primarily due to the expected deterioration in operating performance of certain Company-operated restaurants as a result of the COVID-19 pandemic. 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 Nine Months Ended October 3, September 27, October 3, September 27, Company-operated restaurants $ 566 $ — $ 1,500 $ 4,395 Restaurants leased or subleased to franchisees — — 189 — Surplus properties — 23 142 332 $ 566 $ 23 $ 1,831 $ 4,727 |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 03, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the three months ended October 3, 2021 and September 27, 2020 was 24.3% and 24.2%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the three months ended October 3, 2021 primarily due to state income taxes, partially offset by a benefit related to the filing of our 2020 federal income tax return. The Company’s effective tax rate for the nine months ended October 3, 2021 and September 27, 2020 was 21.8% and 24.8%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the nine months ended October 3, 2021 primarily due to state income taxes, including discrete changes to state deferred taxes, partially offset by the tax benefit from share-based compensation. Unrecognized tax benefits for the Company decreased $1,874 and $2,019 during the three and nine months ended October 3, 2021, respectively. The decrease was primarily related to settlements with various taxing jurisdictions. During the next twelve months, we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $66 due primarily to the lapse of statutes of limitations and expected settlements. The current portion of refundable income taxes was $1,813 and $5,399 as of October 3, 2021 and January 3, 2021, respectively, and is included in “Accounts and notes receivable, net.” There were no long-term refundable income taxes as of October 3, 2021 and January 3, 2021. |
Net Income Per Share
Net Income Per Share | 9 Months Ended |
Oct. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share The calculation of basic and diluted net income per share was as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income $ 41,171 $ 39,753 $ 148,261 $ 79,098 Common stock: Weighted average basic shares outstanding 222,373 223,907 222,527 223,521 Dilutive effect of stock options and restricted shares 2,685 4,410 3,201 4,312 Weighted average diluted shares outstanding 225,058 228,317 225,728 227,833 Net income per share: Basic $ .19 $ .18 $ .67 $ .35 Diluted $ .18 $ .17 $ .66 $ .35 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Dividends During the first, second and third quarter of 2021, the Company paid dividends per share of $.09, $.10 and $.12, respectively. During the first, second and third quarter of 2020, the Company paid dividends per share of $.12, $.05 and $.05, respectively. Repurchases of Common Stock In February 2020, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through February 28, 2021, when and if market conditions warranted and to the extent legally permissible (the “February 2020 authorization”). As previously announced, beginning in March 2020, the Company temporarily suspended all share repurchase activity under the February 2020 authorization in connection with the Company’s response to the COVID-19 pandemic. In July 2020, the Company’s Board of Directors approved an extension of the February 2020 authorization by one year, through February 28, 2022, when and if market and economic conditions warrant and to the extent legally permissible. The Company resumed share repurchases in August 2020. In addition, in May 2021 and August 2021, the Board of Directors approved increases of $50,000 and $70,000, respectively, to the February 2020 authorization, resulting in an aggregate authorization of $220,000 that continues to expire on February 28, 2022. During the nine months ended October 3, 2021, the Company repurchased 5,876 shares under the February 2020 authorization with an aggregate purchase price of $127,150, of which $2,299 was accrued at October 3, 2021, and excluding commissions of $82. As of October 3, 2021, the Company had $60,566 of availability remaining under the February 2020 authorization. Subsequent to October 3, 2021 through November 3, 2021, the Company repurchased 697 shares under the February 2020 authorization with an aggregate purchase price of $15,494, excluding commissions of $10. In addition, in November 2021, the Board of Directors approved an increase of $80,000 to the February 2020 authorization, resulting in an aggregate authorization of $300,000 that continues to expire on February 28, 2022. The Company also announced in November 2021 its intention to launch a $125,000 accelerated share repurchase transaction during the fourth quarter of 2021 as part of the February 2020 authorization. The Company has availability of $125,072 remaining under the February 2020 authorization as of November 10, 2021. In February 2019, our Board of Directors authorized a repurchase program for up to $225,000 of our common stock through March 1, 2020, when and if market conditions warranted and to the extent legally permissible (the February 2019 authorization”). In November 2019, the Company entered into an accelerated share repurchase agreement (the “2019 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the February 2019 authorization. Under the 2019 ASR Agreement, the Company paid the financial institution an initial purchase price of $100,000 in cash and received an initial delivery of 4,051 shares of common stock, representing an estimated 85% of the total shares expected to be delivered under the 2019 ASR Agreement. In February 2020, the Company completed the 2019 ASR Agreement and received an additional 628 shares of common stock at an average purchase price of $23.89. The total number of shares of common stock ultimately purchased by the Company under the 2019 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2019 ASR Agreement, less an agreed upon discount. In total, 4,679 shares were delivered under the 2019 ASR Agreement at an average purchase price of $21.37 per share. In addition to the shares repurchased in connection with the 2019 ASR Agreement, during the nine months ended September 27, 2020, the Company repurchased 2,172 shares with an aggregate purchase price of $45,014, excluding commissions of $30, under the February 2020 authorization and the February 2019 authorization. After taking into consideration these repurchases, with the completion of the 2019 ASR Agreement in February 2020, the Company completed the February 2019 authorization. Accumulated Other Comprehensive Loss The following table provides a rollforward of accumulated other comprehensive loss: Nine Months Ended October 3, September 27, Balance at beginning of period $ (49,641) $ (53,828) Foreign currency translation 908 (5,138) Balance at end of period $ (48,733) $ (58,966) |
Leases
Leases | 9 Months Ended |
Oct. 03, 2021 | |
Leases [Abstract] | |
Leases, Company as Lessee | Leases Nature of Leases The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. At October 3, 2021, Wendy’s and its franchisees operated 6,891 Wendy’s restaurants. Of the 313 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 136 restaurants, owned the building and held long-term land leases for 117 restaurants and held leases covering the land and building for 60 restaurants. Wendy’s also owned 510 and leased 1,275 properties that were either leased or subleased principally to franchisees. The Company also leases restaurant, office and transportation equipment. Company as Lessee The components of lease cost are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Finance lease cost: Amortization of finance lease assets $ 3,543 $ 3,471 $ 10,302 $ 9,995 Interest on finance lease liabilities 10,371 10,244 30,931 30,462 13,914 13,715 41,233 40,457 Operating lease cost 22,388 23,170 68,761 68,304 Variable lease cost (a) 16,635 15,548 48,406 43,766 Short-term lease cost 1,125 1,006 3,721 3,327 Total operating lease cost (b) 40,148 39,724 120,888 115,397 Total lease cost $ 54,062 $ 53,439 $ 162,121 $ 155,854 _______________ (a) Includes expenses for executory costs of $10,016 and $9,326 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,166 and $28,526 for the nine months ended October 3, 2021 and September 27, 2020, respectively, for which the Company is reimbursed by sublessees. (b) Includes $34,396 and $32,421 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $101,011 and $92,975 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $5,213 and $6,651 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $18,005 and $20,315 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants. The following table includes supplemental cash flow and non-cash information related to leases: Nine Months Ended October 3, September 27, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 31,608 $ 28,689 Operating cash flows from operating leases 69,476 62,026 Financing cash flows from finance leases 9,021 5,850 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 43,277 24,617 Operating lease liabilities 11,404 12,149 The following table includes supplemental information related to leases: October 3, January 3, Weighted-average remaining lease term (years): Finance leases 15.8 16.2 Operating leases 14.2 14.6 Weighted average discount rate: Finance leases 9.19 % 9.54 % Operating leases 5.01 % 5.06 % Supplemental balance sheet information: Finance lease assets, gross $ 271,075 $ 261,308 Accumulated amortization (60,415) (55,155) Finance lease assets 210,660 206,153 Operating lease assets 783,986 821,480 The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021: Finance Operating Fiscal Year Company-Operated Franchise Company-Operated Franchise 2021 (a) (b) $ 1,398 $ 13,934 $ 3,504 $ 18,313 2022 3,699 51,912 14,412 73,572 2023 3,644 53,569 14,726 73,226 2024 3,712 54,001 14,738 73,145 2025 3,787 54,496 14,633 72,829 Thereafter 46,140 682,798 141,258 732,276 Total minimum payments $ 62,380 $ 910,710 $ 203,271 $ 1,043,361 Less interest (22,694) (405,706) (58,455) (312,148) Present value of minimum lease payments (c) (d) $ 39,686 $ 505,004 $ 144,816 $ 731,213 _______________ (a) Represents future minimum rental payments for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.” (c) The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (d) The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively. |
Leases, Company as Lessor | Company as Lessor The components of lease income are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Sales-type and direct-financing leases: Selling profit $ 705 $ 182 $ 4,244 $ 1,379 Interest income (a) 7,786 7,296 22,861 21,804 Operating lease income 45,834 43,510 134,312 130,514 Variable lease income 16,612 15,211 47,878 42,920 Franchise rental income (b) $ 62,446 $ 58,721 $ 182,190 $ 173,434 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $46,102 and $43,122 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $134,597 and $126,653 for the nine months ended October 3, 2021 and September 27, 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,087 and $9,379 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,156 and $28,538 for the nine months ended October 3, 2021 and September 27, 2020, respectively. The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021: Sales-Type and Operating Fiscal Year Subleases Owned Properties Subleases Owned Properties 2021 (a) (b) $ 8,409 $ 1,407 $ 28,841 $ 13,942 2022 34,188 2,610 116,068 56,305 2023 35,247 2,656 116,795 56,614 2024 37,248 2,667 116,962 57,720 2025 36,149 2,784 116,443 58,323 Thereafter 479,695 32,057 1,172,444 748,781 Total future minimum receipts 630,936 44,181 $ 1,667,553 $ 991,685 Unearned interest income (341,031) (21,892) Net investment in sales-type and direct financing leases (c) $ 289,905 $ 22,289 _______________ (a) Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.” (c) The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535. Properties owned by the Company and leased to franchisees and other third parties under operating leases include: October 3, January 3, Land $ 280,767 $ 279,956 Buildings and improvements 307,593 309,605 Restaurant equipment 1,701 1,701 590,061 591,262 Accumulated depreciation and amortization (179,439) (170,722) $ 410,622 $ 420,540 |
