Exposing Olo Part 3: Dropping 40% of Olo’s Enterprise Value into Wisely
From retailsystems — Both McDonalds and Five Guys Burgers and Fries compete on a daily basis to offer the public hamburgers and fries. In 2014, McDonald’s spent more than $988 million on advertising. Five Guys Burgers and Fries, in the same year, spent exactly $0. Continuing analysis of Olo by Reforming Retail.
Reference: reformingretail.com
Excerpt:
Let’s look at a totally different acquisition in the same, terrible restaurant industry: PAR acquired Punchh, a loyalty marketing platform in mid-2021 and since then Punchh has more than doubled revenue to $64M, representing a 29% IRR (we can ascertain this because PAR reports business lines separately and transparently).
This points to the biggest culprit being Olo’s management, both in their decisions on what assets to acquire, and post-acquisition execution (or lack thereof).
The second red flag was/is the legitimate technical hiccup between Wisely and Olo.
More Articles