The Wendy's Company (WEN) 10-Q 9 Aug 23 2023 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2023	Aug. 02, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 02, 2023
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	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		209,288,141

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 635,433	$ 745,889
Restricted cash	36,091	35,203
Accounts and notes receivable, net	142,590	116,426
Inventories	6,549	7,129
Prepaid expenses and other current assets	29,925	26,963
Advertising funds restricted assets	116,858	126,673
Total current assets	967,446	1,058,283
Properties	888,798	895,778
Finance lease assets	227,994	234,570
Operating lease assets	728,362	754,498
Goodwill	773,686	773,088
Other intangible assets	1,231,823	1,248,800
Investments	35,883	46,028
Net investment in sales-type and direct financing leases	315,944	317,337
Other assets	183,817	170,962
Total assets	5,353,753	5,499,344
Current liabilities:
Current portion of long-term debt	29,250	29,250
Current portion of finance lease liabilities	19,213	18,316
Current portion of operating lease liabilities	49,161	48,120
Accounts payable	38,640	43,996
Accrued expenses and other current liabilities	132,440	116,010
Advertising funds restricted liabilities	121,217	132,307
Total current liabilities	389,921	387,999
Long-term debt	2,781,096	2,822,196
Long-term finance lease liabilities	567,475	571,877
Long-term operating lease liabilities	764,625	792,051
Deferred income taxes	275,086	270,421
Deferred franchise fees	89,729	90,231
Other liabilities	94,706	98,849
Total liabilities	4,962,638	5,033,624
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 209,969 and 213,101 shares outstanding, respectively	47,042	47,042
Additional paid-in capital	2,945,754	2,937,885
Retained earnings	408,449	414,749
Common stock held in treasury, at cost; 260,455 and 257,323 shares, respectively	(2,951,061)	(2,869,780)
Accumulated other comprehensive loss	(59,069)	(64,176)
Total stockholders’ equity	391,115	465,720
Total liabilities and stockholders’ equity	$ 5,353,753	$ 5,499,344
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	209,969	213,101
Treasury Stock, Shares	260,455	257,323

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Revenues:
Franchise rental income	$ 58,033	$ 58,610	$ 115,840	$ 116,481
Revenues	561,565	537,783	1,090,372	1,026,426
Costs and expenses:
Cost of sales	201,010	197,285	397,546	382,338
Franchise support and other costs	13,787	9,912	27,047	21,728
Franchise Rental Expense	32,396	32,076	63,025	61,012
Advertising funds expense	109,618	110,973	211,279	208,773
General and administrative	62,742	61,637	125,018	123,983
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	33,498	33,428	66,970	66,659
Amortization of cloud computing arrangements	2,266	0	3,848	0
System optimization losses (gains), net	6	(152)	1	(3,686)
Reorganization and realignment costs	681	156	7,489	620
Impairment of long-lived assets	78	1,860	454	2,476
Other operating income, net	(3,791)	(5,673)	(6,057)	(8,639)
Costs and expenses	452,291	441,502	896,620	855,264
Operating profit	109,274	96,281	193,752	171,162
Interest expense, net	(31,136)	(32,125)	(62,841)	(58,490)
Loss on early extinguishment of debt	0	0	(1,266)	0
Investment (loss) income, net	(6,827)	(4)	(10,389)	2,107
Other income, net	7,573	1,238	14,909	1,445
Income before income taxes	78,884	65,390	134,165	116,224
Provision for income taxes	(19,252)	(17,239)	(34,712)	(30,671)
Net income	$ 59,632	$ 48,151	$ 99,453	$ 85,553
Net income per share:
Basic	$ 0.28	$ 0.23	$ 0.47	$ 0.40
Diluted	$ 0.28	$ 0.22	$ 0.46	$ 0.39
Sales
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 240,688	$ 230,869	$ 468,637	$ 440,144
Franchise royalty revenue and fees
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	153,048	143,436	294,725	272,412
Advertising funds revenue
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 109,796	$ 104,868	$ 211,170	$ 197,389

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Net income	$ 59,632	$ 48,151	$ 99,453	$ 85,553
Other comprehensive income (loss):
Foreign currency translation adjustment	4,949	(7,455)	5,107	(6,337)
Other comprehensive income (loss)	4,949	(7,455)	5,107	(6,337)
Comprehensive income	$ 64,581	$ 40,696	$ 104,560	$ 79,216

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 Jan. 02, 2022	$ 436,405	$ 47,042	$ 2,898,633	$ 344,198	$ (2,805,268)	$ (48,200)
Increase (Decrease) in Stockholders' Equity
Net income	37,402	0	0	37,402	0	0
Other comprehensive income (loss)	1,118	0	0	0	0	1,118
Cash dividends	(26,911)	0	0	(26,911)	0	0
Repurchases of common stock	0	0	18,750	0	(18,750)	0
Share-based compensation	6,348	0	6,348	0	0	0
Common stock issued upon exercises of stock options	1,591	0	237	0	1,354	0
Common stock issued upon vesting of restricted shares	(1,530)	0	(1,989)	0	459	0
Other	112	0	63	(8)	57	0
Stockholders' Equity, end of period at Apr. 03, 2022	454,535	47,042	2,922,042	354,681	(2,822,148)	(47,082)
Stockholders' Equity, beginning of period at Jan. 02, 2022	436,405	47,042	2,898,633	344,198	(2,805,268)	(48,200)
Increase (Decrease) in Stockholders' Equity
Net income	85,553
Other comprehensive income (loss)	(6,337)
Stockholders' Equity, end of period at Jul. 03, 2022	422,863	47,042	2,926,739	376,187	(2,872,568)	(54,537)
Stockholders' Equity, beginning of period at Apr. 03, 2022	454,535	47,042	2,922,042	354,681	(2,822,148)	(47,082)
Increase (Decrease) in Stockholders' Equity
Net income	48,151	0	0	48,151	0	0
Other comprehensive income (loss)	(7,455)	0	0	0	0	(7,455)
Cash dividends	(26,635)	0	0	(26,635)	0	0
Repurchases of common stock	(51,950)	0	0	0	(51,950)	0
Share-based compensation	6,122	0	6,122	0	0	0
Common stock issued upon exercises of stock options	99	0	(300)	0	399	0
Common stock issued upon vesting of restricted shares	(105)	0	(1,178)	0	1,073	0
Other	101	0	53	(10)	58	0
Stockholders' Equity, end of period at Jul. 03, 2022	422,863	47,042	2,926,739	376,187	(2,872,568)	(54,537)
Stockholders' Equity, beginning of period at Jan. 01, 2023	465,720	47,042	2,937,885	414,749	(2,869,780)	(64,176)
Increase (Decrease) in Stockholders' Equity
Net income	39,821	0	0	39,821	0	0
Other comprehensive income (loss)	158	0	0	0	0	158
Cash dividends	(53,103)	0	0	(53,103)	0	0
Repurchases of common stock	(38,810)	0	0	0	(38,810)	0
Share-based compensation	4,609	0	4,609	0	0	0
Common stock issued upon exercises of stock options	2,616	0	808	0	1,808	0
Common stock issued upon vesting of restricted shares	(1,544)	0	(2,222)	0	678	0
Other	90	0	58	(22)	54	0
Stockholders' Equity, end of period at Apr. 02, 2023	419,557	47,042	2,941,138	401,445	(2,906,050)	(64,018)
Stockholders' Equity, beginning of period at Jan. 01, 2023	465,720	47,042	2,937,885	414,749	(2,869,780)	(64,176)
Increase (Decrease) in Stockholders' Equity
Net income	99,453
Other comprehensive income (loss)	5,107
Stockholders' Equity, end of period at Jul. 02, 2023	391,115	47,042	2,945,754	408,449	(2,951,061)	(59,069)
Stockholders' Equity, beginning of period at Apr. 02, 2023	419,557	47,042	2,941,138	401,445	(2,906,050)	(64,018)
Increase (Decrease) in Stockholders' Equity
Net income	59,632	0	0	59,632	0	0
Other comprehensive income (loss)	4,949	0	0	0	0	4,949
Cash dividends	(52,612)	0	0	(52,612)	0	0
Repurchases of common stock	(50,183)	0	0	0	(50,183)	0
Share-based compensation	5,609	0	5,609	0	0	0
Common stock issued upon exercises of stock options	4,965	0	1,136	0	3,829	0
Common stock issued upon vesting of restricted shares	(899)	0	(2,182)	0	1,283	0
Other	97	0	53	(16)	60	0
Stockholders' Equity, end of period at Jul. 02, 2023	$ 391,115	$ 47,042	$ 2,945,754	$ 408,449	$ (2,951,061)	$ (59,069)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Cash flows from operating activities:
Net income	$ 99,453	$ 85,553
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	66,970	66,659
Amortization of cloud computing arrangements	3,848	0
Share-based compensation	10,218	12,470
Impairment of long-lived assets	454	2,476
Deferred income tax	4,254	7,306
Non-cash rental expense, net	19,552	16,684
Change in operating lease liabilities	(23,528)	(22,913)
Net receipt of deferred vendor incentives	6,881	5,039
System optimization losses (gains), net	1	(3,686)
Distributions received from joint ventures, net of equity in earnings	542	1,108
Long-term debt-related activities, net	5,334	3,731
Cloud computing arrangements expenditures	(16,817)	(13,213)
Changes in operating assets and liabilities and other, net	(35,658)	(63,019)
Net cash provided by operating activities	141,504	98,195
Cash flows from investing activities:
Capital expenditures	(30,164)	(30,941)
Franchise development fund	(395)	(1,312)
Dispositions	280	1,016
Notes receivable, net	1,335	2,445
Net cash used in investing activities	(28,944)	(28,792)
Cash flows from financing activities:
Proceeds from long-term debt	0	500,000
Repayments of long-term debt	(46,434)	(12,125)
Repayments of finance lease liabilities	(12,336)	(9,495)
Deferred financing costs	0	(10,232)
Repurchases of common stock	(86,930)	(51,950)
Dividends	(105,715)	(53,546)
Proceeds from stock option exercises	7,847	1,959
Payments related to tax withholding for share-based compensation	(2,708)	(1,904)
Net cash (used in) provided by financing activities	(246,276)	362,707
Net cash (used in) provided by operations before effect of exchange rate changes on cash	(133,716)	432,110
Effect of exchange rate changes on cash	2,161	(2,428)
Net (decrease) increase in cash, cash equivalents and restricted cash	(131,555)	429,682
Cash, cash equivalents and restricted cash at beginning of period	831,801	366,966
Cash, cash equivalents and restricted cash at end of period	$ 700,246	$ 796,648

