Palantir's AI is Officially In the Food Biz and Ice Cream Lovers are 100% Here For It (A.k.a. Me)
What’s that? You started to think AI may not really take human jobs? Yeah, think again. In short, Wendy’s (of all places) is officially bringing in the big guns to make sure your $1 Frosty addiction doesn’t go unfulfilled. And when I say “big guns,” I’m talking about none other than Palantir Technologies—the same company that helps defense agencies crunch data to, you know, protect entire nations LOL. But hey, if they can help prevent an inventory shortage on Frosty mix during Oklahoma Tornado weather in November (I wish I was joking), then I’m all for it.
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Here’s the thing: nobody wants to wait in line for their frozen treat only to hear those dreaded words, “Sorry, we’re out of Frosties.” - I mean, we hear that gut-wrenching excuse enough from McDonalds. Which is why now with Palantir’s AI platform, that nightmare scenario is looking like a thing of the past.
(Source: Bloomberg)
For instance, Wendy’s Supply Chain Co-op (QSCC)—the brains behind keeping 6,000 U.S. locations stocked—is now using Palantir’s AI to spot potential shortages before they even happen. Yes, my friends, we’ve reached the point where AI is so smart, it knows when you’re about to run out of chocolate Frosty mix before you do. Innovation, baby.
Now, is this kind of ridiculous? A tad. Did Wendy’s have to go full Skynet to keep my three year olds insatiable demand for ice cream filled to the brim? No, but to them, why da hell not? Palantir’s AI is already used by some heavy hitters like Tyson Foods and General Mills, so why shouldn’t Wendy’s get in on the action? It’s all about scale, speed, and making sure you never have to say no to a Frosty - even if it’s twice a day.
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Plus, let’s not forget that in this age of American inflation, keeping extra inventory on hand is getting more expensive by the day. Labor costs are up. Ingredient prices are up. And when you’re slinging burgers and Frosties on tight margins, every penny counts.Which again, is why Wendy’s is swooning over Palantirs AI to optimize their supply chain and cut costs where it hurts the least.
In fact, Pete Suerken, the guy running Wendy’s supply chain co-op, is pretty pumped about the whole thing. He’s convinced this tech is going to “change the way we work.” Additionally, according to Suerken, three or four years from now, if your fast-food joint isn’t using AI to predict inventory needs, you’ll be at a “distinct disadvantage.” Translation: Wendy’s is betting big on AI, and they think the rest of the fast-food world will follow suit or get left in the dust.
(Source: Seeking Alpha)
What’s more is that when it comes to tech advancements in 2024, ain’t nobody wants to waste their time crunching numbers on spreadsheets all day. According to Suerken, Palantir’s system frees up employees to focus on actual decisions, not just staring at cells on Excel. Meaning, eventually, the AI will even be able to make some of those decisions on its own. If the cost to fix an inventory problem is under $500, the AI can just handle it. No need to bother the humans. How nice.
Now with that said, what’s next for Wendys and their newfound AI? Well simple: more Frosties, fewer shortages, and possibly a world where AI runs your fast-food joint with more precision than a Swiss watch. Wendy’s is just getting started, but if this AI-powered supply chain experiment pays off, expect the rest of the industry piggyback on the fad trend.
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In the end, it’s clear that Palantir is positioning itself in every corner that AI can exist as the stock is up 227.86% YTD - and now, that Wendys is on the client list, their 3.54% YTD gains may end up being miniscule compared to where they are at come 2025.
So yeah, take that with a grain of salt, but definitely keep your eyes on these two stocks going forward. As always, stay safe and stay “Frostie”, friends! Until next time…
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Stocks.News holds positions in McDonalds as mentioned in the article.