WENDY'S CO, 10-Q filed on 5/12/2021
Quarterly Report
v3.21.1
Document and Entity Information - shares
 3 Months Ended
Apr. 04, 2021
May 05, 2021
Document and Entity Information [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 04, 2021  
Document Transition Report false  
Entity File Number 1-2207  
Entity Registrant Name THE WENDY’S COMPANY  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 38-0471180  
Entity Address, Address Line One One Dave Thomas Blvd.  
Entity Address, City or Town Dublin,  
Entity Address, State or Province OH  
Entity Address, Postal Zip Code 43017  
City Area Code 614  
Local Phone Number 764-3100  
Title of 12(b) Security Common Stock, $.10 par value  
Trading Symbol WEN  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0000030697  
Current Fiscal Year End Date --01-02  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Amendment Flag false  
Entity Common Stock, Shares Outstanding   221,359,357
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
shares in Thousands, $ in Thousands
Apr. 04, 2021
Jan. 03, 2021
Current assets:    
Cash and cash equivalents $ 316,488 $ 306,989
Restricted cash 37,948 33,973
Accounts and notes receivable, net 100,312 109,891
Inventories 4,733 4,732
Prepaid expenses and other current assets 48,498 89,732
Advertising funds restricted assets 133,518 142,306
Total current assets 641,497 687,623
Properties 898,420 915,889
Finance lease assets 201,249 206,153
Operating lease assets 806,614 821,480
Goodwill 751,957 751,049
Other intangible assets 1,219,089 1,224,960
Investments 43,743 44,574
Net investment in sales-type and direct financing leases 269,750 268,221
Other assets 124,351 120,057
Total assets 4,956,670 5,040,006
Current liabilities:    
Current portion of long-term debt 31,250 28,962
Current portion of finance lease liabilities 12,582 12,105
Current portion of operating lease liabilities 45,498 45,346
Accounts payable 29,325 31,063
Accrued expenses and other current liabilities 140,720 155,321
Advertising funds restricted liabilities 137,144 140,511
Total current liabilities 396,519 413,308
Long-term debt 2,205,652 2,218,163
Long-term finance lease liabilities 501,422 506,076
Long-term operating lease liabilities 850,448 865,325
Deferred income taxes 280,077 280,755
Deferred franchise fees 86,532 89,094
Other liabilities 115,355 117,689
Total liabilities 4,436,005 4,490,410
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 221,784 and 224,268 shares outstanding, respectively 47,042 47,042
Additional paid-in capital 2,901,460 2,899,276
Retained earnings 259,879 238,674
Common stock held in treasury, at cost; 248,640 and 246,156 shares, respectively (2,640,295) (2,585,755)
Accumulated other comprehensive loss (47,421) (49,641)
Total stockholders’ equity 520,665 549,596
Total liabilities and stockholders’ equity $ 4,956,670 $ 5,040,006
Common Stock, Par Value $ 0.10 $ 0.10
Common Stock, Shares Authorized 1,500,000 1,500,000
Common Stock, Shares Issued 470,424 470,424
Common Stock, Shares, Outstanding 221,784 224,268
Treasury Stock, Shares 248,640 246,156
v3.21.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Revenues    
Franchise rental income $ 58,876 $ 57,856
Revenues 460,203 404,960
Costs and expenses    
Cost of sales 156,850 149,999
Franchise support and other costs 7,686 8,013
Franchise rental expense 32,566 29,301
Advertising funds expense 94,238 79,988
General and administrative 52,622 51,639
Depreciation and amortization 31,542 31,046
System optimization gains, net (516) (323)
Reorganization and realignment costs 4,934 3,910
Impairment of long-lived assets 635 4,587
Other operating income, net (3,476) (1,932)
Costs and expenses 377,081 356,228
Operating profit 83,122 48,732
Interest expense, net (28,786) (28,525)
Other income, net 129 1,076
Income before income taxes 54,465 21,283
Provision for income taxes (13,099) (6,842)
Net income $ 41,366 $ 14,441
Earnings per share    
Earnings Per Share, Basic $ 0.19 $ 0.06
Earnings Per Share, Diluted $ 0.18 $ 0.06
Sales    
Revenues    
Revenue from Contract with Customer, Excluding Assessed Tax $ 189,057 $ 166,798
Franchise royalty revenue and fees    
Revenues    
Revenue from Contract with Customer, Excluding Assessed Tax 122,830 101,705
Advertising funds revenue    
Revenues    
Revenue from Contract with Customer, Excluding Assessed Tax $ 89,440 $ 78,601
v3.21.1
Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Net income $ 41,366 $ 14,441
Other comprehensive income (loss):    
Foreign currency translation adjustment 2,220 (12,507)
Other comprehensive income (loss) 2,220 (12,507)
Comprehensive income $ 43,586 $ 1,934
v3.21.1
Condensed Consolidated Statements of Stockholders' Equity Statement - USD ($)
$ in Thousands
Total
Common Stock
Additional Paid-in Capital
Retained Earnings
Common Stock Held in Treasury
Accumulated Other Comprehensive Loss
Stockholders' Equity, beginning of period at Dec. 29, 2019 $ 516,359 $ 47,042 $ 2,874,001 $ 185,725 $ (2,536,581) $ (53,828)
Increase (Decrease) in Stockholders' Equity            
Net income 14,441 0 0 14,441 0 0
Other comprehensive income (loss) (12,507) 0 0 0 0 (12,507)
Cash dividends (26,793) 0 0 (26,793) 0 0
Repurchases of common stock (43,336) 0 15,000 0 (58,336) 0
Share-based compensation 4,539 0 4,539 0 0 0
Common stock issued upon exercises of stock options 1,610 0 280 0 1,330 0
Common stock issued upon vesting of restricted shares (3,291) 0 (4,017) 0 726 0
Other 53 0 33 (7) 27 0
Stockholders' Equity, end of period at Mar. 29, 2020 451,075 47,042 2,889,836 173,366 (2,592,834) (66,335)
Stockholders' Equity, beginning of period at Jan. 03, 2021 549,596 47,042 2,899,276 238,674 (2,585,755) (49,641)
Increase (Decrease) in Stockholders' Equity            
Net income 41,366 0 0 41,366 0 0
Other comprehensive income (loss) 2,220 0 0 0 0 2,220
Cash dividends (20,156) 0 0 (20,156) 0 0
Repurchases of common stock (56,084) 0 0 0 (56,084) 0
Share-based compensation 5,151 0 5,151 0 0 0
Common stock issued upon exercises of stock options 663 0 (20) 0 683 0
Common stock issued upon vesting of restricted shares (2,179) 0 (2,996) 0 817 0
Other 88 0 49 (5) 44 0
Stockholders' Equity, end of period at Apr. 04, 2021 $ 520,665 $ 47,042 $ 2,901,460 $ 259,879 $ (2,640,295) $ (47,421)
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Cash flows from operating activities:    
Net income $ 41,366 $ 14,441
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation and amortization 31,542 31,046
Share-based compensation 5,151 4,539
Impairment of long-lived assets 635 4,587
Deferred income tax (1,116) 748
Non-cash rental expense, net 10,152 6,218
Change in operating lease liabilities (11,607) (10,611)
Net receipt (recognition) of deferred vendor incentives 6,522 (2,305)
System optimization gains, net (516) (323)
Distributions received from joint ventures, net of equity in earnings 1,409 180
Long-term debt-related activities, net 1,677 1,556
Changes in operating assets and liabilities and other, net 615 (69,445)
Net cash provided by (used in) operating activities 85,830 (19,369)
Cash flows from investing activities:    
Capital expenditures (10,364) (12,629)
Acquisitions 4,879 0
Dispositions 3 195
Notes receivable, net 397 313
Net cash used in investing activities (5,085) (12,121)
Cash flows from financing activities:    
Proceeds from long-term debt 0 153,315
Repayments of long-term debt (11,900) (14,334)
Repayments of finance lease liabilities (2,659) (1,967)
Repurchases of common stock (55,611) (45,137)
Dividends (20,156) (26,793)
Proceeds from stock option exercises 972 1,722
Payments related to tax withholding for share-based compensation (2,308) (3,402)
Net cash (used in) provided by financing activities (91,662) 63,404
Net cash (used in) provided by operations before effect of exchange rate changes on cash (10,917) 31,914
Effect of exchange rate changes on cash 823 (5,086)
Net (decrease) increase in cash, cash equivalents and restricted cash (10,094) 26,828
Cash, cash equivalents and restricted cash at beginning of period 418,241 358,707
Cash, cash equivalents and restricted cash at end of period 408,147 385,535
Supplemental non-cash investing and financing activities:    
Capital expenditures included in accounts payable 5,461 9,579
Finance leases 5,539 9,274
Reconciliation of cash, cash equivalents and restricted cash at end of period:    
Total cash, cash equivalents and restricted cash $ 408,147 $ 385,535
v3.21.1
Basis of Presentation
 3 Months Ended
Apr. 04, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Presentation Basis of Presentation
The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of April 4, 2021 and the results of our operations and cash flows for the three months ended April 4, 2021 and March 29, 2020. The results of operations for the three months ended April 4, 2021 are not necessarily indicative of the results to be expected for the full 2021 fiscal year. The Financial Statements should be read in conjunction with the audited consolidated financial statements for The Wendy’s Company and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended January 3, 2021 (the “Form 10-K”).

On March 11, 2020, the World Health Organization declared the novel strain of coronavirus (“COVID-19”) a global pandemic. We continue to monitor the dynamic nature of the COVID-19 pandemic on our business, results and financial condition; however, we cannot predict the ultimate duration, scope or severity of the COVID-19 pandemic or its ultimate impact on our results of operations, financial condition and prospects.

The principal 100% owned subsidiary of the Company is Wendy’s International, LLC and its subsidiaries (“Wendy’s”). The Company manages and internally reports its business in the following segments: (1) Wendy’s U.S., (2) Wendy’s International and (3) Global Real Estate & Development. See Note 17 for further information.

We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to or on December 31. All three-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.
v3.21.1
Revenue (Notes)
 3 Months Ended
Apr. 04, 2021
Revenue [Abstract]  
Revenue from Contract with Customer Revenue
Disaggregation of Revenue

The following tables disaggregate revenue by segment and source:
Wendy’s U.S.Wendy’s InternationalGlobal Real Estate & DevelopmentTotal
Three Months Ended April 4, 2021
Sales at Company-operated restaurants$189,057 $— $— $189,057 
Franchise royalty revenue96,764 11,570 — 108,334 
Franchise fees (a)11,930 1,443 1,123 14,496 
Franchise rental income— — 58,876 58,876 
Advertising funds revenue84,203 5,237 — 89,440 
Total revenues$381,954 $18,250 $59,999 $460,203 
Three Months Ended March 29, 2020
Sales at Company-operated restaurants$166,798 $— $— $166,798 
Franchise royalty revenue84,833 10,523 — 95,356 
Franchise fees (a)5,285 473 591 6,349 
Franchise rental income— — 57,856 57,856 
Advertising funds revenue74,125 4,476 — 78,601 
Total revenues$331,041 $15,472 $58,447 $404,960 
_______________

(a)Includes fees for providing information technology services to franchisees, which are recognized as revenue as earned.

