Wendy's Co Files 2023 Annual Report on Form 10-K

TL;DR

<b>Wendy's Co filed its 2023 10-K report, detailing $2.01 billion in revenue and operational performance.</b>

AI Summary

Wendy's Co (WEN) filed a Annual Report (10-K) with the SEC on February 26, 2024. Wendy's Co reported total revenues of $2.01 billion for the fiscal year ended December 31, 2023. The company's fiscal year 2023 saw a slight increase in revenue compared to the previous year. Key revenue segments include Franchise Royalty Revenue and Fees, Product Sales, and Real Estate. The filing details financial performance and operational aspects for the fiscal year 2023. Wendy's Co is incorporated in Delaware and headquartered in Dublin, Ohio.

Why It Matters

For investors and stakeholders tracking Wendy's Co, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Wendy's financial health and strategic direction for investors and stakeholders. Understanding the revenue breakdown and growth trends is crucial for assessing the company's market position and future prospects.

Risk Assessment

Risk Level: — Wendy's Co shows moderate risk based on this filing. The company operates in the highly competitive fast-food industry, facing constant pressure from established brands and emerging players, which could impact market share and profitability.

Analyst Insight

Investors should analyze Wendy's revenue growth, particularly in its franchise and product segments, to gauge the effectiveness of its expansion strategies and operational efficiency.

Revenue Breakdown

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-26 — Filing Date (Date of submission)

Key Players & Entities

• Wendy's Co (company) — Filer of the 10-K report
• 2023 (date) — Fiscal year end
• Dublin, Ohio (location) — Company headquarters
• Delaware (location) — State of incorporation
• 2024-02-26 (date) — Filing date

FAQ

Industry Context

Wendy's operates within the quick-service restaurant (QSR) industry, a highly competitive sector characterized by evolving consumer preferences and significant market saturation.

Regulatory Implications

The company is subject to various federal and state regulations concerning food safety, labor practices, and financial reporting, as mandated by the Securities and Exchange Commission (SEC).

What Investors Should Do

1. Review Wendy's detailed financial statements for revenue growth drivers and profitability trends.
2. Analyze the competitive landscape and Wendy's market positioning within the QSR industry.
3. Assess the company's strategies for international expansion and digital innovation.

Year-Over-Year Comparison

This filing represents the annual 10-K report for the fiscal year ended December 31, 2023, providing updated financial and operational data compared to previous filings.

Filing Documents

• wen-20231231.htm (10-K) — 3078KB
• ex1050_202310k.htm (EX-10.50) — 7KB
• ex1051_202310k.htm (EX-10.51) — 57KB
• ex211_202310k.htm (EX-21.1) — 17KB
• ex231_202310k.htm (EX-23.1) — 2KB
• ex311_202310k.htm (EX-31.1) — 10KB
• ex312_202310k.htm (EX-31.2) — 10KB
• ex321_202310k.htm (EX-32.1) — 6KB
• ex971_202310k.htm (EX-97.1) — 39KB
• wendyslogo.jpg (GRAPHIC) — 10KB
• wendyslogoa.jpg (GRAPHIC) — 10KB
• 0000030697-24-000004.txt (&nbsp;) — 17442KB
• wen-20231231.xsd (EX-101.SCH) — 119KB
• wen-20231231_cal.xml (EX-101.CAL) — 112KB
• wen-20231231_def.xml (EX-101.DEF) — 823KB
• wen-20231231_lab.xml (EX-101.LAB) — 1465KB
• wen-20231231_pre.xml (EX-101.PRE) — 1055KB
• wen-20231231_htm.xml (XML) — 2851KB

Business

Business 6 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 29 Item 1C. Cybersecurity 30 Item 2.

Properties

Properties 32 Item 3.

Legal Proceedings

Legal Proceedings 32 Item 4. Mine Safety Disclosures 32 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 33 Item 6. [Reserved] 33 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 54 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 109 Item 9A.

Controls and Procedures

Controls and Procedures 109 Item 9B. Other Information 111 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 111 PART III Item 10. Directors, Executive Officers and Corporate Governance 111 Item 11.

Executive Compensation

Executive Compensation 111 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 111 Item 13. Certain Relationships and Related Transactions, and Director Independence 111 Item 14. Principal Accountant Fees and Services 111 PART IV Item 15. Exhibits and Financial Statement Schedules 111 Item 16. Form 10-K Summary 116 PART I Explanatory Note The Wendy's Company ("The Wendy's Company") is the parent company of its 100% owned subsidiary holding company, Wendy's Restaurants, LLC ("Wendy's Restaurants"). Wendy's Restaurants is the parent company of Wendy's International, LLC (formerly known as Wendy's International, Inc.). Wendy's International, LLC is the indirect parent company of (1) Quality Is Our Recipe, LLC ("Quality"), which is the owner and franchisor of the Wendy's restaurant system in the United States and all international jurisdictions except for Canada, and (2) Wendy's Restaurants of Canada Inc., which is the owner and franchisor of the Wendy's restaurant system in Canada. As used in this report, unless the context requires otherwise, the term "Company" refers to The Wendy's Company and its direct and indirect subsidiaries, and "Wendy's" refers to Quality when the context relates to the ownership or franchising of the Wendy's restaurant system and to Wendy's International, LLC when the context refers to the Wendy's brand. References in this Annual Report on Form 10-K (the "Form 10-K") to restaurants that we "own" or that are "Company-operated" include owned and leased restaurants. Special Note Regarding Forward-Looking Statements and Projections This Annual Report on Form 10-K and oral statements made from time to time by representatives of the Company may contain or incorporate by reference certain statements that are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act"). Generally, forward-looking statements include the words "may," "believes," "p

Business

Item 1. Business. Company Overview Wendy's is primarily engaged in the business of operating, developing and franchising a system of distinctive quick-service restaurants serving high quality food. Wendy's opened its first restaurant in Columbus, Ohio in 1969. Today, Wendy's is the second largest quick-service restaurant company in the hamburger sandwich segment in the United States (the "U.S.") based on traffic and dollar share, and the third largest globally with 7,240 restaurants in the U.S. and 32 foreign countries and U.S. territories as of December 31, 2023. At December 31, 2023, there were 6,030 Wendy's restaurants in operation in the U.S. Of these restaurants, 403 were operated by the Company and 5,627 were operated by a total of 212 franchisees. In addition, at December 31, 2023, there were 1,210 Wendy's restaurants in operation in 32 foreign countries and U.S. territories. Of the international restaurants, 1,198 were operated by a total of 106 franchisees and 12 were operated by the Company in the United Kingdom (the "U.K."). The Company's principal executive offices are located at One Dave Thomas Blvd., Dublin, Ohio 43017, and its telephone number is (614) 764-3100. Corporate History The Wendy's Company's corporate predecessor was incorporated in Ohio in 1929 and was reincorporated in Delaware in June 1994. Effective September 29, 2008, in conjunction with the merger of Triarc Companies, Inc. and Wendy's International, Inc., the Company's corporate name was changed from Triarc Companies, Inc. to Wendy's/Arby's Group, Inc. Effective July 5, 2011, in connection with the Company's sale of Arby's Restaurant Group, Inc., the Company's corporate name was changed to The Wendy's Company. Fiscal Year The Company's fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31 and are referred to herein as (1) "the year ended December 31, 2023" or "2023," (2) "the year ended January 1, 2023" or "2022," and (3) "the ye

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View this 10-K filing on SEC EDGAR