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jul. 02, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of July 2, 2023, the results of our operations for the three and six months ended July 2, 2023 and July 3, 2022 and cash flows for the six months ended July 2, 2023 and July 3, 2022. The results of operations for the six months ended July 2, 2023 are not necessarily indicative of the results to be expected for the full 2023 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 1, 2023 (the “Form 10-K”). 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 six-month periods presented herein contain 13 weeks and 26 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

Revenue	6 Months Ended
	Jul. 02, 2023
Revenue [Abstract]
Revenue	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 July 2, 2023 Sales at Company-operated restaurants $ 234,862 $ 5,826 $ — $ 240,688 Franchise royalty revenue 114,921 17,207 — 132,128 Franchise fees 17,461 1,395 2,064 20,920 Franchise rental income — — 58,033 58,033 Advertising funds revenue 101,509 8,287 — 109,796 Total revenues $ 468,753 $ 32,715 $ 60,097 $ 561,565 Three Months Ended July 3, 2022 Sales at Company-operated restaurants $ 227,903 $ 2,966 $ — $ 230,869 Franchise royalty revenue 108,872 16,141 — 125,013 Franchise fees 15,986 1,167 1,270 18,423 Franchise rental income — — 58,610 58,610 Advertising funds revenue 97,679 7,189 — 104,868 Total revenues $ 450,440 $ 27,463 $ 59,880 $ 537,783 Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Six Months Ended July 2, 2023 Sales at Company-operated restaurants $ 457,494 $ 11,143 $ — $ 468,637 Franchise royalty revenue 221,260 33,018 — 254,278 Franchise fees 34,733 2,918 2,796 40,447 Franchise rental income — — 115,840 115,840 Advertising funds revenue 196,254 14,916 — 211,170 Total revenues $ 909,741 $ 61,995 $ 118,636 $ 1,090,372 Six Months Ended July 3, 2022 Sales at Company-operated restaurants $ 434,404 $ 5,740 $ — $ 440,144 Franchise royalty revenue 206,792 29,966 — 236,758 Franchise fees 31,391 2,438 1,825 35,654 Franchise rental income — — 116,481 116,481 Advertising funds revenue 185,164 12,225 — 197,389 Total revenues $ 857,751 $ 50,369 $ 118,306 $ 1,026,426 Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: July 2, January 1, 2023 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 57,305 $ 54,497 Receivables, which are included in “Advertising funds restricted assets” 71,927 70,422 Deferred franchise fees (c) 100,239 99,208 _______________ (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) The current portion of deferred franchise fees is included in “Accrued expenses and other current liabilities” and the long-term portion of deferred franchise fees is included in “Deferred franchise fees” and totaled $10,510 and $89,729, respectively, as of July 2, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023. Significant changes in deferred franchise fees are as follows: Six Months Ended July 2, July 3, Deferred franchise fees at beginning of period $ 99,208 $ 97,186 Revenue recognized during the period (6,591) (5,037) New deferrals due to cash received and other 7,622 6,959 Deferred franchise fees at end of period $ 100,239 $ 99,108 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: 2023 (a) $ 8,092 2024 5,979 2025 5,821 2026 5,690 2027 5,609 Thereafter 69,048 $ 100,239 _______________ (a) Represents franchise fees expected to be recognized for the remainder of 2023, which includes development-related franchise fees expected to be recognized over a duration of one year or less.

System Optimization Losses (Gai

System Optimization Losses (Gains), Net	6 Months Ended
	Jul. 02, 2023
System Optimization
System optimization losses (gains), net
System Optimization Losses (Gains), Net	System Optimization Losses (Gains), Net The Company’s system optimization initiative included 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 achieved its plan to reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system. While the Company has no plans to move its ownership away from approximately 5% of the total system, 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 and drive new restaurant development. During the six months ended July 2, 2023 and July 3, 2022, the Company facilitated 88 and 46 Franchise Flips, respectively. Gains and losses recognized on dispositions are recorded to “System optimization losses (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.” All other costs incurred related to facilitating Franchise Flips are recorded to “Franchise support and other costs.” The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Post-closing adjustments on sales of restaurants (a) $ — $ 75 $ — $ 3,522 (Loss) gain on sales of other assets, net (b) (6) 77 (1) 164 System optimization (losses) gains, net $ (6) $ 152 $ (1) $ 3,686 _______________ (a) Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. (b) During the six months ended July 2, 2023, the Company received net cash proceeds of $280 primarily from the sale of surplus and other properties. During the three and six months ended July 3, 2022, the Company received net cash proceeds of $690 and $858, respectively, primarily from the sale of surplus and other properties. The Company also received cash proceeds of $63 and $158 during the three and six months ended July 3, 2022, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. Assets Held for Sale As of July 2, 2023 and January 1, 2023, the Company had assets held for sale of $1,379 and $1,661, respectively, primarily consisting of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.”

Reorganization and Realignment

Reorganization and Realignment Costs	6 Months Ended
	Jul. 02, 2023
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 Six Months Ended July 2, July 3, July 2, July 3, Organizational redesign $ 670 $ — $ 7,407 $ — Other reorganization and realignment plans 11 156 82 620 Reorganization and realignment costs $ 681 $ 156 $ 7,489 $ 620 Organizational Redesign In February 2023, the Board of Directors approved a plan to redesign the Company’s organizational structure to better support the execution of the Company’s long-term growth strategy by maximizing organizational efficiency and streamlining decision making (the “Organizational Redesign Plan”). As a result of the Organizational Redesign Plan, the Company expects to hold its general and administrative expense in 2023 and 2024 relatively flat compared with 2022. The Company expects to incur total costs of approximately $11,000 to $13,000 related to the Organizational Redesign Plan. During the six months ended July 2, 2023, the Company recognized costs totaling $7,407, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $3,500 to $5,500, comprised of (1) severance and related employee costs of approximately $2,500, (2) recruitment and relocation costs of approximately $800, (3) third-party and other costs of approximately $300 and (4) share-based compensation of approximately $1,000. The Company expects costs related to the Organizational Redesign Plan to continue into 2026, with approximately three-fourths of the total costs to be recognized during 2023. The following is a summary of the costs recorded as a result of the Organizational Redesign Plan: Three Months Ended Six Months Ended July 2, July 2, Severance and related employee costs $ 21 $ 5,560 Recruitment and relocation costs 86 164 Third-party and other costs 386 731 493 6,455 Share-based compensation (a) 177 952 Total organizational redesign $ 670 $ 7,407 _______________ (a) Primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan. As of July 2, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $3,038 and $117, respectively. The table below presents a rollforward of our accruals for the Organizational Redesign Plan. Balance January 1, Charges Payments Balance July 2, Severance and related employee costs $ — $ 5,560 $ (2,405) $ 3,155 Recruitment and relocation costs — 164 (164) — Third-party and other costs — 731 (731) — $ — $ 6,455 $ (3,300) $ 3,155 Other Reorganization and Realignment Plans Costs incurred under the Company’s other reorganization and realignment plans were not material during the six months ended July 2, 2023 and July 3, 2022. The Company does not expect to incur any material additional costs under these plans.

