Acquisition Enhances Yum! Brands’ Ability to
Make Smart Data-Driven Marketing Decisions; Integrates New
Technology Talent into Company
Yum! Brands, Inc. (NYSE: YUM) today announced that it has
entered into a definitive agreement to acquire the leading
artificial intelligence-based consumer insights and marketing
performance analytics business of Kvantum, Inc. By acquiring the
Kvantum business, Yum! and its KFC, Pizza Hut, Taco Bell and The
Habit Burger Grill brands enhance their ability to apply powerful
consumer insights and data analytics to drive calendar and
marketing spend optimization.
Founded in 2012 by Shilpi Sharma, Chief Executive Officer, and
Harpreet Singh, Chief Technology Officer, Kvantum develops and
deploys algorithms and artificial intelligence models to help
brands understand consumer behavior and make informed media and
calendar decisions. The acquired Kvantum business combines machine
learning and econometric modeling into its Marketing Performance
Analytics Platform in a seamless manner. Kvantum’s proprietary
technology can measure the effects of marketing tactics in a
designated geography across owned, paid and earned channels.
Kvantum uses the latest modern marketing principles to tailor its
services and technologies to support Yum!’s brands in several
international markets.
“Technology strategies that elevate the customer and employee
experience and lead to smart, data-driven marketing decisions are
critical to keeping our brands R.E.D. (relevant, easy to access and
distinctive) and delivering growth for our franchisees and
shareholders,” said David Gibbs, Chief Executive Officer, Yum!
Brands. “We’re excited about the opportunity this acquisition
presents, and the potential to scale Kvantum’s proven technologies
across our system to strengthen our data and advanced analytics
capabilities and elevate our world-class marketing competencies
globally.”
“Kvantum is an innovator in data analytics and marketing
optimization and has a proven track record of delivering
significant value to several of our international markets by
enabling data-driven marketing decisions to increase sales and
better leverage media budgets,” said Clay Johnson, Chief Digital
and Technology Officer, Yum! Brands. “Kvantum’s technology and the
U.S. based leadership capability it brings will be a fantastic
addition to the Yum! family, allowing us to apply a disciplined
marketing sciences program at scale and fast-track our data and
analytics strategy.”
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 elevate
the customer and employee experience, strengthen restaurant unit
economics and unlock new sources of global growth.
Yum! Brands plans to combine Kvantum’s artificial intelligence
and machine learning approach to understanding human behavior with
the unique skillsets of the anthropologists and sociologists at
Collider Lab, a culture-based consumer insights and marketing
strategy consultancy Yum! acquired in 2015. Yum! Brands believes
that Kvantum’s and Collider Lab’s combined methodologies will yield
even deeper consumer and brand insights and help advance the
Company’s R.E.D. Marketing strategies around the world.
“We’re passionate about developing cutting-edge technology
solutions based on advanced econometrics, big data and machine
learning techniques that enable our clients to understand consumer
behavior and optimize every dollar they spend on marketing and
promotions,” said Singh.
“We’ve been fortunate to work with many leading companies over
the years, including Yum! Brands, to help them make data-driven
marketing decisions to increase sales. We’re proud that our work
has made Kvantum an attractive candidate for a transaction of this
kind, and we’re thrilled to join an iconic global company like Yum!
Brands,” said Sharma.
The Kvantum business unit, as part of Yum! Brands, will continue
to offer their consultancy services to external clients outside of
the restaurant industry.
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.
About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has over
50,000 restaurants in more than 150 countries and territories,
making it a leader in global retail development 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. In 2020,
Yum! Brands 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 projected closing date for the transaction, 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 risk that the proposed transaction may not be
completed in a timely manner or at all; the occurrence of any
event, change or other circumstance that could give rise to the
termination of the purchase agreement between the parties; the
effect of the announcement or pendency of the proposed transaction
on Yum!’s and Kvantum’s business relationships, operating results
and business generally; the risk that the proposed transaction may
disrupt current plans and operations and the 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 Kvantum’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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Analysts are invited to contact: Keith Siegner, Vice President,
Investor Relations, M&A, and Treasurer, at 888/298-6986 Members
of the media are invited to contact: Virginia Ferguson, Senior
Director, Public Relations, at 502/874-8200
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