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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| | | | | | | | |
☒ | | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended October 2, 2022
or
| | | | | | | | |
☐ | | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ______________ to _______________
Commission file number: 1-2207
THE WENDY’S COMPANY
(Exact name of registrant as specified in its charter)
| | | | | | | | | | | |
Delaware | | 38-0471180 |
(State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) |
| | | |
One Dave Thomas Blvd. | | |
Dublin, | Ohio | | 43017 |
(Address of principal executive offices) | | (Zip Code) |
(614) 764-3100
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| | | | | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common Stock, $.10 par value | WEN | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| | | | | | | | | | | |
Large accelerated filer | ☒ | Accelerated filer | ☐ |
Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ☐ No ☒
There were 213,026,982 shares of The Wendy’s Company common stock outstanding as of November 2, 2022.
THE WENDY’S COMPANY AND SUBSIDIARIES
INDEX TO FORM 10-Q
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands Except Par Value)
| | | | | | | | | | | |
| October 2, 2022 | | January 2, 2022 |
ASSETS | (Unaudited) |
Current assets: | | | |
Cash and cash equivalents | $ | 731,801 | | | $ | 249,438 | |
Restricted cash | 34,363 | | | 27,535 | |
Accounts and notes receivable, net | 142,447 | | | 119,540 | |
Inventories | 6,578 | | | 5,934 | |
Prepaid expenses and other current assets | 28,795 | | | 30,584 | |
Advertising funds restricted assets | 150,662 | | | 159,818 | |
Total current assets | 1,094,646 | | | 592,849 | |
Properties | 882,283 | | | 906,867 | |
Finance lease assets | 237,517 | | | 244,279 | |
Operating lease assets | 765,688 | | | 812,620 | |
Goodwill | 772,984 | | | 775,278 | |
Other intangible assets | 1,252,198 | | | 1,280,791 | |
Investments | 45,482 | | | 49,870 | |
Net investment in sales-type and direct financing leases | 310,576 | | | 299,707 | |
Other assets | 163,615 | | | 139,130 | |
Total assets | $ | 5,524,989 | | | $ | 5,101,391 | |
| | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | |
Current liabilities: | | | |
Current portion of long-term debt | $ | 29,250 | | | $ | 24,250 | |
Current portion of finance lease liabilities | 17,585 | | | 15,513 | |
Current portion of operating lease liabilities | 47,481 | | | 47,315 | |
Accounts payable | 34,667 | | | 41,163 | |
Accrued expenses and other current liabilities | 130,202 | | | 140,783 | |
Advertising funds restricted liabilities | 159,231 | | | 157,901 | |
Total current liabilities | 418,416 | | | 426,925 | |
Long-term debt | 2,827,493 | | | 2,356,416 | |
Long-term finance lease liabilities | 567,472 | | | 559,587 | |
Long-term operating lease liabilities | 804,632 | | | 853,328 | |
Deferred income taxes | 276,089 | | | 267,710 | |
Deferred franchise fees | 91,669 | | | 88,102 | |
Other liabilities | 101,839 | | | 112,918 | |
Total liabilities | 5,087,610 | | | 4,664,986 | |
Commitments and contingencies | | | |
Stockholders’ equity: | | | |
Common stock, $0.10 par value; 1,500,000 shares authorized; 470,424 shares issued; 212,945 and 215,849 shares outstanding, respectively | 47,042 | | | 47,042 | |
Additional paid-in capital | 2,930,388 | | | 2,898,633 | |
Retained earnings | 400,111 | | | 344,198 | |
Common stock held in treasury, at cost; 257,479 and 254,575 shares, respectively | (2,871,442) | | | (2,805,268) | |
Accumulated other comprehensive loss | (68,720) | | | (48,200) | |
Total stockholders’ equity | 437,379 | | | 436,405 | |