Investments

Investments	6 Months Ended
	Jul. 02, 2023
Investments [Abstract]
Investments	Investments The following is a summary of the carrying value of our investments: July 2, January 1, Equity method investments $ 34,165 $ 33,921 Other investments in equity securities 1,718 12,107 $ 35,883 $ 46,028 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.). The Company has significant influence over this investee. Such investment is accounted for using the equity method, under which our results of operations include our share of the income of the investee in “Other operating income, net.” Presented below is activity related to our investment in TimWen included in our condensed consolidated financial statements: Six Months Ended July 2, July 3, Balance at beginning of period $ 33,921 $ 39,870 Equity in earnings for the period 6,343 5,736 Amortization of purchase price adjustments (a) (1,373) (1,455) 4,970 4,281 Distributions received (5,512) (5,389) Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other 786 (674) Balance at end of period $ 34,165 $ 38,088 _______________ (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. Other Investments in Equity Securities During 2021, the Company made an investment in equity securities of $10,000 and, during the six months ended July 3, 2022, recognized a gain of $2,107 as a result of an observable price change for a similar investment of the same issuer. During the three and six months ended July 2, 2023, the Company recorded impairment charges of $6,827 and $10,389, respectively, for the difference between the estimated fair value and the carrying value of the investment.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following: July 2, January 1, Series 2022-1 Class A-2 Notes: 4.236% Series 2022-1 Class A-2-I Notes, anticipated repayment date 2029 $ 99,000 $ 99,500 4.535% Series 2022-1 Class A-2-II Notes, anticipated repayment date 2032 396,000 398,000 Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 441,000 443,250 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 637,000 640,250 Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 362,000 364,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 407,250 409,500 Series 2018-1 Class A-2 Notes: 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 448,875 451,250 7% debentures, due in 2025 (a) 56,463 86,369 Unamortized debt issuance costs (37,242) (40,673) 2,810,346 2,851,446 Less amounts payable within one year (29,250) (29,250) Total long-term debt $ 2,781,096 $ 2,822,196 _______________ (a) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”). The fair value adjustment is being accreted and the related charge included in “Interest expense, net” until the debentures mature. During the six months ended July 2, 2023, Wendy’s repurchased $31,571 in principal of its 7% debentures at par value. As a result, the Company recognized a loss on early extinguishment of debt of $1,266 during the six months ended July 2, 2023.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy: • Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets. • Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable. • Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation. Financial Instruments The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: July 2, January 1, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 435,451 $ 435,451 $ 560,682 $ 560,682 Level 1 Other investments in equity securities (a) 1,718 1,718 12,107 12,107 Level 2 Financial liabilities (b) Series 2022-1 Class A-2-I Notes 99,000 90,268 99,500 89,401 Level 2 Series 2022-1 Class A-2-II Notes 396,000 357,430 398,000 349,444 Level 2 Series 2021-1 Class A-2-I Notes 441,000 364,795 443,250 357,304 Level 2 Series 2021-1 Class A-2-II Notes 637,000 509,919 640,250 499,011 Level 2 Series 2019-1 Class A-2-I Notes 362,000 335,140 364,000 334,334 Level 2 Series 2019-1 Class A-2-II Notes 407,250 364,611 409,500 361,875 Level 2 Series 2018-1 Class A-2-II Notes 448,875 407,758 451,250 405,809 Level 2 7% debentures, due in 2025 56,463 58,067 86,369 92,367 Level 2 _______________ (a) The fair value of our other investments in equity securities is based on our review of information provided by the investment manager, which was based on observable price changes. (b) 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) the deterioration in operating performance of certain 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 8 for further information on impairment of our long-lived assets. Fair Value Measurements July 2, Level 1 Level 2 Level 3 Held and used $ 539 $ — $ — $ 539 Held for sale 475 — — 475 Total $ 1,014 $ — $ — $ 1,014 Fair Value Measurements January 1, Level 1 Level 2 Level 3 Held and used $ 4,590 $ — $ — $ 4,590 Held for sale 1,314 — — 1,314 Total $ 5,904 $ — $ — $ 5,904

Impairment of Long-Lived Assets

Impairment of Long-Lived Assets	6 Months Ended
	Jul. 02, 2023
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. The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:” Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Company-operated restaurants $ 78 $ 1,708 $ 428 $ 2,075 Restaurants leased or subleased to franchisees — — — 194 Surplus properties — 152 26 207 $ 78 $ 1,860 $ 454 $ 2,476

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the three months ended July 2, 2023 and July 3, 2022 was 24.4% and 26.4%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the three months ended July 2, 2023 primarily due to state income taxes, including discrete changes to state deferred income taxes. The Company’s effective tax rate for the six months ended July 2, 2023 and July 3, 2022 was 25.9% and 26.4%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% for the six months ended July 2, 2023 primarily due to state income taxes, including discrete changes to state deferred income taxes, and a one-time adjustment to our foreign deferred income taxes related to prior periods. There were no significant changes to the unrecognized tax benefits or related interest and penalties for the three and six months ended July 2, 2023. During the next twelve months, we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $582 due to lapses of statutes of limitations. The current portion of refundable income taxes was $14,562 and $3,236 as of July 2, 2023 and January 1, 2023, respectively, and is included in “Accounts and notes receivable, net.” There were no long-term refundable income taxes as of July 2, 2023 and January 1, 2023.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jul. 02, 2023
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 Six Months Ended July 2, July 3, July 2, July 3, Net income $ 59,632 $ 48,151 $ 99,453 $ 85,553 Common stock: Weighted average basic shares outstanding 210,624 213,673 211,585 214,646 Dilutive effect of stock options and restricted shares 2,304 1,569 2,393 2,058 Weighted average diluted shares outstanding 212,928 215,242 213,978 216,704 Net income per share: Basic $ .28 $ .23 $ .47 $ .40 Diluted $ .28 $ .22 $ .46 $ .39 Basic net income per share for the three and six months ended July 2, 2023 and July 3, 2022 was computed by dividing net income amounts by the weighted average number of shares of common stock outstanding. Diluted net income per share was computed by dividing net income by the weighted average number of basic shares outstanding plus the potential common share effect of dilutive stock options and restricted shares. We excluded potential common shares of 4,420 and 4,476 for the three and six months ended July 2, 2023, respectively, and 5,538 and 4,417 for the three and six months ended July 3, 2022, respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Dividends During each of the first and second quarters of 2023, the Company paid dividends per share of $.25. During each of the first and second quarters of 2022, the Company paid dividends per share of $.125. Repurchases of Common Stock In January 2023, our Board of Directors authorized a repurchase program for up to $500,000 of our common stock through February 28, 2027, when and if market conditions warrant and to the extent legally permissible (the “January 2023 Authorization”). During the six months ended July 2, 2023, the Company repurchased 4,023 shares under the January 2023 Authorization with an aggregate purchase price of $88,254, of which $1,380 was accrued as of July 2, 2023, and excluding excise tax of $683 and commissions of $56. As of July 2, 2023, the Company had $411,746 of availability remaining under the January 2023 Authorization. Subsequent to July 2, 2023 through August 2, 2023, the Company repurchased 706 shares under the January 2023 Authorization with an aggregate purchase price of $15,163, excluding applicable excise tax and commissions of $10. In February 2022, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through February 28, 2023, when and if market conditions warranted and to the extent legally permissible (the “February 2022 Authorization”). In April 2022, the Company’s Board of Directors approved an increase of $150,000 to the February 2022 Authorization, resulting in an aggregate authorization of $250,000 that was set to expire on February 28, 2023. During the six months ended July 3, 2022, the Company repurchased 2,759 shares under the February 2022 Authorization with an aggregate purchase price of $51,911, excluding commissions of $39. In connection with the January 2023 Authorization, the remaining portion of the February 2022 Authorization was canceled. 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”). In July 2020, the Company’s Board of Directors approved an extension of the February 2020 Authorization by one year, through February 28, 2022. In addition, the Board of Directors approved increases totaling $200,000 to the February 2020 Authorization, resulting in an aggregate authorization of $300,000 that continued to expire on February 28, 2022. In November 2021, the Company entered into an accelerated share repurchase agreement (the “2021 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the February 2020 Authorization. Under the 2021 ASR Agreement, the Company paid the financial institution an initial purchase price of $125,000 in cash and received an initial delivery of 4,910 shares of common stock, representing an estimated 85% of the total shares expected to be delivered under the 2021 ASR Agreement. In February 2022, the Company completed the 2021 ASR Agreement and received an additional 715 shares of common stock. The total number of shares of common stock ultimately purchased by the Company under the 2021 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2021 ASR Agreement, less an agreed upon discount. In total, 5,625 shares were delivered under the 2021 ASR Agreement at an average purchase price of $22.22 per share. With the completion of the 2021 ASR Agreement in February 2022 as described above, the Company completed the February 2020 Authorization. Accumulated Other Comprehensive Loss The following table provides a rollforward of accumulated other comprehensive loss, which is entirely comprised of foreign currency translation: Six Months Ended July 2, July 3, Balance at beginning of period $ (64,176) $ (48,200) Foreign currency translation 5,107 (6,337) Balance at end of period $ (59,069) $ (54,537)

Leases

Leases	6 Months Ended
	Jul. 02, 2023
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 July 2, 2023, Wendy’s and its franchisees operated 7,115 Wendy’s restaurants. Of the 414 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 159 restaurants, owned the building and held long-term land leases for 144 restaurants and held leases covering the land and building for 111 restaurants. Wendy’s also owned 488 and leased 1,189 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 Six Months Ended July 2, July 3, July 2, July 3, Finance lease cost: Amortization of finance lease assets $ 4,058 $ 4,106 $ 8,121 $ 8,170 Interest on finance lease liabilities 10,743 10,693 21,493 21,338 14,801 14,799 29,614 29,508 Operating lease cost 21,429 22,324 42,878 42,985 Variable lease cost (a) 17,519 16,456 33,600 31,259 Short-term lease cost 1,461 1,405 2,967 2,838 Total operating lease cost (b) 40,409 40,185 79,445 77,082 Total lease cost $ 55,210 $ 54,984 $ 109,059 $ 106,590 _______________ (a) Includes expenses for executory costs of $10,172 and $9,245 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $20,020 and $18,853 for the six months ended July 2, 2023 and July 3, 2022, respectively, for which the Company is reimbursed by sublessees. (b) Includes $32,329 and $32,071 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $62,927 and $60,996 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,546 and $7,479 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $15,411 and $14,773 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Leases, Company as Lessor	Company as Lessor The components of lease income are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Sales-type and direct-financing leases: Selling profit $ 1,072 $ 1,677 $ 1,201 $ 2,157 Interest income (a) 7,868 7,753 15,730 15,493 Operating lease income 40,629 42,174 82,785 85,488 Variable lease income 17,404 16,436 33,055 30,993 Franchise rental income (b) $ 58,033 $ 58,610 $ 115,840 $ 116,481 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $42,961 and $43,689 recognized during the three months ended July 2, 2023 and July 3, 2022, respectively, and $85,912 and $86,854 recognized during the six months ended July 2, 2023 and July 3, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,115 and $9,250 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $19,893 and $18,785 for the six months ended July 2, 2023 and July 3, 2022, respectively.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jul. 02, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	Supplemental Cash Flow Information The following table includes supplemental non-cash investing and financing activities: Six Months Ended July 2, July 3, Supplemental non-cash investing and financing activities: Capital expenditures included in accounts payable $ 11,422 $ 5,955 Finance leases 8,257 18,984 The following table includes a reconciliation of cash, cash equivalents and restricted cash: July 2, January 1, Reconciliation of cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents $ 635,433 $ 745,889 Restricted cash 36,091 35,203 Restricted cash, included in Advertising funds restricted assets 28,722 50,709 Total cash, cash equivalents and restricted cash $ 700,246 $ 831,801

