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
LOUISVILLE, Ky. & CHICAGO--(BUSINESS WIRE)--
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180208005615/en/
Yum! Brands
Analysts:
Keith Siegner, 888-298-6986
Vice
President, Investor Relations, Corporate Strategy and Treasurer
or
Kelly
Knybel, at 888-298-6986
Director, Investor Relations
or
Media
Relations:
Virginia Ferguson, 502-874-8200
Director, Public
Relations
or
Grubhub
Analysts:
Dave Zaragoza, [email protected]
Corporate
Finance & Investor Relations
or
Media Relations:
Katie
Norris, [email protected]
Press
& Public Relations
Source: Yum! Brands and Grubhub