Contract Balances

The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
April 4,
2021 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)$57,546 $57,677 
Receivables, which are included in “Advertising funds restricted assets”
55,721 63,252 
Deferred franchise fees (c)95,247 97,785 
_______________

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

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

(c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $8,715 and $86,532 as of April 4, 2021, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively.
Significant changes in deferred franchise fees are as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Deferred franchise fees at beginning of period$97,785 $100,689 
Revenue recognized during the period
(4,337)(2,144)
New deferrals due to cash received and other1,799 1,066 
Deferred franchise fees at end of period$95,247 $99,611 

Anticipated Future Recognition of Deferred Franchise Fees

The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:
Estimate for fiscal year:
2021 (a)$7,204 
20226,200 
20236,028 
20245,831 
20255,644 
Thereafter64,340 
$95,247 
_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2021, which includes development-related franchise fees expected to be recognized over a duration of one year or less.
v3.21.1
Acquisitions (Notes)
 3 Months Ended
Apr. 04, 2021
Business Combinations [Abstract]  
Acquisitions Acquisitions
No restaurants were acquired from franchisees during the three months ended April 4, 2021 and March 29, 2020.

NPC Quality Burgers, Inc. (“NPC”)

As previously announced, NPC, formerly the Company’s largest franchisee, filed for chapter 11 bankruptcy in July 2020 and commenced a process to sell all or substantially all of its assets, including its interest in approximately 393 Wendy’s restaurants across eight different markets, pursuant to a court-approved auction process. On November 18, 2020, the Company submitted a consortium bid together with a group of pre-qualified franchisees to acquire NPC’s Wendy’s restaurants. Under the terms of the consortium bid, several existing and new franchisees would have been the ultimate purchasers of seven of the NPC markets, while the Company would have acquired one market. As part of the consortium bid, the Company submitted a deposit of $43,240, which was included in “Prepaid expenses and other current assets” as of January 3, 2021. The deposit included $38,361 received from the group of prequalified franchisees, which was payable to the franchisees and included in “Accrued expenses and other current liabilities” as of January 3, 2021 pending resolution of the bankruptcy sale process.

During the three months ended April 4, 2021, following a court-approved mediation process, NPC and certain affiliates of Flynn Restaurant Group (“FRG”) and the Company entered into separate asset purchase agreements under which all of NPC’s Wendy’s restaurants were sold to Wendy’s approved franchisees. Under the transaction, FRG acquired approximately half of NPC’s Wendy’s restaurants in four markets, while several existing Wendy’s franchisees that were part of the Company’s consortium bid acquired the other half of NPC’s Wendy’s restaurants in the other four markets. The Company did not acquire any restaurants as part of this transaction. In addition, the deposits outstanding as of January 3, 2021 were settled during the three months ended April 4, 2021 upon resolution of the bankruptcy sale process. The net settlement of deposits of $4,879 is included in “Acquisitions” in the condensed consolidated statements of cash flows.
v3.21.1
System Optimization Gains, Net
 3 Months Ended
Apr. 04, 2021
Property, Plant and Equipment [Abstract]  
System Optimization Gains, Net System Optimization Gains, Net
The Company’s system optimization initiative includes a shift from Company-operated restaurants to franchised restaurants over time, through acquisitions and dispositions, as well as facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”). As of January 1, 2017, the Company completed its plan to reduce its ongoing Company-operated restaurant ownership to approximately 5% of the total system. While the Company has no plans to reduce its ownership below the approximately 5% level, the Company expects to continue to optimize the Wendy’s system through Franchise Flips, as well as evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees, to further strengthen the franchisee base, drive new restaurant development and accelerate reimages. During the three months ended April 4, 2021, the Company facilitated no Franchise Flips. During the three months ended March 29, 2020, the Company facilitated three Franchise Flips. The Company expects to sell 47 Company-operated restaurants in New York (including Manhattan) to franchisees in the second quarter of 2021.

Gains and losses recognized on dispositions are recorded to “System optimization gains, net” in our condensed consolidated statements of operations. Costs related to acquisitions and dispositions under our system optimization initiative are recorded to “Reorganization and realignment costs,” which are further described in Note 5. All other costs incurred related to facilitating Franchise Flips are recorded to “Franchise support and other costs.”

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
Three Months Ended
April 4,
2021		March 29,
2020
Post-closing adjustments on sales of restaurants (a)$515 $345 
Gain on sales of other assets, net (b)1 (22)
System optimization gains, net$516 $323 
_______________

(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 4, 2021 and March 29, 2020, the Company received net cash proceeds of $3 and $195, respectively, primarily from the sale of surplus and other properties.

Assets Held for Sale
April 4,
2021		January 3,
2021
Number of restaurants classified as held for sale47 43 
Net restaurant assets held for sale (a)$21,747 $20,587 
Other assets held for sale (b)$1,732 $1,732 
_______________

(a)Net restaurant assets held for sale represent the New York Company-operated restaurants we expect to sell in the second quarter of 2021 (including Manhattan as of April 4, 2021) and consist primarily of cash, inventory, property and an estimate of allocable goodwill.

(b)Other assets held for sale primarily consist of surplus properties.
Assets held for sale are included in “Prepaid expenses and other current assets.”
v3.21.1
Reorganization and Realignment Costs
 3 Months Ended
Apr. 04, 2021
Restructuring and Related Activities [Abstract]  
Reorganization and Realignment Costs Reorganization and Realignment Costs
The following is a summary of the initiatives included in “Reorganization and realignment costs:”
Three Months Ended
April 4,
2021		March 29,
2020
Operations and field realignment$274 $— 
IT realignment— 3,559 
G&A realignment(18)267 
System optimization initiative4,678 84 
Reorganization and realignment costs$4,934 $3,910 

Operations and Field Realignment

In September 2020, the Company initiated a plan to reallocate resources to better support the long-term growth strategies for Company and franchise operations (the “Operations and Field Realignment Plan”). The Operations and Field Realignment Plan realigned the Company’s restaurant operations team, including transitioning from separate leaders of Company and franchise operations to a single leader of all U.S. restaurant operations. We also expect to incur contract termination charges, including the planned closure of certain field offices. The Company expects to incur total costs aggregating approximately $7,000 to $9,000 related to the Operations and Field Realignment Plan. During the three months ended April 4, 2021, the Company recognized costs totaling $274, which primarily included severance and related employee costs. The Company expects to incur additional costs aggregating approximately $3,000 to $5,000, comprised primarily of third-party and other costs. The Company expects to recognize the majority of the remaining costs associated with the Operations and Field Realignment Plan during the remainder of 2021.

The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021
Severance and related employee costs$254 $3,367 
Third-party and other costs20 87 
274 3,454 
Share-based compensation (a)— 621 
Total operations and field realignment$274 $4,075 
_______________

(a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan.

The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of April 4, 2021.
Balance
January 3, 2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$2,600 $254 $(1,410)$1,444 
Third-party and other costs— 20 (20)— 
$2,600 $274 $(1,430)$1,444 
Information Technology (“IT”) Realignment

In December 2019, our Board of Directors approved a plan to realign and reinvest resources in the Company’s IT organization to strengthen its ability to accelerate growth (the “IT Realignment Plan”). The Company has partnered with a third-party global IT consultant on this new structure to leverage their global capabilities, which will enable a more seamless integration between its digital and corporate IT assets. The IT Realignment Plan has reduced certain employee compensation and other related costs that the Company has reinvested back into IT to drive additional capabilities and capacity across all of its technology platforms. Additionally, in June 2020, the Company made changes to its leadership structure that included the elimination of the Chief Digital Experience Officer position and the creation of a Chief Information Officer position, for which the Company completed the hiring process in October 2020. During the three months ended March 29, 2020, the Company recognized costs totaling $3,559, which primarily included third-party and other costs. The Company does not expect to incur any material additional costs under the IT Realignment Plan.

The following is a summary of the activity recorded as a result of the IT Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29,
2020
Severance and related employee costs (a)$(111)$145 $8,280 
Recruitment and relocation costs108 171 1,404 
Third-party and other costs3 3,243 6,538 
— 3,559 16,222 
Share-based compensation (b)— — 193 
Total IT realignment $— $3,559 $16,415 
_______________

(a)The three months ended April 4, 2021 includes a reversal of an accrual as a result of a change in estimate.

(b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the IT Realignment Plan.

The accruals for the IT Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $689 and $41 as of April 4, 2021 and $6,744 and $237 as of March 29, 2020, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan.
Balance
January 3, 2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$1,508 $(111)$(667)$730 
Recruitment and relocation costs— 108 (108)— 
Third-party and other costs— 3 (3)— 
$1,508 $— $(778)$730 
Balance
December 29, 2019		ChargesPaymentsBalance
March 29,
2020
Severance and related employee costs$7,548 $145 $(712)$6,981 
Recruitment and relocation costs— 171 (171)— 
Third-party and other costs1,076 3,243 (4,319)— 
$8,624 $3,559 $(5,202)$6,981 
General and Administrative (“G&A”) Realignment

In May 2017, the Company initiated a plan to further reduce its G&A expenses (the “G&A Realignment Plan”). Additionally, in May 2019, the Company announced changes to its management and operating structure that included the creation of two new positions, a President, U.S. and Chief Commercial Officer and a President, International and Chief Development Officer, and the elimination of the Chief Operations Officer position. During the three months ended March 29, 2020, the Company recognized costs totaling $267, which primarily included severance and related employee costs and share-based compensation. The Company does not expect to incur any material additional costs under the G&A Realignment Plan.

The following is a summary of the activity recorded as a result of the G&A Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29,
2020
Severance and related employee costs (a)$(31)$152 $24,235 
Recruitment and relocation costs1 15 2,877 
Third-party and other costs1 1 2,224 
(29)168 29,336 
Share-based compensation (b)11 99 8,122 
Termination of defined benefit plans— — 1,335 
Total G&A realignment$(18)$267 $38,793 
_______________

(a)The three months ended April 4, 2021 includes a reversal of an accrual as a result of a change in estimate.

(b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A Realignment Plan.

As of April 4, 2021, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities.” As of March 29, 2020, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled and $3,781 and $408, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
Balance
January 3,
2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$932 $(31)$(501)$400 
Recruitment and relocation costs— 1 (1)— 
Third-party and other costs— 1 (1)— 
$932 $(29)$(503)$400 
Balance
December 29,
2019		ChargesPaymentsBalance
March 29,
2020
Severance and related employee costs$5,276 $152 $(1,306)$4,122 
Recruitment and relocation costs83 15 (31)67 
Third-party and other costs— 1 (1)— 
$5,359 $168 $(1,338)$4,189 

System Optimization Initiative

The Company recognizes costs related to acquisitions and dispositions under its system optimization initiative. During the three months ended April 4, 2021, the Company recognized costs totaling $4,678, which were primarily comprised of the write-off of certain lease assets and lease termination fees associated with the NPC bankruptcy sale process. See Note 3 for further
information. The Company expects to recognize a gain of approximately $1,400 related to the write-off of certain NPC-related lease liabilities upon final termination of the leases.

The following is a summary of the costs recorded as a result of our system optimization initiative:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29, 2020
Severance and related employee costs$— $— $18,237 
Professional fees235 80 22,342 
Other (a)1,354 4 7,207 
1,589 84 47,786 
Accelerated depreciation and amortization (b)— — 25,398 
NPC lease termination costs (c)3,089 — 3,089 
Share-based compensation (d)— — 5,013 
Total system optimization initiative$4,678 $84 $81,286 
_______________

(a)The three months ended April 4, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process.

