Restaurant Tech Startup Olo to Raise up to $306M, $3B Valuation With IPO

New York-based Olo, short for “online ordering,” was founded by Noah Glass in 2005, about one year after Grubhub was founded and several years before DoorDash and Postmates were household names. Manage and reconcile all payments—card-present and card-not-present—in one place. This company is expected to earn $0.23 per share for the fiscal year ending December 2024, which represents a year-over-year change of 53.3%. And, as we enter a post-pandemic world with dine-in restrictions slowly lifting across the US, Glass believes digital ordering trends will remain.

Why Olo? Nobody says it better than our customers.

Culver’s, Krystal, and Nando’s U.S. Union Square Hospitality also expanded its relationship with Olo, “demonstrating that on-demand commerce can play an important role in fine-dining establishments,” the company said. Its Ordering module provides chains a white label direct-to-consumer ordering channel. So when a customer orders pickup from Wingstop’s app or website, Olo is powering that service. Wingstop, whose key food ordering and delivery providers are DoorDash and Olo, posted more than $1 billion in digital sales in 2020, a company record. A new food tech disruptor is making its Wall Street debut Wednesday.

We’re saving a great deal on chargeback costs, plus we increased efficiency, guest satisfaction, and our authorization rate. Meet the expectations of today’s digital-first guests by offering seamless checkout, digital wallet support, and industry-high authorization rates. Olo Inc. (OLO Quick QuoteOLO – Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements. They refer to their business model as a transactional SaaS model as it includes both subscription and transaction-based revenue streams, and it’s designed to align with its customers’ success. And, its sole mission is to work directly with those restaurants to drive online orders. According to a third-party delivery survey released in March by restaurant guest management solution provider SevenRooms and YouGov, nearly half of consumers said they prefer to order directly from restaurants because it is cheaper.

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Founded in 1993, The Motley Fool is a financial services company dedicated to making the world smarter, happier, and richer. The Motley Fool reaches millions of people every month through our premium investing solutions, free guidance and market analysis on Fool.com, personal finance education, top-rated podcasts, and non-profit The Motley Fool Foundation. Olo in New York provides an on-demand interface for the restaurant industry, designed to drive digital ordering and delivery for restaurant brands. But broadly, the number of total industry transactions is not fixed. It’s expanding with population growth and greater preference for prepared food, off-premises consumption, and digital ordering.

Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. To catch full episodes of all The Motley Fool’s free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. Keep operations running smoothly by tracking online orders from anywhere in your restaurant—back-of-house with Dashboard or front-of-house with Expo. Monitor performance, process refunds, check order statuses, and more.

Olo’s Order, Pay, and Engage solutions work together to create a Guest Data Flywheel—helping brands leverage mission-critical known guest data to drive business momentum and create a faster path to profitable growth. Many people think that delivery represents every digital transaction in the restaurant industry and that every consumer has migrated to delivery. But the reality is delivery is a small chunk of off-premise sales, Glass said. The pandemic highlighted the importance of having a robust digital business and it opened the door for online ordering players to promote their services. It faces dozens of online ordering solutions such as Lunchbox and Toast that are competing for a restaurant’s online ordering businesses. According to the Wall Street Journal, Toast is also planning an initial public offering.

Brands ironfx review were forced to shift attention and consumers shifted their use of restaurants to off-premises occasions. “… our interests are aligned with our customers’ interests to help them drive direct digital traffic first and foremost,” Glass says. And perhaps one of the more vivid stats—Olo’s active locations jumped 42 percent, year-over-year, to about 69,000. In Q1, Olo deployed a number of top chains, including Outback parent company Bloomin’ Brands, which moved from a homebuilt system.

Rather, it’s creating an off-premises experience fueled by digital. Delivery and takeout where the process runs smoothly, instead of feeling like a restaurant swimming in foreign waters. Yet, of course, COVID pulled digital ordering adoption into the future.

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• And thus, 100 percent of that unit’s order volume, when it opened, flowed through Olo.
• Combined subscription and transaction fees charged on a per-location basis is defined as the average revenue per unit noted earlier.
• Since 1988 it has more than doubled the S&P 500 with an average gain of +24.10% per year.

Glass was early to work with fast-casual brands like Sweetgreen, which has been lauded for its tech-forward approach. As diners shifted to more off-premise ordering, Olo helped restaurants daytrading definition adapt. Olo, founded in 2005, can best be described as a digital ordering and delivery enabling platform for restaurants.

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Think of Olo as having the universal key that unlocks dozens of doors, or tech solutions, used by restaurants. The change in a company’s future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company’s shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

While sizable, it fits into the roughly 60 billion transactions processed each year by restaurants. While the hospitality industry is still in the early innings of its digital transformation, we remain committed over two decades later to helping restaurants increase orders, streamline operations, and improve the guest experience. Ultimately, we want every guest to feel like a regular with every single restaurant interaction, no matter the size or the complexity of the restaurant brand. Learn how a fully-integrated, restaurant-centric payment platform can help you drive sales, improve operations, reduce fraud, and simplify day-to-day payment processes. At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors.