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GrubHub's stock rockets as Yum partnership is seen as a 'big win'

Pizza Hut, Yum’s other restaurant chain, already fills more than 100 million delivery transactions each year in the U.S. and manages a fleet of drivers, according to the release.

Pizza Hut’s U.S. President Artie Starrs will join GrubHub’s GRUB, +30.45% board in a newly created seat, expanding it to 10 members from nine.

At Wednesday’s closing price of $69.91, $200 million would buy about 3.3% of the shares outstanding, which would make Yum the 11th-largest shareholder, according to FactSet data.

“This will be an exclusive partnership, and according to the release, GrubHub will be integrated into the POS,” said Mizuho analysts.

“This is a major win for GrubHub as it will likely be accompanied by a joint marketing campaign during the rollout phase.”

GrubHub reported adjusted earnings per share of 37 cents on sales of $205.1 million.

Global same-store sales rose 2% with 3% growth at KFC, a 1% rise at Pizza Hut and a 2% lift at Taco Bell.

READ MORE (MarketWatch)

  • Stocks making the biggest moves premarket: TWTR, REGN, YUM, GRUB, CVS, TMUS & moreCNBC
  • KFC, Taco Bell teaming with Grubhub to start home deliveriesCBS News
  • Yum! Brands Reports Delectable Q4 and $200 Million Partnership With
  • Knock knock…Who's there? Taco Bell and the ColonelWTOP
  • Grubhub shares soar on jump in users, Yum Brands stakeCNBC
  • KFC and Taco Bell are rolling out delivery with a $200 million deal — and ...Business Insider
  • GrubHub's stock price is soaring after it announced a giant partnership with ...Recode
  • KFC parent Yum's quarterly profit tops estimatesReuters
  • Pizza Hut, Taco Bell parent Yum misses same-store sales estimatesReuters

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GrubHub's stock rockets as Yum partnership is seen as a 'big win'


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