The Wendy's Company (WEN) 10-Q10 May 232023 Q1 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Apr. 02, 2023	May 03, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Apr. 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	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		210,736,503

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) shares in Thousands, $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Current assets:
Cash and cash equivalents	$ 676,469	$ 745,889
Restricted cash	36,348	35,203
Accounts and notes receivable, net	136,343	116,426
Inventories	6,452	7,129
Prepaid expenses and other current assets	29,952	26,963
Advertising funds restricted assets	117,839	126,673
Total current assets	1,003,403	1,058,283
Properties	885,089	895,778
Finance lease assets	229,736	234,570
Operating lease assets	741,258	754,498
Goodwill	773,095	773,088
Other intangible assets	1,239,572	1,248,800
Investments	42,082	46,028
Net investment in sales-type and direct financing leases	314,763	317,337
Other assets	179,030	170,962
Total assets	5,408,028	5,499,344
Current liabilities:
Current portion of long-term debt	29,250	29,250
Current portion of finance lease liabilities	18,744	18,316
Current portion of operating lease liabilities	48,754	48,120
Accounts payable	45,338	43,996
Accrued expenses and other current liabilities	133,848	116,010
Advertising funds restricted liabilities	123,597	132,307
Total current liabilities	399,531	387,999
Long-term debt	2,786,493	2,822,196
Long-term finance lease liabilities	567,849	571,877
Long-term operating lease liabilities	777,395	792,051
Deferred income taxes	272,553	270,421
Deferred franchise fees	88,161	90,231
Other liabilities	96,489	98,849
Total liabilities	4,988,471	5,033,624
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 211,701 and 213,101 shares outstanding, respectively	47,042	47,042
Additional paid-in capital	2,941,138	2,937,885
Retained earnings	401,445	414,749
Common stock held in treasury, at cost; 258,723 and 257,323 shares, respectively	(2,906,050)	(2,869,780)
Accumulated other comprehensive loss	(64,018)	(64,176)
Total stockholders’ equity	419,557	465,720
Total liabilities and stockholders’ equity	$ 5,408,028	$ 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	211,701	213,101
Treasury Stock, Shares	258,723	257,323

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Revenues:
Franchise rental income	$ 57,807	$ 57,871
Revenues	528,807	488,643
Costs and expenses:
Cost of sales	196,536	185,053
Franchise support and other costs	13,260	11,816
Franchise rental expense	30,629	28,936
Advertising funds expense	101,661	97,800
General and administrative	62,276	62,346
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	33,472	33,231
Amortization of cloud computing arrangements	1,582	0
System optimization gains, net	(5)	(3,534)
Reorganization and realignment costs	6,808	464
Impairment of long-lived assets	376	616
Other operating income, net	(2,266)	(2,966)
Costs and expenses	444,329	413,762
Operating profit	84,478	74,881
Interest expense, net	(31,705)	(26,365)
Loss on early extinguishment of debt	(1,266)	0
Investment (loss) income, net	(3,562)	2,111
Other income, net	7,336	207
Income before income taxes	55,281	50,834
Provision for income taxes	(15,460)	(13,432)
Net income	$ 39,821	$ 37,402
Net income per share:
Basic	$ 0.19	$ 0.17
Diluted	$ 0.19	$ 0.17
Sales
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 227,949	$ 209,275
Franchise royalty revenue and fees
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	141,677	128,976
Advertising funds revenue
Revenues:
Revenue from Contract with Customer, Excluding Assessed Tax	$ 101,374	$ 92,521

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Net income	$ 39,821	$ 37,402
Other comprehensive income:
Foreign currency translation adjustment	158	1,118
Other comprehensive income	158	1,118
Comprehensive income	$ 39,979	$ 38,520

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	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. 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	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)

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash flows from operating activities:
Net income	$ 39,821	$ 37,402
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)	33,472	33,231
Amortization of cloud computing arrangements	1,582	0
Share-based compensation	4,609	6,348
Impairment of long-lived assets	376	616
Deferred income tax	2,302	4,527
Non-cash rental expense, net	9,012	6,874
Change in operating lease liabilities	(11,718)	(11,615)
Net (recognition) receipt of deferred vendor incentives	(1,197)	7,711
System optimization gains, net	(5)	(3,534)
Distributions received from joint ventures, net of equity in earnings	394	898
Long-term debt-related activities, net	3,419	1,717
Cloud computing arrangements expenditures	(6,643)	(4,656)
Changes in operating assets and liabilities and other, net	(22,449)	(58,537)
Net cash provided by operating activities	52,975	20,982
Cash flows from investing activities:
Capital expenditures	(12,240)	(12,496)
Franchise development fund	(218)	(955)
Dispositions	287	263
Notes receivable, net	110	141
Net cash used in investing activities	(12,061)	(13,047)
Cash flows from financing activities:
Proceeds from long-term debt	0	500,000
Repayments of long-term debt	(39,122)	(6,063)
Repayments of finance lease liabilities	(4,398)	(4,076)
Deferred financing costs	0	(10,209)
Repurchases of common stock	(36,727)	0
Dividends	(53,103)	(26,911)
Proceeds from stock option exercises	2,881	1,591
Payments related to tax withholding for share-based compensation	(1,809)	(1,530)
Net cash (used in) provided by financing activities	(132,278)	452,802
Net cash (used in) provided by operations before effect of exchange rate changes on cash	(91,364)	460,737
Effect of exchange rate changes on cash	129	305
Net (decrease) increase in cash, cash equivalents and restricted cash	(91,235)	461,042
Cash, cash equivalents and restricted cash at beginning of period	831,801	366,966
Cash, cash equivalents and restricted cash at end of period	$ 740,566	$ 828,008

Basis of Presentation

Basis of Presentation	3 Months Ended
Basis of Presentation	Apr. 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 April 2, 2023 and the results of our operations and cash flows for the three months ended April 2, 2023 and April 3, 2022. The results of operations for the three months ended April 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-month periods presented herein contain 13 weeks. 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	3 Months Ended
Revenue	Apr. 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 April 2, 2023 Sales at Company-operated restaurants $ 222,632 $ 5,317 $ — $ 227,949 Franchise royalty revenue 106,339 15,811 — 122,150 Franchise fees 17,272 1,523 732 19,527 Franchise rental income — — 57,807 57,807 Advertising funds revenue 94,745 6,629 — 101,374 Total revenues $ 440,988 $ 29,280 $ 58,539 $ 528,807 Three Months Ended April 3, 2022 Sales at Company-operated restaurants $ 206,501 $ 2,774 $ — $ 209,275 Franchise royalty revenue 97,920 13,825 — 111,745 Franchise fees 15,405 1,271 555 17,231 Franchise rental income — — 57,871 57,871 Advertising funds revenue 87,485 5,036 — 92,521 Total revenues $ 407,311 $ 22,906 $ 58,426 $ 488,643 Contract Balances The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: April 2, January 1, 2023 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 55,588 $ 54,497 Receivables, which are included in “Advertising funds restricted assets” 65,735 70,422 Deferred franchise fees (c) 97,694 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) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,533 and $88,161, respectively, as of April 2, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023. Significant changes in deferred franchise fees are as follows: Three Months Ended April 2, April 3, Deferred franchise fees at beginning of period $ 99,208 $ 97,186 Revenue recognized during the period (2,814) (2,283) New deferrals due to cash received and other 1,300 3,526 Deferred franchise fees at end of period $ 97,694 $ 98,429 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) $ 8,037 2024 5,850 2025 5,684 2026 5,577 2027 5,486 Thereafter 67,060 $ 97,694 _______________ (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 Gains, Net