Transactions with Related Parti
Transactions with Related Parties | 9 Months Ended |
Oct. 03, 2021 | |
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, which are then subleased to franchisees for the operation of Wendy’s/Tim Hortons combo units in Canada. During the nine months ended October 3, 2021 and September 27, 2020, Wendy’s paid TimWen $13,994 and $11,970, respectively, under these lease agreements. In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $165 and $152 during the nine months ended October 3, 2021 and September 27, 2020, respectively, which has been included as a reduction to “General and administrative.” Transactions with Yellow Cab Certain family members and affiliates of Mr. Nelson Peltz, our Chairman, and Mr. Peter May, our Vice Chairman, as well as Mr. Matthew Peltz, a director of the Company, hold indirect, minority ownership interests in operating companies managed by Yellow Cab Holdings, LLC (“Yellow Cab”), a Wendy’s franchisee, that as of October 3, 2021 owned and operated 78 Wendy’s restaurants (including Wendy’s restaurants acquired from NPC during the first quarter of 2021 as described below). During the nine months ended October 3, 2021, the Company recognized $7,016 in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of October 3, 2021, $866 was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.” In November 2020, the Company submitted a consortium bid together with a group of pre-qualified franchisees (of which Yellow Cab was a member) to acquire the Wendy’s restaurants owned by NPC, the Company’s largest franchisee, which filed for chapter 11 bankruptcy in July 2020. As part of the consortium bid, in November 2020, the Company received deposits from each of the pre-qualified franchisees (including Yellow Cab), which amounts were transferred to a third-party escrow account pending resolution of the bankruptcy sale process. On January 7, 2021, following a court-approved mediation process, Yellow Cab was selected as the purchaser for 54 of NPC’s Wendy’s restaurants. In March 2021, Yellow Cab closed on its acquisition of these restaurants and its deposit was applied against the purchase price for the restaurants. See Note 3 for further information. |
Guarantees and Other Commitment
Guarantees and Other Commitments and Contingencies | 9 Months Ended |
Oct. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees and Other Commitments and Contingencies | Guarantees and Other Commitments and Contingencies Except as described below, 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. 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 $89,574 as of October 3, 2021. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of October 3, 2021. In the event of default by a franchise owner, Wendy’s generally retains the right to acquire possession of the related restaurant locations. The liability recorded for our probable exposure associated with these lease guarantees was not material as of October 3, 2021. Letters of Credit As of October 3, 2021, the Company had outstanding letters of credit with various parties totaling $23,569. Substantially all of the outstanding letters of credit include amounts outstanding against the 2021-1 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 | 9 Months Ended |
Oct. 03, 2021 | |
Loss Contingency [Abstract] | |
Legal and Environmental Matters | Legal and Environmental Matters The Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when payment is probable and reasonably estimable. We believe we have adequate accruals for all of our legal and environmental matters. We cannot estimate the aggregate possible range of loss for our existing litigation and claims for various reasons, including, but not limited to, many proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur and/or 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 and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period. We previously described certain legal proceedings in the Form 10-K. Except as set forth below, there were no material developments in those legal proceedings as of October 3, 2021. In a Form 8-K filed with the Securities and Exchange Commission on June 28, 2021 (the “Form 8-K”), the Company provided an update on the proposed settlement of the previously-disclosed shareholder derivative action arising out of the criminal cyberattacks that targeted the point of sale systems of certain Wendy’s franchisees in 2015 and 2016 (the “Derivative Lawsuit”). As described in the Form 8-K, on February 14, 2019, the Company entered into a Stipulation and Agreement of Settlement (the “Settlement”) to resolve the Derivative Lawsuit. On January 24, 2020, the United States District Court for the Southern District of Ohio (the “Court”) issued an order granting preliminary approval of the Settlement, which consists of certain corporate governance undertakings and the payment of plaintiffs’ attorneys’ fees and expenses up to $950 (covered by applicable insurance). On September 15, 2021, the Court issued an order granting final approval of the Settlement, with the final judgment entered on September 24, 2021. On October 20, 2021, Thomas Caracci, one of the plaintiffs in the matter, filed a Notice of Appeal. |
Segment Information (Notes)
Segment Information (Notes) | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Revenues by segment were as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Wendy’s U.S. $ 383,804 $ 374,895 $ 1,175,601 $ 1,037,194 Wendy’s International 22,674 17,264 62,240 46,739 Global Real Estate & Development 63,777 60,083 185,954 175,575 Total revenues $ 470,255 $ 452,242 $ 1,423,795 $ 1,259,508 The following table reconciles profit by segment to the Company’s consolidated income before income taxes: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Wendy’s U.S. (a) $ 108,878 $ 108,297 $ 347,615 $ 283,261 Wendy’s International 6,949 6,567 21,161 15,256 Global Real Estate & Development 27,027 25,340 79,849 75,541 Total segment profit $ 142,854 $ 140,204 $ 448,625 $ 374,058 Unallocated franchise support and other costs (70) — (70) — Advertising funds deficit (1,574) (1,140) (4,440) (3,547) Unallocated general and administrative (b) (30,744) (21,424) (84,715) (68,594) Depreciation and amortization (30,940) (32,966) (93,243) (98,726) System optimization gains, net 1,437 23 32,719 2,333 Reorganization and realignment costs (345) (3,375) (7,381) (10,196) Impairment of long-lived assets (566) (23) (1,831) (4,727) Unallocated other operating income, net 143 49 399 140 Interest expense, net (26,000) (29,086) (82,990) (86,696) Loss on early extinguishment of debt — — (17,917) — Other income, net 171 181 461 1,113 Income before income taxes $ 54,366 $ 52,443 $ 189,617 $ 105,158 _______________ (a) Includes advertising funds expense of $8,979 and $16,503 for the three and nine months ended October 3, 2021, respectively, and $6,153 and $8,338 for the three and nine months ended September 27, 2020, respectively, related to the Company funding of incremental advertising. |
New Accounting Standards
New Accounting Standards | 9 Months Ended |
Oct. 03, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
New Accounting Standards | New Accounting StandardsIn July 2021, the Financial Accounting Standards Board issued an amendment that addresses an issue related to a lessor’s accounting for certain leases with variable lease payments that could result in the recognition of a selling loss at lease commencement even if the lessor expects the arrangement to be profitable overall. The amendment specifies lessors should classify and account for such a lease with variable lease payments as an operating lease, dependent upon meeting certain criteria, for which a selling profit or loss is not recognized. The Company early adopted this amendment during the three months ended October 3, 2021 by applying the guidance prospectively to leases that commence or are modified on or after the date of adoption. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Revenue [Abstract] | |
Disaggregation of Revenue | The following tables disaggregate revenue by segment and source: Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Three Months Ended October 3, 2021 Sales at Company-operated restaurants $ 169,961 $ 1,117 $ — $ 171,078 Franchise royalty revenue 102,603 13,918 — 116,521 Franchise fees (a) 19,759 1,144 1,331 22,234 Franchise rental income — — 62,446 62,446 Advertising funds revenue 91,481 6,495 — 97,976 Total revenues $ 383,804 $ 22,674 $ 63,777 $ 470,255 Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Nine Months Ended October 3, 2021 Sales at Company-operated restaurants $ 552,297 $ 1,363 $ — $ 553,660 Franchise royalty revenue 305,373 39,048 — 344,421 Franchise fees (a) 46,020 4,041 3,764 53,825 Franchise rental income — — 182,190 182,190 Advertising funds revenue 271,911 17,788 — 289,699 Total revenues $ 1,175,601 $ 62,240 $ 185,954 $ 1,423,795 Three Months Ended September 27, 2020 Sales at Company-operated restaurants $ 191,946 $ — $ — $ 191,946 Franchise royalty revenue 98,128 11,216 — 109,344 Franchise fees (a) 5,651 463 1,362 7,476 Franchise rental income — — 58,721 58,721 Advertising funds revenue 79,170 5,585 — 84,755 Total revenues $ 374,895 $ 17,264 $ 60,083 $ 452,242 Nine Months Ended September 27, 2020 Sales at Company-operated restaurants $ 522,961 $ — $ — $ 522,961 Franchise royalty revenue 271,082 30,809 — 301,891 Franchise fees (a) 16,244 1,369 2,141 19,754 Franchise rental income — — 173,434 173,434 Advertising funds revenue 226,907 14,561 — 241,468 Total revenues $ 1,037,194 $ 46,739 $ 175,575 $ 1,259,508 _______________ (a) Includes fees for providing information technology services to franchisees, which are recognized as revenue as earned. |
Contract balances, assets and liabilities | The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: October 3, January 3, 2021 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 46,747 $ 57,677 Receivables, which are included in “Advertising funds restricted assets” 57,222 63,252 Deferred franchise fees (c) 99,057 97,785 _______________ (a) Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations. (b) Includes receivables related to “Sales” and “Franchise royalty revenue and fees.” (c) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $8,971 and $90,086 as of October 3, 2021, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively. |
Deferred franchise fee rollforward | Significant changes in deferred franchise fees are as follows: Nine Months Ended October 3, September 27, Deferred franchise fees at beginning of period $ 97,785 $ 100,689 Revenue recognized during the period (14,001) (6,286) New deferrals due to cash received and other 15,273 3,642 Deferred franchise fees at end of period $ 99,057 $ 98,045 |
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: 2021 (a) $ 4,428 2022 6,293 2023 6,128 2024 5,938 2025 5,758 Thereafter 70,512 $ 99,057 _______________ (a) Represents franchise fees expected to be recognized for the remainder of 2021, which includes development-related franchise fees expected to be recognized over a duration of one year or less. |
System Optimization Gains, Net
System Optimization Gains, Net (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
