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Business Insider
3 days ago
- Business
- Business Insider
Wendy's AI guru joins Presto — and he's betting drive-thrus may never be the same
If you ask Michael Chorey, " Can AI take your order?" The answer is a resounding "yes." The founder and chief inventor of Wendy's FreshAI has departed from the burger chain and joined AI automation provider Presto as cofounder and president of its new division, Presto IQ. Over the last three years, Chorey helped Wendy's build an AI that he says can take customer orders faster and more efficiently than a worker wearing a headset. Now, he's betting the same tech will reshape the entire fast-food industry, one drive-thru at a time. The move marks a major shift for Chorey, who's stepping out of the corporate kitchen and into the broader world of tech providers with a plan to personalize — and partially automate — interactions between restaurants, their workers, and their customers. It's also a signal that the fast-food segment is rethinking its approach to AI. "This unlocks the future of what hospitality means, starting in the drive-thru," Chorey told Business Insider. Chorey spent three of his five years at Wendy's working to bring FreshAI to life. By the time he left the company in early August, he said the chain, which started testing the AI voice assistant in 2023, had implemented AI ordering at 300 drive-thru sites and planned to roll out the tech at as many as 600 locations by year's end. Representatives for Wendy's did not respond to a request for comment from Business Insider. Business Insider previously reported that Wendy's CEO Kirk Tanner told investors in February that the FreshAI system, created with Google Cloud,"gives customers the opportunity to build their orders." Despite early customer concerns about ease of use and accuracy, Tanner said he personally tests the technology a few times a week at a Wendy's location near the company's headquarters, adding that FreshAI "understands what to ask for, and the accuracy definitely is improving." The AI rollout race at a drive-thru near you Wendy's isn't the only chain that has rolled out AI-powered ordering assistants in recent years, but it is among the furthest along in implementing the technology. In 2021, McDonald's began testing an AI ordering system it created in collaboration with IBM, but rolled it back after videos showing flaws in the tech went viral in 2023, and ended the program in June 2024, Business Insider previously reported. In March, The Wall Street Journal reported McDonald's had struck a new deal, this time with Google, to revisit how to integrate AI across its global portfolio. Yum Brands, the parent company of chains including KFC and Pizza Hut, announced last July that it would expand the use of its AI-powered drive-thru assistant to hundreds of Taco Bell locations by year's end, in addition to five KFC locations in Australia, Business Insider reported. Presto's technology is already being tested at major chains like Carl's Jr. and Hardee's, both owned by CKE Restaurants, as well as Wienerschnitzel and Yoshinoya. Representatives for the chains did not immediately respond to requests for comment from Business Insider. Automated service with a smile Chorey said the main benefit — and challenge — of his work with Presto is expanding the technology to work seamlessly for each of the different brands and their customers. "If you listen to orders during lunchtime versus orders in the middle of the day, the way the human crew members talk to the customer changes, the way customers talk to the human crew member changes, and that changes even more with each brand," Chorey said. "Effective AI platforms are able to adapt, just like our human crew members, to create a very consistent experience, every time you come to a restaurant." As AI becomes more mainstream in the fast food sector, the Presto team knows the tech will disrupt the workers on the other end of the drive-thru box. Krishna Gupta, the cofounder and co-CEO of Presto, told Business Insider he expects there to be no human operators taking orders at drive-thrus within the next three years. Still, he added, "nobody wakes up in the morning and says, 'I want to take orders all day.'" "So now you can go to that person and say, instead of doing that monotonous, repetitive, boring work, you can actually create the food and make orders and serve people with a smile," Gupta said. "And that's my hope for AI tech broadly, is that it enables all of humanity to do that, and serve the higher purpose of our lives." For the brands considering implementing the technology, Gupta and Chorey said it's less a matter of "if" and more a matter of "when" they need to get on board, given the continuously evolving needs of the dining industry. " Fast food is fast, and it's only going to get faster — this is a very competitive landscape," Chorey said. "Brands need to be able to make decisions quickly; they need to be able to adapt on the fly, whether it's an operator at the restaurant or leadership within a broader brand, and these voice AI agents give them that ability." The drive-thru lanes were just the beginning. With AI agents already capable of upselling your order of french fries, the next evolution of fast food is smart, scalable — and increasingly inhuman.