Transactions with Related Parti

Transactions with Related Parties	6 Months Ended
	Jul. 02, 2023
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. Wendy’s paid TimWen $10,140 and $9,601 under these lease agreements during the six months ended July 2, 2023 and July 3, 2022, respectively, which has been recorded to “Franchise rental expense.” In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $121 and $111 during the six months ended July 2, 2023 and July 3, 2022, 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 Senior Vice Chairman, as well as Mr. Matthew Peltz, our Vice Chairman, hold indirect, minority ownership interests in Yellow Cab Holdings, LLC (“Yellow Cab”) and operating companies managed by Yellow Cab, a Wendy’s franchisee, that as of July 2, 2023 owned and operated 83 Wendy’s restaurants. During the six months ended July 2, 2023 and July 3, 2022, the Company recognized $7,411 and $6,476, respectively, in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of July 2, 2023 and January 1, 2023, $1,130 and $1,125, respectively, was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.” Transactions with AMC In February 2023, Ms. Kristin Dolan, a director of the Company, was appointed as the Chief Executive Officer of AMC Networks Inc. (“AMC”). During the six months ended July 2, 2023, the Company purchased approximately $1,200 of advertising time from a subsidiary of AMC. As of July 2, 2023, approximately $850 was due to AMC for advertising time, which is included in “Advertising funds restricted liabilities.”

Guarantees and Other Commitment

Guarantees and Other Commitments and Contingencies	6 Months Ended
	Jul. 02, 2023
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. Franchisee Image Activation Incentive Programs To promote new restaurant development, Wendy’s has provided franchisees with certain incentive programs for qualifying new restaurants. In February 2023, Wendy’s announced a new restaurant development incentive program in the U.S. and Canada that provides for waivers of royalty, national advertising and technical assistance fees for up to the first three years of operation for qualifying new restaurants (referred to as the “Pacesetter” program). Wendy’s previously offered and will continue to offer a restaurant development incentive program that provides for reductions in royalty and national advertising fees for up to the first two years of operation for qualifying new restaurants (referred to as the “Groundbreaker” program). Wendy’s U.S. and Canadian franchisees may elect either the Pacesetter program or the Groundbreaker program when committing to new multi-unit development agreements or adding incremental commitments to existing development agreements. Wendy’s also provides franchisees with the option of an early 20-year or 25-year renewal of their franchise agreement upon completion of reimaging utilizing certain approved Image Activation reimage designs. 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 $95,523 as of July 2, 2023. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of July 2, 2023. In the event of default by a franchise owner where Wendy’s is called upon to perform under its guarantee, Wendy’s has the ability to pursue repayment from the franchise owner. The liability recorded for our probable exposure associated with these lease guarantees was not material as of July 2, 2023. Letters of Credit As of July 2, 2023, the Company had outstanding letters of credit with various parties totaling $28,847. Substantially all of the outstanding letters of credit include amounts outstanding against the 2021-1 Variable Funding Senior Secured Notes, Class A-1. We do not expect any material loss to result from these letters of credit.

Legal and Environmental Matters

Legal and Environmental Matters	6 Months Ended
	Jul. 02, 2023
Loss Contingency [Abstract]
Legal and Environmental Matters	Legal and Environmental MattersThe Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when we determine it is probable that a liability has been incurred and the loss is reasonably estimable. The Company believes it has 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 due to 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 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.

Segment Information (Notes)

Segment Information (Notes)	6 Months Ended
	Jul. 02, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information Revenues by segment are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Wendy’s U.S. $ 468,753 $ 450,440 $ 909,741 $ 857,751 Wendy’s International 32,715 27,463 61,995 50,369 Global Real Estate & Development 60,097 59,880 118,636 118,306 Total revenues $ 561,565 $ 537,783 $ 1,090,372 $ 1,026,426 The following table reconciles profit by segment to the Company’s consolidated income before income taxes: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Wendy’s U.S. (a) $ 142,947 $ 126,999 $ 268,177 $ 231,823 Wendy’s International (b) 8,531 9,350 15,977 14,803 Global Real Estate & Development 26,534 27,283 51,602 54,890 Total segment profit 178,012 163,632 $ 335,756 $ 301,516 Unallocated franchise support and other costs 23 — 23 6 Advertising funds surplus (deficit) 1,315 (1,375) 2,421 (2,618) Unallocated general and administrative (c) (33,653) (30,989) (65,814) (61,994) Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) (33,498) (33,428) (66,970) (66,659) Amortization of cloud computing arrangements (2,266) — (3,848) — System optimization (losses) gains, net (6) 152 (1) 3,686 Reorganization and realignment costs (681) (156) (7,489) (620) Impairment of long-lived assets (78) (1,860) (454) (2,476) Unallocated other operating income, net 106 305 128 321 Interest expense, net (31,136) (32,125) (62,841) (58,490) Loss on early extinguishment of debt — — (1,266) — Investment (loss) income, net (6,827) (4) (10,389) 2,107 Other income, net 7,573 1,238 14,909 1,445 Income before income taxes $ 78,884 $ 65,390 $ 134,165 $ 116,224 _______________ (a) Wendy’s U.S. includes advertising funds expense of $2,766 and $5,322 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. (b) Wendy’s International includes advertising funds expense of $658 and $1,206 for the three and six months ended July 2, 2023, respectively, and $1,084 and $1,922 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $479 and $1,324 for the three and six months ended July 2, 2023, respectively, and $880 and $1,522 for the three and six months ended July 3, 2022, respectively. (c) Includes corporate overhead costs, such as employee compensation and related benefits.

New Accounting Standards

New Accounting Standards	6 Months Ended
	Jul. 02, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Standards	New Accounting Standards New Accounting Standards Common-Control Lease Arrangements In March 2023, the Financial Accounting Standards Board (“FASB”) issued an update to amend certain lease accounting guidance that applies to arrangements between related parties under common control. The amendment requires a lessee in a common-control lease arrangement to amortize leasehold improvements that it owns over the useful life of the improvements to the common-control group, regardless of the lease term, if the lessee continues to control the use of the underlying asset through a lease. The standard is effective beginning with our 2024 fiscal year. The Company does not expect the guidance to have a material impact on our condensed consolidated financial statements. New Accounting Standards Adopted Reference Rate Reform In March 2020, the FASB issued guidance to provide temporary optional expedients and exceptions to current reference rate reform guidance to ease the financial reporting burdens related to the market transition from the London Interbank Offered Rate (“LIBOR”) and other interbank offered rates to alternative reference rates. During the three months ended July 2, 2023, certain of the Company’s subsidiaries executed amendments to the 2021-1 Variable Funding Senior Secured Notes, Class A-1 and the U.S. advertising fund revolving line of credit to transition from LIBOR to the Secured Overnight Financing Rate (“SOFR”), plus any applicable margin. In connection with these contract amendments, the Company adopted the reference rate reform guidance during the second quarter of 2023. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements. Business Combinations In October 2021, the FASB issued an amendment to improve the accounting for revenue contracts with customers acquired in a business combination. The amendment requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with current revenue recognition guidance as if the acquirer had originated the contracts. The Company adopted this amendment during the first quarter of 2023. The adoption of this guidance did not have a material impact on our condensed consolidated financial statements.