System optimization gains, 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 Nine Months Ended October 3, September 27, October 3, September 27, Number of restaurants sold to franchisees — — 47 — Proceeds from sales of restaurants (a) $ — $ — $ 50,518 $ — Net assets sold (b) — — (16,939) — Goodwill related to sales of restaurants — — (4,847) — Net unfavorable leases (c) — — (2,939) — Gain on sales-type leases — — 7,156 — Other (d) — — (2,148) — — — 30,801 — Post-closing adjustments on sales of restaurants (e) 5 23 520 368 Gain on sales of restaurants, net 5 23 31,321 368 (Loss) gain on sales of other assets, net (f) 1,432 — 1,398 1,965 System optimization gains, net $ 1,437 $ 23 $ 32,719 $ 2,333 _______________ (a) In addition to the proceeds noted herein, the Company received cash proceeds of $26 during the three and nine months ended October 3, 2021 related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. (b) Net assets sold consist primarily of equipment. (c) During the nine months ended October 3, 2021, the Company recorded favorable lease assets of $3,799 and unfavorable lease liabilities of $6,738 as a result of leasing and/or subleasing land, buildings, and/or leasehold improvements to franchisees, in connection with the sale of the New York Company-operated restaurants (including Manhattan). (d) The nine months ended October 3, 2021 include a deferred gain of $3,500 as a result of certain contingencies related to the extension of lease terms. (e) The nine months ended October 3, 2021 includes the recognition of deferred gains of $515 as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. The three and nine months ended September 27, 2020 represent the recognition of such deferred gains. (f) During the three and nine months ended October 3, 2021, the Company received net cash proceeds of $2,100 and $2,113, respectively, primarily from the sale of surplus and other properties. During the nine months ended September 27, 2020, the Company received net cash proceeds of $3,570, primarily from the sale of surplus and other properties. |
Assets Held for Sale | October 3, January 3, Number of restaurants classified as held for sale — 43 Net restaurant assets held for sale (a) $ — $ 20,587 Other assets held for sale (b) $ 3,749 $ 1,732 _______________ (a) Net restaurant assets held for sale as of January 3, 2021 included New York Company-operated restaurants (excluding Manhattan) and consisted primarily of cash, inventory, property and an estimate of allocable goodwill. During the three months ended April 4, 2021, the Company also classified its four Manhattan restaurants as held for sale. (b) Other assets held for sale primarily consist of surplus properties. |
Reorganization and Realignmen_2
Reorganization and Realignment Costs (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
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 Nine Months Ended October 3, September 27, October 3, September 27, Operations and field realignment $ 74 $ 3,021 $ 1,563 $ 3,021 IT realignment (17) 403 (11) 6,809 G&A realignment (7) (49) (41) 282 System optimization initiative 295 — 5,870 84 Reorganization and realignment costs $ 345 $ 3,375 $ 7,381 $ 10,196 |
Operations and Field Realignment | |
Restructuring Cost and Reserve | |
Restructuring and Related Costs | The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs $ — $ 2,502 $ 333 $ 2,502 $ 3,446 Third-party and other costs 74 — 1,230 — 1,297 74 2,502 1,563 2,502 4,743 Share-based compensation (a) — 519 — 519 621 Total operations and field realignment $ 74 $ 3,021 $ 1,563 $ 3,021 $ 5,364 _______________ (a) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan. |
Schedule of Restructuring Reserve by Type of Cost | The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of October 3, 2021. Balance Charges Payments Balance Severance and related employee costs $ 2,600 $ 333 $ (2,377) $ 556 Third-party and other costs — 1,230 (1,230) — $ 2,600 $ 1,563 $ (3,607) $ 556 Balance Charges Payments Balance Severance and related employee costs $ — $ 2,502 $ — $ 2,502 |
IT Realignment | |
Restructuring Cost and Reserve | |
Restructuring and Related Costs | The following is a summary of the activity recorded as a result of the IT Realignment Plan: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs (a) $ (32) $ 34 $ (151) $ 1,009 $ 8,240 Recruitment and relocation costs 12 345 133 659 1,429 Third-party and other costs 3 24 7 5,141 6,542 (17) 403 (11) 6,809 16,211 Share-based compensation (b) — — — — 193 Total IT realignment $ (17) $ 403 $ (11) $ 6,809 $ 16,404 _______________ (a) The three and nine months ended October 3, 2021 include a reversal of an accrual as a result of a change in estimate. (b) Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the IT Realignment Plan. |
Schedule of Restructuring Reserve by Type of Cost | As of October 3, 2021, the accruals for the IT Realignment Plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the IT Realignment Plan were included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $2,739 and $178, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan. Balance Charges Payments Balance Severance and related employee costs $ 1,508 $ (151) $ (1,115) $ 242 Recruitment and relocation costs — 133 (133) — Third-party and other costs — 7 (7) — $ 1,508 $ (11) $ (1,255) $ 242 Balance Charges Payments Balance Severance and related employee costs $ 7,548 $ 1,009 $ (5,640) $ 2,917 Recruitment and relocation costs — 659 (659) — Third-party and other costs 1,076 5,141 (6,217) — $ 8,624 $ 6,809 $ (12,516) $ 2,917 |
G&A Realignment | |
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 Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs (a) $ (8) $ (116) $ (61) $ 30 $ 24,205 Recruitment and relocation costs 1 27 1 42 2,877 Third-party and other costs — 9 — 10 2,223 (7) (80) (60) 82 29,305 Share-based compensation (b) — 31 19 200 8,130 Termination of defined benefit plans — — — — 1,335 Total G&A realignment $ (7) $ (49) $ (41) $ 282 $ 38,770 _______________ (a) The three and nine months ended October 3, 2021 and September 27, 2020 include a reversal of an accrual as a result of a change in estimate. (b) 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 October 3, 2021, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities.” As of September 27, 2020, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled and $1,705 and $18, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan. Balance Charges Payments Balance Severance and related employee costs $ 932 $ (61) $ (828) $ 43 Recruitment and relocation costs — 1 (1) — Third-party and other costs — — — — $ 932 $ (60) $ (829) $ 43 Balance Charges Payments Balance Severance and related employee costs $ 5,276 $ 30 $ (3,627) $ 1,679 Recruitment and relocation costs 83 42 (81) 44 Third-party and other costs — 10 (10) — $ 5,359 $ 82 $ (3,718) $ 1,723 |
System Optimization Initiative | |
Restructuring Cost and Reserve | |
Restructuring and Related Costs | The following is a summary of the costs recorded as a result of our system optimization initiative: Three Months Ended Nine Months Ended Total October 3, September 27, October 3, September 27, Severance and related employee costs $ — $ — $ 661 $ — $ 18,898 Professional fees 277 — 1,016 80 23,123 Other (a) — — 1,354 4 7,207 277 — 3,031 84 49,228 Accelerated depreciation and amortization (b) — — — — 25,398 NPC lease termination costs (c) 18 — 2,839 — 2,839 Share-based compensation (d) — — — — 5,013 Total system optimization initiative $ 295 $ — $ 5,870 $ 84 $ 82,478 _______________ (a) The nine months ended October 3, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process. (b) Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative. (c) The nine months ended October 3, 2021 includes the write-off of lease assets of $1,359 and lease termination fees paid of $1,480. (d) Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative. |
Schedule of Restructuring Reserve by Type of Cost | The table below presents a rollforward of our accruals for our system optimization initiative, which were included in “Accrued expenses and other current liabilities” as of January 3, 2021. Balance Charges Payments Balance Severance and related employee costs $ — $ 661 $ (661) $ — Professional fees 1,230 1,016 (2,246) — Other — 1,354 (1,354) — $ 1,230 $ 3,031 $ (4,261) $ — |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
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: Nine Months Ended October 3, September 27, Balance at beginning of period $ 44,574 $ 45,310 Equity in earnings for the period 8,005 6,113 Amortization of purchase price adjustments (a) (2,392) (1,671) 5,613 4,442 Distributions received (9,174) (5,629) Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other 343 (701) Balance at end of period $ 41,356 $ 43,422 _______________ (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) | 9 Months Ended |
Oct. 03, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consisted of the following: October 3, January 3, Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 $ 448,875 $ — 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 648,375 — Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 373,000 386,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 419,625 434,250 Series 2018-1 Class A-2 Notes: 3.573% Series 2018-1 Class A-2-I Notes, repaid in connection with the June 2021 refinancing — 436,500 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 457,188 460,750 Series 2015-1 Class A-2 Notes: 4.497% Series 2015-1 Class A-2-III Notes, repaid in connection with the June 2021 refinancing — 473,750 Canadian revolving credit facility — 1,962 7% debentures, due in 2025 84,880 83,998 Unamortized debt issuance costs (38,430) (30,085) 2,393,513 2,247,125 Less amounts payable within one year (32,750) (28,962) Total long-term debt $ 2,360,763 $ 2,218,163 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
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: October 3, January 3, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 125,042 $ 125,042 $ 75,067 $ 75,067 Level 1 Financial liabilities Series 2021-1 Class A-2-I Notes (a) 448,875 454,441 — — Level 2 Series 2021-1 Class A-2-II Notes (a) 648,375 663,806 — — Level 2 Series 2019-1 Class A-2-I Notes (a) 373,000 395,641 386,000 409,778 Level 2 Series 2019-1 Class A-2-II Notes (a) 419,625 454,874 434,250 469,555 Level 2 Series 2018-1 Class A-2-I Notes (a) — — 436,500 450,381 Level 2 Series 2018-1 Class A-2-II Notes (a) 457,188 486,037 460,750 491,021 Level 2 Series 2015-1 Class A-2-III Notes (a) — — 473,750 481,851 Level 2 Canadian revolving credit facility — — 1,962 1,962 Level 2 7% debentures, due in 2025 (a) 84,880 100,800 83,998 98,775 Level 2 _______________ (a) The fair values were based on quoted market prices in markets that are not considered active markets. |
Fair value of assets and liabilities (other than cash and cash equivalents) measured at fair value on a nonrecurring basis | Fair Value Measurements October 3, Level 1 Level 2 Level 3 Held and used $ 1,256 $ — $ — $ 1,256 Held for sale 340 — — 340 Total $ 1,596 $ — $ — $ 1,596 Fair Value Measurements January 3, Level 1 Level 2 Level 3 Held and used $ 2,653 $ — $ — $ 2,653 Held for sale 855 — — 855 Total $ 3,508 $ — $ — $ 3,508 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Asset Impairment Charges [Abstract] | |
Impairment of Long-Lived Assets | 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 Nine Months Ended October 3, September 27, October 3, September 27, Company-operated restaurants $ 566 $ — $ 1,500 $ 4,395 Restaurants leased or subleased to franchisees — — 189 — Surplus properties — 23 142 332 $ 566 $ 23 $ 1,831 $ 4,727 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted net income per share was as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Net income $ 41,171 $ 39,753 $ 148,261 $ 79,098 Common stock: Weighted average basic shares outstanding 222,373 223,907 222,527 223,521 Dilutive effect of stock options and restricted shares 2,685 4,410 3,201 4,312 Weighted average diluted shares outstanding 225,058 228,317 225,728 227,833 Net income per share: Basic $ .19 $ .18 $ .67 $ .35 Diluted $ .18 $ .17 $ .66 $ .35 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table provides a rollforward of accumulated other comprehensive loss: Nine Months Ended October 3, September 27, Balance at beginning of period $ (49,641) $ (53,828) Foreign currency translation 908 (5,138) Balance at end of period $ (48,733) $ (58,966) |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Leases [Abstract] | |
