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Wendy needs to reach 10% digital sales target well ahead of schedule, says CEO

The coronavirus pandemic has prompted US businesses to use the Internet to reach consumers, and the same can be said for Wendy.

With its loyalty program, the digital arm of the fast food chain is set to account for a larger share of the company’s total sales long before the schedule, according to CEO Todd Penegor, who appeared on CNBC on Wednesday.

The company now expects digital production to account for 10% of sales in 2021.

“We didn’t think we would reach 1

0% by 2024, before the pandemic,” Penegor told Jim Cramer in an interview with Mad Money. “What we do is attract a lot of active users to our app and people get involved with it. We see a lot more mobile orders, and that’s really because there are benefits. “

Wendy also found success in the breakfast menu, which launched last year. While fewer Americans traveled to the office during the pandemic, disrupting their chances of stopping at a restaurant for a morning sandwich or coffee, breakfast sales accounted for about 7 percent of total sales last year, the company said.

Penegor remained optimistic about his competition with other restaurants in the morning tide. He expects the breakfast menu to account for 10% of sales by the end of 2022.

“The snack business is doing pretty well in the face of the pandemic,” he said. “For us, to be able to provide a 7% mix of sales in our part of the day for breakfast is quite remarkable and super encouraging. … What we see is a strong repetition. “

Earlier on Wednesday, Wendy’s fourth-quarter results missed Wall Street’s estimates at both the top and bottom. The company reported total revenue of $ 474.3 million for the quarter, up 11% from $ 427.2 a year earlier, and net profit of $ 38.7 million, up 46% from $ 26.5 million. . According to FactSet, analysts are looking for revenue of about $ 476.6 million and a net profit of $ 39.9 million.

For the full year, Wendy’s reported $ 1.73 million in revenue, an increase of 1.5% and $ 117.8 million, which is 14% less than in 2019.

Sales at the same restaurant in the United States increased by 5.5% during the quarter and 2% for the whole year.

Shares of Wendy’s fell more than 5% on Wednesday to nearly $ 20.12.

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