(b)Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative.

(c)The three months ended April 4, 2021 includes the write-off of lease assets of $1,609 and lease termination fees paid of $1,480.

(d)Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative.

The table below presents a rollforward of our accruals for our system optimization initiative, which are included in “Accrued expenses and other current liabilities.”
Balance
January 3,
2021		ChargesPaymentsBalance
April 4,
2021
Professional fees$1,230 $235 $(1,461)$4 
Other— 1,354 (1,354)— 
$1,230 $1,589 $(2,815)$4 
v3.21.1
Investments
 3 Months Ended
Apr. 04, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Investment
(6) Investments

Equity Investments

Wendy’s has a 50% share in a partnership in a Canadian restaurant real estate joint venture (“TimWen”) with a subsidiary of Restaurant Brands International Inc., a quick-service restaurant company that owns the Tim Hortons® brand. (Tim Hortons is a registered trademark of Tim Hortons USA Inc.) In addition, a wholly-owned subsidiary of Wendy’s has a 20% share in a joint venture for the operation of Wendy’s restaurants in Brazil (the “Brazil JV”). The Company has significant influence over these investees. Such investments are accounted for using the equity method of accounting, under which our results of operations include our share of the income (loss) of the investees in “Other operating income, net.”
Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements:
Three Months Ended
April 4,
2021		March 29,
2020
Balance at beginning of period$44,574 $45,310 
Equity in earnings for the period2,167 1,985 
Amortization of purchase price adjustments (a)(595)(562)
1,572 1,423 
Distributions received(2,981)(1,603)
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other
578 (2,991)
Balance at end of period$43,743 $42,139 
_______________

(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.
v3.21.1
Long-Term Debt (Notes)
 3 Months Ended
Apr. 04, 2021
Debt Disclosure [Abstract]  
Long-Term Debt Long-Term Debt
Long-term debt consisted of the following:
April 4,
2021		January 3,
2021
Series 2019-1 Class A-2 Notes:
3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026
$383,000 $386,000 
4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029
430,875 434,250 
Series 2018-1 Class A-2 Notes:
3.573% Series 2018-1 Class A-2-I Notes, anticipated repayment date 2025
435,375 436,500 
3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028
459,563 460,750 
Series 2015-1 Class A-2 Notes:
4.497% Series 2015-1 Class A-2-III Notes, anticipated repayment date 2025
472,500 473,750 
Canadian revolving credit facility— 1,962 
7% debentures, due in 2025
84,291 83,998 
Unamortized debt issuance costs(28,702)(30,085)
2,236,902 2,247,125 
Less amounts payable within one year(31,250)(28,962)
Total long-term debt$2,205,652 $2,218,163 

Senior Notes

Wendy’s Funding, LLC, a limited-purpose, bankruptcy-remote, wholly-owned indirect subsidiary of The Wendy’s Company, is the master issuer (the “Master Issuer”) of outstanding senior secured notes under a securitized financing facility that was entered into in June 2015. Under this facility, in June 2019, the Master Issuer issued outstanding Series 2019-1 Variable Funding Senior Secured Notes, Class A-1 (the “2019-1 Class A-1 Notes”), which allow for the borrowing of up to $150,000 from time to time on a revolving basis using various credit instruments, including a letter of credit facility. In June 2020, the Master Issuer also issued outstanding Series 2020-1 Variable Funding Senior Secured Notes, Class A-1 (the “2020-1 Class A-1 Notes” and, together with the 2019-1 Class A-1 Notes, the “Class A-1 Notes”), which allow for the borrowing of up to $100,000 from time to time on a revolving basis using various credit instruments. As of April 4, 2021, the Company had no outstanding borrowings under the 2019-1 Class A-1 Notes or the 2020-1 Class A-1 Notes.
Other Long-Term Debt

A Canadian subsidiary of Wendy’s has a revolving credit facility of C$6,000, which bears interest at the Bank of Montreal Prime Rate. Borrowings under the facility are guaranteed by Wendy’s. In March 2020, the Company drew down C$5,500 under the revolving credit facility, which the Company fully repaid through repayments of C$3,000 in the fourth quarter of 2020 and C$2,500 in the first quarter of 2021. As a result, as of April 4, 2021, the Company had no outstanding borrowings under the Canadian revolving credit facility.
v3.21.1
Fair Value Measurements
 3 Months Ended
Apr. 04, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques under the accounting guidance related to fair value measurements are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. These inputs are classified into the following hierarchy:

•Level 1 Inputs - Quoted prices for identical assets or liabilities in active markets.

•Level 2 Inputs - Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

•Level 3 Inputs - Pricing inputs are unobservable for the assets or liabilities and include situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value require significant management judgment or estimation.

Financial Instruments

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
April 4,
2021		January 3,
2021
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value
Measurements
Financial assets
Cash equivalents$25,035 $25,035 $75,067 $75,067 Level 1
Financial liabilities
Series 2019-1 Class A-2-I Notes (a)383,000 405,482 386,000 409,778 Level 2
Series 2019-1 Class A-2-II Notes (a)430,875 457,201 434,250 469,555 Level 2
Series 2018-1 Class A-2-I Notes (a)435,375 445,563 436,500 450,381 Level 2
Series 2018-1 Class A-2-II Notes (a)459,563 487,872 460,750 491,021 Level 2
Series 2015-1 Class A-2-III Notes (a)472,500 475,949 473,750 481,851 Level 2
Canadian revolving credit facility— — 1,962 1,962 Level 2
7% debentures, due in 2025 (a)
84,291 99,900 83,998 98,775 Level 2
_______________

(a)The fair values were based on quoted market prices in markets that are not considered active markets.

The carrying amounts of cash, accounts payable and accrued expenses approximate fair value due to the short-term nature of those items. The carrying amounts of accounts and notes receivable, net (both current and non-current) approximate fair value due to the effect of the related allowance for doubtful accounts. Our cash equivalents are the only financial assets measured and recorded at fair value on a recurring basis.
Non-Recurring Fair Value Measurements

Assets and liabilities remeasured to fair value on a non-recurring basis resulted in impairment that we have recorded to “Impairment of long-lived assets” in our condensed consolidated statements of operations.

Total impairment losses may reflect the impact of remeasuring long-lived assets held and used (including land, buildings, leasehold improvements, favorable lease assets and right-of-use assets) to fair value as a result of (1) declines in operating performance at Company-operated restaurants and (2) the Company’s decision to lease and/or sublease the land and/or buildings to franchisees in connection with the sale or anticipated sale of restaurants, including any subsequent lease modifications. The fair values of long-lived assets held and used presented in the tables below represent the remaining carrying value and were estimated based on either discounted cash flows of future anticipated lease and sublease income or discounted cash flows of future anticipated Company-operated restaurant performance.

Total impairment losses may also include the impact of remeasuring long-lived assets held for sale. The fair values of long-lived assets held for sale presented in the tables below represent the remaining carrying value and were estimated based on current market values. See Note 9 for further information on impairment of our long-lived assets.
Fair Value Measurements
April 4,
2021		Level 1Level 2Level 3
Held and used$299 $— $— $299 
Held for sale— — — — 
Total$299 $— $— $299 

Fair Value Measurements
January 3,
2021		Level 1Level 2Level 3
Held and used$2,653 $— $— $2,653 
Held for sale855 — — 855 
Total$3,508 $— $— $3,508 
v3.21.1
Impairment of Long-Lived Assets
 3 Months Ended
Apr. 04, 2021
Asset Impairment Charges [Abstract]  
Impairment of Long-Lived Assets Impairment of Long-Lived Assets
The Company records impairment charges as a result of (1) the deterioration in operating performance of certain Company-operated restaurants, (2) the Company’s decision to lease and/or sublease properties to franchisees in connection with the sale or anticipated sale of Company-operated restaurants, including any subsequent lease modifications, and (3) closing Company-operated restaurants and classifying such surplus properties as held for sale. Impairment charges during the three months ended March 29, 2020 were primarily due to the expected deterioration in operating performance of certain Company-operated restaurants as a result of the COVID-19 pandemic.

The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:”
Three Months Ended
April 4,
2021		March 29,
2020
Company-operated restaurants$446 $4,395 
Restaurants leased or subleased to franchisees189 — 
Surplus properties— 192 
$635 $4,587 
v3.21.1
Income Taxes
 3 Months Ended
Apr. 04, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The Company’s effective tax rate for the three months ended April 4, 2021 and March 29, 2020 was 24.1% and 32.1%, respectively. The Company’s effective tax rate varied from the U.S. federal statutory rate of 21% primarily due to (1) an increase related to the tax effects of our foreign operations and (2) an increase for state income taxes, including discrete changes to state deferred taxes. These increases were partially offset by a reduction for the benefit of share-based compensation.

There were no significant changes to the unrecognized tax benefits or related interest and penalties for the three months ended April 4, 2021. During the next twelve months, we believe it is reasonably possible the Company will reduce unrecognized tax benefits by up to $2,016 due primarily to the lapse of statutes of limitations and expected settlements.

The current portion of refundable income taxes was $1,740 and $5,399 as of April 4, 2021 and January 3, 2021, respectively, and is included in “Accounts and notes receivable, net.” There were no long-term refundable income taxes as of April 4, 2021 and January 3, 2021.
v3.21.1
Net Income Per Share
 3 Months Ended
Apr. 04, 2021
Earnings Per Share [Abstract]  
Net Income Per Share Net Income Per Share
The calculation of basic and diluted net income per share was as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Net income$41,366 $14,441 
Common stock:
Weighted average basic shares outstanding223,334 223,533 
Dilutive effect of stock options and restricted shares
3,393 4,474 
Weighted average diluted shares outstanding226,727 228,007 
Net income per share:
Basic$.19 $.06 
Diluted$.18 $.06 
Basic net income per share for the three months ended April 4, 2021 and March 29, 2020 was computed by dividing net income amounts by the weighted average number of shares of common stock outstanding. Diluted net income per share for the three months ended April 4, 2021 and March 29, 2020 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 1,870 and 2,667 for the three months ended April 4, 2021 and March 29, 2020, respectively, from our diluted net income per share calculation as they would have had anti-dilutive effects.
v3.21.1
Stockholders' Equity
 3 Months Ended
Apr. 04, 2021
Equity [Abstract]  
Stockholders' Equity Stockholders’ Equity
Dividends

During the first quarter of 2021 and 2020, the Company paid dividends per share of $.09 and $.12, respectively.

Repurchases of Common Stock

In February 2020, our Board of Directors authorized a repurchase program for up to $100,000 of our common stock through February 28, 2021, when and if market conditions warranted and to the extent legally permissible. As previously announced, beginning in March 2020, the Company temporarily suspended all share repurchase activity under the February 2020 authorization in connection with the Company’s response to the COVID-19 pandemic. In July 2020, the Company’s Board of Directors approved an extension of the February 2020 authorization by one year, through February 28, 2022, when and if market and economic conditions warrant and to the extent legally permissible. The Company resumed share repurchases
in August 2020. During the three months ended April 4, 2021, the Company repurchased 2,763 shares under the February 2020 repurchase authorization with an aggregate purchase price of $56,046, of which $1,196 was accrued at April 4, 2021, and excluding commissions of $38. As of April 4, 2021, the Company had $11,670 of availability remaining under its February 2020 authorization. Subsequent to April 4, 2021 through May 5, 2021, the Company repurchased 529 shares under the February 2020 authorization with an aggregate purchase price of $11,670, excluding commissions of $7. In addition, in May 2021, the Board of Directors approved an increase of $50,000 to the February 2020 authorization, resulting in an aggregate authorization of $150,000 that continues to expire on February 28, 2022. The Company has $50,000 of availability remaining under the authorization as of May 12, 2021.