Yahoo
10-07-2025
- Business
- Yahoo
Can Wendy's Digital Push and Gamified App Lift Engagement and Sales?
The Wendy's Company (WEN) is leaning on digital investments to improve engagement and drive sales as consumer traffic remains under pressure. In the first quarter of 2025, the company continued to enhance its digital channels, with app engagement reaching an all-time high. The digital mix rose to more than 20% of total sales, supported by new features that encourage customer interaction beyond the point of purchase. A key development is the gamification of the Wendy's app. This feature was introduced to deepen user engagement and build repeat visits. The app now offers more personalized content and targeted digital messaging, which the company believes is helping improve conversion rates. Another major focus is the rollout of Fresh AI and digital menu boards. As of the first quarter, Wendy's deployed Fresh AI in 168 locations and remains on track to reach more than 500 by year-end. The technology suggests curated add-ons at the point of ordering, which is already leading to higher average checks. It also aims to improve order accuracy and crew productivity, two areas linked directly 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 lift average spend. As adoption increases, the digital platform is set to play a larger role in driving long-term growth. Digital transformation continues to shape strategies across the restaurant space, with Yum! Brands, Inc. (YUM) and BJ's Restaurants, Inc. (BJRI) focusing on operational upgrades and guest engagement. Yum! Brands is benefiting from strong performance at its KFC and Taco Bell divisions, along with 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 is 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 experience remains a focus, with broader improvements planned later in the year. Wendy's shares have lost 12.2% in the past three months against the industry's growth of 4.6%. Image Source: Zacks Investment Research WEN is currently priced at a discount relative to its industry. It has a forward 12-month price-to-earnings ratio of 11.31, which is well below the industry average. Image Source: Zacks Investment Research The Zacks Consensus Estimate for 2025 earnings per share has remained stable in the past 30 days. Image Source: Zacks Investment Research The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BJ's Restaurants, Inc. (BJRI) : Free Stock Analysis Report Yum! Brands, Inc. (YUM) : Free Stock Analysis Report The Wendy's Company (WEN) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
03-05-2025
- Business
- Yahoo
Wendy's to deploy drive-thru AI to over 500 restaurants this year
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Wendy's is on track to implement digital menu boards and AI drive-thru ordering systems at over 500 restaurants by the end of the year, President and CEO Kirk Tanner said during the company's earnings call on Friday. The chain's Fresh AI technology, which automates the drive thru ordering process, has now been deployed to over 160 restaurants across the U.S. The platform continues to improve through company enhancements and interactions with customers, CFO Ken Cook said during the earnings call. Digital menu boards and automated drive-thru ordering is part of the chain's strategic pillar to improve customer experience by providing more personalization, convenience and hospitality, Tanner said. Franchisees began piloting the technology in 2024. The implementation of drive-thru AI is part of Wendy's larger technology strategy that also includes enhancements to its app and an expansion of its loyalty program. These tools could help boost same-store sales, which were down by 2.8% in the U.S. during the first quarter. Fresh AI, which Wendy's began testing in 2023 in partnership with Google Cloud, offers suggestions based on a customer's order that can increase check size, Tanner said. Additionally, the chain has seen improvements to order accuracy and efficiency in restaurants since employees can now focus on speed of service and delivering an accurate order. Wendy's is among a handful of chains, including Taco Bell, Zaxbys, Church's Texas Chicken and Bojangles, that have been adding drive-thru AI across their systems. Additionally, Wendy's updated its app by adding gamification that's engaging customers beyond the point of sale, Tanner said. The app can also now send digital messages to customers that are relevant to them. 