Performance
DASH buys next-gen POS technology
Dash is moving closer to TOST's business model
DoorDash announced that it has entered into a definitive agreement to acquire hospitality technology (point of sale) startup, Bbot youtube. "Over the past few years, the hospitality industry has seen the benefits of growing their online channels as well as digitizing their in-store operations," said Steve Simoni, CEO of Bbot. "Joining forces with DoorDash enables us to more rapidly scale our solutions so that, together, we can equip more businesses with more low-cost tools to help them provide excellent customer experiences and compete in today's digital world." Bbot's in-store digital ordering solution allows merchants to increase sales while creating higher quality experiences for customers and staff. As customers benefit from shorter wait times to order and pay, staff benefit from faster table turnaround times and a greater focus on service. Merchants also can utilize all their tables and extend their hours even when faced with staff shortages. Bbot's solutions include best-in-class features, including a QR code scanner that brings customers to a merchant-branded, interactive online menu for in-store ordering. Guests can order with one another and alongside servers on a single, open tab. Bbot's flexible technology works seamlessly with a merchant's existing software services, including POS systems, loyalty programs, and reservation services. It operates on various merchant and consumer devices, including handhelds and tablets. "We're excited to bring our combined suite to an even wider selection of merchants across the hospitality space – including bars, hotels, and ghost kitchens – so these businesses can engage with more customers, increase their quality of service, and grow sales," said Tom Pickett, DoorDash's Chief Revenue Officer. "Bbot has built best-in-class features and highly customizable tools that will enable DoorDash to support the ever-growing range of merchant needs better."
Target adopting minimum wages as high as $24 an hour
This move will make it incrementally more difficult for the Restaurant industry to attract workers.
Workers at Target stores and distribution centers in places like New York, where competition for finding and hiring staff is the fiercest, could see starting wages as high as $24 an hour this year. The Minneapolis-based discount retailer said Monday that it would adopt minimum wages that range from $15 to $24 an hour, with the highest pay going to hires in the most competitive markets. It currently pays a universal starting wage of $15 an hour.
WEN Earnings
Valuation is a little rich for a slow-moving QSR company.
Wendy's 4Q21 GAAP EPS of $0.16 beats by $0.01; Revenue of $473.2M (-0.2% Y/Y) beats by $13.31M. Key operating metrics: SSS +7.3% vs FactSet +4.9%; US +6.1% vs FS +3.8%; International +18.1vs FS +8.1%; Restaurant margin 14.5% vs StreetAccount12.9%; G&A 13.6% vs SA 13.6%; Adjusted EBITDA margin 21.7% vs FS 22.5% and year-ago 24.1%. 2022 Outlook: Global systemwide sales growth: 6 to 8 percent FactSet ($1.9B); Adjusted EBITDA: $490 to $505 million (FactSet $490); Adjusted earnings per share: $0.87 to $0.91; Cash flows from operations: $320 to $340 million; Capital expenditures: $90 to $100 million; Free cash flow: $230 to $240 million