Total liabilities and stockholders’ equity | $ | 5,524,989 | | | $ | 5,101,391 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands Except Per Share Amounts)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| October 2, 2022 | | October 3, 2021 | | October 2, 2022 | | October 3, 2021 |
| (Unaudited) |
Revenues: | | | | | | | |
Sales | $ | 228,786 | | | $ | 171,078 | | | $ | 668,930 | | | $ | 553,660 | |
Franchise royalty revenue and fees | 141,733 | | | 138,755 | | | 414,145 | | | 398,246 | |
Franchise rental income | 58,463 | | | 62,446 | | | 174,944 | | | 182,190 | |
Advertising funds revenue | 103,587 | | | 97,976 | | | 300,976 | | | 289,699 | |
| 532,569 | | | 470,255 | | | 1,558,995 | | | 1,423,795 | |
Costs and expenses: | | | | | | | |
Cost of sales | 196,168 | | | 146,436 | | | 578,506 | | | 457,440 | |
Franchise support and other costs | 12,728 | | | 10,509 | | | 34,456 | | | 27,080 | |
Franchise rental expense | 31,687 | | | 34,424 | | | 92,699 | | | 101,058 | |
Advertising funds expense | 108,269 | | | 108,529 | | | 317,042 | | | 310,642 | |
General and administrative | 62,523 | | | 62,840 | | | 186,506 | | | 178,576 | |
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 34,252 | | | 30,940 | | | 100,911 | | | 93,243 | |
Amortization of cloud computing arrangements | 888 | | | — | | | 888 | | | — | |
System optimization gains, net | (452) | | | (1,437) | | | (4,138) | | | (32,719) | |
Reorganization and realignment costs | 8 | | | 345 | | | 628 | | | 7,381 | |
Impairment of long-lived assets | 206 | | | 566 | | | 2,682 | | | 1,831 | |
Other operating income, net | (11,843) | | | (3,092) | | | (20,482) | | | (10,800) | |
| 434,434 | | | 390,060 | | | 1,289,698 | | | 1,133,732 | |
Operating profit | 98,135 | | | 80,195 | | | 269,297 | | | 290,063 | |
Interest expense, net | (31,916) | | | (26,000) | | | (90,406) | | | (82,990) | |
Loss on early extinguishment of debt | — | | | — | | | — | | | (17,917) | |
Investment income, net | — | | | — | | | 2,107 | | | 6 | |
Other income, net | 2,910 | | | 171 | | | 4,355 | | | 455 | |
Income before income taxes | 69,129 | | | 54,366 | | | 185,353 | | | 189,617 | |
Provision for income taxes | (18,587) | | | (13,195) | | | (49,258) | | | (41,356) | |
Net income | $ | 50,542 | | | $ | 41,171 | | | $ | 136,095 | | | $ | 148,261 | |
| | | | | | | |
Net income per share: | | | | | | | |
Basic | $ | .24 | | | $ | .19 | | | $ | .64 | | | $ | .67 | |
Diluted | .24 | | | .18 | | | .63 | | | .66 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended | | Nine Months Ended |
| October 2, 2022 | | October 3, 2021 | | October 2, 2022 | | October 3, 2021 |
| (Unaudited) |
Net income | $ | 50,542 | | | $ | 41,171 | | | $ | 136,095 | | | $ | 148,261 | |
Other comprehensive (loss) income: | | | | | | | |
Foreign currency translation adjustment | (14,183) | | | (4,659) | | | (20,520) | | | 908 | |
Other comprehensive (loss) income | (14,183) | | | (4,659) | | | (20,520) | | | 908 | |
Comprehensive income | $ | 36,359 | | | $ | 36,512 | | | $ | 115,575 | | | $ | 149,169 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional Paid-In Capital | | Retained Earnings | | Common Stock Held in Treasury | | Accumulated Other Comprehensive Loss | | Total |
| | | | | |
| (Unaudited) |
Balance at January 2, 2022 | $ | 47,042 | | | $ | 2,898,633 | | | $ | 344,198 | | | $ | (2,805,268) | | | $ | (48,200) | | | $ | 436,405 | |
Net income | — | | | — | | | 37,402 | | | — | | | — | | | 37,402 | |
Other comprehensive income | — | | | — | | | — | | | — | | | 1,118 | | | 1,118 | |
Cash dividends | — | | | — | | | (26,911) | | | — | | | — | | | (26,911) | |
Repurchases of common stock, including accelerated share repurchase | — | | | 18,750 | | | — | | | (18,750) | | | — | | | — | |
Share-based compensation | — | | | 6,348 | | | — | | | — | | | — | | | 6,348 | |
Common stock issued upon exercises of stock options | — | | | 237 | | | — | | | 1,354 | | | — | | | 1,591 | |