'These updates are driving improvements across app engagement metrics, including conversion rate, which reached an all-time high in the first quarter and drove our digital mix to a record of over 20% of total sales,' Tanner said. The chain is also rolling out two additional initiatives, menu item label printers and smart delivery scales, to boost order accuracy, which customers say is an important driver of satisfaction, according to Tanner. Menu item labels will ensure that sandwiches are customized per customers' requests while delivery scales will make sure that customers receive all the items they ordered. 'In restaurants that utilize these tools, order accuracy is significantly improved,' Tanner said. 'While we are still in the early innings of delivering on our promise of a perfect every time experience, we're already making progress, taking the right steps to reach our full potential.' Recommended Reading Wendy's hits the gas on drive-thru AI, digital menu boards and kiosks Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-04-2025
- Business
- Yahoo
Meritage Reports First Quarter 2025 Results; Reaffirms Full-Year 2025 Earnings Outlook
GRAND RAPIDS, Mich., April 18, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier franchise operators, today reported financial results for the first quarter ended March 30, 2025. First Quarter Highlights: Sales were $154.5 million compared to $162.8 million for the same period last year. Earnings (loss) from Operations were $(3.7) million compared to $3.9 million for the same period last year, resulting from multiple severe weather-related closures. Net Earnings (loss) were $(4.3) million compared to $1.6 million for the same period last year. Consolidated EBITDA (a non-GAAP measure) was $2.2 million compared to $9.9 million for the same period last year. 'As previously reported, Company sales and earnings were significantly impacted by atypical weather that impacted all of its markets during the first quarter of the year, with severe weather events in its southern US markets that resulted in decreased consumer traffic and numerous temporary restaurant closures from record snow, ice and floods. Looking ahead, we are reaffirming our 30% to 40% growth in diluted EPS for the full-year 2025, driven by robust new product offerings at Wendy's in the second half of the year, highlighting protein-led innovations and marketing collaborations', stated Meritage CEO, Robert E. Schermer, Jr. During the second quarter, we are launching the Company's first restaurant location using Wendy's Fresh AI – the generative AI Bot technology that brings a digital automated ordering experience to the drive-thru customer. The Company is committed to leveraging technology and delivery options designed to improve customer experience as well as employee efficiency within the restaurants. The Company opened three new Wendy's during the first quarter and plans to open 7-10 new Wendy's through the remainder of the year as new unit-level economics continue to generate leading results, and higher guest frequency continues to reward us for contemporary restaurant designs and digital enhancements. Morning Belle the Company's proprietary single shift, breakfast/brunch concept, reported a strong same store sale increase of +21.9% for the first quarter as compared to last year, outperforming industry segment trends. The Company plans to open 3-5 new Morning Belle locations during the year, as proof of concept continues. 2025 Outlook: Better Earnings Outlook Ahead: Sales growth up to +3% Earnings from Operations growth of +40% to +50% Net Earnings growth up to +50% EBITDA growth up to +15% Diluted EPS growth of +20% to +30% The Company is focused on leveraging its robust operating platform and unique in-house restaurant development expertise to deliver consumers the highest level of quality, convenience, and affordability. Acquisitions, renovations, and new restaurant development are integral parts of our restaurant business model. The Company's five-year growth plan includes the acquisition and development of new Wendy's and Morning Belle restaurants. As we plan for the next generation of growth, including new capital partners, we remain actively engaged in planning for future strategic events to enhance shareholder value and liquidity. About the Company: Meritage Hospitality Group is the nation's premier restaurant operators, currently with approximately 381 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 12,000 employees across 15 States. The Company had 8,520,000 diluted weighted average shares outstanding as of fiscal year ended December 29, 2024. The Company's current and publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at under the stock symbol MHGU/Disclosures or the Company's website, SAFE HARBOR STATEMENTCertain information in this new release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor Statement at Robert E. Schermer, Hospitality Group Inc.(616) 776-2600 ext. 1012Sign in to access your portfolio