System Optimization Gains, Net	3 Months Ended
System Optimization Gains, Net	Apr. 02, 2023
System Optimization
System optimization gains, net
System Optimization Gains, Net	System Optimization 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 three months ended April 3, 2022, the Company facilitated five Franchise Flips. During the three months ended April 2, 2023, the Company facilitated no Franchise Flips. Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our condensed consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs.” 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 April 2, April 3, Post-closing adjustments on sales of restaurants (a) $ — $ 3,447 Gain on sales of other assets, net (b) 5 87 System optimization gains, net $ 5 $ 3,534 _______________ (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 three months ended April 2, 2023 and April 3, 2022, the Company received net cash proceeds of $287 and $168, respectively, primarily from the sale of surplus and other properties. The Company also received cash proceeds of $95 during the three months ended April 3, 2022 related to a note receivable issued in connection with the sale of the Manhattan Company-operated restaurants. Assets Held for Sale As of April 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	3 Months Ended
Reorganization and Realignment Costs	Apr. 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 April 2, April 3, Organizational redesign $ 6,737 $ — Other reorganization and realignment plans 71 464 Reorganization and realignment costs $ 6,808 $ 464 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 three months ended April 2, 2023, the Company recognized costs totaling $6,737, which primarily included severance and related employee costs and share-based compensation. The Company expects to incur additional costs aggregating approximately $4,000 to $6,000, comprised of (1) severance and related employee costs of approximately $2,500, (2) recruitment and relocation costs of approximately $900, (3) third-party and other costs of approximately $700 and (4) share-based compensation of approximately $1,200. 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 April 2, Severance and related employee costs $ 5,539 Recruitment and relocation costs 78 Third-party and other costs 345 5,962 Share-based compensation (a) 775 Total organizational redesign $ 6,737 _______________ (a) Primarily represents the accelerated recognition of share-based compensation resulting from the termination of employees under the Organizational Redesign Plan. As of April 2, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $4,650 and $431, respectively. The table below presents a rollforward of our accruals for the Organizational Redesign Plan. Balance January 1, Charges Payments Balance April 2, Severance and related employee costs $ — $ 5,539 $ (741) $ 4,798 Recruitment and relocation costs — 78 (78) — Third-party and other costs — 345 (62) 283 $ — $ 5,962 $ (881) $ 5,081 Other Reorganization and Realignment Plans Costs incurred under the Company’s other reorganization and realignment plans were not material during the three months ended April 2, 2023 and April 3, 2022. The Company does not expect to incur any material additional costs under these plans.

Investments

Investments	3 Months Ended
Investments	Apr. 02, 2023
Investments [Abstract]
Investments	Investments The following is a summary of the carrying value of our investments: April 2, January 1, Equity method investments $ 33,537 $ 33,921 Other investments in equity securities 8,545 12,107 $ 42,082 $ 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.). In addition, the Company has a 20% share in a joint venture in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.” Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements: Three Months Ended April 2, April 3, Balance at beginning of period $ 33,921 $ 39,870 Equity in earnings for the period 2,783 2,508 Amortization of purchase price adjustments (a) (684) (731) 2,099 1,777 Distributions received (2,493) (2,675) Foreign currency translation adjustment included in “Other comprehensive income” and other 10 374 Balance at end of period $ 33,537 $ 39,346 _______________ (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 three months ended April 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 months ended April 2, 2023, the Company recorded an impairment charge of $3,562 for the difference between the estimated fair value and the carrying value of the investment. The Company will continue to monitor its investment in equity securities and it is possible that additional impairment charges will be recorded in future periods if there are further declines in fair value of the investment.

Long-Term Debt

Long-Term Debt	3 Months Ended
Long-Term Debt	Apr. 02, 2023
Debt Disclosure [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following: April 2, January 1, Series 2022-1 Class A-2 Notes: 4.236% Series 2022-1 Class A-2-I Notes, anticipated repayment date 2029 $ 99,250 $ 99,500 4.535% Series 2022-1 Class A-2-II Notes, anticipated repayment date 2032 397,000 398,000 Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 442,125 443,250 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 638,625 640,250 Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 363,000 364,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 408,375 409,500 Series 2018-1 Class A-2 Notes: 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 450,063 451,250 7% debentures, due in 2025 (a) 56,264 86,369 Unamortized debt issuance costs (38,959) (40,673) 2,815,743 2,851,446 Less amounts payable within one year (29,250) (29,250) Total long-term debt $ 2,786,493 $ 2,822,196 _______________ (a) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with 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 three months ended April 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 three months ended April 2, 2023.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
Fair Value Measurements	Apr. 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: April 2, January 1, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 491,577 $ 491,577 $ 560,682 $ 560,682 Level 1 Other investments in equity securities (a) 8,545 8,545 12,107 12,107 Level 2 Financial liabilities (b) Series 2022-1 Class A-2-I Notes 99,250 92,322 99,500 89,401 Level 2 Series 2022-1 Class A-2-II Notes 397,000 362,183 398,000 349,444 Level 2 Series 2021-1 Class A-2-I Notes 442,125 370,987 443,250 357,304 Level 2 Series 2021-1 Class A-2-II Notes 638,625 517,350 640,250 499,011 Level 2 Series 2019-1 Class A-2-I Notes 363,000 341,184 364,000 334,334 Level 2 Series 2019-1 Class A-2-II Notes 408,375 373,908 409,500 361,875 Level 2 Series 2018-1 Class A-2-II Notes 450,063 416,758 451,250 405,809 Level 2 7% debentures, due in 2025 56,264 58,283 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, as of April 2, 2023, was based on a valuation performed by the investment manager and, as of January 1, 2023, was based on an observable price change in an orderly transaction for a similar investment of the same issuer. (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 April 2, Level 1 Level 2 Level 3 Held and used $ 603 $ — $ — $ 603 Held for sale 475 — — 475 Total $ 1,078 $ — $ — $ 1,078 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	3 Months Ended
Impairment of Long-Lived Assets	Apr. 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 April 2, April 3, Company-operated restaurants $ 350 $ 367 Restaurants leased or subleased to franchisees — 194 Surplus properties 26 55 $ 376 $ 616

Income Taxes

Income Taxes	3 Months Ended
Income Taxes	Apr. 02, 2023
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the three months ended April 2, 2023 and April 3, 2022 was 28.0% 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 April 2, 2023 primarily due to a one-time adjustment to our foreign deferred income taxes related to prior periods and state income taxes, including discrete changes to state deferred income taxes. There were no significant changes to the unrecognized tax benefits or related interest and penalties for the three months ended April 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 $4,357 and $3,236 as of April 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 April 2, 2023 and January 1, 2023.

