Wendy's CoWEN
Wendy's Co Leases Disclosure
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. The Company also leases restaurant, office and transportation equipment. As of December 28, 2025, the nature of restaurants operated by the Company and its franchisees was as follows:
| Year End | |||||
December 28, 2025 | |||||
| Company-operated restaurants: | |||||
| Owned land and building | 155 | ||||
| Owned building and held long-term land leases | 142 | ||||
| Leased land and building | 137 | ||||
| Total Company-operated restaurants | 434 | ||||
| Franchisee-operated restaurants: | |||||
| Company-owned properties leased to franchisees | 491 | ||||
| Company-leased properties subleased to franchisees | 1,146 | ||||
| Other franchisee-operated restaurants | 5,326 | ||||
| Total franchisee-operated restaurants | 6,963 | ||||
| Total Company-operated and franchisee-operated restaurants | 7,397 | ||||
Company as Lessee
The components of lease cost for 2025, 2024 and 2023 are as follows:
| Year Ended | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Finance lease cost: | |||||||||||||||||
| Amortization of finance lease assets | $ | 18,901 | $ | 13,877 | $ | 16,061 | |||||||||||
| Interest on finance lease liabilities | 44,650 | 43,051 | 42,624 | ||||||||||||||
| 63,551 | 56,928 | 58,685 | |||||||||||||||
| Operating lease cost | 81,762 | 84,382 | 85,138 | ||||||||||||||
| Variable lease cost (a) | 67,633 | 66,977 | 66,859 | ||||||||||||||
| Short-term lease cost | 5,234 | 5,420 | 5,864 | ||||||||||||||
| Total operating lease cost (b) | 154,629 | 156,779 | 157,861 | ||||||||||||||
| Total lease cost | $ | 218,180 | $ | 213,707 | $ | 216,546 | |||||||||||
_______________
(a)Includes expenses for executory costs of $42,057, $39,754, and $39,456 for 2025, 2024 and 2023, respectively, for which the Company is reimbursed by sublessees.
(b)Includes $125,563, $127,228 and $125,180 for 2025, 2024 and 2023, respectively, recorded to “Franchise rental expense” for leased properties that are subsequently leased to franchisees. Also includes $27,731, $27,633 and $30,538 for 2025, 2024 and 2023, respectively, recorded to “Cost of sales” for leases for Company-operated restaurants.
The following table includes supplemental cash flow and non-cash information related to leases:
| Year Ended | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
| Operating cash flows from finance leases | $ | 44,674 | $ | 43,050 | $ | 42,624 | |||||||||||
| Operating cash flows from operating leases | 84,815 | 86,664 | 86,972 | ||||||||||||||
| Financing cash flows from finance leases | 24,546 | 20,404 | 21,588 | ||||||||||||||
| Right-of-use assets obtained in exchange for lease obligations: | |||||||||||||||||
| Finance lease liabilities (a) | 115,252 | 47,014 | 20,243 | ||||||||||||||
| Operating lease liabilities | 22,111 | 41,423 | 12,659 | ||||||||||||||
_______________
(a)2025 includes finance lease liabilities assumed as part of the Company’s acquisition of 35 franchise-operated restaurants. See Note 16 for further information.
The following table includes supplemental information related to leases:
| Year End | |||||||||||
| December 28, 2025 | December 29, 2024 | ||||||||||
| Weighted-average remaining lease term (years): | |||||||||||
| Finance leases | 14.7 | 14.0 | |||||||||
| Operating leases | 11.4 | 11.9 | |||||||||
| Weighted average discount rate: | |||||||||||
| Finance leases | 7.59 | % | 8.09 | % | |||||||
| Operating leases | 5.01 | % | 4.98 | % | |||||||
| Supplemental balance sheet information: | |||||||||||
| Finance lease assets, gross | $ | 432,554 | $ | 349,212 | |||||||
| Accumulated amortization | (119,710) | (104,258) | |||||||||
| Finance lease assets | 312,844 | 244,954 | |||||||||
| Operating lease assets | 642,589 | 679,777 | |||||||||
The following table illustrates the Company’s future minimum rental payments for non-cancelable leases as of December 28, 2025:
| Finance Leases | Operating Leases | ||||||||||||||||||||||
| Fiscal Year | Company-Operated | Franchise and Other | Company-Operated | Franchise and Other | |||||||||||||||||||
| 2026 | $ | 12,528 | $ | 59,459 | $ | 21,491 | $ | 62,526 | |||||||||||||||
| 2027 | 12,699 | 60,642 | 21,588 | 64,692 | |||||||||||||||||||
| 2028 | 12,774 | 61,976 | 21,428 | 65,142 | |||||||||||||||||||
| 2029 | 12,988 | 63,401 | 21,453 | 64,698 | |||||||||||||||||||
| 2030 | 13,343 | 63,343 | 20,829 | 63,875 | |||||||||||||||||||
| Thereafter | 166,718 | 536,633 | 142,064 | 388,321 | |||||||||||||||||||
| Total minimum payments | $ | 231,050 | $ | 845,454 | $ | 248,853 | $ | 709,254 | |||||||||||||||
Less interest | (88,084) | (315,032) | (62,991) | (183,740) | |||||||||||||||||||
| Present value of minimum lease payments (a) (b) | $ | 142,966 | $ | 530,422 | $ | 185,862 | $ | 525,514 | |||||||||||||||
_______________
(a)The present value of minimum finance lease payments of $26,673 and $646,715 are included in “Current portion of finance lease liabilities” and “Long-term finance lease liabilities,” respectively.
(b)The present value of minimum operating lease payments of $51,119 and $660,257 are included in “Current portion of operating lease liabilities” and “Long-term operating lease liabilities,” respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 23, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Mar 1, 2023 | |
| 2022 | Mar 1, 2022 | |
| 2021 | Mar 3, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Mar 3, 2016 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.