In February 2019, our Board of Directors authorized a repurchase program for up to $225,000 of our common stock through March 1, 2020, when and if market conditions warranted and to the extent legally permissible. In November 2019, the Company entered into an accelerated share repurchase agreement (the “2019 ASR Agreement”) with a third-party financial institution to repurchase common stock as part of the Company’s existing share repurchase program. Under the 2019 ASR Agreement, the Company paid the financial institution an initial purchase price of $100,000 in cash and received an initial delivery of 4,051 shares of common stock, representing an estimated 85% of the total shares expected to be delivered under the 2019 ASR Agreement. In February 2020, the Company completed the 2019 ASR Agreement and received an additional 628 shares of common stock at an average purchase price of $23.89. The total number of shares of common stock ultimately purchased by the Company under the 2019 ASR Agreement was based on the average of the daily volume-weighted average prices of the common stock during the term of the 2019 ASR Agreement, less an agreed upon discount. In total, 4,679 shares were delivered under the 2019 ASR Agreement at an average purchase price of $21.37 per share.

In addition to the shares repurchased in connection with the 2019 ASR Agreement, during the three months ended March 29, 2020, the Company repurchased 2,091 shares with an aggregate purchase price of $43,307, excluding commissions of $29, under the February 2020 authorization and the February 2019 authorization. After taking into consideration these repurchases, with the completion of the 2019 ASR Agreement in February 2020, the Company completed its February 2019 authorization.

Accumulated Other Comprehensive Loss

The following table provides a rollforward of accumulated other comprehensive loss:
Three Months Ended
April 4,
2021		March 29,
2020
Balance at beginning of period$(49,641)$(53,828)
Foreign currency translation
2,220 (12,507)
Balance at end of period$(47,421)$(66,335)
v3.21.1
Leases (Notes)
 3 Months Ended
Apr. 04, 2021
Leases [Abstract]  
Leases, Company as Lessee Leases
Nature of Leases

The Company operates restaurants that are located on sites owned by us and sites leased by us from third parties. In addition, the Company owns sites and leases sites from third parties, which it leases and/or subleases to franchisees. At April 4, 2021, Wendy’s and its franchisees operated 6,838 Wendy’s restaurants. Of the 362 Company-operated Wendy’s restaurants, Wendy’s owned the land and building for 142 restaurants, owned the building and held long-term land leases for 151 restaurants and held leases covering the land and building for 69 restaurants. Wendy’s also owned 509 and leased 1,242 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 4,
2021		March 29,
2020
Finance lease cost:
Amortization of finance lease assets$3,508 $3,186 
Interest on finance lease liabilities10,293 10,058 
13,801 13,244 
Operating lease cost23,361 21,165 
Variable lease cost (a)15,188 14,370 
Short-term lease cost1,326 1,330 
Total operating lease cost (b)39,875 36,865 
Total lease cost$53,676 $50,109 
_______________

(a)Includes expenses for executory costs of $10,063 and $9,743 for the three months ended April 4, 2021 and March 29, 2020, respectively, for which the Company is reimbursed by sublessees.

(b)The three months ended April 4, 2021 and March 29, 2020 include $32,552 and $29,291, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees and $6,681 and $6,833, 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 4,
2021		March 29,
2020
Sales-type and direct-financing leases:
Selling profit$1,912 $628 
Interest income 7,489 7,248 
Operating lease income$44,122 $43,952 
Variable lease income14,754 13,904 
Franchise rental income (a)$58,876 $57,856 
_______________

(a)The three months ended April 4, 2021 and March 29, 2020 include sublease income of $43,250 and $42,042, respectively, of which $9,874 and $9,709, respectively, represents lessees’ variable payments to the Company for executory costs.
v3.21.1
Transactions with Related Parties
 3 Months Ended
Apr. 04, 2021
Related Party Transactions [Abstract]  
Transactions with Related Parties Transactions with Related Parties
Except as described below, the Company did not have any significant changes in or transactions with its related parties during the current fiscal period since those reported in the Form 10-K.

TimWen Lease and Management Fee Payments

A wholly-owned subsidiary of Wendy’s leases restaurant facilities from TimWen, which are then subleased to franchisees for the operation of Wendy’s/Tim Hortons combo units in Canada. During the three months ended April 4, 2021 and March 29, 2020, Wendy’s paid TimWen $4,026 and $3,855, respectively, under these lease agreements. In addition, TimWen paid Wendy’s a management fee under the TimWen joint venture agreement of $54 and $51 during the three months ended April 4, 2021 and March 29, 2020, respectively, which has been included as a reduction to “General and administrative.”

Transactions with Yellow Cab

Certain family members and affiliates of Mr. Nelson Peltz, our Chairman, and Mr. Peter May, our Vice Chairman, as well as Mr. Matthew Peltz, a director of the Company, hold indirect, minority ownership interests in operating companies managed by Yellow Cab Holdings, LLC (“Yellow Cab”), a Wendy’s franchisee, that as of April 4, 2021 owned and operated 78 Wendy’s restaurants (including Wendy’s restaurants acquired from NPC during the first quarter of 2021 as described below). During the three months ended April 4, 2021, the Company recognized $1,659 in royalty, advertising fund, lease and other income from Yellow Cab and related entities. As of April 4, 2021, $1,025 was due from Yellow Cab for such income, which is included in “Accounts and notes receivable, net” and “Advertising funds restricted assets.”

In November 2020, the Company submitted a consortium bid together with a group of pre-qualified franchisees (of which Yellow Cab was a member) to acquire the Wendy’s restaurants owned by NPC, the Company’s largest franchisee, which filed for chapter 11 bankruptcy in July 2020. As part of the consortium bid, in November 2020, the Company received deposits from each of the pre-qualified franchisees (including Yellow Cab), which amounts were transferred to a third-party escrow account pending resolution of the bankruptcy sale process. On January 7, 2021, following a court-approved mediation process, Yellow Cab was selected as the purchaser for 54 of NPC’s Wendy’s restaurants. In March 2021, Yellow Cab closed on its acquisition of these restaurants and its deposit was applied against the purchase price for the restaurants. See Note 3 for further information.
v3.21.1
Guarantees and Other Commitments and Contingencies
 3 Months Ended
Apr. 04, 2021
Commitments and Contingencies Disclosure [Abstract]  
Guarantees and Other Commitments and Contingencies Guarantees and Other Commitments and Contingencies
Except as described below, the Company did not have any significant changes in guarantees and other commitments and contingencies during the current fiscal period since those reported in the Form 10-K. Refer to the Form 10-K for further information regarding the Company’s additional commitments and obligations.

Lease Guarantees

Wendy’s has guaranteed the performance of certain leases and other obligations, primarily from former Company-operated restaurant locations now operated by franchisees, amounting to $87,477 as of April 4, 2021. These leases extend through 2045. We have had no judgments against us as guarantor of these leases as of April 4, 2021. In the event of default by a franchise owner, Wendy’s generally retains the right to acquire possession of the related restaurant locations. The liability recorded for our probable exposure associated with these lease guarantees was not material as of April 4, 2021.

Letters of Credit

As of April 4, 2021, the Company had outstanding letters of credit with various parties totaling $26,571. Substantially all of the outstanding letters of credit include amounts outstanding against the 2019-1 Class A-1 Notes. We do not expect any material loss to result from these letters of credit.
v3.21.1
Legal and Environmental Matters
 3 Months Ended
Apr. 04, 2021
Loss Contingency [Abstract]  
Legal and Environmental Matters Legal and Environmental Matters
The Company is involved in litigation and claims incidental to our business. We provide accruals for such litigation and claims when payment is probable and reasonably estimable. We believe we have adequate accruals for continuing operations for all of our legal and environmental matters. We cannot estimate the aggregate possible range of loss for our existing litigation and claims for various reasons, including, but not limited to, many proceedings being in preliminary stages, with various motions either yet to be submitted or pending, discovery yet to occur and/or significant factual matters unresolved. In addition, most cases seek an indeterminate amount of damages and many involve multiple parties. Predicting the outcomes of settlement discussions or judicial or arbitral decisions is thus inherently difficult and future developments could cause these actions or claims, individually or in aggregate, to have a material adverse effect on the Company’s financial condition, results of operations, or cash flows of a particular reporting period.

We previously described certain legal proceedings in the Form 10-K. As of April 4, 2021, there were no material developments in those legal proceedings.
v3.21.1
Segment Information (Notes)
 3 Months Ended
Apr. 04, 2021
Segment Reporting [Abstract]  
Segment Information Segment Information
Revenues by segment were as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Wendy’s U.S.$381,954 $331,041 
Wendy’s International18,250 15,472 
Global Real Estate & Development59,999 58,447 
Total revenues$460,203 $404,960 

The following table reconciles profit by segment to the Company’s consolidated income before income taxes:
Three Months Ended
April 4,
2021		March 29,
2020
Wendy’s U.S. (a)$112,087 $81,828 
Wendy’s International7,684 5,095 
Global Real Estate & Development26,253 26,490 
Total segment profit$146,024 $113,413 
Advertising funds deficit(1,264)(1,387)
Unallocated general and administrative (b)(25,107)(24,119)
Depreciation and amortization(31,542)(31,046)
System optimization gains, net516 323 
Reorganization and realignment costs(4,934)(3,910)
Impairment of long-lived assets(635)(4,587)
Unallocated other operating income, net64 45 
Interest expense, net(28,786)(28,525)
Other income, net129 1,076 
Income before income taxes$54,465 $21,283 
_______________

(a)For the three months ended April 4, 2021, includes advertising funds expense of $3,534 related to the expected Company funding of incremental advertising during 2021.