Net Income Per Share

Net Income Per Share	3 Months Ended
Net Income Per Share	Apr. 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 April 2, April 3, Net income $ 39,821 $ 37,402 Common stock: Weighted average basic shares outstanding 212,547 215,619 Dilutive effect of stock options and restricted shares 2,482 2,548 Weighted average diluted shares outstanding 215,029 218,167 Basic and diluted net income per share $ .19 $ .17 Basic net income per share for the three months ended April 2, 2023 and April 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 4,532 and 3,295 for the three months ended April 2, 2023 and April 3, 2022, respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
Stockholders' Equity	Apr. 02, 2023
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Dividends During the first quarter of 2023 and 2022, the Company paid dividends per share of $.25 and $.125, respectively. 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”). In connection with the January 2023 Authorization, the remaining portion of the previous February 2022 authorization for $250,000 was canceled. During the three months ended April 2, 2023, the Company repurchased 1,794 shares under the January 2023 Authorization with an aggregate purchase price of $38,785, of which $2,083 was accrued as of April 2, 2023, and excluding commissions of $25. As of April 2, 2023, the Company had $461,215 of availability remaining under the January 2023 Authorization. Subsequent to April 2, 2023 through May 3, 2023, the Company repurchased 1,074 shares under the January 2023 Authorization with an aggregate purchase price of $23,597, excluding commissions of $15. 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: Three Months Ended April 2, April 3, Balance at beginning of period $ (64,176) $ (48,200) Foreign currency translation 158 1,118 Balance at end of period $ (64,018) $ (47,082)

Leases

Leases	3 Months Ended
Leases	Apr. 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 April 2, 2023, Wendy’s and its franchisees operated 7,095 Wendy’s restaurants. Of the 414 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 158 restaurants, owned the building and held long-term land leases for 145 restaurants and held leases covering the land and building for 111 restaurants. Wendy’s also owned 486 and leased 1,192 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 April 2, April 3, Finance lease cost: Amortization of finance lease assets $ 4,063 $ 4,064 Interest on finance lease liabilities 10,750 10,645 14,813 14,709 Operating lease cost 21,449 20,661 Variable lease cost (a) 16,081 14,803 Short-term lease cost 1,506 1,433 Total operating lease cost (b) 39,036 36,897 Total lease cost $ 53,849 $ 51,606 _______________ (a) Includes expenses for executory costs of $9,848 and $9,608 for the three months ended April 2, 2023 and April 3, 2022, respectively, for which the Company is reimbursed by sublessees. (b) Includes $30,598 and $28,925 for the three months ended April 2, 2023 and April 3, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,865 and $7,294 for the three months ended April 2, 2023 and April 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 April 2, April 3, Sales-type and direct-financing leases: Selling profit $ 129 $ 480 Interest income (a) 7,862 7,740 Operating lease income 42,156 43,314 Variable lease income 15,651 14,557 Franchise rental income (b) $ 57,807 $ 57,871 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $42,951 and $43,165 recognized during the three months ended April 2, 2023 and April 3, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,778 and $9,535 for the three months ended April 2, 2023 and April 3, 2022, respectively.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	3 Months Ended
Supplemental Cash Flow Information	Apr. 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: Three Months Ended April 2, April 3, Supplemental non-cash investing and financing activities: Capital expenditures included in accounts payable $ 9,119 $ 6,522 Finance leases 333 7,207 The following table includes a reconciliation of cash, cash equivalents and restricted cash: April 2, January 1, Reconciliation of cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents $ 676,469 $ 745,889 Restricted cash 36,348 35,203 Restricted cash, included in Advertising funds restricted assets 27,749 50,709 Total cash, cash equivalents and restricted cash $ 740,566 $ 831,801

Transactions with Related Parti

Transactions with Related Parties	3 Months Ended
Transactions with Related Parties	Apr. 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 $4,673 and $4,350 under these lease agreements during the three months ended April 2, 2023 and April 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 $60 and $54 during the three months ended April 2, 2023 and April 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 April 2, 2023 owned and operated 83 Wendy’s restaurants. During the three months ended April 2, 2023 and April 3, 2022, the Company recognized $3,610 and $3,067, respectively, in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of April 2, 2023 and January 1, 2023, $1,271 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 three months ended April 2, 2023, the Company purchased $419 of advertising time from a subsidiary of AMC. As of April 2, 2023, approximately $450 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	3 Months Ended
Guarantees and Other Commitments and Contingencies	Apr. 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 $99,392 as of April 2, 2023. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of April 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 April 2, 2023. Letters of Credit As of April 2, 2023, the Company had outstanding letters of credit with various parties totaling $28,861. 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	3 Months Ended
Legal and Environmental Matters	Apr. 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)	3 Months Ended
Segment Information (Notes)	Apr. 02, 2023
Segment Reporting [Abstract]
Segment Information	Segment Information Revenues by segment are as follows: Three Months Ended April 2, April 3, Wendy’s U.S. $ 440,988 $ 407,311 Wendy’s International 29,280 22,906 Global Real Estate & Development 58,539 58,426 Total revenues $ 528,807 $ 488,643 The following table reconciles profit by segment to the Company’s consolidated income before income taxes: Three Months Ended April 2, April 3, Wendy’s U.S. (a) $ 125,230 $ 104,824 Wendy’s International (b) 7,446 5,453 Global Real Estate & Development 25,068 27,607 Total segment profit 157,744 137,884 Unallocated franchise support and other costs — 6 Advertising funds surplus (deficit) 1,106 (1,243) Unallocated general and administrative (c) (32,161) (31,005) Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) (33,472) (33,231) Amortization of cloud computing arrangements (1,582) — System optimization gains, net 5 3,534 Reorganization and realignment costs (6,808) (464) Impairment of long-lived assets (376) (616) Unallocated other operating income, net 22 16 Interest expense, net (31,705) (26,365) Loss on early extinguishment of debt (1,266) — Investment (loss) income, net (3,562) 2,111 Other income, net 7,336 207 Income before income taxes $ 55,281 $ 50,834 _______________ (a) Wendy’s U.S. includes advertising funds expense of $2,556 for the three months ended April 3, 2022 related to the Company’s funding of incremental advertising. (b) Wendy’s International includes advertising funds expense of $548 and $838 for the three months ended April 2, 2023 and April 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $845 and $642 for the three months ended April 2, 2023 and April 3, 2022, respectively. (c) Includes corporate overhead costs, such as employee compensation and related benefits.

