GrubHub’s stock price skyrocketed as much as 29 percent on Thursday morning after the company announced impressive fourth-quarter financial results and a giant partnership with Yum Brands, the owner of Taco Bell, KFC and Pizza Hut.
GrubHub’s stock price is soaring after it announced a giant partnership with Taco Bell and KFC — and crushed earnings
Taco Bell’s parent company will also invest $200 million into GrubHub.
Joshua Blanchard/Getty Images for Taco Bell
Jason Del Rey has been a business journalist for 15 years and has covered Amazon, Walmart, and the e-commerce industry for the last decade. He was a senior correspondent at Vox.
Over the next five years, GrubHub will partner with Yum to offer pickup and delivery options nationwide at thousands of Taco Bell and KFC locations. Pizza Hut already offers delivery at its locations, but the two companies said they will work on ways to improve that service.
Customers who want to place online orders from these chains will be able to do so on GrubHub’s website and app, as well as the digital properties of Taco Bell and KFC. Yum Brands will also purchase $200 million of common stuck in GrubHub, and place Pizza Hut President Artie Starrs on GrubHub’s board of directors.
GrubHub also recently announced a delivery partnership with White Castle as it battles food-delivery services from Uber and Amazon — and startups like DoorDash and Postmates — for both big-name partners and the loyalty of consumers. Unlike many of the others, GrubHub operates its business profitably and at a large scale; the company is currently valued at nearly $8 billion.
The announcement came as GrubHub announced fourth-quarter revenue and profit numbers that beat the expectations of stock analysts.
This article originally appeared on Recode.net.
