Initially Includes Online Ordering for Pickup
and Delivery from KFC and Taco Bell Restaurants in the U.S.
Yum! to Purchase $200M of Common Stock from
Grubhub
Pizza Hut U.S. President Artie Starrs to Join
Grubhub Board of Directors as an Independent Director
Yum! Brands (NYSE: YUM), one of the world’s largest restaurant
companies, and Grubhub (NYSE: GRUB), the nation’s leading online
and mobile takeout food-ordering company, today announced a new
partnership to drive incremental sales to KFC and Taco Bell
restaurants in the U.S. through online ordering for pickup and
delivery. YUM also entered into an agreement with Grubhub to
purchase $200 million of common stock, subject to customary closing
conditions, an investment that will provide Grubhub with additional
liquidity to accelerate expansion of its industry-leading U.S.
delivery network, drive more orders to YUM restaurants, and further
enhance the ordering and delivery experience for diners,
restaurants and drivers.
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Yum! Brands, one of the world’s largest
restaurant companies, and Grubhub, the nation’s leading online and
mobile takeout food-ordering company, today announced a new
partnership to drive incremental sales to KFC and Taco Bell
restaurants in the U.S. through online ordering for pickup and
delivery. (Photo: Business Wire)
The unique partnership aligns with YUM’s long-term strategies to
make its iconic brands easier for consumers to access and drive
profitable incremental sales growth for franchisees. Grubhub will
be YUM’s only national partner providing dedicated support for KFC
and Taco Bell branded online delivery channels, along with access
to Grubhub’s online ordering platform, logistics and last-mile
support for delivery orders, and point-of-sale integration to
streamline operations. KFC, Taco Bell and Grubhub will engage in
joint marketing initiatives that will generate new diners and drive
order frequency for existing diners.
“We are committed to making our iconic brands easier to access
through online ordering for pickup and delivery, and aggressively
pursuing delivery as a strategic global growth opportunity, with
nearly half of our 45,000 restaurants already offering it today,”
said Greg Creed, Chief Executive Officer, Yum! Brands, Inc. “We’re
pleased to secure this partnership with Grubhub in order to drive
incremental, profitable growth for our U.S. franchisees over the
long term. Our partnership and strategic investment in Grubhub
demonstrate our laser-like focus on two of our growth
drivers: Distinctive, Relevant & Easy Brands and Unmatched
Franchise Operating Capability.”
KFC, Taco Bell and Grubhub will work with franchisees to test
and roll out online ordering for pickup and delivery to thousands
of participating KFC and Taco Bell restaurants in the U.S. markets
Grubhub serves. When the initial phase of this Grubhub partnership
is launched over the coming months, KFC will offer door-to-door
delivery of its freshly hand-prepared Original Recipe® chicken and
other menu items to consumers in the U.S. The partnership will help
bring Taco Bell's innovative menu items like Doritos Locos Tacos
and the signature Crunchwrap Supreme® to more Taco Bell fans where,
when and how they want it.
“We are thrilled to bring KFC and Taco Bell to
Grubhub. Grubhub was founded to help small business owners and
restaurant entrepreneurs grow, and we look forward to supporting
YUM’s local operators by driving greater sales and profit growth
through access to our 14 million active diners,” said Matt Maloney,
Chief Executive Officer, Grubhub. “Our best-in-class logistics
platform, which currently delivers for tens of thousands of
restaurants, and our industry-first point-of-sale integrations make
us the ideal partner for YUM. We are excited to tap into the
unmatched consumer awareness and innovative advertising of KFC and
Taco Bell, helping accelerate the secular shift from offline
ordering to online, driving more orders to all of our
restaurants.”
Finally, as a part of the partnership, Grubhub will expand its
board of directors from nine to 10 members and appoint Pizza Hut
U.S. President Artie Starrs to the newly created board seat as an
independent director. Pizza Hut, which serves and delivers
more pizza than any other pizza company in the world, fulfills more
than 100 million delivery transactions in the U.S. annually and
manages a world-class network of drivers. Grubhub and Pizza
Hut will work together to determine how best to leverage their
respective scale and expertise.