New Accounting Standards

New Accounting Standards	3 Months Ended
New Accounting Standards	Apr. 02, 2023
Accounting Standards Update and Change in Accounting Principle [Abstract]
New Accounting Standards	New Accounting Standards Business Combinations In October 2021, the Financial Accounting Standards Board (“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. Common-Control Lease Arrangements In March 2023, the 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.

Revenue (Tables)

Revenue (Tables)	3 Months Ended
Revenue (Tables)	Apr. 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 April 2, 2023 Sales at Company-operated restaurants $ 222,632 $ 5,317 $ — $ 227,949 Franchise royalty revenue 106,339 15,811 — 122,150 Franchise fees 17,272 1,523 732 19,527 Franchise rental income — — 57,807 57,807 Advertising funds revenue 94,745 6,629 — 101,374 Total revenues $ 440,988 $ 29,280 $ 58,539 $ 528,807 Three Months Ended April 3, 2022 Sales at Company-operated restaurants $ 206,501 $ 2,774 $ — $ 209,275 Franchise royalty revenue 97,920 13,825 — 111,745 Franchise fees 15,405 1,271 555 17,231 Franchise rental income — — 57,871 57,871 Advertising funds revenue 87,485 5,036 — 92,521 Total revenues $ 407,311 $ 22,906 $ 58,426 $ 488,643
Contract Balances, assets and liabilities	The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers: April 2, January 1, 2023 (a) Receivables, which are included in “Accounts and notes receivable, net” (b) $ 55,588 $ 54,497 Receivables, which are included in “Advertising funds restricted assets” 65,735 70,422 Deferred franchise fees (c) 97,694 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) Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $9,533 and $88,161, respectively, as of April 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: Three Months Ended April 2, April 3, Deferred franchise fees at beginning of period $ 99,208 $ 97,186 Revenue recognized during the period (2,814) (2,283) New deferrals due to cash received and other 1,300 3,526 Deferred franchise fees at end of period $ 97,694 $ 98,429
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) $ 8,037 2024 5,850 2025 5,684 2026 5,577 2027 5,486 Thereafter 67,060 $ 97,694 _______________ (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 Gains, Net

System Optimization Gains, Net (Tables)	3 Months Ended
System Optimization Gains, Net (Tables)	Apr. 02, 2023
System Optimization
System optimization gains, net
Summary of Disposition Activity	The following is a summary of the disposition activity recorded as a result of our system optimization initiative: Three Months Ended April 2, April 3, Post-closing adjustments on sales of restaurants (a) $ — $ 3,447 Gain on sales of other assets, net (b) 5 87 System optimization gains, net $ 5 $ 3,534 _______________ (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 three months ended April 2, 2023 and April 3, 2022, the Company received net cash proceeds of $287 and $168, respectively, primarily from the sale of surplus and other properties. The Company also received cash proceeds of $95 during the three months ended April 3, 2022 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)	3 Months Ended
Reorganization and Realignment Costs (Tables)	Apr. 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 April 2, April 3, Organizational redesign $ 6,737 $ — Other reorganization and realignment plans 71 464 Reorganization and realignment costs $ 6,808 $ 464
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 April 2, Severance and related employee costs $ 5,539 Recruitment and relocation costs 78 Third-party and other costs 345 5,962 Share-based compensation (a) 775 Total organizational redesign $ 6,737 _______________ (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 April 2, 2023, the accruals for the Organizational Redesign Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $4,650 and $431, respectively. The table below presents a rollforward of our accruals for the Organizational Redesign Plan. Balance January 1, Charges Payments Balance April 2, Severance and related employee costs $ — $ 5,539 $ (741) $ 4,798 Recruitment and relocation costs — 78 (78) — Third-party and other costs — 345 (62) 283 $ — $ 5,962 $ (881) $ 5,081

Investments (Tables)

Investments (Tables)	3 Months Ended
Investments (Tables)	Apr. 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: April 2, January 1, Equity method investments $ 33,537 $ 33,921 Other investments in equity securities 8,545 12,107 $ 42,082 $ 46,028
Schedule of Equity Method Investments	Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements: Three Months Ended April 2, April 3, Balance at beginning of period $ 33,921 $ 39,870 Equity in earnings for the period 2,783 2,508 Amortization of purchase price adjustments (a) (684) (731) 2,099 1,777 Distributions received (2,493) (2,675) Foreign currency translation adjustment included in “Other comprehensive income” and other 10 374 Balance at end of period $ 33,537 $ 39,346 _______________ (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)	3 Months Ended
Long-Term Debt (Tables)	Apr. 02, 2023
Debt Disclosure [Abstract]
Long-term debt	Long-term debt consisted of the following: April 2, January 1, Series 2022-1 Class A-2 Notes: 4.236% Series 2022-1 Class A-2-I Notes, anticipated repayment date 2029 $ 99,250 $ 99,500 4.535% Series 2022-1 Class A-2-II Notes, anticipated repayment date 2032 397,000 398,000 Series 2021-1 Class A-2 Notes: 2.370% Series 2021-1 Class A-2-I Notes, anticipated repayment date 2029 442,125 443,250 2.775% Series 2021-1 Class A-2-II Notes, anticipated repayment date 2031 638,625 640,250 Series 2019-1 Class A-2 Notes: 3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026 363,000 364,000 4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029 408,375 409,500 Series 2018-1 Class A-2 Notes: 3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028 450,063 451,250 7% debentures, due in 2025 (a) 56,264 86,369 Unamortized debt issuance costs (38,959) (40,673) 2,815,743 2,851,446 Less amounts payable within one year (29,250) (29,250) Total long-term debt $ 2,786,493 $ 2,822,196 _______________ (a) Wendy’s 7% debentures are unsecured and were reduced to fair value in connection with 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 three months ended April 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 three months ended April 2, 2023.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
Fair Value Measurements (Tables)	Apr. 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: April 2, January 1, Carrying Fair Carrying Fair Fair Value Financial assets Cash equivalents $ 491,577 $ 491,577 $ 560,682 $ 560,682 Level 1 Other investments in equity securities (a) 8,545 8,545 12,107 12,107 Level 2 Financial liabilities (b) Series 2022-1 Class A-2-I Notes 99,250 92,322 99,500 89,401 Level 2 Series 2022-1 Class A-2-II Notes 397,000 362,183 398,000 349,444 Level 2 Series 2021-1 Class A-2-I Notes 442,125 370,987 443,250 357,304 Level 2 Series 2021-1 Class A-2-II Notes 638,625 517,350 640,250 499,011 Level 2 Series 2019-1 Class A-2-I Notes 363,000 341,184 364,000 334,334 Level 2 Series 2019-1 Class A-2-II Notes 408,375 373,908 409,500 361,875 Level 2 Series 2018-1 Class A-2-II Notes 450,063 416,758 451,250 405,809 Level 2 7% debentures, due in 2025 56,264 58,283 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, as of April 2, 2023, was based on a valuation performed by the investment manager and, as of January 1, 2023, was based on an observable price change in an orderly transaction for a similar investment of the same issuer. (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 April 2, Level 1 Level 2 Level 3 Held and used $ 603 $ — $ — $ 603 Held for sale 475 — — 475 Total $ 1,078 $ — $ — $ 1,078 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)	3 Months Ended
Impairment of Long-Lived Assets (Tables)	Apr. 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 April 2, April 3, Company-operated restaurants $ 350 $ 367 Restaurants leased or subleased to franchisees — 194 Surplus properties 26 55 $ 376 $ 616

