GrubHub Inc (NYSE:GRUB) stock was soaring today on news of a delivery deal with Yum! Brands, Inc. (NYSE:YUM).
The deal between GrubHub Inc and Yum! Brands, Inc. will have the food delivery company offering its services to the latter’s KFC and Taco Bell stores. This will have GrubHub acting as the exclusive delivery service for the two brands across the U.S.
GrubHub Inc and and Yum! Brands, Inc. will first start out by testing delivery options with franchisees. After this, they plan to start offering door-to-door deliveries of their goods. They will also work to promote the new delivery option to customers.
As part of the deal between and GrubHub Inc and Yum! Brands, Inc., YUM is going to be investing in GRUB stock. It plans to purchase $200 million worth of GRUB stock. This will provide the delivery service with additional capital to work with and expand its business.
The deal will also see GrubHub Inc expanding its current Board of Directors from 10 members to 11. The new member that will be joining GRUB’s Board of Directors is Pizza Hut U.S. President Artie Starrs. He will serve as an independent director on the Board.
“We are committed to making our iconic brands easier to access through online ordering for pickup and delivery, and aggressively pursuing delivery as a strategic global growth opportunity, with nearly half of our 45,000 restaurants already offering it today,” Greg Creed, CEO of Yum! Brands, Inc., said in a statement.
GRUB stock was up 32% as of Thursday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.
