Acquisition Strengthens Yum! Brands’ Global
Digital Ordering Capability and Integrates New Technology Talent
into Company
Yum! Brands, Inc. (NYSE: YUM) today announced that it has
acquired Tictuk Technologies, a leading Israeli omnichannel
ordering and marketing platform company. The addition of Tictuk to
Yum! Brands’ technology portfolio will give the Company the ability
to offer more ways for consumers globally to access and order its
KFC, Pizza Hut, Taco Bell and The Habit Burger Grill brands through
some of the world’s most popular social media and conversational
platforms. Today’s announcement marks Yum! Brands’ second
technology investment this month to continue accelerating its
digital innovation strategy.
Founded in 2016, Tictuk is a privately held company based in Tel
Aviv, Israel, that specializes in conversational commerce, a
technology solution that allows users to complete orders and
interact with brands through a variety of social media and chat
channels, including WhatsApp, Facebook Messenger, Telegram, SMS, QR
codes, and email. Tictuk’s online ordering and marketing platform
also leverages a hybrid of chat, web, advertisements, and
intelligent marketing technology to engage with consumers. The
technology seamlessly integrates with POS and existing payment
systems and works for all types of customer engagement including
delivery, curbside pick-up and in-restaurant dining.
“As we navigate a consumer landscape reshaped by the events of
2020, we continue to intensify our focus on leveraging our scale
and reinforcing our growth model with investments in digital and
technologies to enhance the customer and employee experience,
strengthen restaurant unit economics and enable our brands and
franchisees to compete and win in a rapidly changing world,” said
David Gibbs, Chief Executive Officer, Yum! Brands.
In 2020, Yum! Brands’ digital sales hit a record of $17 billion,
about a 45% increase over the prior year, a testament to the
Company’s focus on pivoting its business model to win in an
off-premise environment and meeting new consumer needs. Yum!
Brands’ global technology strategy, in partnership with the KFC,
Pizza Hut, Taco Bell and The Habit Burger Grill divisions, is
focused on providing a best-in-class digital journey across mobile,
online, delivery and restaurant operations. The Company continues
to accelerate its digital commerce strategy through data and
advanced analytics and innovative emerging technologies to unlock
new sources of global growth.
“The right technologies will allow us to better serve customers
with the best offer and delicious food in a way that’s most
convenient for them,” said Chris Turner, Chief Financial Officer,
Yum! Brands. “We’re excited about the opportunity Tictuk presents,
as their solution delivers high impact by enabling our brands to
achieve a truly omnichannel presence and provide frictionless
ordering for customers in just a few clicks.”
Yum! Brands has successfully deployed Tictuk’s platform in
approximately 900 KFC, Pizza Hut and Taco Bell restaurants in 35
countries outside of the U.S. The Company plans to scale and offer
Tictuk’s omnichannel ordering and marketing capabilities to more
markets and franchisees globally to deliver more ways for consumers
to access its brands through social media and other conversational
commerce channels.
“Tictuk has a proven track record of driving increased
conversion, loyalty and sales by making it even easier for
customers to order our brands through their preferred social media
or conversational channel,” said Clay Johnson, Chief Digital and
Technology Officer, Yum! Brands. “With Tictuk, we’re able to offer
our franchisees around the world an incredibly effective
omnichannel ordering system that can be customized to every
market’s needs and implemented within just a few days. We’re
thrilled to have Tictuk join the growing Yum! technology portfolio,
allowing us to offer more frictionless ordering experiences for our
customers.”
“Omnichannel ordering creates new opportunities for relevant and
intimate engagement with customers and gives brands the ability to
reach a wider audience. By developing an ecosystem that synergizes
ordering technology with performance marketing and analytics, we
are empowering brands to better serve customers and increase
sales,” said Tomer Ben-Ezra, Founder and Chief Executive Officer,
Tictuk. “We’re delighted to expand our relationship with Yum!
Brands and join its family of global category-leading brands.”
The Tictuk business unit, as part of Yum! Brands, will continue
to offer its platform to existing clients. With today’s
announcement, Yum! Brands’ acquisition of Tictuk is complete.
The addition of Tictuk to the Yum! portfolio builds on the
Company’s recent technology investments. Earlier this month, Yum!
Brands announced that it has entered into a definitive agreement to
acquire the Kvantum business, an artificial intelligence-based
consumer insights and marketing performance analytics company.
Kvantum’s proprietary technology, combining machine learning and
econometric modeling into its Marketing Performance Analytics
Platform in a seamless manner, can measure the effects of marketing
tactics in a designated geography across owned, paid and earned
channels. Yum! Brands has been working with Kvantum in several
international markets and plans to leverage its services globally
to enhance the Company’s ability to apply powerful consumer
insights and data analytics to enable data-driven marketing
decisions to increase sales and better leverage media budgets. Yum!
Brands’ acquisition of the Kvantum business is expected to close by
the end of the first quarter of 2021, subject to standard closing
conditions.
Yum! Brands estimates that both of these all-cash acquisitions
will have an immaterial impact to its 2021 financial results, and
should accelerate the Company’s ability to grow digital sales as
they are deployed over time in markets around the world.
About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has over
50,000 restaurants in more than 150 countries and territories
primarily operating the company’s brands – KFC, Pizza Hut and Taco
Bell – global leaders of the chicken, pizza and Mexican-style food
categories. The Company’s family of brands also includes The Habit
Burger Grill, a fast-casual restaurant concept specializing in
made-to-order chargrilled burgers, sandwiches and more. Yum! Brands
was included on the 2021 Bloomberg Gender-Equality Index and in
2020, was named to the Dow Jones Sustainability Index North America
and was ranked among the top 100 Best Corporate Citizens by 3BL
Media.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this communication contain
“forward-looking statements.” Forward-looking statements can be
identified by the fact that they do not relate strictly to
historical or current facts. Forward-looking statements are based
on current expectations, estimates, assumptions or projections
concerning future results or events, including, without limitation,
the anticipated benefits of the transaction, and the future
earnings and performance of Yum! Brands or any of its businesses.
Forward-looking statements are neither predictions nor guarantees
of future events, circumstances or performance and are inherently
subject to known and unknown risks, uncertainties and assumptions
that could cause actual results to differ materially from those
indicated by those statements. We cannot assure you that any of the
expectations, estimates or projections expressed herein will be
achieved. Numerous factors related to the transaction could cause
actual results and events to differ materially from those expressed
or implied by forward-looking statements, including, without
limitation: the effect of the announcement of the proposed
transaction on Yum!’s and Tictuk’s business relationships,
operating results and business generally; the risk that the
proposed transaction may disrupt current plans and operations and
potential difficulties in employee retention as a result of the
proposed transaction; the ability to achieve the synergies and
value creation contemplated; Yum!’s ability to promptly and
effectively integrate Tictuk’s business; the risk that operating
costs and business disruption (including, without limitation,
difficulties in maintaining relationships with employees and other
third parties) may be greater than expected; the assumption of
unexpected risks and liabilities; the outcome of any legal
proceedings that may be instituted related to the proposed
transaction; and the other factors discussed in “Risk Factors” in
Yum!’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2020 and subsequent filings with the SEC made by Yum!
which are available at http://www.sec.gov. Yum! assumes no
obligation to update the information in the communication, except
as otherwise required by law. Accordingly, you should not place
undue reliance on these forward-looking statements.
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