Lease, Cost | The components of lease cost are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Finance lease cost: Amortization of finance lease assets $ 3,543 $ 3,471 $ 10,302 $ 9,995 Interest on finance lease liabilities 10,371 10,244 30,931 30,462 13,914 13,715 41,233 40,457 Operating lease cost 22,388 23,170 68,761 68,304 Variable lease cost (a) 16,635 15,548 48,406 43,766 Short-term lease cost 1,125 1,006 3,721 3,327 Total operating lease cost (b) 40,148 39,724 120,888 115,397 Total lease cost $ 54,062 $ 53,439 $ 162,121 $ 155,854 _______________ (a) Includes expenses for executory costs of $10,016 and $9,326 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,166 and $28,526 for the nine months ended October 3, 2021 and September 27, 2020, respectively, for which the Company is reimbursed by sublessees. (b) Includes $34,396 and $32,421 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $101,011 and $92,975 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $5,213 and $6,651 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $18,005 and $20,315 for the nine months ended October 3, 2021 and September 27, 2020, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants. |
Schedule of Supplemental Cash Flow and Non-Cash Information Related to Leases | The following table includes supplemental cash flow and non-cash information related to leases: Nine Months Ended October 3, September 27, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 31,608 $ 28,689 Operating cash flows from operating leases 69,476 62,026 Financing cash flows from finance leases 9,021 5,850 Right-of-use assets obtained in exchange for lease obligations: Finance lease liabilities 43,277 24,617 Operating lease liabilities 11,404 12,149 |
Schedule of Supplemental Information Related to Leases | The following table includes supplemental information related to leases: October 3, January 3, Weighted-average remaining lease term (years): Finance leases 15.8 16.2 Operating leases 14.2 14.6 Weighted average discount rate: Finance leases 9.19 % 9.54 % Operating leases 5.01 % 5.06 % Supplemental balance sheet information: Finance lease assets, gross $ 271,075 $ 261,308 Accumulated amortization (60,415) (55,155) Finance lease assets 210,660 206,153 Operating lease assets 783,986 821,480 |
Finance Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021: Finance Operating Fiscal Year Company-Operated Franchise Company-Operated Franchise 2021 (a) (b) $ 1,398 $ 13,934 $ 3,504 $ 18,313 2022 3,699 51,912 14,412 73,572 2023 3,644 53,569 14,726 73,226 2024 3,712 54,001 14,738 73,145 2025 3,787 54,496 14,633 72,829 Thereafter 46,140 682,798 141,258 732,276 Total minimum payments $ 62,380 $ 910,710 $ 203,271 $ 1,043,361 Less interest (22,694) (405,706) (58,455) (312,148) Present value of minimum lease payments (c) (d) $ 39,686 $ 505,004 $ 144,816 $ 731,213 _______________ (a) Represents future minimum rental payments for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.” (c) The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (d) The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively. |
Lessee, Operating Lease, Liability, Maturity | The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of October 3, 2021: Finance Operating Fiscal Year Company-Operated Franchise Company-Operated Franchise 2021 (a) (b) $ 1,398 $ 13,934 $ 3,504 $ 18,313 2022 3,699 51,912 14,412 73,572 2023 3,644 53,569 14,726 73,226 2024 3,712 54,001 14,738 73,145 2025 3,787 54,496 14,633 72,829 Thereafter 46,140 682,798 141,258 732,276 Total minimum payments $ 62,380 $ 910,710 $ 203,271 $ 1,043,361 Less interest (22,694) (405,706) (58,455) (312,148) Present value of minimum lease payments (c) (d) $ 39,686 $ 505,004 $ 144,816 $ 731,213 _______________ (a) Represents future minimum rental payments for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental payments, the Company expects to pay $1,038 primarily during 2021 related to rent deferrals obtained due to the COVID-19 pandemic. The related payable is included in “Accrued expenses and other current liabilities.” (c) The present value of minimum finance lease payments of $15,915 and $528,775 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively. (d) The present value of minimum operating lease payments of $45,541 and $830,488 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively. |
Lease, Income | The components of lease income are as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Sales-type and direct-financing leases: Selling profit $ 705 $ 182 $ 4,244 $ 1,379 Interest income (a) 7,786 7,296 22,861 21,804 Operating lease income 45,834 43,510 134,312 130,514 Variable lease income 16,612 15,211 47,878 42,920 Franchise rental income (b) $ 62,446 $ 58,721 $ 182,190 $ 173,434 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $46,102 and $43,122 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $134,597 and $126,653 for the nine months ended October 3, 2021 and September 27, 2020, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,087 and $9,379 for the three months ended October 3, 2021 and September 27, 2020, respectively, and $30,156 and $28,538 for the nine months ended October 3, 2021 and September 27, 2020, respectively. |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021: Sales-Type and Operating Fiscal Year Subleases Owned Properties Subleases Owned Properties 2021 (a) (b) $ 8,409 $ 1,407 $ 28,841 $ 13,942 2022 34,188 2,610 116,068 56,305 2023 35,247 2,656 116,795 56,614 2024 37,248 2,667 116,962 57,720 2025 36,149 2,784 116,443 58,323 Thereafter 479,695 32,057 1,172,444 748,781 Total future minimum receipts 630,936 44,181 $ 1,667,553 $ 991,685 Unearned interest income (341,031) (21,892) Net investment in sales-type and direct financing leases (c) $ 289,905 $ 22,289 _______________ (a) Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.” (c) The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535. |
Lessor, Operating Lease, Payment to be Received, Maturity | The following table illustrates the Company’s future minimum rental receipts for non-cancelable leases and subleases as of October 3, 2021: Sales-Type and Operating Fiscal Year Subleases Owned Properties Subleases Owned Properties 2021 (a) (b) $ 8,409 $ 1,407 $ 28,841 $ 13,942 2022 34,188 2,610 116,068 56,305 2023 35,247 2,656 116,795 56,614 2024 37,248 2,667 116,962 57,720 2025 36,149 2,784 116,443 58,323 Thereafter 479,695 32,057 1,172,444 748,781 Total future minimum receipts 630,936 44,181 $ 1,667,553 $ 991,685 Unearned interest income (341,031) (21,892) Net investment in sales-type and direct financing leases (c) $ 289,905 $ 22,289 _______________ (a) Represents future minimum rental receipts for non-cancelable leases for the remainder of 2021. (b) In addition to the 2021 future minimum rental receipts, the Company expects to collect $273 primarily during 2021 related to its offer to franchisees to defer base rent payments in response to the COVID-19 pandemic. The related receivable is included in “Accounts and notes receivable, net.” (c) The present value of minimum sales-type and direct financing rental receipts of $6,952 and $305,242 are included in “Accounts and notes receivable, net” and “Net investment in sales-type and direct financing leases,” respectively. The present value of minimum sales-type and direct financing rental receipts includes a net investment in unguaranteed residual assets of $535. |
Schedule of Property Subject To Operating Lease | Properties owned by the Company and leased to franchisees and other third parties under operating leases include: October 3, January 3, Land $ 280,767 $ 279,956 Buildings and improvements 307,593 309,605 Restaurant equipment 1,701 1,701 590,061 591,262 Accumulated depreciation and amortization (179,439) (170,722) $ 410,622 $ 420,540 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 03, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Revenues by segment were as follows: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Wendy’s U.S. $ 383,804 $ 374,895 $ 1,175,601 $ 1,037,194 Wendy’s International 22,674 17,264 62,240 46,739 Global Real Estate & Development 63,777 60,083 185,954 175,575 Total revenues $ 470,255 $ 452,242 $ 1,423,795 $ 1,259,508 |
Reconciliation of Profit from Segments to Consolidated | The following table reconciles profit by segment to the Company’s consolidated income before income taxes: Three Months Ended Nine Months Ended October 3, September 27, October 3, September 27, Wendy’s U.S. (a) $ 108,878 $ 108,297 $ 347,615 $ 283,261 Wendy’s International 6,949 6,567 21,161 15,256 Global Real Estate & Development 27,027 25,340 79,849 75,541 Total segment profit $ 142,854 $ 140,204 $ 448,625 $ 374,058 Unallocated franchise support and other costs (70) — (70) — Advertising funds deficit (1,574) (1,140) (4,440) (3,547) Unallocated general and administrative (b) (30,744) (21,424) (84,715) (68,594) Depreciation and amortization (30,940) (32,966) (93,243) (98,726) System optimization gains, net 1,437 23 32,719 2,333 Reorganization and realignment costs (345) (3,375) (7,381) (10,196) Impairment of long-lived assets (566) (23) (1,831) (4,727) Unallocated other operating income, net 143 49 399 140 Interest expense, net (26,000) (29,086) (82,990) (86,696) Loss on early extinguishment of debt — — (17,917) — Other income, net 171 181 461 1,113 Income before income taxes $ 54,366 $ 52,443 $ 189,617 $ 105,158 _______________ (a) Includes advertising funds expense of $8,979 and $16,503 for the three and nine months ended October 3, 2021, respectively, and $6,153 and $8,338 for the three and nine months ended September 27, 2020, respectively, related to the Company funding of incremental advertising. |
Revenue Disaggregation of Reven
Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Disaggregation of Revenue | ||||
Franchise rental income | $ 62,446 | $ 58,721 | $ 182,190 | $ 173,434 |
Total revenues | 470,255 | 452,242 | 1,423,795 | 1,259,508 |
Sales at Company-operated restaurants | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 171,078 | 191,946 | 553,660 | 522,961 |
Franchise royalty revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 116,521 | 109,344 | 344,421 | 301,891 |
Franchise fees | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,234 | 7,476 | 53,825 | 19,754 |
Advertising funds revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 97,976 | 84,755 | 289,699 | 241,468 |
Wendy's U.S. | ||||
Disaggregation of Revenue | ||||
Franchise rental income | 0 | 0 | 0 | 0 |
Total revenues | 383,804 | 374,895 | 1,175,601 | 1,037,194 |
Wendy's U.S. | Sales at Company-operated restaurants | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 169,961 | 191,946 | 552,297 | 522,961 |
Wendy's U.S. | Franchise royalty revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 102,603 | 98,128 | 305,373 | 271,082 |
Wendy's U.S. | Franchise fees | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 19,759 | 5,651 | 46,020 | 16,244 |
Wendy's U.S. | Advertising funds revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 91,481 | 79,170 | 271,911 | 226,907 |
Wendy's International | ||||
Disaggregation of Revenue | ||||
Franchise rental income | 0 | 0 | 0 | 0 |
Total revenues | 22,674 | 17,264 | 62,240 | 46,739 |
Wendy's International | Sales at Company-operated restaurants | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,117 | 0 | 1,363 | 0 |