Revenue (Tables)

Revenue (Tables)	6 Months Ended
	Jul. 02, 2023
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 July 2, 2023 Sales at Company-operated restaurants $ 234,862 $ 5,826 $ — $ 240,688 Franchise royalty revenue 114,921 17,207 — 132,128 Franchise fees 17,461 1,395 2,064 20,920 Franchise rental income — — 58,033 58,033 Advertising funds revenue 101,509 8,287 — 109,796 Total revenues $ 468,753 $ 32,715 $ 60,097 $ 561,565 Three Months Ended July 3, 2022 Sales at Company-operated restaurants $ 227,903 $ 2,966 $ — $ 230,869 Franchise royalty revenue 108,872 16,141 — 125,013 Franchise fees 15,986 1,167 1,270 18,423 Franchise rental income — — 58,610 58,610 Advertising funds revenue 97,679 7,189 — 104,868 Total revenues $ 450,440 $ 27,463 $ 59,880 $ 537,783 Wendy’s U.S. Wendy’s International Global Real Estate & Development Total Six Months Ended July 2, 2023 Sales at Company-operated restaurants $ 457,494 $ 11,143 $ — $ 468,637 Franchise royalty revenue 221,260 33,018 — 254,278 Franchise fees 34,733 2,918 2,796 40,447 Franchise rental income — — 115,840 115,840 Advertising funds revenue 196,254 14,916 — 211,170 Total revenues $ 909,741 $ 61,995 $ 118,636 $ 1,090,372 Six Months Ended July 3, 2022 Sales at Company-operated restaurants $ 434,404 $ 5,740 $ — $ 440,144 Franchise royalty revenue 206,792 29,966 — 236,758 Franchise fees 31,391 2,438 1,825 35,654 Franchise rental income — — 116,481 116,481 Advertising funds revenue 185,164 12,225 — 197,389 Total revenues $ 857,751 $ 50,369 $ 118,306 $ 1,026,426
Contract Balances, assets and liabilities	The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: July 2, January 1, 2023 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 57,305 $ 54,497 Receivables, which are included in “Advertising funds restricted assets” 71,927 70,422 Deferred franchise fees (c) 100,239 99,208 _______________ (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) The current portion of deferred franchise fees is included in “Accrued expenses and other current liabilities” and the long-term portion of deferred franchise fees is included in “Deferred franchise fees” and totaled $10,510 and $89,729, respectively, as of July 2, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023.
Contract Balances, deferred franchise fee rollforward	Significant changes in deferred franchise fees are as follows: Six Months Ended July 2, July 3, Deferred franchise fees at beginning of period $ 99,208 $ 97,186 Revenue recognized during the period (6,591) (5,037) New deferrals due to cash received and other 7,622 6,959 Deferred franchise fees at end of period $ 100,239 $ 99,108
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: 2023 (a) $ 8,092 2024 5,979 2025 5,821 2026 5,690 2027 5,609 Thereafter 69,048 $ 100,239 _______________ (a) Represents franchise fees expected to be recognized for the remainder of 2023, which includes development-related franchise fees expected to be recognized over a duration of one year or less.

System Optimization Losses (G_2

System Optimization Losses (Gains), Net (Tables)	6 Months Ended
	Jul. 02, 2023
System Optimization
System optimization losses (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 Six Months Ended July 2, July 3, July 2, July 3, Post-closing adjustments on sales of restaurants (a) $ — $ 75 $ — $ 3,522 (Loss) gain on sales of other assets, net (b) (6) 77 (1) 164 System optimization (losses) gains, net $ (6) $ 152 $ (1) $ 3,686 _______________ (a) Represents the recognition of deferred gains as a result of the resolution of certain contingencies related to the extension of lease terms for restaurants previously sold to franchisees. (b) During the six months ended July 2, 2023, the Company received net cash proceeds of $280 primarily from the sale of surplus and other properties. During the three and six months ended July 3, 2022, the Company received net cash proceeds of $690 and $858, respectively, primarily from the sale of surplus and other properties. The Company also received cash proceeds of $63 and $158 during the three and six months ended July 3, 2022, respectively, related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants.

Reorganization and Realignmen_2

Reorganization and Realignment Costs (Tables)	6 Months Ended
	Jul. 02, 2023
Restructuring Cost and Reserve
Restructuring and Related Costs	The following is a summary of the initiatives included in “Reorganization and realignment costs:” Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Organizational redesign $ 670 $ — $ 7,407 $ — Other reorganization and realignment plans 11 156 82 620 Reorganization and realignment costs $ 681 $ 156 $ 7,489 $ 620
Organizational Redesign
Restructuring Cost and Reserve
Restructuring and Related Costs	The following is a summary of the costs recorded as a result of the Organizational Redesign Plan: Three Months Ended Six Months Ended July 2, July 2, Severance and related employee costs $ 21 $ 5,560 Recruitment and relocation costs 86 164 Third-party and other costs 386 731 493 6,455 Share-based compensation (a) 177 952 Total organizational redesign $ 670 $ 7,407 _______________ (a) Primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan.
Schedule of Restructuring Reserve by Type of Cost	As of July 2, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $3,038 and $117, respectively. The table below presents a rollforward of our accruals for the Organizational Redesign Plan. Balance January 1, Charges Payments Balance July 2, Severance and related employee costs $ — $ 5,560 $ (2,405) $ 3,155 Recruitment and relocation costs — 164 (164) — Third-party and other costs — 731 (731) — $ — $ 6,455 $ (3,300) $ 3,155

Investments (Tables)

Investments (Tables)	6 Months Ended
	Jul. 02, 2023
Schedule of Equity Method Investments
Schedule of Equity Method Investments and Other Investments in Equity Securities	The following is a summary of the carrying value of our investments: July 2, January 1, Equity method investments $ 34,165 $ 33,921 Other investments in equity securities 1,718 12,107 $ 35,883 $ 46,028
Schedule of Equity Method Investments	Presented below is activity related to our investment in TimWen included in our condensed consolidated financial statements: Six Months Ended July 2, July 3, Balance at beginning of period $ 33,921 $ 39,870 Equity in earnings for the period 6,343 5,736 Amortization of purchase price adjustments (a) (1,373) (1,455) 4,970 4,281 Distributions received (5,512) (5,389) Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other 786 (674) Balance at end of period $ 34,165 $ 38,088 _______________ (a) Purchase price adjustments that impacted the carrying value of the Company’s investment in TimWen are being amortized over the average original aggregate life of 21 years.

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jul. 02, 2023
Debt Disclosure [Abstract]
Long-term debt	Long-term debt consisted of the following: July 2, January 1, Series 2022-1 Class A-2 Notes: 4.236% Series 2022-1 Class A-2-I Notes, anticipated repayment date 2029 $ 99,000 $ 99,500 4.535% Series 2022-1 Class A-2-II Notes, anticipated repayment date 2032 396,000 398,000 Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 441,000 443,250 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 637,000 640,250 Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 362,000 364,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 407,250 409,500 Series 2018-1 Class A-2 Notes: 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 448,875 451,250 7% debentures, due in 2025 (a) 56,463 86,369 Unamortized debt issuance costs (37,242) (40,673) 2,810,346 2,851,446 Less amounts payable within one year (29,250) (29,250) Total long-term debt $ 2,781,096 $ 2,822,196 _______________ (a) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with the 2008 merger of Triarc Companies, Inc. and Wendy’s International, Inc. (the “Wendy’s Merger”). The fair value adjustment is being accreted and the related charge included in “Interest expense, net” until the debentures mature. During the six months ended July 2, 2023, Wendy’s repurchased $31,571 in principal of its 7% debentures at par value. As a result, the Company recognized a loss on early extinguishment of debt of $1,266 during the six months ended July 2, 2023.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jul. 02, 2023
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping	The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments: July 2, January 1, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 435,451 $ 435,451 $ 560,682 $ 560,682 Level 1 Other investments in equity securities (a) 1,718 1,718 12,107 12,107 Level 2 Financial liabilities (b) Series 2022-1 Class A-2-I Notes 99,000 90,268 99,500 89,401 Level 2 Series 2022-1 Class A-2-II Notes 396,000 357,430 398,000 349,444 Level 2 Series 2021-1 Class A-2-I Notes 441,000 364,795 443,250 357,304 Level 2 Series 2021-1 Class A-2-II Notes 637,000 509,919 640,250 499,011 Level 2 Series 2019-1 Class A-2-I Notes 362,000 335,140 364,000 334,334 Level 2 Series 2019-1 Class A-2-II Notes 407,250 364,611 409,500 361,875 Level 2 Series 2018-1 Class A-2-II Notes 448,875 407,758 451,250 405,809 Level 2 7% debentures, due in 2025 56,463 58,067 86,369 92,367 Level 2 _______________ (a) The fair value of our other investments in equity securities is based on our review of information provided by the investment manager, which was based on observable price changes. (b) 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 July 2, Level 1 Level 2 Level 3 Held and used $ 539 $ — $ — $ 539 Held for sale 475 — — 475 Total $ 1,014 $ — $ — $ 1,014 Fair Value Measurements January 1, Level 1 Level 2 Level 3 Held and used $ 4,590 $ — $ — $ 4,590 Held for sale 1,314 — — 1,314 Total $ 5,904 $ — $ — $ 5,904

Impairment of Long-Lived Asse_2

Impairment of Long-Lived Assets (Tables)	6 Months Ended
	Jul. 02, 2023
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 Six Months Ended July 2, July 3, July 2, July 3, Company-operated restaurants $ 78 $ 1,708 $ 428 $ 2,075 Restaurants leased or subleased to franchisees — — — 194 Surplus properties — 152 26 207 $ 78 $ 1,860 $ 454 $ 2,476

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jul. 02, 2023
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 Six Months Ended July 2, July 3, July 2, July 3, Net income $ 59,632 $ 48,151 $ 99,453 $ 85,553 Common stock: Weighted average basic shares outstanding 210,624 213,673 211,585 214,646 Dilutive effect of stock options and restricted shares 2,304 1,569 2,393 2,058 Weighted average diluted shares outstanding 212,928 215,242 213,978 216,704 Net income per share: Basic $ .28 $ .23 $ .47 $ .40 Diluted $ .28 $ .22 $ .46 $ .39

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jul. 02, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Loss	The following table provides a rollforward of accumulated other comprehensive loss, which is entirely comprised of foreign currency translation: Six Months Ended July 2, July 3, Balance at beginning of period $ (64,176) $ (48,200) Foreign currency translation 5,107 (6,337) Balance at end of period $ (59,069) $ (54,537)