“I have admired Grubhub’s innovative approach and dynamic
leadership team, and I’m honored to be joining their board,” said
Starrs. “I have tremendous respect for Matt Maloney and the Grubhub
board, and I look forward to working with them.”
YUM and Grubhub will discuss this partnership on their scheduled
earnings calls today, at 8:15 a.m. Eastern Time / 7:15 a.m. Central
Time and 10:00 a.m. Eastern Time / 9:00 a.m. Central Time,
respectively. A live webcast of the conference calls will be
available at www.yum.com/investors and
https://investors.grubhub.com.
Goldman, Sachs & Co. served as financial advisor and Mayer
Brown is serving as legal advisor to Yum! Brands. Kirkland &
Ellis LLP served as legal advisor to Grubhub Inc.
About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has over
44,000 restaurants in more than 135 countries and territories and
is one of the Aon Hewitt Top Companies for Leaders in North
America. In 2018, Yum! Brands was recognized as part of the
inaugural Bloomberg Gender-Equality Index. In 2017, Yum! Brands was
named to the Dow Jones Sustainability North America Index and
ranked among the top 100 Best Corporate Citizens by Corporate
Responsibility Magazine. The company’s restaurant brands – KFC,
Pizza Hut and Taco Bell – are the global leaders of the chicken,
pizza and Mexican-style food categories. Worldwide, the Yum! Brands
system opens over six new restaurants per day on average, making it
a leader in global retail development.
About Grubhub
Grubhub (NYSE: GRUB) is the nation's leading online and mobile
takeout food-ordering marketplace with the most comprehensive
network of restaurant partners and largest active diner base.
Dedicated to moving eating forward and connecting diners with the
food they love from their favorite local restaurants, the company's
platforms and services strive to elevate food ordering through
innovative restaurant technology, easy-to-use platforms and an
improved delivery experience. Grubhub is proud to work with
approximately 80,000 restaurant partners in over 1,600 U.S. cities
and London. The Grubhub portfolio of brands includes Grubhub,
Seamless, Eat24, AllMenus and MenuPages.
Numerous factors could cause our actual results and events to
differ materially from those expressed or implied by
forward-looking statements, including, without limitation: food
safety and food borne-illness issues; health concerns arising from
outbreaks of viruses or other diseases; the success of our
franchisees and licensees, and the success of our refranchising
strategy generally; changes in economic and political conditions in
countries and territories outside of the U.S. where we operate; our
ability to protect the integrity and security of individually
identifiable data of our customers and employees; our increasing
dependence on digital commerce platforms and information technology
systems; the impact of social media; our ability to secure and
maintain distribution and adequate supply to our restaurants; the
success of our development strategy in emerging markets; changes in
commodity, labor and other operating costs; pending or future
litigation and legal claims or proceedings; changes in or
noncompliance with government regulations, including labor
standards and anti-bribery or anti-corruption laws; recent Tax
Legislation and other tax matters, including disagreements with
taxing authorities; consumer preferences and perceptions of our
brands; changes in consumer discretionary spending and general
economic conditions; competition within the retail food industry;
and risks relating to our significant amount of indebtedness. In
addition, other risks and uncertainties not presently known to us
or that we currently believe to be immaterial could affect the
accuracy of any such forward-looking statements. All
forward-looking statements should be evaluated with the
understanding of their inherent uncertainty.
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version on businesswire.com: http://www.businesswire.com/news/home/20180208005615/en/
Yum! BrandsAnalysts:Keith Siegner, 888-298-6986Vice President,
Investor Relations, Corporate Strategy and TreasurerorKelly Knybel,
at 888-298-6986Director, Investor RelationsorMedia
Relations:Virginia Ferguson, 502-874-8200Director, Public
RelationsorGrubhubAnalysts:Dave Zaragoza, ir@grubhub.comCorporate
Finance & Investor RelationsorMedia Relations:Katie Norris,
press@grubhub.comPress & Public Relations
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