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The coronavirus pandemic has pushed US businesses to take advantage of the internet to reach consumers and so has Wendy’s.
With the help of its loyalty program, the digital arm of the fast food chain is on track to account for a larger share of the company’s total sales well ahead of schedule, according to CEO Todd Penegor, who is appeared Wednesday on CNBC.
The company now expects digital to account for 10% of sales in 2021.
“We didn’t expect to reach 10% before 2024, before the pandemic,” Penegor told Jim Cramer in a “Mad Money” interview. “What we’re doing is attracting lots of active users to our app and people engaging in the app. We’re seeing more and more mobile orders and that’s really because there’s a benefit. . “
Wendy’s has also found success in the breakfast menu launched last year. While fewer Americans made it to the office during the pandemic, which hampered their chances of stopping at restaurants for a breakfast sandwich or coffee in the morning, breakfast sales amounted to around 7 % of total sales last year, the company said.
Penegor remained optimistic about its competitiveness 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 industry is doing quite well in the face of the pandemic,” he said. “For us to be able to deliver a 7% sales mix on breakfast day is quite remarkable and very encouraging. … What we are seeing is a strong repetition. “
Earlier Wednesday, Wendy’s released fourth quarter results that missed Wall Street estimates on the high and low lines. The company reported total revenue of $ 474.3 million for the quarter, up 11% from $ 427.2 the previous year, and net profit of $ 38.7 million, up from 46% compared to $ 26.5 million. According to FactSet, analysts were looking for revenue of around $ 476.6 million and net income of $ 39.9 million.
For the full year, Wendy’s reported revenue of $ 1.73 million, an increase of 1.5%, and $ 117.8 million, down 14% from 2019.
Sales of the same restaurants in the United States increased 5.5% in the quarter and 2% for the full year.
Wendy’s shares fell more than 5% on Wednesday to close at $ 20.12.
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