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