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jul. 02, 2023
Leases [Abstract]
Lease, Cost	The components of lease cost are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Finance lease cost: Amortization of finance lease assets $ 4,058 $ 4,106 $ 8,121 $ 8,170 Interest on finance lease liabilities 10,743 10,693 21,493 21,338 14,801 14,799 29,614 29,508 Operating lease cost 21,429 22,324 42,878 42,985 Variable lease cost (a) 17,519 16,456 33,600 31,259 Short-term lease cost 1,461 1,405 2,967 2,838 Total operating lease cost (b) 40,409 40,185 79,445 77,082 Total lease cost $ 55,210 $ 54,984 $ 109,059 $ 106,590 _______________ (a) Includes expenses for executory costs of $10,172 and $9,245 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $20,020 and $18,853 for the six months ended July 2, 2023 and July 3, 2022, respectively, for which the Company is reimbursed by sublessees. (b) Includes $32,329 and $32,071 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $62,927 and $60,996 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,546 and $7,479 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $15,411 and $14,773 for the six months ended July 2, 2023 and July 3, 2022, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
Lease, Income	The components of lease income are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Sales-type and direct-financing leases: Selling profit $ 1,072 $ 1,677 $ 1,201 $ 2,157 Interest income (a) 7,868 7,753 15,730 15,493 Operating lease income 40,629 42,174 82,785 85,488 Variable lease income 17,404 16,436 33,055 30,993 Franchise rental income (b) $ 58,033 $ 58,610 $ 115,840 $ 116,481 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $42,961 and $43,689 recognized during the three months ended July 2, 2023 and July 3, 2022, respectively, and $85,912 and $86,854 recognized during the six months ended July 2, 2023 and July 3, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $10,115 and $9,250 for the three months ended July 2, 2023 and July 3, 2022, respectively, and $19,893 and $18,785 for the six months ended July 2, 2023 and July 3, 2022, respectively.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Jul. 02, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	The following table includes supplemental non-cash investing and financing activities: Six Months Ended July 2, July 3, Supplemental non-cash investing and financing activities: Capital expenditures included in accounts payable $ 11,422 $ 5,955 Finance leases 8,257 18,984 The following table includes a reconciliation of cash, cash equivalents and restricted cash: July 2, January 1, Reconciliation of cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents $ 635,433 $ 745,889 Restricted cash 36,091 35,203 Restricted cash, included in Advertising funds restricted assets 28,722 50,709 Total cash, cash equivalents and restricted cash $ 700,246 $ 831,801

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 02, 2023
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	Revenues by segment are as follows: Three Months Ended Six Months Ended July 2, July 3, July 2, July 3, Wendy’s U.S. $ 468,753 $ 450,440 $ 909,741 $ 857,751 Wendy’s International 32,715 27,463 61,995 50,369 Global Real Estate & Development 60,097 59,880 118,636 118,306 Total revenues $ 561,565 $ 537,783 $ 1,090,372 $ 1,026,426
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 Six Months Ended July 2, July 3, July 2, July 3, Wendy’s U.S. (a) $ 142,947 $ 126,999 $ 268,177 $ 231,823 Wendy’s International (b) 8,531 9,350 15,977 14,803 Global Real Estate & Development 26,534 27,283 51,602 54,890 Total segment profit 178,012 163,632 $ 335,756 $ 301,516 Unallocated franchise support and other costs 23 — 23 6 Advertising funds surplus (deficit) 1,315 (1,375) 2,421 (2,618) Unallocated general and administrative (c) (33,653) (30,989) (65,814) (61,994) Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) (33,498) (33,428) (66,970) (66,659) Amortization of cloud computing arrangements (2,266) — (3,848) — System optimization (losses) gains, net (6) 152 (1) 3,686 Reorganization and realignment costs (681) (156) (7,489) (620) Impairment of long-lived assets (78) (1,860) (454) (2,476) Unallocated other operating income, net 106 305 128 321 Interest expense, net (31,136) (32,125) (62,841) (58,490) Loss on early extinguishment of debt — — (1,266) — Investment (loss) income, net (6,827) (4) (10,389) 2,107 Other income, net 7,573 1,238 14,909 1,445 Income before income taxes $ 78,884 $ 65,390 $ 134,165 $ 116,224 _______________ (a) Wendy’s U.S. includes advertising funds expense of $2,766 and $5,322 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. (b) Wendy’s International includes advertising funds expense of $658 and $1,206 for the three and six months ended July 2, 2023, respectively, and $1,084 and $1,922 for the three and six months ended July 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $479 and $1,324 for the three and six months ended July 2, 2023, respectively, and $880 and $1,522 for the three and six months ended July 3, 2022, respectively. (c) Includes corporate overhead costs, such as employee compensation and related benefits.

Revenue Disaggregation of Reven

Revenue Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Disaggregation of Revenue
Franchise rental income	$ 58,033	$ 58,610	$ 115,840	$ 116,481
Total revenues	561,565	537,783	1,090,372	1,026,426
Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	240,688	230,869	468,637	440,144
Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	132,128	125,013	254,278	236,758
Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	20,920	18,423	40,447	35,654
Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	109,796	104,868	211,170	197,389
Wendy's U.S.
Disaggregation of Revenue
Franchise rental income	0	0	0	0
Total revenues	468,753	450,440	909,741	857,751
Wendy's U.S. | Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	234,862	227,903	457,494	434,404
Wendy's U.S. | Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	114,921	108,872	221,260	206,792
Wendy's U.S. | Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	17,461	15,986	34,733	31,391
Wendy's U.S. | Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	101,509	97,679	196,254	185,164
Wendy's International
Disaggregation of Revenue
Franchise rental income	0	0	0	0
Total revenues	32,715	27,463	61,995	50,369
Wendy's International | Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	5,826	2,966	11,143	5,740
Wendy's International | Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	17,207	16,141	33,018	29,966
Wendy's International | Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	1,395	1,167	2,918	2,438
Wendy's International | Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	8,287	7,189	14,916	12,225
Global Real Estate & Development
Disaggregation of Revenue
Franchise rental income	58,033	58,610	115,840	116,481
Total revenues	60,097	59,880	118,636	118,306
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	2,064	1,270	2,796	1,825
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	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Contract balances
Deferred franchise fees at beginning of period	$ 99,208	$ 97,186
Revenue recognized during the period	(6,591)	(5,037)
New deferrals due to cash received and other	7,622	6,959
Deferred franchise fees at end of period	100,239	$ 99,108
Deferred franchise fees, noncurrent	89,729		$ 90,231
Accounts and notes receivable, net | Short-term Contract with Customer
Contract balances
Receivables, Net, Current	57,305		54,497
Advertising funds restricted assets | Short-term Contract with Customer
Contract balances
Receivables, Net, Current	71,927		70,422
Accrued expenses and other current liabilities
Contract balances
Deferred franchise fees, current	10,510		8,977
Deferred franchise fees
Contract balances
Deferred franchise fees, noncurrent	$ 89,729		$ 90,231

Revenue Anticipated Future Reco

Revenue Anticipated Future Recognition of Deferred Franchise Fees (Details) $ in Thousands	Jul. 02, 2023 USD ($)
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	$ 100,239
2023
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	8,092
2024
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,979
2025
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,821
2026
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,690
2027
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,609
Thereafter
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	$ 69,048

System Optimization Losses (G_3

System Optimization Losses (Gains), Net Summary of Disposition Activity (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023 USD ($)	Jul. 03, 2022 USD ($)	Jul. 02, 2023 USD ($) number_of_restaurants	Jul. 03, 2022 USD ($) number_of_restaurants	Jan. 01, 2017
System optimization losses (gains), net
Company-operated restaurant ownership percentage					5%
Proceeds from sales of restaurants			$ 280	$ 1,016
System optimization losses (gains), net	$ (6)	$ 152	$ (1)	$ 3,686
Sale of franchise-operated restaurants to franchisees
System optimization losses (gains), net
Number of restaurants sold to franchisees | number_of_restaurants			88	46
Sale of company-operated restaurants to franchisees
System optimization losses (gains), net
Post-closing adjustments on sales of restaurants	0	75	$ 0	$ 3,522
Sale of other assets
System optimization losses (gains), net
Proceeds from sales of restaurants		690	280	858
System optimization losses (gains), net	$ (6)	77	$ (1)	164
Sale of manhattan company-operated restaurants to franchisees note receivable
System optimization losses (gains), net
Proceeds from sales of restaurants		$ 63		$ 158

System Optimization Losses (G_4

System Optimization Losses (Gains), Net Assets Held for Sale (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Other assets held for sale
Long lived assets held for sale
Assets held for sale	$ 1,379	$ 1,661

Reorganization and Realignmen_3

Reorganization and Realignment Costs Summary (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 681	$ 156	$ 7,489	$ 620
Organizational redesign
Restructuring Cost and Reserve
Reorganization and realignment costs	670	0	7,407	0
Other reorganization and realignment plans
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 11	$ 156	$ 82	$ 620

Reorganization and Realignmen_4

Reorganization and Realignment Costs Organizational Redesign (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 681	$ 156	$ 7,489	$ 620
Organizational Redesign
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	493		6,455
Reorganization and realignment costs	670	$ 0	7,407	$ 0
Organizational Redesign | Minimum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	11,000		11,000
Restructuring and Related Cost, Expected Cost Remaining	3,500		3,500
Organizational Redesign | Maximum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	13,000		13,000
Restructuring and Related Cost, Expected Cost Remaining	5,500		5,500
Organizational Redesign | Severance and related employee costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	21		5,560
Restructuring and Related Cost, Expected Cost Remaining	2,500		2,500
Organizational Redesign | Recruitment and relocation costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	86		164
Restructuring and Related Cost, Expected Cost Remaining	800		800
Organizational Redesign | Third-party and other costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	386		731
Restructuring and Related Cost, Expected Cost Remaining	300		300
Organizational Redesign | Share-based compensation
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	177		952
Restructuring and Related Cost, Expected Cost Remaining	$ 1,000		$ 1,000

