Digital Sales Drives Wendy’s Restaurant Growth
Fast-food chain The Wendy’s Company (WEN, NASDAQ) reported sales growth in the third quarter. One of the drivers was the increase in digital orders. In the third quarter, Wendy’s revenues increased more than 3% to $ 452.2 million.
Growth was below the same quarter last year but better than the decline of more than 9% in the second quarter of 2020. The company also reported a profit in the third quarter of $ 0.19 per share. Significantly, Wendy’s posted the world’s highest LFL growth in 15 years in the past quarter.
The primary momentum came in October when LFL sales rose 6.6%. By the growth of digital orders, as well as the emergence of new positions in the menu. Allows Wendy’s to compete with other popular chains. Wendy’s digital business continued to expand every month throughout the third fiscal quarter.
The segment now accounts for 5.5% of the company’s total US sales, doubling from last year. The loyalty program has also helped the piece grow, as app downloads have increased more than 15% since Rewards launched in July 2020.
Wendy’s said the past quarter saw higher average receipts and a higher frequency of purchases than the loyalty program. However, until the COVID-19 pandemic is entirely over, there are risks for Wendy’s in terms of possible closures and restrictions on operations.
Wendy’s is trying to mitigate risks by expanding the digital segment and adding new positions. An essential factor is its loyal pricing policy, which allows it to attract clients from groups vulnerable to economic downturns.
