If you’ve ever wondered how McDonald’s knows what your favourite Maccas order is, it’s because of their investment into customer engagement and part of that is thanks to tech company Plexure (ASX/NZX: PX1) which has entered into a new 5-year deal to remind its customers how much they love chicken nuggets.
The 5-year agreement continues Plexure’s existing partnership with McDonald’s Corporation which is its largest customer. The tech provided by Plexure is deployed in the McDonald’s mobile app for customers across 66 markets with the two biggest being in Italy and Japan. Through the app, fast food enthusiasts can order and make payment while Plexure collects customer data for marketing purposes on behalf of McDonald’s.
“We are excited about our continued partnership with McDonald’s and look forward to working collaboratively toward our mutual goal of delivering excellent experiences for McDonald’s customers through our world-leading customer engagement platform,” said Plexure Group CEO, Dan Houden.
The extension is under a similar agreement to the previous one but with provisions in favour of Plexure that will protect from losses incurred with it now clear that the customer loyalty data plays a big role in McDonald’s revenue. Additionally, McDonald’s has agreed to remove its short exit rights whereby the new Master Services Agreement will require Plexure be paid out for the 5 years if McDonald’s terminates the agreement for convenience before the end of the term.
The exact value of the 5-year contract has not been disclosed but McDonald’s will remain Plexure’s largest client. Other popular fast food chains that are serviced by Plexure include White Castle and Pita Pit.
“The renegotiated commercial terms with McDonald’s represent the culmination of a major transformation of the Plexure division underway since the merger with TASK,” added Houden.
“The transformation immediately underpins Group profitability and enables the business to focus on driving profitable growth by leveraging its combined technology stack to provide an end-to-end cloud engagement and transaction platform at scale for the global QSR and hospitality sector.”
In addition to announcing the new McDonald’s agreement, Plexure updated its earning guidance where the Company expects revenue for the 12 months ending 31 March 2023 to be around NZD $56 million, an increase on the previous year’s $32.6 million. With restructures around the business, Plexure is also expecting to deliver around $3.7m in adjusted EBITDA profit after a $13.1m loss in 2022.
Alfred Chan is a Business Reporter at The Sentiment specialising in ASX-listed small cap companies, a bloodstock enthusiast and former equities analyst.
Latest posts by Alfred Chan (see all)
- Harris Technology to expand refurbished tech division amid rising demand from cost-conscious Australians - April 30, 2025
- Harris Technology secures major investment from Taiwan’s FSP Technology at 100% premium - March 10, 2025
- ARC Funds acquires 30% of auzbiz Capital as latest direct-to-investor marketing venture - October 8, 2024
Leave a Comment
You must be logged in to post a comment.