Reorganization and Realignmen_5

Reorganization and Realignment Costs Organizational Redesign Accrual Rollforward (Details) - Organizational Redesign - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 02, 2023	Jul. 02, 2023
Restructuring Cost and Reserve
Beginning balance		$ 0
Charges	$ 493	6,455
Payments		(3,300)
Ending balance	3,155	3,155
Severance and related employee costs
Restructuring Cost and Reserve
Beginning balance		0
Charges	21	5,560
Payments		(2,405)
Ending balance	3,155	3,155
Recruitment and relocation costs
Restructuring Cost and Reserve
Beginning balance		0
Charges	86	164
Payments		(164)
Ending balance	0	0
Third-party and other costs
Restructuring Cost and Reserve
Beginning balance		0
Charges	386	731
Payments		(731)
Ending balance	0	0
Accrued expenses and other current liabilities
Restructuring Cost and Reserve
Ending balance	3,038	3,038
Other liabilities
Restructuring Cost and Reserve
Ending balance	$ 117	$ 117

Investments Carrying Value of I

Investments Carrying Value of Investments (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Schedule of Investments
Equity method investments	$ 34,165	$ 33,921
Other investments in equity securities	1,718	12,107
Investments	$ 35,883	$ 46,028

Investments Equity Method Inves

Investments Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Schedule of Equity Method Investments
Balance at beginning of period			$ 33,921
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other	$ 4,949	$ (7,455)	5,107	$ (6,337)
Balance at end of period	$ 34,165		$ 34,165
TimWen
Schedule of Equity Method Investments
Equity Method Investment, Ownership Percentage	50%		50%
Equity Method Investment, Purchase Price Adjustment, Amortization Period			21 years	21 years
TimWen and Brazil JV
Schedule of Equity Method Investments
Balance at beginning of period			$ 33,921	$ 39,870
Equity in earnings for the period			6,343	5,736
Amortization of purchase price adjustments			(1,373)	(1,455)
Equity in earnings for the period, net of amortization of purchase price adjustments			4,970	4,281
Distributions received			(5,512)	(5,389)
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other			786	(674)
Balance at end of period	$ 34,165	$ 38,088	$ 34,165	$ 38,088

Investments Other Investments i

Investments Other Investments in Equity Securities (Details) - Other investments in equity securities - USD ($) $ in Thousands	3 Months Ended	6 Months Ended		12 Months Ended
	Jul. 02, 2023	Jul. 02, 2023	Jul. 03, 2022	Jan. 02, 2022
Payments for investments				$ 10,000
Recognized gain on investment, observable price change for a similar investment of same issuer			$ 2,107
Impairment charge recorded, difference between estimated fair value and carrying value	$ 6,827	$ 10,389

Long-Term Debt Schedule of Long

Long-Term Debt Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Debt Instrument
Unamortized debt issuance costs	$ (37,242)		$ (37,242)		$ (40,673)
Total debt	2,810,346		2,810,346		2,851,446
Less amounts payable within one year	(29,250)		(29,250)		(29,250)
Total long-term debt	2,781,096		2,781,096		2,822,196
Loss on early extinguishment of debt	0	$ 0	1,266	$ 0
Series 2022-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 99,000		$ 99,000		$ 99,500
Debt Instrument, Interest Rate, Stated Percentage	4.236%		4.236%		4.236%
Series 2022-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 396,000		$ 396,000		$ 398,000
Debt Instrument, Interest Rate, Stated Percentage	4.535%		4.535%		4.535%
Series 2021-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 441,000		$ 441,000		$ 443,250
Debt Instrument, Interest Rate, Stated Percentage	2.37%		2.37%		2.37%
Series 2021-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 637,000		$ 637,000		$ 640,250
Debt Instrument, Interest Rate, Stated Percentage	2.775%		2.775%		2.775%
Series 2019-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 362,000		$ 362,000		$ 364,000
Debt Instrument, Interest Rate, Stated Percentage	3.783%		3.783%		3.783%
Series 2019-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 407,250		$ 407,250		$ 409,500
Debt Instrument, Interest Rate, Stated Percentage	4.08%		4.08%		4.08%
Series 2018-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 448,875		$ 448,875		$ 451,250
Debt Instrument, Interest Rate, Stated Percentage	3.884%		3.884%		3.884%
7% debentures
Debt Instrument
7% debentures	$ 56,463		$ 56,463		$ 86,369
Debt Instrument, Interest Rate, Stated Percentage	7%		7%		7%
Debt Instrument, Repurchased Face Amount	$ 31,571		$ 31,571
Loss on early extinguishment of debt			$ 1,266

Fair Value Measurements Financi

Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Other investments in equity securities	$ 1,718	$ 12,107
Series 2022-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt Instrument, Interest Rate, Stated Percentage	4.236%	4.236%
Series 2022-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt Instrument, Interest Rate, Stated Percentage	4.535%	4.535%
Series 2021-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt Instrument, Interest Rate, Stated Percentage	2.37%	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%	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-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt Instrument, Interest Rate, Stated Percentage	3.884%	3.884%
7% debentures
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt Instrument, Interest Rate, Stated Percentage	7%	7%
Reported Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash equivalents	$ 435,451	$ 560,682
Other investments in equity securities	1,718	12,107
Reported Value Measurement | Series 2022-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	99,000	99,500
Reported Value Measurement | Series 2022-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	396,000	398,000
Reported Value Measurement | Series 2021-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	441,000	443,250
Reported Value Measurement | Series 2021-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	637,000	640,250
Reported Value Measurement | Series 2019-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	362,000	364,000
Reported Value Measurement | Series 2019-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	407,250	409,500
Reported Value Measurement | Series 2018-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	448,875	451,250
Reported Value Measurement | 7% debentures
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	56,463	86,369
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash equivalents	435,451	560,682
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Other investments in equity securities	1,718	12,107
Estimate of Fair Value Measurement | Series 2022-1 Class A-2-I Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	90,268	89,401
Estimate of Fair Value Measurement | Series 2022-1 Class A-2-II Notes | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	357,430	349,444
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	364,795	357,304
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	509,919	499,011
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	335,140	334,334
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	364,611	361,875
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	407,758	405,809
Estimate of Fair Value Measurement | 7% debentures | Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	$ 58,067	$ 92,367

Fair Value Measurements Non-Rec

Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and used, Long Lived, Fair Value Disclosure	$ 539	$ 4,590
Assets Held for sale, Long Lived, Fair Value Disclosure	475	1,314
Total	1,014	5,904
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	539	4,590
Assets Held for sale, Long Lived, Fair Value Disclosure	475	1,314
Total	$ 1,014	$ 5,904

Impairment of Long-Lived Asse_3

Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Impairment of Long-Lived Assets
Impairment of long-lived assets	$ 78	$ 1,860	$ 454	$ 2,476
Company-operated restaurants
Impairment of Long-Lived Assets
Impairment of long-lived assets	78	1,708	428	2,075
Restaurants leased or subleased to franchisees
Impairment of Long-Lived Assets
Impairment of long-lived assets	0	0	0	194
Surplus properties
Impairment of Long-Lived Assets
Impairment of long-lived assets	$ 0	$ 152	$ 26	$ 207

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 01, 2023
Effective Income Tax Rate	24.40%	26.40%	25.90%	26.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21%		21%
Significant changes to unrecognized tax benefits	$ 0		$ 0
Significant changes to interest and penalties related to unrecognized tax benefits	0		0
Reasonably possible decrease in unrecognized tax benefits	582		582
Income Taxes Receivable, Current	14,562		14,562		$ 3,236
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				6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Earnings Per Share [Abstract]
Net income	$ 59,632	$ 39,821	$ 48,151	$ 37,402	$ 99,453	$ 85,553
Weighted average basic shares outstanding	210,624		213,673		211,585	214,646
Dilutive effect of stock options and restricted shares	2,304		1,569		2,393	2,058
Weighted average diluted shares outstanding	212,928		215,242		213,978	216,704
Basic net income per share	$ 0.28		$ 0.23		$ 0.47	$ 0.40
Diluted net income per share	$ 0.28		$ 0.22		$ 0.46	$ 0.39
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,420		5,538		4,476	4,417

Stockholders' Equity Dividends

Stockholders' Equity Dividends (Details) - $ / shares	3 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022
Common Stock, Dividends, Per Share, Cash Paid	$ 0.25	$ 0.25	$ 0.125	$ 0.125

Stockholders' Equity Repurchase

Stockholders' Equity Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands			1 Months Ended	4 Months Ended	6 Months Ended
	Feb. 28, 2022	Nov. 30, 2021	Aug. 02, 2023	Feb. 28, 2022	Jul. 02, 2023	Jul. 03, 2022	Jan. 31, 2023	Apr. 01, 2022	Feb. 29, 2020
January 2023 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount							$ 500,000
Treasury Stock, Shares, Acquired					4,023
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions					$ 88,254
Stock Repurchase Program, Repurchase Accrual					1,380
Stock Repurchase Program, Excise Tax Accrual					683
Stock Repurchase Program, Cost Incurred					56
Stock Repurchase Program, Remaining Authorized Repurchase Amount					$ 411,746
January 2023 Share Repurchase Program | Subsequent Event
Equity, Class of Treasury Stock
Treasury Stock, Shares, Acquired			706
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions			$ 15,163
Stock Repurchase Program, Cost Incurred			$ 10
February 2022 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount	$ 100,000			$ 100,000
April 2022 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount								$ 150,000
February 2022 and April 2022 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount								$ 250,000
Treasury Stock, Shares, Acquired						2,759
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions						$ 51,911
Stock Repurchase Program, Cost Incurred						$ 39
February 2020 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount									$ 100,000
May 2021, August 2021 and November 2021 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount		$ 200,000
February 2020, May 2021, August 2021 and November 2021 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount		300,000
2021 Accelerated Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount		$ 125,000
Treasury Stock, Shares, Acquired	715	4,910		5,625
Initial Shares Delivered Under ASR Agreement Percentage		85%
Treasury Stock Acquired, Average Cost Per Share				$ 22.22