Wendy's International | Franchise royalty revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 13,918 | 11,216 | 39,048 | 30,809 |
Wendy's International | Franchise fees | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,144 | 463 | 4,041 | 1,369 |
Wendy's International | Advertising funds revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 6,495 | 5,585 | 17,788 | 14,561 |
Global Real Estate & Development | ||||
Disaggregation of Revenue | ||||
Franchise rental income | 62,446 | 58,721 | 182,190 | 173,434 |
Total revenues | 63,777 | 60,083 | 185,954 | 175,575 |
Global Real Estate & Development | Sales at Company-operated restaurants | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Global Real Estate & Development | Franchise royalty revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 0 | 0 | 0 | 0 |
Global Real Estate & Development | Franchise fees | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 1,331 | 1,362 | 3,764 | 2,141 |
Global Real Estate & Development | Advertising funds revenue | ||||
Disaggregation of Revenue | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Contract Balances (Deta
Revenue Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Jan. 03, 2021 | |
Contract balances | |||
Deferred franchise fees at beginning of period | $ 97,785 | $ 100,689 | |
Revenue recognized during the period | (14,001) | (6,286) | |
New deferrals due to cash received and other | 15,273 | 3,642 | |
Deferred franchise fees at end of period | 99,057 | $ 98,045 | |
Deferred franchise fees, current | 8,971 | $ 8,691 | |
Deferred franchise fees, noncurrent | 90,086 | 89,094 | |
Accounts Receivable | Short-term Contract with Customer | |||
Contract balances | |||
Receivables, Net, Current | 46,747 | 57,677 | |
Advertising funds restricted assets | Short-term Contract with Customer | |||
Contract balances | |||
Receivables, Net, Current | $ 57,222 | $ 63,252 |
Revenue Revenue, Remaining Perf
Revenue Revenue, Remaining Performance Obligation (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | $ 99,057 |
2021 | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | 4,428 |
2022 | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | 6,293 |
2023 | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | 6,128 |
2024 | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | 5,938 |
2025 | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | 5,758 |
Thereafter | |
Revenue, Remaining Performance Obligation | |
Revenue, Remaining Performance Obligation, Amount | $ 70,512 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Apr. 04, 2021USD ($)numberOfMarkets | Oct. 03, 2021USD ($)number_of_restaurants | Sep. 27, 2020USD ($)number_of_restaurants | Jan. 03, 2021USD ($) | Nov. 18, 2020numberOfMarkets | Jul. 31, 2020numberOfMarketsnumber_of_restaurants | |
Business Acquisition | ||||||
Number of restaurants | number_of_restaurants | 6,891 | |||||
Number of markets to be sold by NPC | 8 | |||||
NPC Consortium Bid: Number of Markets to be Purchased by Franchisees | 7 | |||||
NPC Consortium Bid: Number of Markets to be Purchased by Company | 1 | |||||
NPC Consortium bid deposit | $ | $ 43,240 | |||||
NPC Consortium bid payable | $ | $ 38,361 | |||||
NPC Asset Purchase Agreement: Number of Markets to be Purchased by FRG | 4 | |||||
NPC Asset Purchase Agreement: Number of Markets to be Purchased by Franchisees | 4 | |||||
Acquisitions | $ | $ 4,879 | $ 4,879 | $ 0 | |||
NPC Franchised Restaurants | ||||||
Business Acquisition | ||||||
Number of restaurants | number_of_restaurants | 393 | |||||
Acquisitions | ||||||
Business Acquisition | ||||||
Restaurants acquired from franchisees | number_of_restaurants | 0 | 0 |
System Optimization Gains, Ne_2
System Optimization Gains, Net Summary of Disposition Activity (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021USD ($)number_of_restaurants | Sep. 27, 2020USD ($)number_of_restaurants | Oct. 03, 2021USD ($)number_of_restaurants | Sep. 27, 2020USD ($)number_of_restaurants | Jan. 01, 2017 | |
System optimization gains, net | |||||
Company-operated restaurant ownership percentage | 5.00% | ||||
Proceeds from sales of restaurants | $ 52,657 | $ 3,570 | |||
Gain on sales-type leases | $ 705 | $ 182 | 4,244 | 1,379 | |
System optimization gains, net | $ 1,437 | $ 23 | $ 32,719 | $ 2,333 | |
Sale of franchise-operated restaurant to franchisee | |||||
System optimization gains, net | |||||
Number of restaurants sold to franchisees | number_of_restaurants | 34 | 22 | |||
Sale of company-operated restaurants to franchisees | |||||
System optimization gains, net | |||||
Number of restaurants sold to franchisees | number_of_restaurants | 0 | 0 | 47 | 0 | |
Proceeds from sales of restaurants | $ 0 | $ 0 | $ 50,518 | $ 0 | |
Net Assets Sold | 0 | 0 | (16,939) | 0 | |
Goodwill related to sales of restaurants | 0 | 0 | (4,847) | 0 | |
Net unfavorable leases | 0 | 0 | (2,939) | 0 | |
Gain on sales-type leases | 0 | 0 | 7,156 | 0 | |
Other | 0 | 0 | (2,148) | 0 | |
Gain on sale of restaurants, net, before post-closing adjustments | 0 | 0 | 30,801 | 0 | |
Post closing adjustments on sales of restaurants | 5 | 23 | 520 | 368 | |
System optimization gains, net | 5 | 23 | 31,321 | 368 | |
Favorable lease | 3,799 | 3,799 | |||
Unfavorable lease | 6,738 | 6,738 | |||
Deferred gain on sale of property | 3,500 | 3,500 | |||
Recognition of deferred gain on sale of property | 515 | ||||
Sale of other assets | |||||
System optimization gains, net | |||||
Proceeds from sales of restaurants | 2,100 | 2,113 | 3,570 | ||
System optimization gains, net | 1,432 | $ 0 | 1,398 | $ 1,965 | |
Sale of manhattan company-operated restaurants to franchisees note receivable | |||||
System optimization gains, net | |||||
Proceeds from sales of restaurants | $ 26 | $ 26 |
System Optimization Gains, Ne_3
System Optimization Gains, Net Assets Held for Sale (Details) $ in Thousands | Oct. 03, 2021USD ($)number_of_restaurants | Apr. 04, 2021number_of_restaurants | Jan. 03, 2021USD ($)number_of_restaurants |
Long lived assets held for sale | |||
Number of restaurants classified as held for sale | number_of_restaurants | 0 | 43 | |
Number of Manhattan restaurants classified as assets held for sale | number_of_restaurants | 4 | ||
Net restaurant assets held for sale | |||
Long lived assets held for sale | |||
Assets held for sale | $ | $ 0 | $ 20,587 | |
Other assets held for sale | |||
Long lived assets held for sale | |||
Assets held for sale | $ | $ 3,749 | $ 1,732 |
Reorganization and Realignmen_3
Reorganization and Realignment Costs Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 345 | $ 3,375 | $ 7,381 | $ 10,196 |
Operations and Field Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | 74 | 3,021 | 1,563 | 3,021 |
IT Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | (17) | 403 | (11) | 6,809 |
G&A Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | (7) | (49) | (41) | 282 |
System Optimization | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 295 | $ 0 | $ 5,870 | $ 84 |
Reorganization and Realignmen_4
Reorganization and Realignment Costs Operations and Field Realignment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 345 | $ 3,375 | $ 7,381 | $ 10,196 |
Operations and Field Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | 74 | 3,021 | 1,563 | 3,021 |
Restructuring and Related Cost, Expected Cost Remaining | 500 | 500 | ||
Restructuring and Related Cost, Incurred Cost | 74 | 2,502 | 1,563 | 2,502 |
Restructuring and Related Cost, Cost Incurred to Date | 4,743 | 4,743 | ||
Restructuring Charges, Incurred to Date | 5,364 | 5,364 | ||
Operations and Field Realignment | Minimum | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 5,500 | 5,500 | ||
Operations and Field Realignment | Maximum | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 6,000 | 6,000 | ||
Operations and Field Realignment | Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 2,502 | 333 | 2,502 |
Restructuring and Related Cost, Cost Incurred to Date | 3,446 | 3,446 | ||
Operations and Field Realignment | Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 74 | 0 | 1,230 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 1,297 | 1,297 | ||
Operations and Field Realignment | Share-based compensation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | $ 519 | 0 | $ 519 |
Restructuring and Related Cost, Cost Incurred to Date | $ 621 | $ 621 |
Reorganization and Realignmen_5
Reorganization and Realignment Costs Operations and Field Realignment Accrual Rollforward (Details) - Operations and Field Realignment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Beginning balance | $ 2,600 | |||
Charges | $ 74 | $ 2,502 | 1,563 | $ 2,502 |
Payments | (3,607) | |||
Ending balance | 556 | 556 | ||
Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 2,600 | 0 | ||
Charges | 0 | 2,502 | 333 | 2,502 |
Payments | (2,377) | 0 | ||
Ending balance | 556 | 2,502 | 556 | 2,502 |
Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | |||
Charges | 74 | $ 0 | 1,230 | $ 0 |
Payments | (1,230) | |||
Ending balance | $ 0 | $ 0 |
Reorganization and Realignmen_6
Reorganization and Realignment Costs IT Realignment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 345 | $ 3,375 | $ 7,381 | $ 10,196 |
IT Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | (17) | 403 | (11) | 6,809 |
Restructuring and Related Cost, Incurred Cost | (17) | 403 | (11) | 6,809 |
Restructuring and Related Cost, Cost Incurred to Date | 16,211 | 16,211 | ||
Restructuring Charges, Incurred to Date | 16,404 | 16,404 | ||
IT Realignment | Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | (32) | 34 | (151) | 1,009 |
Restructuring and Related Cost, Cost Incurred to Date | 8,240 | 8,240 | ||
IT Realignment | Recruitment and relocation costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 12 | 345 | 133 | 659 |
Restructuring and Related Cost, Cost Incurred to Date | 1,429 | 1,429 | ||
IT Realignment | Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 3 | 24 | 7 | 5,141 |
Restructuring and Related Cost, Cost Incurred to Date | 6,542 | 6,542 | ||
IT Realignment | Share-based compensation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | $ 0 | 0 | $ 0 |
Restructuring and Related Cost, Cost Incurred to Date | $ 193 | $ 193 |
Reorganization and Realignmen_7
Reorganization and Realignment Costs IT Realignment Accrual Rollforward (Details) - IT Realignment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Beginning balance | $ 1,508 | $ 8,624 | ||
Charges | $ (17) | $ 403 | (11) | 6,809 |
Payments | (1,255) | (12,516) | ||
Ending balance | 242 | 2,917 | 242 | 2,917 |
Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 1,508 | 7,548 | ||
Charges | (32) | 34 | (151) | 1,009 |
Payments | (1,115) | (5,640) | ||
Ending balance | 242 | 2,917 | 242 | 2,917 |
Recruitment and relocation costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | 0 | ||
Charges | 12 | 345 | 133 | 659 |
Payments | (133) | (659) | ||
Ending balance | 0 | 0 | 0 | 0 |
Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | 1,076 | ||
Charges | 3 | 24 | 7 | 5,141 |
Payments | (7) | (6,217) | ||
Ending balance | $ 0 | 0 | $ 0 | 0 |
Accrued expenses and other current liabilities | ||||
Restructuring Cost and Reserve | ||||
Ending balance | 2,739 | 2,739 | ||
Other liabilities | ||||
Restructuring Cost and Reserve | ||||
Ending balance | $ 178 | $ 178 |
Reorganization and Realignmen_8
Reorganization and Realignment Costs G&A Realignment Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 345 | $ 3,375 | $ 7,381 | $ 10,196 |
G&A Realignment | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | (7) | (49) | (41) | 282 |
Restructuring and Related Cost, Incurred Cost | (7) | (80) | (60) | 82 |
Restructuring and Related Cost, Cost Incurred to Date | 29,305 | 29,305 | ||
Restructuring Charges, Incurred to Date | 38,770 | 38,770 | ||
