Goodwill and Other Intangible Assets
Goodwill activity for 2025 and 2024 was as follows:
Wendy’s U.S.Wendy’s
International
Global Real Estate & DevelopmentTotal
Balance at December 31, 2023:
Goodwill, gross$620,603 $39,973 $122,548 $783,124 
Accumulated impairment losses (a)— (9,397)— (9,397)
Goodwill, net620,603 30,576 122,548 773,727 
Changes in goodwill:
Currency translation adjustment— (2,259)— (2,259)
Balance at December 29, 2024:
Goodwill, gross620,603 37,714 122,548 780,865 
Accumulated impairment losses (a)— (9,397)— (9,397)
Goodwill, net620,603 28,317 122,548 771,468 
Changes in goodwill:
Restaurant acquisitions1,249 — — 1,249 
Currency translation adjustment— 1,371 — 1,371 
Balance at December 28, 2025:
Goodwill, gross621,852 39,085 122,548 783,485 
Accumulated impairment losses (a)— (9,397)— (9,397)
Goodwill, net$621,852 $29,688 $122,548 $774,088 
_______________

(a)Accumulated impairment losses resulted from the full impairment of goodwill of the Wendy’s international franchise restaurants during the fourth quarter of 2013.

The following is a summary of the components of other intangible assets and the related amortization expense:
Year End
December 28, 2025December 29, 2024
CostAccumulated AmortizationNetCostAccumulated AmortizationNet
Indefinite-lived:
Trademarks$903,000 $— $903,000 $903,000 $— $903,000 
Definite-lived:
Franchise agreements348,151 (286,182)61,969 347,370 (268,976)78,394 
Favorable leases138,730 (79,992)58,738 144,734 (77,352)67,382 
Reacquired rights under franchise agreements
96,042 (27,171)68,871 88,696 (21,863)66,833 
Software356,325 (278,232)78,093 323,738 (247,083)76,655 
$1,842,248 $(671,577)$1,170,671 $1,807,538 $(615,274)$1,192,264 
Aggregate amortization expense:
Actual for fiscal year:
2023$59,356 
202462,255 
202562,565 
Estimate for fiscal year:
2026$57,011 
202749,764 
202844,794 
202934,549 
203015,160 
Thereafter66,393 
$267,671 

Historical Timeline

Fiscal YearFiled
2025Feb 23, 2026Showing above
2024Feb 21, 2025
2023Mar 1, 2023
2022Mar 1, 2022
2021Mar 3, 2021
2019Feb 26, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Mar 3, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.