(b)Includes corporate overhead costs, such as employee compensation and related benefits.
v3.21.1
Revenue (Tables)
 3 Months Ended
Apr. 04, 2021
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 April 4, 2021
Sales at Company-operated restaurants$189,057 $— $— $189,057 
Franchise royalty revenue96,764 11,570 — 108,334 
Franchise fees (a)11,930 1,443 1,123 14,496 
Franchise rental income— — 58,876 58,876 
Advertising funds revenue84,203 5,237 — 89,440 
Total revenues$381,954 $18,250 $59,999 $460,203 
Three Months Ended March 29, 2020
Sales at Company-operated restaurants$166,798 $— $— $166,798 
Franchise royalty revenue84,833 10,523 — 95,356 
Franchise fees (a)5,285 473 591 6,349 
Franchise rental income— — 57,856 57,856 
Advertising funds revenue74,125 4,476 — 78,601 
Total revenues$331,041 $15,472 $58,447 $404,960 
_______________

(a)Includes fees for providing information technology services to franchisees, which are recognized as revenue as earned.
Contract balances, assets and liabilities
The following table provides information about receivables and contract liabilities (deferred franchise fees) from contracts with customers:
April 4,
2021 (a)		January 3, 2021 (a)
Receivables, which are included in “Accounts and notes receivable, net” (b)$57,546 $57,677 
Receivables, which are included in “Advertising funds restricted assets”
55,721 63,252 
Deferred franchise fees (c)95,247 97,785 
_______________

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

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

(c)Deferred franchise fees are included in “Accrued expenses and other current liabilities” and “Deferred franchise fees” and totaled $8,715 and $86,532 as of April 4, 2021, respectively, and $8,691 and $89,094 as of January 3, 2021, respectively.
Deferred franchise fee rollforward
Significant changes in deferred franchise fees are as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Deferred franchise fees at beginning of period$97,785 $100,689 
Revenue recognized during the period
(4,337)(2,144)
New deferrals due to cash received and other1,799 1,066 
Deferred franchise fees at end of period$95,247 $99,611 
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction
The following table reflects the estimated franchise fees to be recognized in the future related to performance obligations that are unsatisfied at the end of the period:
Estimate for fiscal year:
2021 (a)$7,204 
20226,200 
20236,028 
20245,831 
20255,644 
Thereafter64,340 
$95,247 
_______________

(a)Represents franchise fees expected to be recognized for the remainder of 2021, which includes development-related franchise fees expected to be recognized over a duration of one year or less.
v3.21.1
System Optimization Gains, Net (Tables)
 3 Months Ended
Apr. 04, 2021
System optimization gains, net  
Summary of Disposition Activity
The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
Three Months Ended
April 4,
2021		March 29,
2020
Post-closing adjustments on sales of restaurants (a)$515 $345 
Gain on sales of other assets, net (b)1 (22)
System optimization gains, net$516 $323 
_______________

(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 4, 2021 and March 29, 2020, the Company received net cash proceeds of $3 and $195, respectively, primarily from the sale of surplus and other properties.
Assets Held for Sale
April 4,
2021		January 3,
2021
Number of restaurants classified as held for sale47 43 
Net restaurant assets held for sale (a)$21,747 $20,587 
Other assets held for sale (b)$1,732 $1,732 
_______________

(a)Net restaurant assets held for sale represent the New York Company-operated restaurants we expect to sell in the second quarter of 2021 (including Manhattan as of April 4, 2021) and consist primarily of cash, inventory, property and an estimate of allocable goodwill.

(b)Other assets held for sale primarily consist of surplus properties.
v3.21.1
Reorganization and Realignment Costs (Tables)
 3 Months Ended
Apr. 04, 2021
Restructuring Cost and Reserve  
Restructuring and Related Costs
The following is a summary of the initiatives included in “Reorganization and realignment costs:”
Three Months Ended
April 4,
2021		March 29,
2020
Operations and field realignment$274 $— 
IT realignment— 3,559 
G&A realignment(18)267 
System optimization initiative4,678 84 
Reorganization and realignment costs$4,934 $3,910 
Operations and Field Realignment  
Restructuring Cost and Reserve  
Restructuring and Related Costs
The following is a summary of the activity recorded as a result of the Operations and Field Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021
Severance and related employee costs$254 $3,367 
Third-party and other costs20 87 
274 3,454 
Share-based compensation (a)— 621 
Total operations and field realignment$274 $4,075 
_______________

(a)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the Operations and Field Realignment Plan.
Schedule of Restructuring Reserve by Type of Cost
The table below presents a rollforward of our accruals for the Operations and Field Realignment Plan, which are included in “Accrued expenses and other current liabilities” as of April 4, 2021.
Balance
January 3, 2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$2,600 $254 $(1,410)$1,444 
Third-party and other costs— 20 (20)— 
$2,600 $274 $(1,430)$1,444 
IT Realignment  
Restructuring Cost and Reserve  
Restructuring and Related Costs
The following is a summary of the activity recorded as a result of the IT Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29,
2020
Severance and related employee costs (a)$(111)$145 $8,280 
Recruitment and relocation costs108 171 1,404 
Third-party and other costs3 3,243 6,538 
— 3,559 16,222 
Share-based compensation (b)— — 193 
Total IT realignment $— $3,559 $16,415 
_______________

(a)The three months ended April 4, 2021 includes a reversal of an accrual as a result of a change in estimate.

(b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under the IT Realignment Plan.
Schedule of Restructuring Reserve by Type of Cost
The accruals for the IT Realignment Plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled $689 and $41 as of April 4, 2021 and $6,744 and $237 as of March 29, 2020, respectively. The tables below present a rollforward of our accruals for the IT Realignment Plan.
Balance
January 3, 2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$1,508 $(111)$(667)$730 
Recruitment and relocation costs— 108 (108)— 
Third-party and other costs— 3 (3)— 
$1,508 $— $(778)$730 
Balance
December 29, 2019		ChargesPaymentsBalance
March 29,
2020
Severance and related employee costs$7,548 $145 $(712)$6,981 
Recruitment and relocation costs— 171 (171)— 
Third-party and other costs1,076 3,243 (4,319)— 
$8,624 $3,559 $(5,202)$6,981 
G&A Realignment  
Restructuring Cost and Reserve  
Restructuring and Related Costs
The following is a summary of the activity recorded as a result of the G&A Realignment Plan:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29,
2020
Severance and related employee costs (a)$(31)$152 $24,235 
Recruitment and relocation costs1 15 2,877 
Third-party and other costs1 1 2,224 
(29)168 29,336 
Share-based compensation (b)11 99 8,122 
Termination of defined benefit plans— — 1,335 
Total G&A realignment$(18)$267 $38,793 
_______________

(a)The three months ended April 4, 2021 includes a reversal of an accrual as a result of a change in estimate.

(b)Primarily represents incremental share-based compensation resulting from the modification of stock options in connection with the termination of employees under our G&A Realignment Plan.
Schedule of Restructuring Reserve by Type of Cost
As of April 4, 2021, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities.” As of March 29, 2020, the accruals for the G&A realignment plan are included in “Accrued expenses and other current liabilities” and “Other liabilities” and totaled and $3,781 and $408, respectively. The tables below present a rollforward of our accruals for the G&A Realignment Plan.
Balance
January 3,
2021		ChargesPaymentsBalance
April 4,
2021
Severance and related employee costs$932 $(31)$(501)$400 
Recruitment and relocation costs— 1 (1)— 
Third-party and other costs— 1 (1)— 
$932 $(29)$(503)$400 
Balance
December 29,
2019		ChargesPaymentsBalance
March 29,
2020
Severance and related employee costs$5,276 $152 $(1,306)$4,122 
Recruitment and relocation costs83 15 (31)67 
Third-party and other costs— 1 (1)— 
$5,359 $168 $(1,338)$4,189 
System Optimization Initiative  
Restructuring Cost and Reserve  
Restructuring and Related Costs
The following is a summary of the costs recorded as a result of our system optimization initiative:
Three Months EndedTotal
Incurred Since Inception
April 4,
2021		March 29, 2020
Severance and related employee costs$— $— $18,237 
Professional fees235 80 22,342 
Other (a)1,354 4 7,207 
1,589 84 47,786 
Accelerated depreciation and amortization (b)— — 25,398 
NPC lease termination costs (c)3,089 — 3,089 
Share-based compensation (d)— — 5,013 
Total system optimization initiative$4,678 $84 $81,286 
_______________

(a)The three months ended April 4, 2021 includes transaction fees of $1,350 associated with the NPC bankruptcy sale process.

(b)Primarily includes accelerated amortization of previously acquired franchise rights related to the Company-operated restaurants in territories that have been sold to franchisees in connection with our system optimization initiative.

(c)The three months ended April 4, 2021 includes the write-off of lease assets of $1,609 and lease termination fees paid of $1,480.

(d)Represents incremental share-based compensation resulting from the modification of stock options and performance-based awards in connection with the termination of employees under our system optimization initiative.
Schedule of Restructuring Reserve by Type of Cost
The table below presents a rollforward of our accruals for our system optimization initiative, which are included in “Accrued expenses and other current liabilities.”
Balance
January 3,
2021		ChargesPaymentsBalance
April 4,
2021
Professional fees$1,230 $235 $(1,461)$4 
Other— 1,354 (1,354)— 
$1,230 $1,589 $(2,815)$4 
v3.21.1
Investments (Tables)
 3 Months Ended
Apr. 04, 2021
Equity Method Investments and Joint Ventures [Abstract]  
Schedule of Equity Method Investments
Presented below is activity related to our investment in TimWen and the Brazil JV included in our condensed consolidated financial statements:
Three Months Ended
April 4,
2021		March 29,
2020
Balance at beginning of period$44,574 $45,310 
Equity in earnings for the period2,167 1,985 
Amortization of purchase price adjustments (a)(595)(562)
1,572 1,423 
Distributions received(2,981)(1,603)
Foreign currency translation adjustment included in “Other comprehensive income (loss)” and other
578 (2,991)
Balance at end of period$43,743 $42,139 
_______________

(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.
v3.21.1
Long-Term Debt (Tables)
 3 Months Ended
Apr. 04, 2021
Debt Disclosure [Abstract]  
Long-term debt
Long-term debt consisted of the following:
April 4,
2021		January 3,
2021
Series 2019-1 Class A-2 Notes:
3.783% Series 2019-1 Class A-2-I Notes, anticipated repayment date 2026
$383,000 $386,000 
4.080% Series 2019-1 Class A-2-II Notes, anticipated repayment date 2029
430,875 434,250 
Series 2018-1 Class A-2 Notes:
3.573% Series 2018-1 Class A-2-I Notes, anticipated repayment date 2025
435,375 436,500 
3.884% Series 2018-1 Class A-2-II Notes, anticipated repayment date 2028
459,563 460,750 
Series 2015-1 Class A-2 Notes:
4.497% Series 2015-1 Class A-2-III Notes, anticipated repayment date 2025
472,500 473,750 
Canadian revolving credit facility— 1,962 
7% debentures, due in 2025
84,291 83,998 
Unamortized debt issuance costs(28,702)(30,085)
2,236,902 2,247,125 
Less amounts payable within one year(31,250)(28,962)
Total long-term debt$2,205,652 $2,218,163 
v3.21.1
Fair Value Measurements (Tables)
 3 Months Ended
Apr. 04, 2021
Fair Value Disclosures [Abstract]  
Fair Value, by Balance Sheet Grouping
The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments:
April 4,
2021		January 3,
2021
Carrying
Amount		Fair
Value		Carrying
Amount		Fair
Value		Fair Value
Measurements
Financial assets
Cash equivalents$25,035 $25,035 $75,067 $75,067 Level 1
Financial liabilities
Series 2019-1 Class A-2-I Notes (a)383,000 405,482 386,000 409,778 Level 2
Series 2019-1 Class A-2-II Notes (a)430,875 457,201 434,250 469,555 Level 2
Series 2018-1 Class A-2-I Notes (a)435,375 445,563 436,500 450,381 Level 2
Series 2018-1 Class A-2-II Notes (a)459,563 487,872 460,750 491,021 Level 2
Series 2015-1 Class A-2-III Notes (a)472,500 475,949 473,750 481,851 Level 2
Canadian revolving credit facility— — 1,962 1,962 Level 2
7% debentures, due in 2025 (a)
84,291 99,900 83,998 98,775 Level 2
_______________

(a)The fair values were based on quoted market prices in markets that are not considered active markets.
Fair value of assets and liabilities (other than cash and cash equivalents) measured at fair value on a nonrecurring basis
Fair Value Measurements
April 4,
2021		Level 1Level 2Level 3
Held and used$299 $— $— $299 
Held for sale— — — — 
Total$299 $— $— $299 

