Feb 28 (Reuters) - Wendy's has no plans to raise prices of its menu items during peak demand, the company said on Wednesday, days after CEO Kirk Tanner said the burger chain would start testing "dynamic pricing" at its restaurants starting as early as 2025.

Tanner earlier this month said Wendy's was going to start testing features including "dynamic pricing and daypart offerings, along with AI-enabled menu changes and suggestive selling," on a post-earnings call with investors.

Dynamic pricing, also known as surge pricing, refers to a practice where prices of products or services vary based on demand, typically resulting in higher prices for consumers at times of increased demand - similar to a rise in airfare at peak travel season or ride fares on Uber during certain times.

Wendy's said in a statement to Reuters on Wednesday it "would not raise prices when our customers are visiting us most."

It added that its initiative to add digital menuboards to certain stores would instead allow the company to offer discounts to customers more easily, "particularly in the slower times of day."

With increased media attention to the comment earlier this week, people took to social media platforms including Reddit and X, formerly Twitter, to criticize Wendy's plans, resulting in a growing online backlash against the restaurant.

"(Wendy's plan) means you could pay more for your lunch, even if the cost to Wendy's stays exactly the same. It's price gouging plain and simple, and American families have had enough," U.S. Senator Elizabeth Warren said in a post on X, formerly known as Twitter.

"We said these menuboards would give us more flexibility to change the display of featured items. This was misconstrued in some media reports as an intent to raise prices when demand is highest at our restaurants. We have no plans to do that," the company said.

"I guess I won't be eating at Wendy's anymore," one Reddit user said in a post, while a few others on X called for boycotts against the brand.

Some also took to memes and jokes.

"just got 110 burgers from Wendy's. nice try but your surge pricing won't get me, I'm stocked up for the year," said one X user, along with a photo of a refrigerator filled with Wendy's food bags.

(Reporting by Deborah Sophia in Bengaluru, Editing by Nick Zieminski)