Signage is displayed outside a Yum! Brands Inc. Taco Bell Restaurant in Lockport, Illinois.
Daniel Acker | Bloomberg | Getty Images
Yum Brands said on Wednesday that it made its second technology acquisition in less than a month, while the company tries to maintain digital orders obtained during the coronavirus pandemic.
The restaurant group, which owns KFC, Taco Bell, Pizza Hut and Habit Burger Grill, said it bought Tictuk, an Israeli company that allows customers to order food on social media and messaging apps. Yum did not disclose the financial terms of the agreement, but said that Tictuk will continue to work with existing third-party customers.
Earlier this month, Yum bought Kvantum, which uses artificial intelligence for consumer insights and marketing performance analysis. There followed a highly successful year for Yum’s digital orders in 2020, with digital sales reaching a record $ 17 billion, an increase of about 45% over the previous year. Over the past decade, bargaining in the restaurant industry has expanded to include the purchase of technology companies, as well as adding new chains to portfolios.
Yum said it expects the cash acquisitions of Tictuk and Kvantum to have an immaterial impact on its 2021 financial results.
Yum already uses Tictuk’s ordering platform in around 900 KFC, Pizza Hut and Taco Bell restaurants in 35 international markets. With the technology, customers can order food via WhatsApp, Facebook Messenger, Telegram or via SMS, QR codes and email. Clay Johnson, Yum’s digital and technology director, said it could be implemented in just a few days.
“We are thrilled with the opportunity that Tictuk presents, as its solution offers high impact, allowing our brands to achieve a truly omni-channel presence and deliver frictionless orders to customers in just a few clicks,” said CFO Chris Turner in a statement .
Yum’s shares remained unchanged in pre-market trading. The company’s stock rose 55% last year, giving it a market value of $ 32.4 billion.