Fair Value Measurements
January 3,
2021		Level 1Level 2Level 3
Held and used$2,653 $— $— $2,653 
Held for sale855 — — 855 
Total$3,508 $— $— $3,508 
v3.21.1
Impairment of Long-Lived Assets (Tables)
 3 Months Ended
Apr. 04, 2021
Asset Impairment Charges [Abstract]  
Impairment of Long-Lived Assets
The following is a summary of impairment losses recorded, which represent the excess of the carrying amount over the fair value of the affected assets and are included in “Impairment of long-lived assets:”
Three Months Ended
April 4,
2021		March 29,
2020
Company-operated restaurants$446 $4,395 
Restaurants leased or subleased to franchisees189 — 
Surplus properties— 192 
$635 $4,587 
v3.21.1
Net Income Per Share (Tables)
 3 Months Ended
Apr. 04, 2021
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The calculation of basic and diluted net income per share was as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Net income$41,366 $14,441 
Common stock:
Weighted average basic shares outstanding223,334 223,533 
Dilutive effect of stock options and restricted shares
3,393 4,474 
Weighted average diluted shares outstanding226,727 228,007 
Net income per share:
Basic$.19 $.06 
Diluted$.18 $.06 
v3.21.1
Stockholders' Equity (Tables)
 3 Months Ended
Apr. 04, 2021
Equity [Abstract]  
Schedule of Accumulated Other Comprehensive Loss
The following table provides a rollforward of accumulated other comprehensive loss:
Three Months Ended
April 4,
2021		March 29,
2020
Balance at beginning of period$(49,641)$(53,828)
Foreign currency translation
2,220 (12,507)
Balance at end of period$(47,421)$(66,335)
v3.21.1
Leases (Tables)
 3 Months Ended
Apr. 04, 2021
Leases [Abstract]  
Lease, Cost
The components of lease cost are as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Finance lease cost:
Amortization of finance lease assets$3,508 $3,186 
Interest on finance lease liabilities10,293 10,058 
13,801 13,244 
Operating lease cost23,361 21,165 
Variable lease cost (a)15,188 14,370 
Short-term lease cost1,326 1,330 
Total operating lease cost (b)39,875 36,865 
Total lease cost$53,676 $50,109 
_______________

(a)Includes expenses for executory costs of $10,063 and $9,743 for the three months ended April 4, 2021 and March 29, 2020, respectively, for which the Company is reimbursed by sublessees.

(b)The three months ended April 4, 2021 and March 29, 2020 include $32,552 and $29,291, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees and $6,681 and $6,833, 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 4,
2021		March 29,
2020
Sales-type and direct-financing leases:
Selling profit$1,912 $628 
Interest income 7,489 7,248 
Operating lease income$44,122 $43,952 
Variable lease income14,754 13,904 
Franchise rental income (a)$58,876 $57,856 
_______________

(a)The three months ended April 4, 2021 and March 29, 2020 include sublease income of $43,250 and $42,042, respectively, of which $9,874 and $9,709, respectively, represents lessees’ variable payments to the Company for executory costs.
v3.21.1
Segment Information (Tables)
 3 Months Ended
Apr. 04, 2021
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
Revenues by segment were as follows:
Three Months Ended
April 4,
2021		March 29,
2020
Wendy’s U.S.$381,954 $331,041 
Wendy’s International18,250 15,472 
Global Real Estate & Development59,999 58,447 
Total revenues$460,203 $404,960 
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 4,
2021		March 29,
2020
Wendy’s U.S. (a)$112,087 $81,828 
Wendy’s International7,684 5,095 
Global Real Estate & Development26,253 26,490 
Total segment profit$146,024 $113,413 
Advertising funds deficit(1,264)(1,387)
Unallocated general and administrative (b)(25,107)(24,119)
Depreciation and amortization(31,542)(31,046)
System optimization gains, net516 323 
Reorganization and realignment costs(4,934)(3,910)
Impairment of long-lived assets(635)(4,587)
Unallocated other operating income, net64 45 
Interest expense, net(28,786)(28,525)
Other income, net129 1,076 
Income before income taxes$54,465 $21,283 
_______________

(a)For the three months ended April 4, 2021, includes advertising funds expense of $3,534 related to the expected Company funding of incremental advertising during 2021.

