Wendy’s to hit 10% digital gross sales purpose effectively forward of schedule, CEO says
The coronavirus pandemic caused American companies to use the internet to reach consumers, and the same goes for Wendy’s.
According to CEO Todd Penegor, who appeared on CNBC on Wednesday, the digital arm of the fast food chain is well on its way to getting a bigger share of the company’s total sales with the help of its loyalty program.
The company now expects digital to account for 10% of sales in 2021.
“We didn’t think we’d hit 10% by 2024 before the pandemic,” Penegor Jim Cramer said in a Mad Money interview. “We’re bringing a lot of active users to our app and people are getting involved with the app. We’re seeing a lot more mobile orders and that’s really because there is an advantage.”
Wendy’s also found success in the breakfast menu it launched last year. While fewer Americans commuted to the office during the pandemic, which cut their chances of getting a morning breakfast sandwich or coffee at a restaurant, breakfast sales accounted for about 7% of total revenue last year, the company said.
Penegor remained optimistic about competing with other restaurants in the morning rush. He expects the breakfast menu to account for 10% of sales by the end of 2022.
“The breakfast business is doing quite well in the face of the pandemic,” he said. “For us it is remarkable and very encouraging to be able to achieve a sales mix of 7% on our breakfast day. … What we see is a strong repetition.”
On the previous Wednesday, Wendy reported fourth quarter results that missed Wall Street’s estimates of both profit and profit. The company posted total revenue of $ 474.3 million for the quarter, up 11% from $ 427.2 last year, and net income of $ 38.7 million, up 46% from $ 26.5 million. USD. According to FactSet, analysts were looking for revenue of approximately $ 476.6 million and net income of $ 39.9 million.
For the full year, Wendy’s posted revenue of $ 1.73 million, an increase of 1.5% and a decrease of $ 117.8 million, a decrease of 14% from 2019.
US restaurant revenue increased 5.5% for the quarter and 2% for the full year.
Wendy’s shares fell more than 5% on Wednesday to a closing price of $ 20.12.