v3.26.1
System Optimization Gains, Net
 6 Months Ended
Jun. 28, 2026
System Optimization  
System Optimization Gains, Net  
System Optimization Gains, Net System Optimization Gains, Net
The Company optimizes the Wendy’s system by facilitating franchisee-to-franchisee restaurant transfers (“Franchise Flips”), evaluating strategic acquisitions of franchised restaurants and strategic dispositions of Company-operated restaurants to existing and new franchisees and, at times, closing certain underperforming restaurants, to further strengthen the franchisee base, support franchisee economics and drive new restaurant development. During the six months ended June 28, 2026 and June 29, 2025, the Company facilitated 45 and one Franchise Flips, respectively. Additionally, during the six months ended June 28, 2026 and June 29, 2025, the Company completed the sale of four and two Company-operated restaurants to franchisees, respectively.

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

The following is a summary of the disposition activity recorded as a result of our system optimization initiative:
Three Months EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Number of restaurants sold to franchisees1 — 4 2 
Proceeds from sales of restaurants (a)$588 $— $2,392 $55 
Net assets sold (b)(567)— (2,139)(169)
Other (21)— (253)(25)
Loss on sales of restaurants, net— — — (139)
Post-closing adjustments on sales of restaurants— (10)— (10)
Loss on sales of restaurants, net— (10)— (149)
Gain on sales of other assets, net (c)667 397 2,292 446 
System optimization gains, net$667 $387 $2,292 $297 
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(a)During the three and six months ended June 28, 2026, the Company received net cash proceeds of $588 and $2,392, respectively, related to the sale of Company-operated restaurants as part of the Company’s strategic build to suit development fund. These proceeds are included within operating activities in the Company’s condensed consolidated statements of cash flows.

(b)Net assets sold consisted primarily of equipment.
(c)During the three and six months ended June 28, 2026, the Company received net cash proceeds of $1,868 and $4,664, respectively, primarily from the sale of surplus and other properties. During the three and six months ended June 29, 2025, the Company received net cash proceeds of $1,300 primarily from the sale of surplus and other properties.

Assets Held for Sale

As of June 28, 2026 and December 28, 2025, the Company had assets held for sale of $27,152 and $3,696, respectively, primarily consisting of surplus properties. Assets held for sale are included in “Prepaid expenses and other current assets.”