(b)Includes corporate overhead costs, such as employee compensation and related benefits.
v3.21.1
Revenue Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Disaggregation of Revenue    
Franchise rental income $ 58,876 $ 57,856
Total revenues 460,203 404,960
Sales at Company-operated restaurants    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 189,057 166,798
Franchise royalty revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 108,334 95,356
Franchise fees    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 14,496 6,349
Advertising funds revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 89,440 78,601
Wendy's U.S.    
Disaggregation of Revenue    
Franchise rental income 0 0
Total revenues 381,954 331,041
Wendy's U.S. | Sales at Company-operated restaurants    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 189,057 166,798
Wendy's U.S. | Franchise royalty revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 96,764 84,833
Wendy's U.S. | Franchise fees    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 11,930 5,285
Wendy's U.S. | Advertising funds revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 84,203 74,125
Wendy's International    
Disaggregation of Revenue    
Franchise rental income 0 0
Total revenues 18,250 15,472
Wendy's International | Sales at Company-operated restaurants    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 0 0
Wendy's International | Franchise royalty revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 11,570 10,523
Wendy's International | Franchise fees    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 1,443 473
Wendy's International | Advertising funds revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax 5,237 4,476
Global Real Estate & Development    
Disaggregation of Revenue    
Franchise rental income 58,876 57,856
Total revenues 59,999 58,447
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 1,123 591
Global Real Estate & Development | Advertising funds revenue    
Disaggregation of Revenue    
Revenue from Contract with Customer, Excluding Assessed Tax $ 0 $ 0
v3.21.1
Revenue Contract Balances (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Jan. 03, 2021
Contract balances      
Deferred franchise fees at beginning of period $ 97,785 $ 100,689  
Revenue recognized during the period (4,337) (2,144)  
New deferrals due to cash received and other 1,799 1,066  
Deferred franchise fees at end of period 95,247 $ 99,611  
Deferred franchise fees, current 8,715   $ 8,691
Deferred franchise fees, noncurrent 86,532   89,094
Accounts Receivable | Short-term Contract with Customer      
Contract balances      
Receivables, Net, Current 57,546   57,677
Advertising funds restricted assets | Short-term Contract with Customer      
Contract balances      
Receivables, Net, Current $ 55,721   $ 63,252
v3.21.1
Revenue Revenue, Remaining Performance Obligation (Details)
$ in Thousands
Apr. 04, 2021
USD ($)
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount $ 95,247
2021  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount 7,204
2022  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount 6,200
2023  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount 6,028
2024  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount 5,831
2025  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount 5,644
Thereafter  
Revenue, Remaining Performance Obligation  
Revenue, Remaining Performance Obligation, Amount $ 64,340
v3.21.1
Acquisitions (Details)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
USD ($)
numberOfMarkets
number_of_restaurants
Mar. 29, 2020
USD ($)
number_of_restaurants
Jan. 03, 2021
USD ($)
Nov. 18, 2020
numberOfMarkets
Jul. 31, 2020
number_of_restaurants
Business Acquisition          
NPC Number of Restaurants | number_of_restaurants 6,838        
NPC Consortium Bid: Number of Markets to be Purchased by Franchisees       7  
NPC Consortium Bid: Number of Markets to be Purchased by Company       1  
NPC Consortium bid deposit | $     $ 43,240    
NPC Consortium bid payable | $     $ 38,361    
NPC Asset Purchase Agreement: Number of Markets to be Purchased by FRG 4        
NPC Asset Purchase Agreement: Number of Markets to be Purchased by Franchisees 4        
Acquisitions | $ $ 4,879 $ 0      
NPC Franchised Restaurants          
Business Acquisition          
NPC Number of Restaurants | number_of_restaurants         393
Acquisitions          
Business Acquisition          
Restaurants acquired from franchisees | number_of_restaurants 0 0      
v3.21.1
System Optimization Gains, Net Summary of Disposition Activity (Details)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
USD ($)
number_of_restaurants
Mar. 29, 2020
USD ($)
number_of_restaurants
Jan. 03, 2021
number_of_restaurants
Jan. 01, 2017
System optimization gains, net        
Company-operated restaurant ownership percentage       5.00%
Number of restaurants classified as assets held for sale | number_of_restaurants 47   43  
System optimization gains, net $ 516 $ 323    
Proceeds from sales $ 3 $ 195    
Sale of franchise-operated restaurant to franchisee        
System optimization gains, net        
Significant Changes, Franchises Sold | number_of_restaurants 0 3    
Sale of Company-operated restaurants to franchisees        
System optimization gains, net        
Post closing adjustments on sales of restaurants $ 515 $ 345    
Sale of other assets        
System optimization gains, net        
System optimization gains, net 1 (22)    
Proceeds from sales $ 3 $ 195    
v3.21.1
System Optimization Gains, Net Assets Held for Sale (Details)
$ in Thousands
Apr. 04, 2021
USD ($)
number_of_restaurants
Jan. 03, 2021
USD ($)
number_of_restaurants
Long lived assets held for sale    
Number of restaurants classified as held for sale | number_of_restaurants 47 43
Net restaurant assets held for sale    
Long lived assets held for sale    
Assets held for sale $ 21,747 $ 20,587
Other assets held for sale    
Long lived assets held for sale    
Assets held for sale $ 1,732 $ 1,732
v3.21.1
Reorganization and Realignment Costs Summary (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,934 $ 3,910
Operations and Field Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs 274 0
IT Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs 0 3,559
G&A Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs (18) 267
System Optimization Initiative    
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,678 $ 84
v3.21.1
Reorganization and Realignment Costs Operations and Field Realignment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,934 $ 3,910
Operations and Field Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs 274 $ 0
Restructuring and Related Cost, Incurred Cost 274  
Restructuring and Related Cost, Cost Incurred to Date 3,454  
Restructuring Charges, Incurred to Date 4,075  
Operations and Field Realignment | Minimum    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Expected Cost 7,000  
Restructuring and Related Cost, Expected Cost Remaining 3,000  
Operations and Field Realignment | Maximum    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Expected Cost 9,000  
Restructuring and Related Cost, Expected Cost Remaining 5,000  
Operations and Field Realignment | Severance and related employee costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 254  
Restructuring and Related Cost, Cost Incurred to Date 3,367  
Operations and Field Realignment | Third-party and other costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 20  
Restructuring and Related Cost, Cost Incurred to Date 87  
Operations and Field Realignment | Share-based compensation    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0  
Restructuring and Related Cost, Cost Incurred to Date $ 621  
v3.21.1
Reorganization and Realignment Costs Operations and Field Realignment Accrual Rollforward (Details) - Operations and Field Realignment
$ in Thousands
 3 Months Ended
Apr. 04, 2021
USD ($)
Restructuring Cost and Reserve  
Beginning balance $ 2,600
Charges 274
Payments (1,430)
Ending balance 1,444
Severance and related employee costs  
Restructuring Cost and Reserve  
Beginning balance 2,600
Charges 254
Payments (1,410)
Ending balance 1,444
Third-party and other costs  
Restructuring Cost and Reserve  
Beginning balance 0
Charges 20
Payments (20)
Ending balance $ 0
v3.21.1
Reorganization and Realignment Costs IT Realignment Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,934 $ 3,910
IT Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs 0 3,559
Restructuring and Related Cost, Incurred Cost 0 3,559
Restructuring and Related Cost, Cost Incurred to Date 16,222  
Restructuring Charges, Incurred to Date 16,415  
IT Realignment | Severance and related employee costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost (111) 145
Restructuring and Related Cost, Cost Incurred to Date 8,280  
IT Realignment | Recruitment and relocation costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 108 171
Restructuring and Related Cost, Cost Incurred to Date 1,404  
IT Realignment | Third-party and other costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 3 3,243
Restructuring and Related Cost, Cost Incurred to Date 6,538  
IT Realignment | Share-based compensation    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0 $ 0
Restructuring and Related Cost, Cost Incurred to Date $ 193  
v3.21.1
Reorganization and Realignment Costs IT Realignment Accrual Rollforward (Details) - IT Realignment - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Beginning balance $ 1,508 $ 8,624
Charges 0 3,559
Payments (778) (5,202)
Ending balance 730 6,981
Severance and related employee costs    
Restructuring Cost and Reserve    
Beginning balance 1,508 7,548
Charges (111) 145
Payments (667) (712)
Ending balance 730 6,981
Recruitment and relocation costs    
Restructuring Cost and Reserve    
Beginning balance 0 0
Charges 108 171
Payments (108) (171)
Ending balance 0 0
Third-party and other costs    
Restructuring Cost and Reserve    
Beginning balance 0 1,076
Charges 3 3,243
Payments (3) (4,319)
Ending balance 0 0
Accrued expenses and other current liabilities    
Restructuring Cost and Reserve    
Ending balance 689 6,744
Other Liabilities    
Restructuring Cost and Reserve    
Ending balance $ 41 $ 237
v3.21.1
Reorganization and Realignment Costs G&A Realignment Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,934 $ 3,910
G&A Realignment    
Restructuring Cost and Reserve    
Reorganization and realignment costs (18) 267
Restructuring and Related Cost, Incurred Cost (29) 168
Restructuring and Related Cost, Cost Incurred to Date 29,336  
Restructuring Charges, Incurred to Date 38,793  
G&A Realignment | Severance and related employee costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost (31) 152
Restructuring and Related Cost, Cost Incurred to Date 24,235  
G&A Realignment | Recruitment and relocation costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1 15
Restructuring and Related Cost, Cost Incurred to Date 2,877  
G&A Realignment | Third-party and other costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1 1
Restructuring and Related Cost, Cost Incurred to Date 2,224  
G&A Realignment | Share-based compensation    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 11 99
Restructuring and Related Cost, Cost Incurred to Date 8,122  
G&A Realignment | Termination of defined benefit plans    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0 $ 0
Restructuring and Related Cost, Cost Incurred to Date $ 1,335  
v3.21.1
Reorganization and Realignment Costs G&A Realignment Accrual Rollforward (Details) - G&A Realignment - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Beginning balance $ 932 $ 5,359
Charges (29) 168
Payments (503) (1,338)
Ending balance 400 4,189
Severance and related employee costs    
Restructuring Cost and Reserve    
Beginning balance 932 5,276
Charges (31) 152
Payments (501) (1,306)
Ending balance 400 4,122
Recruitment and relocation    
Restructuring Cost and Reserve    
Beginning balance 0 83
Charges 1 15
Payments (1) (31)
Ending balance 0 67
Third-party and other costs    
Restructuring Cost and Reserve    
Beginning balance 0 0
Charges 1 1
Payments (1) (1)
Ending balance $ 0 0
Accrued expenses and other current liabilities    
Restructuring Cost and Reserve    
Ending balance   3,781
Other Liabilities    
Restructuring Cost and Reserve    
Ending balance   $ 408
v3.21.1
Reorganization and Realignment Costs System Optimization Costs (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Reorganization and realignment costs $ 4,934 $ 3,910
System Optimization Initiative    
Restructuring Cost and Reserve    
Reorganization and realignment costs 4,678 84
Restructuring and Related Cost, Expected Benefit Remaining 1,400  
Restructuring and Related Cost, Incurred Cost 1,589 84
Restructuring and Related Cost, Cost Incurred to Date 47,786  
Restructuring Charges, Incurred to Date 81,286  
System Optimization Initiative | Severance and related employee costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0 0
Restructuring and Related Cost, Cost Incurred to Date 18,237  
System Optimization Initiative | Professional fees    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 235 80
Restructuring and Related Cost, Cost Incurred to Date 22,342  
System Optimization Initiative | Other    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1,354 4
Restructuring and Related Cost, Cost Incurred to Date 7,207  
System Optimization Initiative | Other | NPC Transaction Fees    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1,350  
System Optimization Initiative | Accelerated depreciation and amortization    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0 0
Restructuring and Related Cost, Cost Incurred to Date 25,398  
System Optimization Initiative | NPC lease termination costs    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 3,089 0
Restructuring and Related Cost, Cost Incurred to Date 3,089  
System Optimization Initiative | NPC lease termination costs | Write-Off of Lease Assets    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1,609  
System Optimization Initiative | NPC lease termination costs | Lease Termination Fees    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 1,480  
System Optimization Initiative | Share-based compensation    
Restructuring Cost and Reserve    
Restructuring and Related Cost, Incurred Cost 0 $ 0
Restructuring and Related Cost, Cost Incurred to Date $ 5,013  
v3.21.1
Reorganization and Realignment Costs System Optimization Accrual Rollforward (Details) - System Optimization Initiative - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Restructuring Cost and Reserve    
Beginning balance $ 1,230  
Charges 1,589 $ 84
Payments (2,815)  
Ending balance 4  
Professional fees    
Restructuring Cost and Reserve    
Beginning balance 1,230  
Charges 235 80
Payments (1,461)  
Ending balance 4  
Other    
Restructuring Cost and Reserve    
Beginning balance 0  
Charges 1,354 $ 4
Payments (1,354)  
Ending balance $ 0  
v3.21.1
Investments Equity Investment Summary (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Schedule of Equity Method Investments    
Balance at beginning of period $ 44,574  
Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other 2,220 $ (12,507)
Balance at end of period $ 43,743  
TimWen    
Schedule of Equity Method Investments    
Equity Method Investment, Ownership Percentage 50.00%  
Equity Method Investment, Purchase Price Adjustment, Amortization Period 21 years 21 years
Brazil JV    
Schedule of Equity Method Investments    
Equity Method Investment, Ownership Percentage 20.00%  
TimWen and Brazil JV    
Schedule of Equity Method Investments    
Balance at beginning of period $ 44,574 $ 45,310
Equity in earnings for the period 2,167 1,985
Amortization of purchase price adjustments (595) (562)
Equity in earnings for the period, net of amortization of purchase price adjustments 1,572 1,423
Distributions received (2,981) (1,603)
Foreign currency translation adjustment included in “Other comprehensive (loss) income” and other 578 (2,991)
Balance at end of period $ 43,743 $ 42,139
v3.21.1
