The coronavirus pandemic has pushed American companies to use the Internet to reach consumers, and the same can be said for Wendy’s.
With its loyalty program, the fast-food chain’s digital arm is set to account for a larger share of the company’s total sales well ahead of schedule, according to CEO Todd Penegor, who appeared on CNBC on Wednesday.
The company now expects digital to account for 10% of sales in 2021.
“I didn’t think we would reach 10% by 2024, pre-pandemic,” Penegor told Jim Cramer in a “Crazy Money” interview. “What we do is attract many active users to our application, and people engage in the application. We see a lot more mobile commands and it’s really because there is an advantage. “
Wendy’s found success in the breakfast menu launched last year. While fewer Americans went to the office during the pandemic, interrupting their chances of stopping at a restaurant for a morning breakfast of sandwiches or coffee, breakfast sales accounted for about 7% of total sales last year. , said the company.
Penegor remained optimistic about competitiveness with other restaurants in the morning race. He expects the breakfast menu to account for 10% of sales by the end of 2022.
“The breakfast business is doing pretty well in the face of the pandemic,” he said. “For us to be able to deliver a 7% sales mix on our breakfast day side is quite remarkable and very encouraging … What we are seeing is a strong repeat.”
Earlier Wednesday, Wendy’s reported fourth-quarter results that missed Wall Street estimates on both the top and bottom lines. The company posted total revenue of $ 474.3 million for the quarter, up 11% from $ 427.2 the previous year and net income of $ 38.7 million, up 46% from 26 , $ 5 million. According to FactSet, analysts were looking for revenue of about $ 476.6 million and net revenue of $ 39.9 million.
For the full year, Wendy’s recorded revenues of $ 1.73 million, an increase of 1.5% and $ 117.8 million, down 14% from 2019.
Sales at the same restaurant in the US increased by 5.5% in that quarter and by 2% for the full year.
Wendy’s shares fell more than 5% on Wednesday to a close of $ 20.12.