Net Income Per Share (Tables)

Net Income Per Share (Tables)	3 Months Ended
Net Income Per Share (Tables)	Apr. 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 April 2, April 3, Net income $ 39,821 $ 37,402 Common stock: Weighted average basic shares outstanding 212,547 215,619 Dilutive effect of stock options and restricted shares 2,482 2,548 Weighted average diluted shares outstanding 215,029 218,167 Basic and diluted net income per share $ .19 $ .17

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
Stockholders' Equity (Tables)	Apr. 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: Three Months Ended April 2, April 3, Balance at beginning of period $ (64,176) $ (48,200) Foreign currency translation 158 1,118 Balance at end of period $ (64,018) $ (47,082)

Leases (Tables)

Leases (Tables)	3 Months Ended
Leases (Tables)	Apr. 02, 2023
Leases [Abstract]
Lease, Cost	The components of lease cost are as follows: Three Months Ended April 2, April 3, Finance lease cost: Amortization of finance lease assets $ 4,063 $ 4,064 Interest on finance lease liabilities 10,750 10,645 14,813 14,709 Operating lease cost 21,449 20,661 Variable lease cost (a) 16,081 14,803 Short-term lease cost 1,506 1,433 Total operating lease cost (b) 39,036 36,897 Total lease cost $ 53,849 $ 51,606 _______________ (a) Includes expenses for executory costs of $9,848 and $9,608 for the three months ended April 2, 2023 and April 3, 2022, respectively, for which the Company is reimbursed by sublessees. (b) Includes $30,598 and $28,925 for the three months ended April 2, 2023 and April 3, 2022, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $7,865 and $7,294 for the three months ended April 2, 2023 and April 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 April 2, April 3, Sales-type and direct-financing leases: Selling profit $ 129 $ 480 Interest income (a) 7,862 7,740 Operating lease income 42,156 43,314 Variable lease income 15,651 14,557 Franchise rental income (b) $ 57,807 $ 57,871 _______________ (a) Included in “Interest expense, net.” (b) Includes sublease income of $42,951 and $43,165 recognized during the three months ended April 2, 2023 and April 3, 2022, respectively. Sublease income includes lessees’ variable payments to the Company for executory costs of $9,778 and $9,535 for the three months ended April 2, 2023 and April 3, 2022, respectively.

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	3 Months Ended
Supplemental Cash Flow Information (Tables)	Apr. 02, 2023
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information	The following table includes supplemental non-cash investing and financing activities: Three Months Ended April 2, April 3, Supplemental non-cash investing and financing activities: Capital expenditures included in accounts payable $ 9,119 $ 6,522 Finance leases 333 7,207 The following table includes a reconciliation of cash, cash equivalents and restricted cash: April 2, January 1, Reconciliation of cash, cash equivalents and restricted cash at end of period: Cash and cash equivalents $ 676,469 $ 745,889 Restricted cash 36,348 35,203 Restricted cash, included in Advertising funds restricted assets 27,749 50,709 Total cash, cash equivalents and restricted cash $ 740,566 $ 831,801

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Apr. 02, 2023
Segment Reporting [Abstract]
Reconciliation of Revenue from Segments to Consolidated	Revenues by segment are as follows: Three Months Ended April 2, April 3, Wendy’s U.S. $ 440,988 $ 407,311 Wendy’s International 29,280 22,906 Global Real Estate & Development 58,539 58,426 Total revenues $ 528,807 $ 488,643
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 April 2, April 3, Wendy’s U.S. (a) $ 125,230 $ 104,824 Wendy’s International (b) 7,446 5,453 Global Real Estate & Development 25,068 27,607 Total segment profit 157,744 137,884 Unallocated franchise support and other costs — 6 Advertising funds surplus (deficit) 1,106 (1,243) Unallocated general and administrative (c) (32,161) (31,005) Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) (33,472) (33,231) Amortization of cloud computing arrangements (1,582) — System optimization gains, net 5 3,534 Reorganization and realignment costs (6,808) (464) Impairment of long-lived assets (376) (616) Unallocated other operating income, net 22 16 Interest expense, net (31,705) (26,365) Loss on early extinguishment of debt (1,266) — Investment (loss) income, net (3,562) 2,111 Other income, net 7,336 207 Income before income taxes $ 55,281 $ 50,834 _______________ (a) Wendy’s U.S. includes advertising funds expense of $2,556 for the three months ended April 3, 2022 related to the Company’s funding of incremental advertising. (b) Wendy’s International includes advertising funds expense of $548 and $838 for the three months ended April 2, 2023 and April 3, 2022, respectively, related to the Company’s funding of incremental advertising. In addition, Wendy’s International includes other international-related advertising deficit of $845 and $642 for the three months ended April 2, 2023 and April 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
	Apr. 02, 2023	Apr. 03, 2022
Disaggregation of Revenue
Franchise rental income	$ 57,807	$ 57,871
Total revenues	528,807	488,643
Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	227,949	209,275
Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	122,150	111,745
Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	19,527	17,231
Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	101,374	92,521
Wendy's U.S.
Disaggregation of Revenue
Franchise rental income	0	0
Total revenues	440,988	407,311
Wendy's U.S. \| Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	222,632	206,501
Wendy's U.S. \| Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	106,339	97,920
Wendy's U.S. \| Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	17,272	15,405
Wendy's U.S. \| Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	94,745	87,485
Wendy's International
Disaggregation of Revenue
Franchise rental income	0	0
Total revenues	29,280	22,906
Wendy's International \| Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	5,317	2,774
Wendy's International \| Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	15,811	13,825
Wendy's International \| Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	1,523	1,271
Wendy's International \| Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	6,629	5,036
Global Real Estate & Development
Disaggregation of Revenue
Franchise rental income	57,807	57,871
Total revenues	58,539	58,426
Global Real Estate & Development \| Sales at Company-operated restaurants
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0	0
Global Real Estate & Development \| Franchise royalty revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	0	0
Global Real Estate & Development \| Franchise fees
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	732	555
Global Real Estate & Development \| Advertising funds revenue
Disaggregation of Revenue
Revenue from Contract with Customer, Excluding Assessed Tax	$ 0	$ 0