Common stock issued upon vesting of restricted shares | — | | | (1,989) | | | — | | | 459 | | | — | | | (1,530) | |
Other | — | | | 63 | | | (8) | | | 57 | | | — | | | 112 | |
Balance at April 3, 2022 | $ | 47,042 | | | $ | 2,922,042 | | | $ | 354,681 | | | $ | (2,822,148) | | | $ | (47,082) | | | $ | 454,535 | |
Net income | — | | | — | | | 48,151 | | | — | | | — | | | 48,151 | |
Other comprehensive loss | — | | | — | | | — | | | — | | | (7,455) | | | (7,455) | |
Cash dividends | — | | | — | | | (26,635) | | | — | | | — | | | (26,635) | |
Repurchases of common stock | — | | | — | | | — | | | (51,950) | | | — | | | (51,950) | |
Share-based compensation | — | | | 6,122 | | | — | | | — | | | — | | | 6,122 | |
Common stock issued upon exercises of stock options | — | | | (300) | | | — | | | 399 | | | — | | | 99 | |
Common stock issued upon vesting of restricted shares | — | | | (1,178) | | | — | | | 1,073 | | | — | | | (105) | |
Other | — | | | 53 | | | (10) | | | 58 | | | — | | | 101 | |
Balance at July 3, 2022 | $ | 47,042 | | | $ | 2,926,739 | | | $ | 376,187 | | | $ | (2,872,568) | | | $ | (54,537) | | | $ | 422,863 | |
Net income | — | | | — | | | 50,542 | | | — | | | — | | | 50,542 | |
Other comprehensive loss | — | | | — | | | — | | | — | | | (14,183) | | | (14,183) | |
Cash dividends | — | | | — | | | (26,607) | | | — | | | — | | | (26,607) | |
| | | | | | | | | | | |
Share-based compensation | — | | | 5,027 | | | — | | | — | | | — | | | 5,027 | |
Common stock issued upon exercises of stock options | — | | | 450 | | | — | | | 241 | | | — | | | 691 | |
Common stock issued upon vesting of restricted shares | — | | | (1,876) | | | — | | | 817 | | | — | | | (1,059) | |
Other | — | | | 48 | | | (11) | | | 68 | | | — | | | 105 | |
Balance at October 2, 2022 | $ | 47,042 | | | $ | 2,930,388 | | | $ | 400,111 | | | $ | (2,871,442) | | | $ | (68,720) | | | $ | 437,379 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY—CONTINUED
(In Thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock | | Additional Paid-In Capital | | Retained Earnings | | Common Stock Held in Treasury | | Accumulated Other Comprehensive Loss | | Total |
| | | | | |
| (Unaudited) |
Balance at January 3, 2021 | $ | 47,042 | | | $ | 2,899,276 | | | $ | 238,674 | | | $ | (2,585,755) | | | $ | (49,641) | | | $ | 549,596 | |
Net income | — | | | — | | | 41,366 | | | — | | | — | | | 41,366 | |
Other comprehensive income | — | | | — | | | — | | | — | | | 2,220 | | | 2,220 | |
Cash dividends | — | | | — | | | (20,156) | | | — | | | — | | | (20,156) | |
Repurchases of common stock | — | | | — | | | — | | | (56,084) | | | — | | | (56,084) | |
Share-based compensation | — | | | 5,151 | | | — | | | — | | | — | | | 5,151 | |
Common stock issued upon exercises of stock options | — | | | (20) | | | — | | | 683 | | | — | | | 663 | |
Common stock issued upon vesting of restricted shares | — | | | (2,996) | | | — | | | 817 | | | — | | | (2,179) | |
Other | — | | | 49 | | | (5) | | | 44 | | | — | | | 88 | |
Balance at April 4, 2021 | $ | 47,042 | | | $ | 2,901,460 | | | $ | 259,879 | | | $ | (2,640,295) | | | $ | (47,421) | | | $ | 520,665 | |
Net income | — | | | — | | | 65,724 | | | — | | | — | | | 65,724 | |
Other comprehensive income | — | | | — | | | — | | | — | | | 3,347 | | | 3,347 | |
Cash dividends | — | | | — | | | (22,123) | | | — | | | — | | | (22,123) | |
Repurchases of common stock | — | | | — | | | — | | | (27,291) | | | — | | | (27,291) | |
Share-based compensation | — | | | 5,882 | | | — | | | — | | | — | | | 5,882 | |
Common stock issued upon exercises of stock options | — | | | 850 | | | — | | | 23,466 | | | — | | | 24,316 | |
Common stock issued upon vesting of restricted shares | — | | | (959) | | | — | | | 714 | | | — | | | (245) | |
