Wendy’s CEO Todd Penegor told CNBC’s Jim Cramer on Wednesday that the fast-food chain’s artificial intelligence partnership with Google is the “first step” in further technological changes at its restaurants.
Wendy’s and Alphabet-owned Google collaborated to create an AI chatbot specifically designed for drive-through orders. The Ohio-based burger chain will pilot an AI drive-thru program at multiple Columbus-area locations beginning in June, Penegor told Cramer.
This new drive-thru feature aims to “bridge the slowest point in the ordering process, ordering at the speakerphone,” to create a more enjoyable dining experience, the CEO said. “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 the possibilities of digital menu boards, for example. Overall, with these initiatives, Wendy’s is “trying to drive the restaurant of the future,” he said.
Penegor said another area of opportunity is to expand Wendy’s hours. “We’ll be leaning in late into the night,” he said. “We know we’re under-indexed and have an opportunity to drive a lot of growth” by targeting audiences late into the night.
Earlier Wednesday, Wendy’s reported better-than-expected first-quarter results with total revenue of $528.8 million, up 8.2% from the same period last year. This compares to the analyst consensus estimate of $522 million. The company’s earnings per share came in 1 cent higher than expected at 21 cents.
But despite the positive results, Wendy’s refused to raise its full-year guidance, which may have helped the stock fall about 2% from Wednesday’s low; but it closed up 1% at $23.21.
Disclaimer: Jim Cramer’s Charitable Trust owns shares of Alphabet.
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