Revenue Contract Balances (Deta

Revenue Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Contract balances
Deferred franchise fees at beginning of period	$ 99,208	$ 97,186
Revenue recognized during the period	(2,814)	(2,283)
New deferrals due to cash received and other	1,300	3,526
Deferred franchise fees at end of period	97,694	$ 98,429
Deferred franchise fees, noncurrent	88,161		$ 90,231
Accounts and notes receivable, net \| Short-term Contract with Customer
Contract balances
Receivables, Net, Current	55,588		54,497
Advertising funds restricted assets \| Short-term Contract with Customer
Contract balances
Receivables, Net, Current	65,735		70,422
Accrued expenses and other current liabilities
Contract balances
Deferred franchise fees, current	9,533		8,977
Deferred franchise fees
Contract balances
Deferred franchise fees, noncurrent	$ 88,161		$ 90,231

Revenue Anticipated Future Reco

Revenue Anticipated Future Recognition of Deferred Franchise Fees (Details) $ in Thousands	Apr. 02, 2023 USD ($)
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	$ 97,694
2023
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	8,037
2024
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,850
2025
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,684
2026
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,577
2027
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	5,486
Thereafter
Revenue, Anticipated Future Recognition of Deferred Franchise Fees
Revenue, Anticipated Future Recognition of Deferred Franchise Fees, Amount	$ 67,060

System Optimization Gains, Ne_2

System Optimization Gains, Net Summary of Disposition Activity (Details) $ in Thousands	3 Months Ended
	Apr. 02, 2023 USD ($) number_of_restaurants	Apr. 03, 2022 USD ($) number_of_restaurants	Jan. 01, 2017
System optimization gains, net
Company-operated restaurant ownership percentage			5%
Proceeds from sales of restaurants	$ 287	$ 263
System optimization gains, net	$ 5	$ 3,534
Sale of franchise-operated restaurants to franchisees
System optimization gains, net
Number of restaurants sold to franchisees \| number_of_restaurants	0	5
Sale of company-operated restaurants to franchisees
System optimization gains, net
Post-closing adjustments on sales of restaurants	$ 0	$ 3,447
Sale of other assets
System optimization gains, net
Proceeds from sales of restaurants	287	168
System optimization gains, net	$ 5	87
Sale of manhattan company-operated restaurants to franchisees note receivable
System optimization gains, net
Proceeds from sales of restaurants		$ 95

System Optimization Gains, Ne_3

System Optimization Gains, Net Assets Held for Sale (Details) - USD ($) $ in Thousands	Apr. 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
	Apr. 02, 2023	Apr. 03, 2022
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 6,808	$ 464
Organizational redesign
Restructuring Cost and Reserve
Reorganization and realignment costs	6,737	0
Other reorganization and realignment plans
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 71	$ 464

Reorganization and Realignmen_4

Reorganization and Realignment Costs Organizational Redesign (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Restructuring Cost and Reserve
Reorganization and realignment costs	$ 6,808	$ 464
Organizational Redesign
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	5,962
Reorganization and realignment costs	6,737	$ 0
Organizational Redesign \| Minimum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	11,000
Restructuring and Related Cost, Expected Cost Remaining	4,000
Organizational Redesign \| Maximum
Restructuring Cost and Reserve
Restructuring and Related Cost, Expected Cost	13,000
Restructuring and Related Cost, Expected Cost Remaining	6,000
Organizational Redesign \| Severance and related employee costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	5,539
Restructuring and Related Cost, Expected Cost Remaining	2,500
Organizational Redesign \| Recruitment and relocation costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	78
Restructuring and Related Cost, Expected Cost Remaining	900
Organizational Redesign \| Third-party and other costs
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	345
Restructuring and Related Cost, Expected Cost Remaining	700
Organizational Redesign \| Share-based compensation
Restructuring Cost and Reserve
Restructuring and Related Cost, Incurred Cost	775
Restructuring and Related Cost, Expected Cost Remaining	$ 1,200

Reorganization and Realignmen_5

Reorganization and Realignment Costs Organizational Redesign Accrual Rollforward (Details) - Organizational Redesign $ in Thousands	3 Months Ended
	Apr. 02, 2023 USD ($)
Restructuring Cost and Reserve
Beginning balance	$ 0
Charges	5,962
Payments	(881)
Ending balance	5,081
Severance and related employee costs
Restructuring Cost and Reserve
Beginning balance	0
Charges	5,539
Payments	(741)
Ending balance	4,798
Recruitment and relocation costs
Restructuring Cost and Reserve
Beginning balance	0
Charges	78
Payments	(78)
Ending balance	0
Third-party and other costs
Restructuring Cost and Reserve
Beginning balance	0
Charges	345
Payments	(62)
Ending balance	283
Accrued expenses and other current liabilities
Restructuring Cost and Reserve
Ending balance	4,650
Other liabilities
Restructuring Cost and Reserve
Ending balance	$ 431

Investments Carrying Value of I

Investments Carrying Value of Investments (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Schedule of Investments
Equity method investments	$ 33,537	$ 33,921
Other investments in equity securities	8,545	12,107
Investments	$ 42,082	$ 46,028

Investments Equity Method Inves

Investments Equity Method Investments (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Schedule of Equity Method Investments
Balance at beginning of period	$ 33,921
Foreign currency translation adjustment included in “Other comprehensive income” and other	158	$ 1,118
Balance at end of period	$ 33,537
TimWen
Schedule of Equity Method Investments
Equity Method Investment, Ownership Percentage	50%
Equity Method Investment, Purchase Price Adjustment, Amortization Period	21 years	21 years
Brazil JV
Schedule of Equity Method Investments
Equity Method Investment, Ownership Percentage	20%
TimWen and Brazil JV
Schedule of Equity Method Investments
Balance at beginning of period	$ 33,921	$ 39,870
Equity in earnings for the period	2,783	2,508
Amortization of purchase price adjustments	(684)	(731)
Equity in earnings for the period, net of amortization of purchase price adjustments	2,099	1,777
Distributions received	(2,493)	(2,675)
Foreign currency translation adjustment included in “Other comprehensive income” and other	10	374
Balance at end of period	$ 33,537	$ 39,346