Other | — | | | 41 | | | (5) | | | 45 | | | — | | | 81 | |
Balance at July 4, 2021 | $ | 47,042 | | | $ | 2,907,274 | | | $ | 303,475 | | | $ | (2,643,361) | | | $ | (44,074) | | | $ | 570,356 | |
Net income | — | | | — | | | 41,171 | | | — | | | — | | | 41,171 | |
Other comprehensive loss | — | | | — | | | — | | | — | | | (4,659) | | | (4,659) | |
Cash dividends | — | | | — | | | (26,684) | | | — | | | — | | | (26,684) | |
Repurchases of common stock | — | | | — | | | — | | | (43,857) | | | — | | | (43,857) | |
Share-based compensation | — | | | 5,702 | | | — | | | — | | | — | | | 5,702 | |
Common stock issued upon exercises of stock options | — | | | 351 | | | — | | | 1,465 | | | — | | | 1,816 | |
Common stock issued upon vesting of restricted shares | — | | | (1,835) | | | — | | | 642 | | | — | | | (1,193) | |
Other | — | | | 60 | | | (6) | | | 48 | | | — | | | 102 | |
Balance at October 3, 2021 | $ | 47,042 | | | $ | 2,911,552 | | | $ | 317,956 | | | $ | (2,685,063) | | | $ | (48,733) | | | $ | 542,754 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
| | | | | | | | | | | |
| Nine Months Ended |
| October 2, 2022 | | October 3, 2021 |
| (Unaudited) |
Cash flows from operating activities: | | | |
Net income | $ | 136,095 | | | $ | 148,261 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | |
Depreciation and amortization (exclusive of amortization of cloud computing arrangements shown separately below) | 100,911 | | | 93,243 | |
Amortization of cloud computing arrangements | 888 | | | — | |
Share-based compensation | 17,497 | | | 16,735 | |
Impairment of long-lived assets | 2,682 | | | 1,831 | |
Deferred income tax | 10,214 | | | (25) | |
Non-cash rental expense, net | 26,164 | | | 28,421 | |
Change in operating lease liabilities | (34,241) | | | (34,220) | |
Net receipt of deferred vendor incentives | 1,884 | | | 1,906 | |
System optimization gains, net | (4,138) | | | (32,719) | |
Distributions received from joint ventures, net of equity in earnings | 3,468 | | | 3,561 | |
Long-term debt-related activities, net | 5,746 | | | 23,043 | |
Cloud computing arrangements expenditures | (22,685) | | | (5,619) | |
Changes in operating assets and liabilities and other, net | (61,846) | | | 32,255 | |
Net cash provided by operating activities | 182,639 | | | 276,673 | |
Cash flows from investing activities: | | | |
Capital expenditures | (50,036) | | | (43,401) | |
Franchise development fund | (2,484) | | | — | |
Acquisitions | — | | | 4,879 | |
Dispositions | 3,731 | | | 52,657 | |
| | | |
Notes receivable, net | 2,713 | | | 907 | |
Net cash (used in) provided by investing activities | (46,076) | | | 15,042 | |
Cash flows from financing activities: | | | |
Proceeds from long-term debt | 500,000 | | | 1,100,000 | |
Repayments of long-term debt | (19,437) | | | (955,782) | |
Repayments of finance lease liabilities | (13,411) | | | (9,021) | |
Deferred financing costs | (10,232) | | | (20,873) | |
Repurchases of common stock | (51,950) | | | (125,656) | |
Dividends | (80,153) | | | (68,963) | |
Proceeds from stock option exercises | 2,668 | | | 27,204 | |
Payments related to tax withholding for share-based compensation | (2,980) | | | (4,390) | |
Net cash provided by (used in) financing activities | 324,505 | | | (57,481) | |
Net cash provided by operations before effect of exchange rate changes on cash | 461,068 | | | 234,234 | |
Effect of exchange rate changes on cash | (7,176) | | | 177 | |
Net increase in cash, cash equivalents and restricted cash | 453,892 | | | 234,411 | |
Cash, cash equivalents and restricted cash at beginning of period | 366,966 | | | 418,241 | |
Cash, cash equivalents and restricted cash at end of period | $ | 820,858 | | | $ | 652,652 | |
See accompanying notes to condensed consolidated financial statements.
THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands Except Per Share Amounts)
(1) Basis of Presentation
The accompanying unaudited condensed consolidated financial statements (the “Financial Statements”) of The Wendy’s Company (“The Wendy’s Company” and, together with its subsidiaries, the “Company,” “we,” “us” or “our”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and, therefore, do not include all information and footnotes required by GAAP for complete financial statements. In our opinion, the Financial Statements contain all adjustments of a normal recurring nature necessary to present fairly our financial position as of October 2, 2022, the results of our operations for the three and nine months ended October 2, 2022 and October 3, 2021 and cash flows for the nine months ended October 2, 2022 and October 3, 2021. The results of operations for the nine months ended October 2, 2022 are not necessarily indicative of the results to be expected for the full 2022 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 2, 2022 (the “Form 10-K”).
In March 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 18 for further information.
We report on a fiscal year consisting of 52 or 53 weeks ending on the Sunday closest to or on December 31. All three- and nine-month periods presented herein contain 13 weeks and 39 weeks, respectively. All references to years, quarters and months relate to fiscal periods rather than calendar periods.
Our significant interim accounting policies include the recognition of advertising funds expense in proportion to advertising funds revenue.
Reclassifications
Beginning in 2022, the Company has reclassified payments for cloud computing arrangements to “Cloud computing arrangements expenditures,” which were previously recorded to “Changes in operating assets and liabilities and other, net.” The prior period amounts in the condensed consolidated statement of cash flows reflect the reclassification of these cash flows to conform to the current year presentation. There was no impact to “Net cash provided by operating activities.”
The following table illustrates the reclassifications made to the condensed consolidated statement of cash flows for the nine months ended October 3, 2021:
| | | | | | | | | | | | | | | | | |
| As Previously Reported | | Reclassifications | | As Currently Reported |
Cloud computing arrangements expenditures | $ | — | | | $ | (5,619) | | | $ | (5,619) | |
Changes in operating assets and liabilities and other, net | 26,636 | | | 5,619 | | | 32,255 | |
THE WENDY’S COMPANY AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In Thousands Except Per Share Amounts)
(2) Revenue
Disaggregation of Revenue
The following tables disaggregate revenue by segment and source:
| | | | | | | | | | | | | | | | | | | | | | | |
| Wendy’s U.S. | | Wendy’s International | | Global Real Estate & Development | | Total |
Three Months Ended October 2, 2022 | | | | | | | |
Sales at Company-operated restaurants | $ | 225,245 | | | $ | 3,541 | | | $ | — | | | $ | 228,786 | |
Franchise royalty revenue | 108,780 | | | 15,777 | | | — | | | 124,557 | |
Franchise fees | 15,294 | | | 1,257 | | | 625 | | | 17,176 | |
Franchise rental income | — | | | — | | | 58,463 | | | 58,463 | |
Advertising funds revenue | 96,615 | | | 6,972 | | | — | | | 103,587 | |
Total revenues | $ | 445,934 | | | $ | 27,547 | | | $ | 59,088 | | | $ | 532,569 | |
| | | | | | | |
Nine Months Ended October 2, 2022 | | | | | | | |
Sales at Company-operated restaurants | $ | 659,649 | | | $ | 9,281 | | | $ | — | | | $ | 668,930 | |
Franchise royalty revenue | 315,572 | | | 45,743 | | | — | | | 361,315 | |
Franchise fees | 46,685 | | | 3,695 | | | 2,450 | | | 52,830 | |
Franchise rental income | |