G&A Realignment | Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | (8) | (116) | (61) | 30 |
Restructuring and Related Cost, Cost Incurred to Date | 24,205 | 24,205 | ||
G&A Realignment | Recruitment and relocation costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 1 | 27 | 1 | 42 |
Restructuring and Related Cost, Cost Incurred to Date | 2,877 | 2,877 | ||
G&A Realignment | Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 9 | 0 | 10 |
Restructuring and Related Cost, Cost Incurred to Date | 2,223 | 2,223 | ||
G&A Realignment | Share-based compensation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 31 | 19 | 200 |
Restructuring and Related Cost, Cost Incurred to Date | 8,130 | 8,130 | ||
G&A Realignment | Termination of defined benefit plans | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | $ 0 | 0 | $ 0 |
Restructuring and Related Cost, Cost Incurred to Date | $ 1,335 | $ 1,335 |
Reorganization and Realignmen_9
Reorganization and Realignment Costs G&A Realignment Accrual Rollforward (Details) - G&A Realignment - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Beginning balance | $ 932 | $ 5,359 | ||
Charges | $ (7) | $ (80) | (60) | 82 |
Payments | (829) | (3,718) | ||
Ending balance | 43 | 1,723 | 43 | 1,723 |
Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 932 | 5,276 | ||
Charges | (8) | (116) | (61) | 30 |
Payments | (828) | (3,627) | ||
Ending balance | 43 | 1,679 | 43 | 1,679 |
Recruitment and relocation costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | 83 | ||
Charges | 1 | 27 | 1 | 42 |
Payments | (1) | (81) | ||
Ending balance | 0 | 44 | 0 | 44 |
Third-party and other costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | 0 | ||
Charges | 0 | 9 | 0 | 10 |
Payments | 0 | (10) | ||
Ending balance | $ 0 | 0 | $ 0 | 0 |
Accrued expenses and other current liabilities | ||||
Restructuring Cost and Reserve | ||||
Ending balance | 1,705 | 1,705 | ||
Other liabilities | ||||
Restructuring Cost and Reserve | ||||
Ending balance | $ 18 | $ 18 |
Reorganization and Realignme_10
Reorganization and Realignment Costs System Optimization Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | $ 345 | $ 3,375 | $ 7,381 | $ 10,196 |
System Optimization Initiative | ||||
Restructuring Cost and Reserve | ||||
Reorganization and realignment costs | 295 | 0 | 5,870 | 84 |
Restructuring and Related Cost, Expected Benefit Remaining | 1,000 | 1,000 | ||
Restructuring and Related Cost, Incurred Cost | 277 | 0 | 3,031 | 84 |
Restructuring and Related Cost, Cost Incurred to Date | 49,228 | 49,228 | ||
Restructuring Charges, Incurred to Date | 82,478 | 82,478 | ||
System Optimization Initiative | Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 661 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 18,898 | 18,898 | ||
System Optimization Initiative | Professional fees | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 277 | 0 | 1,016 | 80 |
Restructuring and Related Cost, Cost Incurred to Date | 23,123 | 23,123 | ||
System Optimization Initiative | Other | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 1,354 | 4 |
Restructuring and Related Cost, Cost Incurred to Date | 7,207 | 7,207 | ||
System Optimization Initiative | Other | NPC Transaction Fees | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 1,350 | |||
System Optimization Initiative | Accelerated depreciation and amortization | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | 0 | 0 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 25,398 | 25,398 | ||
System Optimization Initiative | NPC lease termination costs | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 18 | 0 | 2,839 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 2,839 | 2,839 | ||
System Optimization Initiative | NPC lease termination costs | Write-Off of Lease Assets | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 1,359 | |||
System Optimization Initiative | NPC lease termination costs | Lease Termination Fees | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 1,480 | |||
System Optimization Initiative | Share-based compensation | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Incurred Cost | 0 | $ 0 | 0 | $ 0 |
Restructuring and Related Cost, Cost Incurred to Date | $ 5,013 | $ 5,013 |
Reorganization and Realignme_11
Reorganization and Realignment Costs System Optimization Accrual Rollforward (Details) - System Optimization Initiative - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Restructuring Cost and Reserve | ||||
Beginning balance | $ 1,230 | |||
Charges | $ 277 | $ 0 | 3,031 | $ 84 |
Payments | (4,261) | |||
Ending balance | 0 | 0 | ||
Severance and related employee costs | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | |||
Charges | 0 | 0 | 661 | 0 |
Payments | (661) | |||
Ending balance | 0 | 0 | ||
Professional fees | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 1,230 | |||
Charges | 277 | 0 | 1,016 | 80 |
Payments | (2,246) | |||
Ending balance | 0 | 0 | ||
Other | ||||
Restructuring Cost and Reserve | ||||
Beginning balance | 0 | |||
Charges | 0 | $ 0 | 1,354 | $ 4 |
Payments | (1,354) | |||
Ending balance | $ 0 | $ 0 |
Investments Equity Investment S
Investments Equity Investment Summary (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Schedule of Equity Method Investments | ||||
Balance at beginning of period | $ 44,574 | |||
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other | $ (4,659) | $ 3,220 | 908 | $ (5,138) |
Balance at end of period | $ 41,356 | $ 41,356 | ||
TimWen | ||||
Schedule of Equity Method Investments | ||||
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | ||
Equity Method Investment, Purchase Price Adjustment, Amortization Period | 21 years | 21 years | ||
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 | $ 44,574 | $ 45,310 | ||
Equity in earnings for the period | 8,005 | 6,113 | ||
Amortization of purchase price adjustments | (2,392) | (1,671) | ||
Equity in earnings for the period, net of amortization of purchase price adjustments | 5,613 | 4,442 | ||
Distributions received | (9,174) | (5,629) | ||
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other | 343 | (701) | ||
Balance at end of period | $ 41,356 | $ 43,422 | $ 41,356 | $ 43,422 |
Long-Term Debt Schedule of Long
Long-Term Debt Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Debt Instrument | ||
Unamortized debt issuance costs | $ (38,430) | $ (30,085) |
Total debt | 2,393,513 | 2,247,125 |
Less amounts payable within one year | (32,750) | (28,962) |
Total long-term debt | 2,360,763 | 2,218,163 |
Series 2021-1 Class A-2-I Notes | ||
Debt Instrument | ||
Senior Notes | $ 448,875 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.37% | |
Series 2021-1 Class A-2-II Notes | ||
Debt Instrument | ||
Senior Notes | $ 648,375 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.775% | |
Series 2019-1 Class A-2-I Notes | ||
Debt Instrument | ||
Senior Notes | $ 373,000 | $ 386,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.783% | 3.783% |
Series 2019-1 Class A-2-II Notes | ||
Debt Instrument | ||
Senior Notes | $ 419,625 | $ 434,250 |
Debt Instrument, Interest Rate, Stated Percentage | 4.08% | 4.08% |
Series 2018-1 Class A-2-I Notes | ||
Debt Instrument | ||
Senior Notes | $ 0 | $ 436,500 |
Debt Instrument, Interest Rate, Stated Percentage | 3.573% | 3.573% |
Series 2018-1 Class A-2-II Notes | ||
Debt Instrument | ||
Senior Notes | $ 457,188 | $ 460,750 |
Debt Instrument, Interest Rate, Stated Percentage | 3.884% | 3.884% |
Series 2015-1 Class A-2-III Notes | ||
Debt Instrument | ||
Senior Notes | $ 0 | $ 473,750 |
Debt Instrument, Interest Rate, Stated Percentage | 4.497% | 4.497% |
Canadian revolving credit facility | ||
Debt Instrument | ||
Line of Credit, Outstanding, Amount | $ 0 | $ 1,962 |
7% debentures | ||
Debt Instrument | ||
7% debentures | $ 84,880 | $ 83,998 |
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% |
Long-Term Debt Senior Notes (De
Long-Term Debt Senior Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Debt Instrument | ||||
Loss on early extinguishment of debt | $ 0 | $ 0 | $ 17,917 | $ 0 |
Series 2021-1 Class A-2-I Notes | ||||
Debt Instrument | ||||
Debt Instrument, Face Amount | 450,000 | 450,000 | ||
Series 2021-1 Class A-2-II Notes | ||||
Debt Instrument | ||||
Debt Instrument, Face Amount | 650,000 | 650,000 | ||
Series 2021-1 Senior Notes | ||||
Debt Instrument | ||||
Loss on early extinguishment of debt | 17,917 | |||
Specified make-whole payment | 9,632 | |||
Write off of Deferred Debt Issuance Cost | 8,285 | |||
Debt Issuance Costs, Gross | 20,873 | 20,873 | ||
Series 2021-1 Class A-2 Notes | ||||
Debt Instrument | ||||
Long-term Debt, Maturities, Repayments of Principal Annually Through 2021 | 5,500 | 5,500 | ||
Long-term Debt, Repayments of Principal | 2,750 | |||
Long-term Debt, Maturities, Repayments of Principal Annually from 2022 through 2028 | 11,000 | 11,000 | ||
Long-term Debt, Maturities, Repayments of Principal Annually in 2029 | 422,750 | 422,750 | ||
Long-term Debt, Maturities, Repayments of Principal Annually in 2030 | 6,500 | 6,500 | ||
Long-term Debt, Maturities, Repayments of Principal Annually in 2031 | 588,250 | 588,250 | ||
Series 2021-1 Class A-1 Notes | Line of Credit | ||||
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 300,000 | 300,000 | ||
Line of Credit, Outstanding, Amount | 0 | 0 | ||
Series 2019-1 Class A-1 Notes | Line of Credit | ||||
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 150,000 | 150,000 | ||
Series 2020-1 Class A-1 Notes | Line of Credit | ||||
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 100,000 | $ 100,000 |
Long-Term Debt Other Long-term
Long-Term Debt Other Long-term Debt Disclosure (Details) - Canadian Subsidiary - Line of Credit - CAD ($) $ in Thousands | Mar. 29, 2020 | Apr. 04, 2021 | Jan. 03, 2021 | Oct. 03, 2021 |
Debt Instrument | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 6,000 | |||
Proceeds from Lines of Credit | $ 5,500 | |||
Repayments of Lines of Credit | $ 2,500 | $ 3,000 | ||
Line of Credit, Outstanding, Amount | $ 0 |
Fair Value Measurements Financi
Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Reported Value Measurement | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash equivalents | $ 125,042 | $ 75,067 |
Reported Value Measurement | Series 2021-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 448,875 | |
Reported Value Measurement | Series 2021-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 648,375 | |
Reported Value Measurement | Series 2019-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 373,000 | 386,000 |
Reported Value Measurement | Series 2019-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 419,625 | 434,250 |
Reported Value Measurement | Series 2018-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 0 | 436,500 |
Reported Value Measurement | Series 2018-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 457,188 | 460,750 |
Reported Value Measurement | Series 2015-1 Class A-2-III Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 0 | 473,750 |
Reported Value Measurement | Canadian revolving credit facility | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 0 | 1,962 |
Reported Value Measurement | 7% debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 84,880 | 83,998 |
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Cash equivalents | 125,042 | 75,067 |
Estimate of Fair Value Measurement | Series 2021-1 Class A-2-I Notes | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 454,441 | |
Estimate of Fair Value Measurement | Series 2021-1 Class A-2-II Notes | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 663,806 | |
Estimate of Fair Value Measurement | Series 2019-1 Class A-2-I Notes | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 395,641 | 409,778 |
Estimate of Fair Value Measurement | Series 2019-1 Class A-2-II Notes | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 454,874 | 469,555 |