Investments Other Investments i

Investments Other Investments in Equity Securities (Details) - Other investments in equity securities - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Apr. 02, 2023	Apr. 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	$ 3,562

Long-Term Debt Schedule of Long

Long-Term Debt Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Debt Instrument
Unamortized debt issuance costs	$ (38,959)		$ (40,673)
Total debt	2,815,743		2,851,446
Less amounts payable within one year	(29,250)		(29,250)
Total long-term debt	2,786,493		2,822,196
Loss on early extinguishment of debt	1,266	$ 0
Series 2022-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 99,250		$ 99,500
Debt Instrument, Interest Rate, Stated Percentage	4.236%		4.236%
Series 2022-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 397,000		$ 398,000
Debt Instrument, Interest Rate, Stated Percentage	4.535%		4.535%
Series 2021-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 442,125		$ 443,250
Debt Instrument, Interest Rate, Stated Percentage	2.37%		2.37%
Series 2021-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 638,625		$ 640,250
Debt Instrument, Interest Rate, Stated Percentage	2.775%		2.775%
Series 2019-1 Class A-2-I Notes
Debt Instrument
Senior Notes	$ 363,000		$ 364,000
Debt Instrument, Interest Rate, Stated Percentage	3.783%		3.783%
Series 2019-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 408,375		$ 409,500
Debt Instrument, Interest Rate, Stated Percentage	4.08%		4.08%
Series 2018-1 Class A-2-II Notes
Debt Instrument
Senior Notes	$ 450,063		$ 451,250
Debt Instrument, Interest Rate, Stated Percentage	3.884%		3.884%
7% debentures
Debt Instrument
7% debentures	$ 56,264		$ 86,369
Debt Instrument, Interest Rate, Stated Percentage	7%		7%
Debt Instrument, Repurchased Face Amount	$ 31,571
Loss on early extinguishment of debt	$ 1,266

Fair Value Measurements Financi

Fair Value Measurements Financial Instruments (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Other investments in equity securities	$ 8,545	$ 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	$ 491,577	$ 560,682
Other investments in equity securities	8,545	12,107
Reported Value Measurement \| Series 2022-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	99,250	99,500
Reported Value Measurement \| Series 2022-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	397,000	398,000
Reported Value Measurement \| Series 2021-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	442,125	443,250
Reported Value Measurement \| Series 2021-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	638,625	640,250
Reported Value Measurement \| Series 2019-1 Class A-2-I Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	363,000	364,000
Reported Value Measurement \| Series 2019-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	408,375	409,500
Reported Value Measurement \| Series 2018-1 Class A-2-II Notes
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	450,063	451,250
Reported Value Measurement \| 7% debentures
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	56,264	86,369
Estimate of Fair Value Measurement \| Fair Value, Inputs, Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Cash equivalents	491,577	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	8,545	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	92,322	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	362,183	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	370,987	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	517,350	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	341,184	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	373,908	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	416,758	405,809
Estimate of Fair Value Measurement \| 7% debentures \| Fair Value, Inputs, Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions
Debt instrument	$ 58,283	$ 92,367

Fair Value Measurements Non-Rec

Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis
Assets Held and used, Long Lived, Fair Value Disclosure	$ 603	$ 4,590
Assets Held for sale, Long Lived, Fair Value Disclosure	475	1,314
Total	1,078	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	603	4,590
Assets Held for sale, Long Lived, Fair Value Disclosure	475	1,314
Total	$ 1,078	$ 5,904

Impairment of Long-Lived Asse_3

Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Impairment of Long-Lived Assets
Impairment of long-lived assets	$ 376	$ 616
Company-operated restaurants
Impairment of Long-Lived Assets
Impairment of long-lived assets	350	367
Restaurants leased or subleased to franchisees
Impairment of Long-Lived Assets
Impairment of long-lived assets	0	194
Surplus properties
Impairment of Long-Lived Assets
Impairment of long-lived assets	$ 26	$ 55

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Apr. 03, 2022	Jan. 01, 2023
Effective Income Tax Rate	28%	26.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21%	21%
Unrecognized Tax Benefits, Period Change	$ 0
Unrecognized Tax Benefits, Related Interest and Penalties, Period Change	0
Reasonably possible decrease in unrecognized tax benefits	582
Income Taxes Receivable, Current	4,357		$ 3,236
Income Taxes Receivable, Noncurrent	$ 0		$ 0

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Earnings Per Share [Abstract]
Net income	$ 39,821	$ 37,402
Weighted average basic shares outstanding	212,547	215,619
Dilutive effect of stock options and restricted shares	2,482	2,548
Weighted average diluted shares outstanding	215,029	218,167
Basic net income per share	$ 0.19	$ 0.17
Diluted net income per share	$ 0.19	$ 0.17
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,532	3,295

Stockholders' Equity Dividends

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

Stockholders' Equity Repurchase

Stockholders' Equity Repurchases of Common Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands			1 Months Ended	3 Months Ended	4 Months Ended
	Feb. 28, 2022	Nov. 30, 2021	May 03, 2023	Apr. 02, 2023	Feb. 28, 2022	Jan. 31, 2023	Feb. 29, 2020
January 2023 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount						$ 500,000
Treasury Stock, Shares, Acquired				1,794
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions				$ 38,785
Stock Repurchase Program, Repurchase Accrual				2,083
Stock Repurchase Program, Cost Incurred				25
Stock Repurchase Program, Remaining Authorized Repurchase Amount				$ 461,215
January 2023 Share Repurchase Program \| Subsequent Event
Equity, Class of Treasury Stock
Treasury Stock, Shares, Acquired			1,074
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions			$ 23,597
Stock Repurchase Program, Cost Incurred			$ 15
February 2022 and April 2022 Share Repurchase Program
Equity, Class of Treasury Stock
Stock Repurchase Program, Authorized Amount						$ 250,000
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
	Apr. 02, 2023	Apr. 03, 2022
Accumulated Other Comprehensive Loss
Balance at beginning of period	$ (64,176)	$ (48,200)
Foreign currency translation	158	1,118
Balance at end of period	(64,018)	(47,082)
Foreign Currency Translation
Accumulated Other Comprehensive Loss
Foreign currency translation	$ 158	$ 1,118