Stockholders' Equity Accumulate

Stockholders' Equity Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 02, 2023	Apr. 02, 2023	Jul. 03, 2022	Apr. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Accumulated Other Comprehensive Loss
Balance at beginning of period		$ (64,176)		$ (48,200)	$ (64,176)	$ (48,200)
Foreign currency translation	$ 4,949	$ 158	$ (7,455)	$ 1,118	5,107	(6,337)
Balance at end of period	$ (59,069)		$ (54,537)		(59,069)	(54,537)
Foreign Currency Translation
Accumulated Other Comprehensive Loss
Foreign currency translation					$ 5,107	$ (6,337)

Leases Lessee Lease Narrative (

Leases Lessee Lease Narrative (Details)	Jul. 02, 2023 number_of_restaurants
Lessee, Lease, Description
Number of restaurants	7,115
Entity Operated Units
Lessee, Lease, Description
Number of restaurants	414
Land And Building - Company Owned | Entity Operated Units
Lessee, Lease, Description
Number of restaurants	159
Building - Company Owned; Land - Leased | Entity Operated Units
Lessee, Lease, Description
Number of restaurants	144
Land And Building - Leased | Entity Operated Units
Lessee, Lease, Description
Number of restaurants	111

Leases Lessor Lease Narrative (

Leases Lessor Lease Narrative (Details)	Jul. 02, 2023 number_of_restaurants
Lessor, Lease, Description
Number of restaurants	7,115
Land And Building - Company Owned | Franchised Units
Lessor, Lease, Description
Number of restaurants	488
Land And Building - Leased | Franchised Units
Lessor, Lease, Description
Number of restaurants	1,189

Leases Components of Lease Cost

Leases Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Lease, Cost
Amortization of finance lease assets	$ 4,058	$ 4,106	$ 8,121	$ 8,170
Interest on finance lease liabilities	10,743	10,693	21,493	21,338
Total finance lease cost	14,801	14,799	29,614	29,508
Operating lease cost	21,429	22,324	42,878	42,985
Variable lease cost	17,519	16,456	33,600	31,259
Short-term lease cost	1,461	1,405	2,967	2,838
Total operating lease cost	40,409	40,185	79,445	77,082
Total lease cost	55,210	54,984	109,059	106,590
Franchise rental expense
Lease, Cost
Total operating lease cost	32,329	32,071	62,927	60,996
Cost of sales
Lease, Cost
Total operating lease cost	7,546	7,479	15,411	14,773
Executory costs paid by lessee
Lease, Cost
Variable lease cost	$ 10,172	$ 9,245	$ 20,020	$ 18,853

Leases Components of Lease Inco

Leases Components of Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Lessor Lease Income
Sales-type leases, selling profit	$ 1,072	$ 1,677	$ 1,201	$ 2,157
Sales-type and direct-financing leases, interest income	7,868	7,753	15,730	15,493
Operating lease income	40,629	42,174	82,785	85,488
Variable lease income	17,404	16,436	33,055	30,993
Franchise rental income	58,033	58,610	115,840	116,481
Sublease income	42,961	43,689	85,912	86,854
Executory costs paid to lessor
Lessor Lease Income
Sublease income	$ 10,115	$ 9,250	$ 19,893	$ 18,785

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Capital expenditures included in accounts payable	$ 11,422	$ 5,955
Finance leases	$ 8,257	$ 18,984

Supplemental Cash Flow Inform_4

Supplemental Cash Flow Information Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Jul. 02, 2023	Jan. 01, 2023	Jul. 03, 2022	Jan. 02, 2022
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 635,433	$ 745,889
Restricted cash	36,091	35,203
Restricted cash, included in Advertising funds restricted assets	28,722	50,709
Total cash, cash equivalents and restricted cash	$ 700,246	$ 831,801	$ 796,648	$ 366,966

Transactions with Related Par_2

Transactions with Related Parties (Details) $ in Thousands	6 Months Ended
	Jul. 02, 2023 USD ($) number_of_restaurants	Jul. 03, 2022 USD ($)	Jan. 01, 2023 USD ($)
Related Party Transaction
Number of Restaurants | number_of_restaurants	7,115
Accounts payable	$ 38,640		$ 43,996
TimWen | Franchise Rental Expense
Related Party Transaction
Operating Costs and Expenses	10,140	$ 9,601
TimWen | Management Fee Income | General and administrative
Related Party Transaction
Other Operating Income	121	111
Yellow Cab | Royalty, Advertising Fund, Lease and Other Income
Related Party Transaction
Other Operating Income	7,411	$ 6,476
Yellow Cab | Accounts and notes receivable, net and Advertising funds restricted assets | Royalty, Advertising Fund, Lease and Other Income
Related Party Transaction
Accounts receivable, net, current	$ 1,130		$ 1,125
Yellow Cab | Franchised Units
Related Party Transaction
Number of Restaurants | number_of_restaurants	83
AMC | Advertising Funds Expense
Related Party Transaction
Related Party Transaction, Purchases from Related Party	$ 1,200
AMC | Advertising funds restricted liabilities | Advertising Funds Expense
Related Party Transaction
Accounts payable	$ 850

Guarantees and Other Commitme_2

Guarantees and Other Commitments and Contingencies Franchisee Image Activation Programs (Details)	6 Months Ended
	Jul. 02, 2023
Maximum | 2023 New Build Incentive Program
Other commitments
Years of reduction in royalty payment attributable to new builds	3 years
Maximum | 2021 New Build Incentive Program
Other commitments
Years of reduction in royalty payment attributable to new builds	2 years
Maximum | Remodel Incentive Program
Other commitments
Years of early franchise agreement renewal attributable to incentive programs	25 years
Minimum | Remodel Incentive Program
Other commitments
Years of early franchise agreement renewal attributable to incentive programs	20 years

Guarantees and Other Commitme_3

Guarantees and Other Commitments and Contingencies Lease Guarantees (Details) $ in Thousands	Jul. 02, 2023 USD ($)
Property Lease Guarantee
Guarantor Obligations
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 95,523

Guarantees and Other Commitme_4

Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands	Jul. 02, 2023 USD ($)
Guarantor Obligations
Letters of Credit Outstanding, Amount	$ 28,847

Segment Information Reconciliat

Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Segment Reporting, Revenue Reconciling Item
Total revenues	$ 561,565	$ 537,783	$ 1,090,372	$ 1,026,426
Wendy's U.S.
Segment Reporting, Revenue Reconciling Item
Total revenues	468,753	450,440	909,741	857,751
Wendy's International
Segment Reporting, Revenue Reconciling Item
Total revenues	32,715	27,463	61,995	50,369
Global Real Estate & Development
Segment Reporting, Revenue Reconciling Item
Total revenues	$ 60,097	$ 59,880	$ 118,636	$ 118,306

Segment Information Reconcili_2

Segment Information Reconciliation of Profit from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2023	Jul. 03, 2022	Jul. 02, 2023	Jul. 03, 2022
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	$ 109,274	$ 96,281	$ 193,752	$ 171,162
Unallocated franchise support and other costs	(13,787)	(9,912)	(27,047)	(21,728)
Advertising funds surplus (deficit)	1,315	(1,375)	2,421	(2,618)
General and Administrative Expense	(62,742)	(61,637)	(125,018)	(123,983)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(33,498)	(33,428)	(66,970)	(66,659)
Amortization of cloud computing arrangements	(2,266)	0	(3,848)	0
System optimization (losses) gains, net	(6)	152	(1)	3,686
Reorganization and realignment costs	(681)	(156)	(7,489)	(620)
Impairment of long-lived assets	(78)	(1,860)	(454)	(2,476)
Unallocated other operating income, net	3,791	5,673	6,057	8,639
Interest expense, net	(31,136)	(32,125)	(62,841)	(58,490)
Loss on early extinguishment of debt	0	0	(1,266)	0
Investment (loss) income, net	(6,827)	(4)	(10,389)	2,107
Other income, net	7,573	1,238	14,909	1,445
Income before income taxes	78,884	65,390	134,165	116,224
Corporate and Other
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Unallocated franchise support and other costs	23	0	23	6
General and Administrative Expense	(33,653)	(30,989)	(65,814)	(61,994)
Unallocated other operating income, net	106	305	128	321
Operating Segments
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	178,012	163,632	335,756	301,516
Operating Segments | Wendy's U.S.
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	142,947	126,999	268,177	231,823
Advertising funds surplus (deficit)		(2,766)		(5,322)
Operating Segments | Wendy's International
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	8,531	9,350	15,977	14,803
Advertising funds surplus (deficit)	(658)	(1,084)	(1,206)	(1,922)
Other international-related advertising deficit	479	880	1,324	1,522
Operating Segments | Global Real Estate & Development
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	$ 26,534	$ 27,283	$ 51,602	$ 54,890