10.08.2024
News
Wendy’s CEO touts AI deal with Google and ability to work late at night
Wendy’s CEO Todd Penegor told CNBC’s Jim Cramer on Wednesday that the fast food chain’s partnership with Google’s artificial intelligence is a “first step” toward further technological changes in its restaurants.
Wendy’s and Alphabet, both owned by Google, have been working on an AI chatbot specifically designed for ordering food at the drive-thru. The Ohio-based burger chain will launch an AI pilot program at several locations in the Columbus area starting in June, Penegor told Cramer.
According to the CEO, this new feature aims to “eliminate the slowest part of the ordering process – ordering over the speaker” to create a more pleasant dining experience. “We will learn a lot. The first step to many innovations,” he added.
Penegor emphasized his commitment to modernizing Wendy’s over the next few quarters, highlighting, for example, the possibility of using digital menu boards. According to him, Wendy’s is trying to “become the restaurant of the future” through these initiatives.
Penegor noted that another area of opportunity is to expand the hours of operation of Wendy’s stores. “We’re going to be open late into the night,” he said. “We know we’re underserved and we have an opportunity to achieve significant growth” by targeting the nighttime crowd.
Earlier on Wednesday, Wendy’s reported better-than-expected first-quarter results: the company’s total revenue amounted to $528.8 million, up 8.2% year-on-year. This compares with the analysts’ consensus forecast of $522 million. The company’s earnings per share of 21 cents were 1% higher than expected.
But despite the positive results, Wendy’s refused to raise its full-year forecast, which may have led to a 2% drop in the company’s shares at Wednesday’s low; but they closed with a 1% increase to $23.21.