Leases Lessee Lease Narrative (

Leases Lessee Lease Narrative (Details)	Apr. 02, 2023 number_of_restaurants
Lessee, Lease, Description
Number of restaurants	7,095
Entity Operated Units
Lessee, Lease, Description
Number of restaurants	414
Land And Building - Company Owned \| Entity Operated Units
Lessee, Lease, Description
Number of restaurants	158
Building - Company Owned; Land - Leased \| Entity Operated Units
Lessee, Lease, Description
Number of restaurants	145
Land And Building - Leased \| Entity Operated Units
Lessee, Lease, Description
Number of restaurants	111

Leases Lessor Lease Narrative (

Leases Lessor Lease Narrative (Details)	Apr. 02, 2023 number_of_restaurants
Lessor, Lease, Description
Number of restaurants	7,095
Land And Building - Company Owned \| Franchised Units
Lessor, Lease, Description
Number of restaurants	486
Land And Building - Leased \| Franchised Units
Lessor, Lease, Description
Number of restaurants	1,192

Leases Components of Lease Cost

Leases Components of Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Lease, Cost
Amortization of finance lease assets	$ 4,063	$ 4,064
Interest on finance lease liabilities	10,750	10,645
Total finance lease cost	14,813	14,709
Operating lease cost	21,449	20,661
Variable lease cost	16,081	14,803
Short-term lease cost	1,506	1,433
Total operating lease cost	39,036	36,897
Total lease cost	53,849	51,606
Franchise rental expense
Lease, Cost
Total operating lease cost	30,598	28,925
Cost of sales
Lease, Cost
Total operating lease cost	7,865	7,294
Executory costs paid by lessee
Lease, Cost
Variable lease cost	$ 9,848	$ 9,608

Leases Components of Lease Inco

Leases Components of Lease Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Lessor Lease Income
Sales-type leases, selling profit	$ 129	$ 480
Sales-type and direct-financing leases, interest income	7,862	7,740
Operating lease income	42,156	43,314
Variable lease income	15,651	14,557
Franchise rental income	57,807	57,871
Sublease income	42,951	43,165
Executory costs paid to lessor
Lessor Lease Income
Sublease income	$ 9,778	$ 9,535

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information Non-Cash Investing and Financing Activities (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Cash Flow, Noncash Investing and Financing Activities Disclosure [Abstract]
Capital expenditures included in accounts payable	$ 9,119	$ 6,522
Finance leases	$ 333	$ 7,207

Supplemental Cash Flow Inform_4

Supplemental Cash Flow Information Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Apr. 02, 2023	Jan. 01, 2023	Apr. 03, 2022	Jan. 02, 2022
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 676,469	$ 745,889
Restricted cash	36,348	35,203
Restricted cash, included in Advertising funds restricted assets	27,749	50,709
Total cash, cash equivalents and restricted cash	$ 740,566	$ 831,801	$ 828,008	$ 366,966

Transactions with Related Par_2

Transactions with Related Parties (Details) $ in Thousands	3 Months Ended
Transactions with Related Parties (Details) $ in Thousands	Apr. 02, 2023 USD ($) number_of_restaurants	Apr. 03, 2022 USD ($)	Jan. 01, 2023 USD ($)
Related Party Transaction
Number of Restaurants \| number_of_restaurants	7,095
TimWen \| Franchise Rental Expense
Related Party Transaction
Related Party Transaction, Expenses from Transactions with Related Party	$ 4,673	$ 4,350
TimWen \| General and administrative \| Management Fee Income
Related Party Transaction
Related Party Transaction, Other Income from Transactions with Related Party	60	54
Yellow Cab \| Royalty, Advertising Fund, Lease and Other Income
Related Party Transaction
Related Party Transaction, Other Income from Transactions with Related Party	3,610	$ 3,067
Yellow Cab \| Accounts and notes receivable, net and Advertising funds restricted assets \| Royalty, Advertising Fund, Lease and Other Income
Related Party Transaction
Accounts Receivable, Related Parties, Current	$ 1,271		$ 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, Expenses from Transactions with Related Party	$ 419
AMC \| Advertising funds restricted liabilities \| Advertising Funds Expense
Related Party Transaction
Accounts Payable, Related Parties, Current	$ 450

Guarantees and Other Commitme_2

Guarantees and Other Commitments and Contingencies Franchisee Image Activation Programs (Details)	3 Months Ended
	Apr. 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	Apr. 02, 2023 USD ($)
Property Lease Guarantee
Guarantor Obligations
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 99,392

Guarantees and Other Commitme_4

Guarantees and Other Commitments and Contingencies Letters of Credit (Details) $ in Thousands	Apr. 02, 2023 USD ($)
Guarantor Obligations
Letters of Credit Outstanding, Amount	$ 28,861

Segment Information Reconciliat

Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Segment Reporting, Revenue Reconciling Item
Total revenues	$ 528,807	$ 488,643
Wendy's U.S.
Segment Reporting, Revenue Reconciling Item
Total revenues	440,988	407,311
Wendy's International
Segment Reporting, Revenue Reconciling Item
Total revenues	29,280	22,906
Global Real Estate & Development
Segment Reporting, Revenue Reconciling Item
Total revenues	$ 58,539	$ 58,426

Segment Information Reconcili_2

Segment Information Reconciliation of Profit from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 02, 2023	Apr. 03, 2022
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	$ 84,478	$ 74,881
Unallocated franchise support and other costs	(13,260)	(11,816)
Advertising funds surplus (deficit)	1,106	(1,243)
Unallocated general and administrative	(62,276)	(62,346)
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below)	(33,472)	(33,231)
Amortization of cloud computing arrangements	(1,582)	0
System optimization gains, net	5	3,534
Reorganization and realignment costs	(6,808)	(464)
Impairment of long-lived assets	(376)	(616)
Unallocated other operating income, net	2,266	2,966
Interest expense, net	(31,705)	(26,365)
Loss on early extinguishment of debt	(1,266)	0
Investment (loss) income, net	(3,562)	2,111
Other income, net	7,336	207
Income before income taxes	55,281	50,834
Corporate and Other
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Unallocated franchise support and other costs	0	6
Unallocated general and administrative	(32,161)	(31,005)
Unallocated other operating income, net	22	16
Operating Segments
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	157,744	137,884
Operating Segments \| Wendy's U.S.
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	125,230	104,824
Advertising funds surplus (deficit)		(2,556)
Operating Segments \| Wendy's International
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	7,446	5,453
Advertising funds surplus (deficit)	(548)	(838)
Other international-related advertising deficit	845	642
Operating Segments \| Global Real Estate & Development
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated
Segment profit	$ 25,068	$ 27,607