v3.23.2
Revenue (Tables)
 6 Months Ended
Jul. 02, 2023
Revenue [Abstract]  
Disaggregation of Revenue
The following tables disaggregate revenue by segment and source:
Wendy’s U.S.Wendy’s InternationalGlobal Real Estate & DevelopmentTotal
Three Months Ended July 2, 2023
Sales at Company-operated restaurants$234,862 $5,826 $— $240,688 
Franchise royalty revenue114,921 17,207 — 132,128 
Franchise fees17,461 1,395 2,064 20,920 
Franchise rental income— — 58,033 58,033 
Advertising funds revenue101,509 8,287 — 109,796 
Total revenues$468,753 $32,715 $60,097 $561,565 
Three Months Ended July 3, 2022
Sales at Company-operated restaurants$227,903 $2,966 $— $230,869 
Franchise royalty revenue108,872 16,141 — 125,013 
Franchise fees15,986 1,167 1,270 18,423 
Franchise rental income— — 58,610 58,610 
Advertising funds revenue97,679 7,189 — 104,868 
Total revenues$450,440 $27,463 $59,880 $537,783 
Wendy’s U.S.Wendy’s InternationalGlobal Real Estate & DevelopmentTotal
Six Months Ended July 2, 2023
Sales at Company-operated restaurants$457,494 $11,143 $— $468,637 
Franchise royalty revenue221,260 33,018 — 254,278 
Franchise fees34,733 2,918 2,796 40,447 
Franchise rental income— — 115,840 115,840 
Advertising funds revenue196,254 14,916 — 211,170 
Total revenues$909,741 $61,995 $118,636 $1,090,372 
Six Months Ended July 3, 2022
Sales at Company-operated restaurants$434,404 $5,740 $— $440,144 
Franchise royalty revenue206,792 29,966 — 236,758 
Franchise fees31,391 2,438 1,825 35,654 
Franchise rental income— — 116,481 116,481 
Advertising funds revenue185,164 12,225 — 197,389 
Total revenues$857,751 $50,369 $118,306 $1,026,426 
Contract Balances, assets and liabilities
The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
July 2,
2023 (a)		January 1, 2023 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)
$57,305 $54,497 
Receivables, which are included in “Advertising funds restricted assets”
71,927 70,422 
Deferred franchise fees (c)100,239 99,208 
_______________

(a)Excludes funds collected from the sale of gift cards, which are primarily reimbursed to franchisees upon redemption at franchised restaurants and do not ultimately result in the recognition of revenue in the Company’s condensed consolidated statements of operations.

(b)Includes receivables related to “Sales” and “Franchise royalty revenue and fees.”

(c)The current portion of deferred franchise fees is included in “Accrued expenses and other current liabilities” and the long-term portion of deferred franchise fees is included in “Deferred franchise fees” and totaled $10,510 and $89,729, respectively, as of July 2, 2023, and $8,977 and $90,231, respectively, as of January 1, 2023.
Contract Balances, deferred franchise fee rollforward
Significant changes in deferred franchise fees are as follows:
Six Months Ended
July 2,
2023		July 3,
2022
Deferred franchise fees at beginning of period$99,208 $97,186 
Revenue recognized during the period
(6,591)(5,037)
New deferrals due to cash received and other7,622 6,959 
Deferred franchise fees at end of period$100,239 $99,108 
Anticipated Future Recognition of Deferred Franchise Fees
The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:
Estimate for fiscal year:
2023 (a)$8,092 
20245,979 
20255,821 
20265,690 
20275,609 
Thereafter69,048 
$100,239 
_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2023, which includes development-related franchise fees expected to be recognized over a duration of one year or less.