Yahoo
18-04-2025
- Business
- Yahoo
Meritage Reports First Quarter 2025 Results; Reaffirms Full-Year 2025 Earnings Outlook
GRAND RAPIDS, Mich., April 18, 2025 (GLOBE NEWSWIRE) -- Meritage Hospitality Group Inc. (OTCQX: MHGU), one of the nation's premier franchise operators, today reported financial results for the first quarter ended March 30, 2025. First Quarter Highlights: Sales were $154.5 million compared to $162.8 million for the same period last year. Earnings (loss) from Operations were $(3.7) million compared to $3.9 million for the same period last year, resulting from multiple severe weather-related closures. Net Earnings (loss) were $(4.3) million compared to $1.6 million for the same period last year. Consolidated EBITDA (a non-GAAP measure) was $2.2 million compared to $9.9 million for the same period last year. 'As previously reported, Company sales and earnings were significantly impacted by atypical weather that impacted all of its markets during the first quarter of the year, with severe weather events in its southern US markets that resulted in decreased consumer traffic and numerous temporary restaurant closures from record snow, ice and floods. Looking ahead, we are reaffirming our 30% to 40% growth in diluted EPS for the full-year 2025, driven by robust new product offerings at Wendy's in the second half of the year, highlighting protein-led innovations and marketing collaborations', stated Meritage CEO, Robert E. Schermer, Jr. During the second quarter, we are launching the Company's first restaurant location using Wendy's Fresh AI – the generative AI Bot technology that brings a digital automated ordering experience to the drive-thru customer. The Company is committed to leveraging technology and delivery options designed to improve customer experience as well as employee efficiency within the restaurants. The Company opened three new Wendy's during the first quarter and plans to open 7-10 new Wendy's through the remainder of the year as new unit-level economics continue to generate leading results, and higher guest frequency continues to reward us for contemporary restaurant designs and digital enhancements. Morning Belle the Company's proprietary single shift, breakfast/brunch concept, reported a strong same store sale increase of +21.9% for the first quarter as compared to last year, outperforming industry segment trends. The Company plans to open 3-5 new Morning Belle locations during the year, as proof of concept continues. 2025 Outlook: Better Earnings Outlook Ahead: Sales growth up to +3% Earnings from Operations growth of +40% to +50% Net Earnings growth up to +50% EBITDA growth up to +15% Diluted EPS growth of +20% to +30% The Company is focused on leveraging its robust operating platform and unique in-house restaurant development expertise to deliver consumers the highest level of quality, convenience, and affordability. Acquisitions, renovations, and new restaurant development are integral parts of our restaurant business model. The Company's five-year growth plan includes the acquisition and development of new Wendy's and Morning Belle restaurants. As we plan for the next generation of growth, including new capital partners, we remain actively engaged in planning for future strategic events to enhance shareholder value and liquidity. About the Company: Meritage Hospitality Group is the nation's premier restaurant operators, currently with approximately 381 restaurants in operation located in Arkansas, Connecticut, Florida, Georgia, Indiana, Massachusetts, Michigan, Missouri, Mississippi, North Carolina, South Carolina, Ohio, Oklahoma, Tennessee, Texas and Virginia. Meritage is headquartered in Grand Rapids, Michigan, operating with a workforce of approximately 12,000 employees across 15 States. The Company had 8,520,000 diluted weighted average shares outstanding as of fiscal year ended December 29, 2024. The Company's current and publicly available information pursuant to amended SEC Rule 15c2-11 and FINRA Rule 6432 can be found at under the stock symbol MHGU/Disclosures or the Company's website, SAFE HARBOR STATEMENTCertain information in this new release, particularly information regarding future economic performance and finances, and plans, expectations and objectives of management, constitutes forward-looking statements. Factors set forth in our Safe Harbor Statement, in addition to other possible factors not listed, could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. Please review the Company's Safe Harbor Statement at Robert E. Schermer, Hospitality Group Inc.(616) 776-2600 ext. 1012
