The coronavirus pandemic pushed American businesses to leverage the internet to reach consumers, and the same can be said for Wendy’s.
With the help of its loyalty program, the fast food chain’s digital arm is on track to account for a larger share of the company’s total sales long 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.
“We didn’t think we would get to 10% until 2024, before the pandemic,” Penegor told Jim Cramer in a “Mad Money” interview. “What we are doing is attracting a lot of active users to our application and people are participating in the application. We are seeing a lot more mobile orders and it is really because there is a benefit.”
Wendy’s also found success on the breakfast menu it launched last year. While fewer Americans traveled to the office during the pandemic, disrupting their chances of stopping at a restaurant for a morning breakfast sandwich or coffee, breakfast sales accounted for about 7% of total sales for the year. past, the company said.
Penegor remained optimistic about being competitive with other restaurants in the morning rush. Expect 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, to be able to offer a 7% sales mix on the breakfast portion of the day is quite remarkable and very encouraging … What we are seeing is strong replay.”
Earlier Wednesday, Wendy’s reported fourth-quarter results that fell short of Wall Street estimates on both the top and bottom lines. The company posted total revenues of $ 474.3 million for the quarter, 11% more than the $ 427.2 of the previous year, and a net profit of $ 38.7 million, 46% more than the $ 26.5 millions. According to FactSet, analysts were looking for revenue of about $ 476.6 million and net income of $ 39.9 million.
For the full year, Wendy’s posted $ 1.73 million in revenue, 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 entire year.
Shares of Wendy’s fell more than 5% on Wednesday to a close of $ 20.12.