Long-Term Debt Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Apr. 04, 2021
Jan. 03, 2021
Debt Instrument    
Unamortized debt issuance costs $ (28,702) $ (30,085)
Total debt 2,236,902 2,247,125
Less amounts payable within one year (31,250) (28,962)
Total long-term debt 2,205,652 2,218,163
Series 2019-1 Class A-2-I Notes    
Debt Instrument    
Senior Notes $ 383,000 $ 386,000
Debt Instrument, Interest Rate, Stated Percentage 3.783% 3.783%
Series 2019-1 Class A-2-II Notes    
Debt Instrument    
Senior Notes $ 430,875 $ 434,250
Debt Instrument, Interest Rate, Stated Percentage 4.08% 4.08%
Series 2018-1 Class A-2-I Notes    
Debt Instrument    
Senior Notes $ 435,375 $ 436,500
Debt Instrument, Interest Rate, Stated Percentage 3.573% 3.573%
Series 2018-1 Class A-2-II Notes    
Debt Instrument    
Senior Notes $ 459,563 $ 460,750
Debt Instrument, Interest Rate, Stated Percentage 3.884% 3.884%
Series 2015-1 Class A-2-III Notes    
Debt Instrument    
Senior Notes $ 472,500 $ 473,750
Debt Instrument, Interest Rate, Stated Percentage 4.497% 4.497%
Canadian revolving credit facility    
Debt Instrument    
Line of Credit, Outstanding, Amount $ 0 $ 1,962
7% debentures    
Debt Instrument    
7% debentures $ 84,291 $ 83,998
Debt Instrument, Interest Rate, Stated Percentage 7.00% 7.00%
v3.21.1
Long-Term Debt Senior Notes (Details) - Line of Credit
$ in Thousands
Apr. 04, 2021
USD ($)
Series 2019-1 Class A-1 Notes  
Debt Instrument  
Line of Credit Facility, Maximum Borrowing Capacity $ 150,000
Line of Credit, Outstanding, Amount 0
Series 2020-1 Class A-1 Notes  
Debt Instrument  
Line of Credit Facility, Maximum Borrowing Capacity 100,000
Line of Credit, Outstanding, Amount $ 0
v3.21.1
Long-Term Debt Other Long-term Debt Disclosure (Details) - Canadian Subsidiary - Line of Credit - CAD ($)
$ in Thousands
 3 Months Ended
Mar. 29, 2020
Apr. 04, 2021
Jan. 03, 2021
Debt Instrument      
Line of Credit Facility, Maximum Borrowing Capacity   $ 6,000  
Proceeds from Lines of Credit $ 5,500    
Repayments of Lines of Credit   2,500 $ 3,000
Line of Credit, Outstanding, Amount   $ 0  
v3.21.1
Fair Value Measurements Financial Instruments (Details) - USD ($)
$ in Thousands
Apr. 04, 2021
Jan. 03, 2021
Series 2019-1 Class A-2-I Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 3.783% 3.783%
Series 2019-1 Class A-2-II Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 4.08% 4.08%
Series 2018-1 Class A-2-I Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 3.573% 3.573%
Series 2018-1 Class A-2-II Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 3.884% 3.884%
Series 2015-1 Class A-2-III Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 4.497% 4.497%
7% debentures    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt Instrument, Interest Rate, Stated Percentage 7.00% 7.00%
Reported Value Measurement    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Cash equivalents $ 25,035 $ 75,067
Reported Value Measurement | Series 2019-1 Class A-2-I Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 383,000 386,000
Reported Value Measurement | Series 2019-1 Class A-2-II Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 430,875 434,250
Reported Value Measurement | Series 2018-1 Class A-2-I Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 435,375 436,500
Reported Value Measurement | Series 2018-1 Class A-2-II Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 459,563 460,750
Reported Value Measurement | Series 2015-1 Class A-2-III Notes    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 472,500 473,750
Reported Value Measurement | Canadian revolving credit facility    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 0 1,962
Reported Value Measurement | 7% debentures    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 84,291 83,998
Estimate of Fair Value Measurement | Fair Value, Inputs, Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Cash equivalents 25,035 75,067
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 405,482 409,778
Estimate of Fair Value Measurement | Series 2019-1 Class A-2-II Notes | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 457,201 469,555
Estimate of Fair Value Measurement | Series 2018-1 Class A-2-I Notes | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 445,563 450,381
Estimate of Fair Value Measurement | Series 2018-1 Class A-2-II Notes | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 487,872 491,021
Estimate of Fair Value Measurement | Series 2015-1 Class A-2-III Notes | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 475,949 481,851
Estimate of Fair Value Measurement | Canadian revolving credit facility | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument 0 1,962
Estimate of Fair Value Measurement | 7% debentures | Fair Value, Inputs, Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions    
Debt instrument $ 99,900 $ 98,775
v3.21.1
Fair Value Measurements Non-Recurring Fair Value Measurements (Details) - Fair Value, Measurements, Nonrecurring - USD ($)
$ in Thousands
Apr. 04, 2021
Jan. 03, 2021
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis    
Assets Held and used, Long Lived, Fair Value Disclosure $ 299 $ 2,653
Assets Held for sale, Long Lived, Fair Value Disclosure 0 855
Total 299 3,508
Fair Value, Inputs, Level 1    
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis    
Assets Held and used, Long Lived, Fair Value Disclosure 0 0
Assets Held for sale, Long Lived, Fair Value Disclosure 0 0
Total 0 0
Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis    
Assets Held and used, Long Lived, Fair Value Disclosure 0 0
Assets Held for sale, Long Lived, Fair Value Disclosure 0 0
Total 0 0
Fair Value, Inputs, Level 3    
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis    
Assets Held and used, Long Lived, Fair Value Disclosure 299 2,653
Assets Held for sale, Long Lived, Fair Value Disclosure 0 855
Total $ 299 $ 3,508
v3.21.1
Impairment of Long-Lived Assets (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Impairment of Long-Lived Assets    
Impairment of long-lived assets $ 635 $ 4,587
Company-operated restaurants    
Impairment of Long-Lived Assets    
Impairment of long-lived assets 446 4,395
Restaurants leased or subleased to franchisees    
Impairment of Long-Lived Assets    
Impairment of long-lived assets 189 0
Surplus properties    
Impairment of Long-Lived Assets    
Impairment of long-lived assets $ 0 $ 192
v3.21.1
Income Taxes (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Jan. 03, 2021
Effective Income Tax Rate 24.10% 32.10%  
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 21.00% 21.00%  
Decrease in Unrecognized Tax Benefits is Reasonably Possible $ 2,016    
Income Taxes Receivable, Current 1,740   $ 5,399
Income Taxes Receivable, Noncurrent $ 0   $ 0
v3.21.1
Net Income Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Earnings Per Share [Abstract]    
Net income $ 41,366 $ 14,441
Weighted average basic shares outstanding 223,334 223,533
Dilutive effect of stock options and restricted shares 3,393 4,474
Weighted average diluted shares outstanding 226,727 228,007
Earnings Per Share, Basic $ 0.19 $ 0.06
Earnings Per Share, Diluted $ 0.18 $ 0.06
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount 1,870 2,667
v3.21.1
Stockholders' Equity Dividends (Details) - $ / shares
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Dividend Paid [Member]    
Common Stock, Dividends, Per Share, Cash Paid $ 0.09 $ 0.12
v3.21.1
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. 29, 2020
Nov. 30, 2019
May 05, 2021
Apr. 04, 2021
Mar. 29, 2020
Feb. 29, 2020
May 12, 2021
Feb. 28, 2019
February 2020 Share Repurchase Program                
Equity, Class of Treasury Stock                
Stock Repurchase Program, Authorized Amount $ 100,000         $ 100,000    
Treasury Stock, Shares, Acquired       2,763        
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions       $ 56,046        
Stock Repurchase Program, Repurchase Accrual       1,196        
Stock Repurchase Program, Cost Incurred       38        
Stock Repurchase Program, Remaining Authorized Repurchase Amount       $ 11,670        
February 2020 Share Repurchase Program | Subsequent Event                
Equity, Class of Treasury Stock                
Treasury Stock, Shares, Acquired     529          
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions     $ 11,670          
Stock Repurchase Program, Cost Incurred     $ 7          
May 2021 Share Repurchase Program | Subsequent Event                
Equity, Class of Treasury Stock                
Stock Repurchase Program, Authorized Amount             $ 50,000  
February 2020 and May 2021 Share Repurchase Program | Subsequent Event                
Equity, Class of Treasury Stock                
Stock Repurchase Program, Authorized Amount             150,000  
Stock Repurchase Program, Remaining Authorized Repurchase Amount             $ 50,000  
February 2019 Share Repurchase Program                
Equity, Class of Treasury Stock                
Stock Repurchase Program, Authorized Amount               $ 225,000
2019 Accelerated Share Repurchase Program                
Equity, Class of Treasury Stock                
Stock Repurchase Program, Authorized Amount   $ 100,000            
Treasury Stock, Shares, Acquired 628 4,051       4,679    
Initial Shares Delivered Under ASR Agreement Percentage   85.00%            
Treasury Stock Acquired, Average Cost Per Share $ 23.89         $ 21.37    
February 2019 and February 2020 Share Repurchase Program                
Equity, Class of Treasury Stock                
Treasury Stock, Shares, Acquired         2,091      
Treasury Stock, Value, Acquired, Cost Method, excluding Commissions         $ 43,307      
Stock Repurchase Program, Cost Incurred         $ 29      
v3.21.1
Stockholders' Equity Accumulated Other Comprehensive Loss (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Accumulated Other Comprehensive Loss    
Balance at beginning of period $ (49,641)  
Foreign currency translation 2,220 $ (12,507)
Balance at end of period (47,421)  
Foreign Currency Translation    
Accumulated Other Comprehensive Loss    
Balance at beginning of period (49,641) (53,828)
Foreign currency translation 2,220 (12,507)
Balance at end of period $ (47,421) $ (66,335)
v3.21.1
Leases Lessee Lease Narrative (Details)
Apr. 04, 2021
number_of_restaurants
Lessee, Lease, Description  
Number of restaurants 6,838
Entity Operated Units  
Lessee, Lease, Description  
Number of restaurants 362
Land And Building - Company Owned | Entity Operated Units  
Lessee, Lease, Description  
Number of restaurants 142
Building - Company Owned; Land - Leased | Entity Operated Units  
Lessee, Lease, Description  
Number of restaurants 151
Land And Building - Leased | Entity Operated Units  
Lessee, Lease, Description  
Number of restaurants 69
v3.21.1
Leases Lessor Lease Narrative (Details)
Apr. 04, 2021
number_of_restaurants
Lessor, Lease, Description  
Number of restaurants 6,838
Land And Building - Company Owned | Franchised Units  
Lessor, Lease, Description  
Number of restaurants 509
Land And Building - Leased | Franchised Units  
Lessor, Lease, Description  
Number of restaurants 1,242
v3.21.1
Leases Components of Lease Cost (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Finance Lease, Cost    
Amortization of finance lease assets $ 3,508 $ 3,186
Interest on finance lease liabilities 10,293 10,058
Total finance lease cost 13,801 13,244
Lease, Cost    
Operating lease cost 23,361 21,165
Variable lease cost 15,188 14,370
Short-term lease cost 1,326 1,330
Total operating lease cost 39,875 36,865
Total lease cost 53,676 50,109
Franchise rental expense    
Lease, Cost    
Total operating lease cost 32,552 29,291
Cost of sales    
Lease, Cost    
Total operating lease cost 6,681 6,833
Executory costs paid by lessee    
Lease, Cost    
Variable lease cost $ 10,063 $ 9,743
v3.21.1
Leases Components of Lease Income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Lessor Lease Income    
Sales-type leases, selling profit $ 1,912 $ 628
Sales-type and direct-financing leases, interest income 7,489 7,248
Operating lease rental income 44,122 43,952
Variable lease income 14,754 13,904
Franchise rental income 58,876 57,856
Sublease income 43,250 42,042
Executory costs paid to lessor    
Lessor Lease Income    
Variable lease income $ 9,874 $ 9,709
v3.21.1
Transactions with Related Parties (Details)
$ in Thousands
 3 Months Ended
Jan. 07, 2021
number_of_restaurants
Apr. 04, 2021
USD ($)
number_of_restaurants
Mar. 29, 2020
USD ($)
Related Party Transaction      
Number of restaurants | number_of_restaurants   6,838  
TimWen | Franchise rental expense      
Related Party Transaction      
Related Party Transaction, Expenses from Transactions with Related Party   $ 4,026 $ 3,855
TimWen | General and administrative | Management Fees      
Related Party Transaction      
Related Party Transaction, Other Income from Transactions with Related Party   54 $ 51
Yellow Cab | Royalty, Advertising Fund, Lease, and Other Income      
Related Party Transaction      
Related Party Transaction, Other Income from Transactions with Related Party   1,659  
Yellow Cab | Accounts Receivable and Advertising Funds Restricted Assets | Royalty, Advertising Fund, Lease, and Other Income      
Related Party Transaction      
Accounts Receivable, Related Parties, Current   $ 1,025  
Yellow Cab | Franchised Units      
Related Party Transaction      
Number of restaurants | number_of_restaurants   78  
Significant Changes, Franchises Purchased During Period | number_of_restaurants 54    
v3.21.1
Guarantees and Other Commitments and Contingencies Lease Guarantees (Details)
$ in Thousands
Apr. 04, 2021
USD ($)
Property Lease Guarantee  
Guarantor Obligations  
Guarantor Obligations, Maximum Exposure, Undiscounted $ 87,477
v3.21.1
Guarantees and Other Commitments and Contingencies Letters of Credit (Details)
$ in Thousands
Apr. 04, 2021
USD ($)
Guarantor Obligations  
Letters of Credit Outstanding, Amount $ 26,571
v3.21.1
Segment Information Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Segment Reporting, Revenue Reconciling Item    
Total revenues $ 460,203 $ 404,960
Wendy's U.S.    
Segment Reporting, Revenue Reconciling Item    
Total revenues 381,954 331,041
Wendy's International    
Segment Reporting, Revenue Reconciling Item    
Total revenues 18,250 15,472
Global Real Estate & Development    
Segment Reporting, Revenue Reconciling Item    
Total revenues $ 59,999 $ 58,447
v3.21.1
Segment Information Reconciliation of Profit from Segments to Consolidated (Details) - USD ($)
$ in Thousands
 3 Months Ended
Apr. 04, 2021
Mar. 29, 2020
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Segment profit $ 83,122 $ 48,732
Advertising funds deficit (1,264) (1,387)
Unallocated general and administrative (52,622) (51,639)
Depreciation and amortization (31,542) (31,046)
System optimization gains, net 516 323
Reorganization and realignment costs (4,934) (3,910)
Impairment on long-lived assets (635) (4,587)
Unallocated other operating income, net 3,476 1,932
Interest expense, net (28,786) (28,525)
Other income, net 129 1,076
Income before income taxes 54,465 21,283
Corporate and Other    
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Unallocated general and administrative (25,107) (24,119)
Unallocated other operating income, net 64 45
Operating Segments    
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Segment profit 146,024 113,413
Operating Segments | Wendy's U.S.    
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Segment profit 112,087 81,828
Advertising funds deficit (3,534)  
Operating Segments | Wendy's International    
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Segment profit 7,684 5,095
Operating Segments | Global Real Estate & Development    
Segment Reporting, Reconciling Item for Profit from Segment to Consolidated    
Segment profit $ 26,253 $ 26,490
v3.21.1
Label Element Value
Advertising funds restricted assets [Member]  
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue $ 53,711,000
Restricted Cash and Cash Equivalents, Current us-gaap_RestrictedCashAndCashEquivalentsAtCarryingValue $ 77,279,000