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Wendy’s Company Focuses on Digital Investments to Boost Engagement and Sales
Wendy’s Company, trading under the ticker symbol WEN, is making significant strides in its digital transformation efforts to enhance customer engagement and drive sales. Despite ongoing challenges with consumer traffic, the company has been focusing on improving its digital channels, which have shown promising results. In the first quarter of 2025, app engagement reached an all-time high, and the digital mix accounted for over 20% of total sales. This growth is being supported by new features that encourage customers to interact with the brand beyond the point of purchase.
One of the key developments in this strategy is the gamification of the Wendy’s app. This feature was introduced to deepen user engagement and encourage repeat visits. The app now offers more personalized content and targeted digital messaging, which the company believes is helping to improve conversion rates. By creating a more interactive experience, Wendy’s aims to build stronger relationships with its customers and increase loyalty.
Another major focus for Wendy’s is the rollout of Fresh AI and digital menu boards. As of the first quarter, the technology has been deployed in 168 locations, with plans to expand to more than 500 by year-end. Fresh AI suggests curated add-ons at the point of ordering, which has already led to higher average checks. Additionally, it aims to improve order accuracy and crew productivity, both of which are directly linked to customer satisfaction.
Wendy’s plans to scale its digital initiatives throughout 2025. The combination of gamified engagement, personalized app features, and in-store technology is expected to support stronger customer loyalty and increase average spending. As more customers adopt these digital tools, the platform is set to play a larger role in driving long-term growth.
Peers Also Advancing Digital Capabilities
Digital transformation continues to shape strategies across the restaurant industry, with other companies also investing in digital capabilities to drive growth. Yum! Brands, Inc., which operates KFC and Taco Bell, is benefiting from strong performance in its divisions and continued growth in digital sales. The company is expanding its Byte platform with AI-powered personalization and loyalty integration. A new partnership with NVIDIA is expected to accelerate Yum! Brands’ AI adoption across drive-thrus, kitchens, and restaurant management, supporting faster service and improved team productivity.
BJ’s Restaurants, Inc. is also advancing digital upgrades across systems to streamline service and control costs. Enhancements to POS and kitchen display tools have improved order speed and accuracy while also lowering food and beverage comp costs. In select markets, BJ’s Restaurants is using AI-driven labor scheduling and forecasting to boost efficiency and guest sentiment. Off-premise digital experiences remain a focus, with broader improvements planned later in the year.
Wendy’s Price Performance and Valuation
Wendy’s shares have experienced a decline of 12.2% over the past three months, compared to the industry’s growth of 4.6%. The stock is currently priced at a discount relative to its industry peers, with a forward 12-month price-to-earnings ratio of 11.31, significantly below the industry average.
The Zacks Consensus Estimate for 2025 earnings per share has remained stable over the past 30 days. However, the company currently carries a Zacks Rank #4 (Sell), indicating a cautious outlook from analysts. Investors interested in the latest Zacks #1 Rank (Strong Buy) stocks can view the complete list for further insights.
