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Behind Yum's $200M investment in GrubHubBehind Yum's $200M investment in GrubHub

KFC-Taco Bell parent says 3% stake yields franchise-positive economics

Ron Ruggless, Senior Editor

February 9, 2018

4 Min Read
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Yum! Brands Inc.’s $200 million investment in Grubhub Inc. provides positive economics for its franchisees and sales benefits as the parent to KFC, Pizza Hut and Taco Bell sees more customers turning to delivery, company executives said Thursday after announcing the deal.

Grubhub separately said that Yum’s 3 percent investment in the Chicago-based company would allow it to build out its network, now in 1,300 cities, faster.

“It was a really important part of this process for us to make sure that we ensured our franchisees had good economics,” said David Gibbs, Yum CFO and president, in a post fourth-quarter-earnings analyst call. 

“We think we have a deal set up that our franchisees will absolutely embrace and that will drive incremental pr...

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About the Author

Ron Ruggless

Senior Editor, Nation’s Restaurant News / Restaurant Hospitality

Ron Ruggless serves as a senior editor for Informa Connect’s Nation’s Restaurant News (NRN.com) and Restaurant Hospitality (Restaurant-Hospitality.com) online and print platforms. He joined NRN in 1992 after working 10 years in various roles at the Dallas Times Herald newspaper, including restaurant critic, assistant business editor, food editor and lifestyle editor. He also edited several printings of the Zagat Dining Guide for Dallas-Fort Worth, and his articles and photographs have appeared in Food & Wine, Food Network and Self magazines. 

Ron Ruggless’ areas of expertise include foodservice mergers, acquisitions, operations, supply chain, research and development and marketing. 

Ron Ruggless is a frequent moderator and panelist at industry events ranging from the Multi-Unit Foodservice Operators (MUFSO) conference to RestaurantSpaces, the Council of Hospitality and Restaurant Trainers, the National Restaurant Association’s Marketing Executives Group, local restaurant associations and the Horeca Professional Expo in Madrid, Spain.

Ron Ruggless’ experience:

Regional and Senior Editor, Informa Connect’s Nation’s Restaurant News and Restaurant Hospitality (1992 to present)

Features Editor – Dallas Times Herald (1989-1991)

Restaurant Critic and Food Editor – Dallas Times Herald (1987-1988)

Editing Roles – Dallas Times Herald (1982-1987)

Editing Roles – Charlotte (N.C.) Observer (1980-1982)

Editing Roles – Omaha (Neb.) World-Herald (1978-1980)

Email: [email protected]

Social media:

Twitter@RonRuggless

LinkedIn: www.linkedin.com/in/ronruggless

Instagram: @RonRuggless

TikTok: @RonRuggless

 

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