Boston, MA 04/09/2014 (wallstreetpr) – The fast-food restaurant chain released a new mobile app which allows convenient payment for customers ordering on the go. The Wendy’s Co (NASDAQ:WEN) stated that the app is available on Android and iOS devices.
The mobile app allows users to pay for orders through their smartphone and tap into the restaurant’s nutritional information. Customers can also create and save their Wendy’s profile that includes details about favorable meals. The app also allows users to easily locate the nearest restaurant; a feature that Wendy’s believe will help in increasing traffic to its food outlets nationwide. The app was reportedly developed in the past year and deployed for testing in some of its locations in the U.S.
In a departure from the ordinary mobile payment solutions available in other stores, Wendy’s app generates a six-digit code which the customer displays to the cashier. Thus, the company believes that its system will be able to not only make it convenient to pay for orders, but also increase overall sales.
The Wendy’s Co (NASDAQ:WEN) operates about 5,800 restaurant locations in the U.S.
Investment opportunity
That The Wendy’s Co (NASDAQ:WEN) is deploying mobile payment solution is a clear indication that the company is out to increase sales and improve customer experience. The intense competition in the fast-food service market means that players must always stay at the cutting edge of the technology as this helps to boost sales and build a reputation. And Wendy’s is doing just that. The company projects same-store sales to increase between 2.5 and 3.5 percent this year.
Free cash flow risk
The Wendy’s Co (NASDAQ:WEN) should benefit from its ongoing efforts. However, the company needs to do more about its publicity in order to attract more traffic to its stores. Moreover, the company is known for consistent dividend payment. However, analysts express concern that current big dividend payments may lead to free cash flow problem in the future if the profits are not invested in building a business.
