LOUISVILLE, KENTUCKY (AP) — The fallout from GrubHub’s slowdown continues, this time impacting one of the United States’ (US) largest restaurant chains.
Taco Bell owner Yum Brands Inc said on Wednesday it recorded a USD60 million pretax write-down on the value of its GrubHub investment in the third quarter. Yum invested USD200 million in the food delivery service last year.
That lowered Yum’s third-quarter earnings by 15 cents a share, to 80 cents. Analysts surveyed by FactSet had forecast earnings of 96 cents per share. Revenue fell four per cent to USD1.3 billion, also short of Wall Street’s expectations. Louisville-based Yum said global same-store sales rose at Taco Bell and KFC. Pizza Hut was flat.
GrubHub shares plunged 43 per cent on Tuesday after it sharply cut revenue expectations for the year and warned of intense competition from rivals like UberEats. Yum shares fell almost nine per cent in afternoon trading.