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 | 0 | 450,381 |
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 | 486,037 | 491,021 |
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 | 0 | 481,851 |
Estimate of Fair Value Measurement | Canadian revolving credit facility | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | 0 | 1,962 |
Estimate of Fair Value Measurement | 7% debentures | Fair Value, Inputs, Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt instrument | $ 100,800 | $ 98,775 |
Series 2021-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.37% | |
Series 2021-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.775% | |
Series 2019-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.783% | 3.783% |
Series 2019-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.08% | 4.08% |
Series 2018-1 Class A-2-I Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.573% | 3.573% |
Series 2018-1 Class A-2-II Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.884% | 3.884% |
Series 2015-1 Class A-2-III Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.497% | 4.497% |
7% debentures | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.00% | 7.00% |
Fair Value Measurements Non-Rec
Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | ||
Assets Held and used, Long Lived, Fair Value Disclosure | $ 1,256 | $ 2,653 |
Assets Held for sale, Long Lived, Fair Value Disclosure | 340 | 855 |
Total | 1,596 | 3,508 |
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 |
Assets Held for sale, Long Lived, Fair Value Disclosure | 0 | 0 |
Total | 0 | 0 |
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 |
Assets Held for sale, Long Lived, Fair Value Disclosure | 0 | 0 |
Total | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | ||
Assets Held and used, Long Lived, Fair Value Disclosure | 1,256 | 2,653 |
Assets Held for sale, Long Lived, Fair Value Disclosure | 340 | 855 |
Total | $ 1,596 | $ 3,508 |
Impairment of Long-Lived Asse_3
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 566 | $ 23 | $ 1,831 | $ 4,727 |
Company-operated restaurants | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | 566 | 0 | 1,500 | 4,395 |
Restaurants leased or subleased to franchisees | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | 0 | 0 | 189 | 0 |
Surplus properties | ||||
Impairment of Long-Lived Assets | ||||
Impairment of long-lived assets | $ 0 | $ 23 | $ 142 | $ 332 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Jan. 03, 2021 | |
Effective Income Tax Rate | 24.30% | 24.20% | 21.80% | 24.80% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 21.00% | |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 1,874 | $ 2,019 | |||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 66 | 66 | |||
Income Taxes Receivable, Current | 1,813 | 1,813 | $ 5,399 | ||
Income Taxes Receivable, Noncurrent | $ 0 | $ 0 | $ 0 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 41,171 | $ 65,724 | $ 41,366 | $ 39,753 | $ 24,904 | $ 14,441 | $ 148,261 | $ 79,098 |
Weighted average basic shares outstanding | 222,373 | 223,907 | 222,527 | 223,521 | ||||
Dilutive effect of stock options and restricted shares | 2,685 | 4,410 | 3,201 | 4,312 | ||||
Weighted average diluted shares outstanding | 225,058 | 228,317 | 225,728 | 227,833 | ||||
Earnings Per Share, Basic | $ 0.19 | $ 0.18 | $ 0.67 | $ 0.35 | ||||
Earnings Per Share, Diluted | $ 0.18 | $ 0.17 | $ 0.66 | $ 0.35 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,746 | 1,049 | 2,147 | 2,117 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) - $ / shares | 3 Months Ended | |||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | |
Dividend Paid [Member] | ||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.12 | $ 0.10 | $ 0.09 | $ 0.05 | $ 0.05 | $ 0.12 |
Stockholders' Equity Repurchase
Stockholders' Equity Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | Feb. 29, 2020 | Nov. 30, 2019 | Nov. 03, 2021 | Feb. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | Nov. 10, 2021 | Aug. 11, 2021 | May 12, 2021 | Feb. 28, 2019 |
February 2020 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | $ 100,000 | ||||||||
May 2021 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 50,000 | |||||||||
August 2021 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 70,000 | |||||||||
February 2020, May 2021 and August 2021 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 220,000 | |||||||||
Treasury Stock, Shares, Acquired | 5,876 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 127,150 | |||||||||
Stock Repurchase Program, Repurchase Accrual | 2,299 | |||||||||
Stock Repurchase Program, Cost Incurred | 82 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 60,566 | |||||||||
February 2020, May 2021 and August 2021 Share Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Treasury Stock, Shares, Acquired | 697 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 15,494 | |||||||||
Stock Repurchase Program, Cost Incurred | $ 10 | |||||||||
November 2021 Share Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 80,000 | |||||||||
February 2020, May 2021, August 2021 and November 2021 Share Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | 300,000 | |||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 125,072 | |||||||||
2021 Accelerated Share Repurchase Program | Subsequent Event | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 125,000 | |||||||||
February 2019 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 225,000 | |||||||||
2019 Accelerated Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 100,000 | |||||||||
Treasury Stock, Shares, Acquired | 628 | 4,051 | 4,679 | |||||||
Initial Shares Delivered Under ASR Agreement Percentage | 85.00% | |||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 23.89 | $ 21.37 | ||||||||
February 2019 and February 2020 Share Repurchase Program | ||||||||||
Equity, Class of Treasury Stock | ||||||||||
Treasury Stock, Shares, Acquired | 2,172 | |||||||||
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions | $ 45,014 | |||||||||
Stock Repurchase Program, Cost Incurred | $ 30 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 03, 2021 | Jul. 04, 2021 | Apr. 04, 2021 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Accumulated Other Comprehensive Loss | ||||||||
Balance at beginning of period | $ (49,641) | $ (49,641) | ||||||
Foreign currency translation | $ (4,659) | $ 3,347 | 2,220 | $ 3,220 | $ 4,149 | $ (12,507) | 908 | $ (5,138) |
Balance at end of period | (48,733) | (48,733) | ||||||
Foreign Currency Translation | ||||||||
Accumulated Other Comprehensive Loss | ||||||||
Balance at beginning of period | $ (49,641) | $ (53,828) | (49,641) | (53,828) | ||||
Foreign currency translation | 908 | (5,138) | ||||||
Balance at end of period | $ (48,733) | $ (58,966) | $ (48,733) | $ (58,966) |
Leases Lessee Lease Narrative (
Leases Lessee Lease Narrative (Details) | Oct. 03, 2021number_of_restaurants |
Lessee, Lease, Description | |
Number of restaurants | 6,891 |
Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 313 |
Land And Building - Company Owned | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 136 |
Building - Company Owned; Land - Leased | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 117 |
Land And Building - Leased | Entity Operated Units | |
Lessee, Lease, Description | |
Number of restaurants | 60 |
Leases Lessor Lease Narrative (
Leases Lessor Lease Narrative (Details) | Oct. 03, 2021number_of_restaurants |
Lessor, Lease, Description | |
Number of restaurants | 6,891 |
Land And Building - Company Owned | Franchised Units | |
Lessor, Lease, Description | |
Number of restaurants | 510 |
Land And Building - Leased | Franchised Units | |
Lessor, Lease, Description | |
Number of restaurants | 1,275 |
Leases Components of Lease Cost
Leases Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Lease, Cost | ||||
Amortization of finance lease assets | $ 3,543 | $ 3,471 | $ 10,302 | $ 9,995 |
Interest on finance lease liabilities | 10,371 | 10,244 | 30,931 | 30,462 |
Total finance lease cost | 13,914 | 13,715 | 41,233 | 40,457 |
Operating lease cost | 22,388 | 23,170 | 68,761 | 68,304 |
Variable lease cost | 16,635 | 15,548 | 48,406 | 43,766 |
Short-term lease cost | 1,125 | 1,006 | 3,721 | 3,327 |
Total operating lease cost | 40,148 | 39,724 | 120,888 | 115,397 |
Total lease cost | 54,062 | 53,439 | 162,121 | 155,854 |
Franchise rental expense | ||||
Lease, Cost | ||||
Total operating lease cost | 34,396 | 32,421 | 101,011 | 92,975 |
Cost of sales | ||||
Lease, Cost | ||||
Total operating lease cost | 5,213 | 6,651 | 18,005 | 20,315 |
Executory costs paid by lessee | ||||
Lease, Cost | ||||
Variable lease cost | $ 10,016 | $ 9,326 | $ 30,166 | $ 28,526 |
Leases Supplemental Cash Flow a
Leases Supplemental Cash Flow and Non-Cash Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 03, 2021 | Sep. 27, 2020 | |
Cash Flow, Operating Activities, Lessee | ||
Operating cash flows from finance leases | $ 31,608 | $ 28,689 |
Operating cash flows from operating leases | 69,476 | 62,026 |
Cash Flow, Financing Activities, Lessee | ||
Financing cash flows from finance leases | 9,021 | 5,850 |
Lessee, Lease, Description | ||
Right-of-use assets obtained in exchange for finance lease liabilities | 43,277 | 24,617 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 11,404 | $ 12,149 |
Leases Supplemental Information
Leases Supplemental Information (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Lessee, Lease, Description | ||
Weighted-average remaining lease term (years): Finance leases | 15 years 9 months 18 days | 16 years 2 months 12 days |
Weighted-average remaining lease term (years): Operating leases | 14 years 2 months 12 days | 14 years 7 months 6 days |
Weighted-average discount rate: Finance leases | 9.19% | 9.54% |
Weighted average discount rate: Operating leases | 5.01% | 5.06% |
Finance lease assets, gross | $ 271,075 | $ 261,308 |
Accumulated amortization | (60,415) | (55,155) |
Finance lease assets | 210,660 | 206,153 |
Operating lease assets | $ 783,986 | $ 821,480 |
Leases Future Minimum Rental Pa
Leases Future Minimum Rental Payments for Non-cancelable Leases (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Entity Operated Units | |
Finance Lease Liabilities, Payments, Due | |
Future minimum finance lease payments, remainder of fiscal year | $ 1,398 |
Future minimum finance lease payments, due year one | 3,699 |
Future minimum finance lease payments, due year two | 3,644 |
Future minimum finance lease payments, due year three | 3,712 |
Future minimum finance lease payments, due year four | 3,787 |
Future minimum finance lease payments, due thereafter | 46,140 |
Total minimum finance lease payments | 62,380 |
Interest incurred on total minimum finance lease payments | (22,694) |
Present value of minimum finance lease payments | 39,686 |
Operating Lease Liabilities, Payments Due | |
Future minimum operating lease payments, remainder of fiscal year | 3,504 |
Future minimum operating lease payments, due year one | 14,412 |
Future minimum operating lease payments, due year two | 14,726 |
Future minimum operating lease payments, due year three | 14,738 |
Future minimum operating lease payments, due year four | 14,633 |
Future minimum operating lease payments, due thereafter | 141,258 |
Total minimum operating lease payments | 203,271 |
Interest incurred on total minimum operating lease payments | (58,455) |
Present value of minimum operating lease payments | 144,816 |
Franchised Units | |
Finance Lease Liabilities, Payments, Due | |
Future minimum finance lease payments, remainder of fiscal year | 13,934 |
Future minimum finance lease payments, due year one | 51,912 |
Future minimum finance lease payments, due year two | 53,569 |
Future minimum finance lease payments, due year three | 54,001 |
Future minimum finance lease payments, due year four | 54,496 |
Future minimum finance lease payments, due thereafter | 682,798 |
Total minimum finance lease payments | 910,710 |
Interest incurred on total minimum finance lease payments | (405,706) |
Present value of minimum finance lease payments | 505,004 |
Operating Lease Liabilities, Payments Due | |
Future minimum operating lease payments, remainder of fiscal year | 18,313 |
Future minimum operating lease payments, due year one | 73,572 |
Future minimum operating lease payments, due year two | 73,226 |
Future minimum operating lease payments, due year three | 73,145 |
Future minimum operating lease payments, due year four | 72,829 |
Future minimum operating lease payments, due thereafter | 732,276 |
Total minimum operating lease payments | 1,043,361 |
Interest incurred on total minimum operating lease payments | (312,148) |
Present value of minimum operating lease payments | 731,213 |
Current portion of finance lease liabilities | |
Finance Lease Liabilities, Payments, Due | |
Present value of minimum finance lease payments | 15,915 |
Long-term finance lease liabilities | |
Finance Lease Liabilities, Payments, Due | |
Present value of minimum finance lease payments | 528,775 |
Current portion of operating lease liabilities | |
Operating Lease Liabilities, Payments Due | |
Present value of minimum operating lease payments | 45,541 |
Long-term operating lease liabilities | |
Operating Lease Liabilities, Payments Due | |
Present value of minimum operating lease payments | 830,488 |
Accrued expenses and other current liabilities | |
Lessee, Lease, Description | |
Future rental payments, deferred rent | $ 1,038 |
Leases Components of Lease Inco
Leases Components of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Lessor Lease Income | ||||
Sales-type leases, selling profit | $ 705 | $ 182 | $ 4,244 | $ 1,379 |
Sales-type and direct-financing leases, interest income | 7,786 | 7,296 | 22,861 | 21,804 |
Operating lease rental income | 45,834 | 43,510 | 134,312 | 130,514 |
Variable lease income | 16,612 | 15,211 | 47,878 | 42,920 |
Franchise rental income | 62,446 | 58,721 | 182,190 | 173,434 |
Sublease income | 46,102 | 43,122 | 134,597 | 126,653 |
Executory costs paid to lessor | ||||
Lessor Lease Income | ||||
Variable lease income | $ 10,087 | $ 9,379 | $ 30,156 | $ 28,538 |
Leases Future Minimum Rental Re
Leases Future Minimum Rental Receipts for Non-cancelable Leases (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Direct Financing Lease, Net Investment in Leases | |
Net investment in unguaranteed residual assets | $ 535 |
Subleases, sales-type and direct financing | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity | |
Future minimum sales-type and direct financing lease receipts, remainder of fiscal year | 8,409 |
Future minimum sales-type and direct financing lease receipts, due year one | 34,188 |
Future minimum sales-type and direct financing lease receipts, due year two | 35,247 |
Future minimum sales-type and direct financing lease receipts, due year three | 37,248 |
Future minimum sales-type and direct financing lease receipts, due year four | 36,149 |
Future minimum sales-type and direct financing lease receipts, due thereafter | 479,695 |
Total future minimum sales-type and direct financing lease receipts | 630,936 |
Unearned interest on total minimum sales-type and direct financing lease receipts | (341,031) |
Present value of minimum sales-type and direct financing lease receipts | 289,905 |
Owned properties, sales-type and direct financing | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity | |
Future minimum sales-type and direct financing lease receipts, remainder of fiscal year | 1,407 |
Future minimum sales-type and direct financing lease receipts, due year one | 2,610 |
Future minimum sales-type and direct financing lease receipts, due year two | 2,656 |
Future minimum sales-type and direct financing lease receipts, due year three | 2,667 |
Future minimum sales-type and direct financing lease receipts, due year four | 2,784 |
Future minimum sales-type and direct financing lease receipts, due thereafter | 32,057 |
Total future minimum sales-type and direct financing lease receipts | 44,181 |
Unearned interest on total minimum sales-type and direct financing lease receipts | (21,892) |
Present value of minimum sales-type and direct financing lease receipts | 22,289 |
Subleases, operating | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
Future minimum operating lease receipts, remainder of fiscal year | 28,841 |
Future minimum operating lease receipts, due year one | 116,068 |
Future minimum operating lease receipts, due year two | 116,795 |
Future minimum operating lease receipts, due year three | 116,962 |
Future minimum operating lease receipts, due year four | 116,443 |
Future minimum operating lease receipts, due thereafter | 1,172,444 |
Total future minimum operating lease receipts | 1,667,553 |
Owned properties, operating | |
Lessor, Operating Lease, Payments, Fiscal Year Maturity | |
Future minimum operating lease receipts, remainder of fiscal year | 13,942 |
Future minimum operating lease receipts, due year one | 56,305 |
Future minimum operating lease receipts, due year two | 56,614 |
Future minimum operating lease receipts, due year three | 57,720 |
Future minimum operating lease receipts, due year four | 58,323 |
Future minimum operating lease receipts, due thereafter | 748,781 |
Total future minimum operating lease receipts | 991,685 |
Accounts and notes receivable, net | |
Lessor, Lease, Description | |
Future rental receipts, deferred base rent payments | 273 |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity | |
Present value of minimum sales-type and direct financing lease receipts | 6,952 |
Net investment in sales-type and direct financing leases | |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity | |
Present value of minimum sales-type and direct financing lease receipts | $ 305,242 |
Leases Properties Leased to Thi
Leases Properties Leased to Third Parties (Details) - USD ($) $ in Thousands | Oct. 03, 2021 | Jan. 03, 2021 |
Property, Plant and Equipment | ||
Properties owned by Company and leased to franchisees under operating lease, before accumulated depreciation | $ 590,061 | $ 591,262 |
Accumulated depreciation and amortization | (179,439) | (170,722) |
Properties owned by Company and leased to franchisees under operating lease, after accumulated depreciation | 410,622 | 420,540 |
Land | ||
Property, Plant and Equipment | ||
Properties owned by Company and leased to franchisees under operating lease, before accumulated depreciation | 280,767 | 279,956 |
Building and improvements | ||
Property, Plant and Equipment | ||
Properties owned by Company and leased to franchisees under operating lease, before accumulated depreciation | 307,593 | 309,605 |
Restaurant equipment | ||
Property, Plant and Equipment | ||
Properties owned by Company and leased to franchisees under operating lease, before accumulated depreciation | $ 1,701 | $ 1,701 |
Transactions with Related Par_2
Transactions with Related Parties (Details) $ in Thousands | Jan. 07, 2021number_of_restaurants | Oct. 03, 2021USD ($)number_of_restaurants | Sep. 27, 2020USD ($) |
Related Party Transaction | |||
Number of restaurants | number_of_restaurants | 6,891 | ||
TimWen | Franchise rental expense | |||
Related Party Transaction | |||
Related Party Transaction, Expenses from Transactions with Related Party | $ 13,994 | $ 11,970 | |
TimWen | General and administrative | Management Fees | |||
Related Party Transaction | |||
Related Party Transaction, Other Income from Transactions with Related Party | 165 | $ 152 | |
Yellow Cab | Royalty, Advertising Fund, Lease, and Other Income | |||
Related Party Transaction | |||
Related Party Transaction, Other Income from Transactions with Related Party | 7,016 | ||
Yellow Cab | Accounts Receivable and Advertising Funds Restricted Assets | Royalty, Advertising Fund, Lease, and Other Income | |||
Related Party Transaction | |||
Accounts Receivable, Related Parties, Current | $ 866 | ||
Yellow Cab | Franchised Units | |||
Related Party Transaction | |||
Number of restaurants | number_of_restaurants | 78 | ||
Significant Changes, Franchises Purchased During Period | number_of_restaurants | 54 |
Guarantees and Other Commitme_2
Guarantees and Other Commitments and Contingencies Lease Guarantees (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Property Lease Guarantee | |
Guarantor Obligations | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 89,574 |
Guarantees and Other Commitme_3
Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Guarantor Obligations | |
Letters of Credit Outstanding, Amount | $ 23,569 |
Legal and Environmental Matte_2
Legal and Environmental Matters (Details) $ in Thousands | Oct. 03, 2021USD ($) |
Derivative Lawsuit | |
Loss Contingency, Estimate | |
Loss Contingency, Estimate of Possible Loss | $ 950 |
Segment Information Reconciliat
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | $ 470,255 | $ 452,242 | $ 1,423,795 | $ 1,259,508 |
Wendy's U.S. | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | 383,804 | 374,895 | 1,175,601 | 1,037,194 |
Wendy's International | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | 22,674 | 17,264 | 62,240 | 46,739 |
Global Real Estate & Development | ||||
Segment Reporting, Revenue Reconciling Item | ||||
Total revenues | $ 63,777 | $ 60,083 | $ 185,954 | $ 175,575 |
Segment Information Reconcili_2
Segment Information Reconciliation of Profit from Segments to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 03, 2021 | Sep. 27, 2020 | Oct. 03, 2021 | Sep. 27, 2020 | |
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Segment profit | $ 80,195 | $ 81,348 | $ 290,063 | $ 190,741 |
Unallocated franchise support and other costs | (10,509) | (5,960) | (27,080) | (19,427) |
Advertising funds deficit | (1,574) | (1,140) | (4,440) | (3,547) |
Unallocated general and administrative | (62,840) | (47,322) | (178,576) | (147,553) |
Depreciation and amortization | (30,940) | (32,966) | (93,243) | (98,726) |
System optimization gains, net | 1,437 | 23 | 32,719 | 2,333 |
Reorganization and realignment costs | (345) | (3,375) | (7,381) | (10,196) |
Impairment on long-lived assets | (566) | (23) | (1,831) | (4,727) |
Unallocated other operating income, net | 3,092 | 2,748 | 10,800 | 6,076 |
Interest expense, net | (26,000) | (29,086) | (82,990) | (86,696) |
Loss on early extinguishment of debt | 0 | 0 | (17,917) | 0 |
Other income, net | 171 | 181 | 461 | 1,113 |
Income before income taxes | 54,366 | 52,443 | 189,617 | 105,158 |
Corporate and Other | ||||
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Unallocated franchise support and other costs | (70) | 0 | (70) | 0 |
Unallocated general and administrative | (30,744) | (21,424) | (84,715) | (68,594) |
Unallocated other operating income, net | 143 | 49 | 399 | 140 |
Operating Segments | ||||
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Segment profit | 142,854 | 140,204 | 448,625 | 374,058 |
Operating Segments | Wendy's U.S. | ||||
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Segment profit | 108,878 | 108,297 | 347,615 | 283,261 |
Advertising funds deficit | (8,979) | (6,153) | (16,503) | (8,338) |
Operating Segments | Wendy's International | ||||
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Segment profit | 6,949 | 6,567 | 21,161 | 15,256 |
Operating Segments | Global Real Estate & Development | ||||
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated | ||||
Segment profit | $ 27,027 | $ 25,340 | $ 79,849 | $ 75,541 |
Uncategorized Items - wen-20211
Label | Element | Value |
Restricted Cash, Advertising Funds Restricted Assets | wen_RestrictedCashAdvertisingFundsRestrictedAssets | $ 77,279,000 |