Today’s Research Reports on Stocks to Watch: Grubhub and Yum! Brands

NEW YORK, NY / ACCESSWIRE / February 9, 2018 / Shares of Grubhub were skyrocketing in Thursday trading after the company released impressive fourth quarter results and a partnership with Yum! Brands. Yum! Brands also reported strong earnings along with the partnership but closed down in the red.

RDI Initiates Coverage on:

Grubhub Inc.
https://rdinvesting.com/report/?ticker=GRUB

Yum! Brands, Inc.
https://rdinvesting.com/report/?ticker=YUM

Grubhub’s shares were on fire in Thursday trading and closed up the day 27.36%. The stock hit a new high of $94.89 during intra-day trading on nearly 13.6 million shares traded. The company’s fourth quarter report and partnership with Yum! Brands had traders cheering. Grubhub announced sales of $205.1 million. This was a 49% increase from the year ago quarter. Adjusted earnings per share were $0.37, a 60.9% increase compared to the quarter one year ago. It was last October that Grubhub closed on its acquisition of Eat24. In its partnership with Yum! Brands, Yum! Brands will be purchasing $200 million of stock in Grubhub and Grubhub will be Yum!’s only national partner in online ordering for both Taco Bell and KFC. According to Grubhub’s CEO Matt Maloney, the deal will “accelerate the expansion of our delivery network and amplify our diner acquisition efforts, raising consumer awareness of online ordering and driving more volume for all restaurants across our platform.” In last 12 months, shares of Grubhub gained over 117%.

Access RDI’s Grubhub Inc. Research Report at:
https://rdinvesting.com/report/?ticker=GRUB

Yum! Brands’ shares closed down 4.78% yesterday on about 4.6 million shares traded. The company behind KFC, Pizza Hut, and Taco Bell, closed in red despite reporting a beat in its fourth quarter earnings and a $200 million partnership with Grubhub. For fiscal fourth quarter 2017, Yum! Brands reported total revenue of $1.58 billion and EPS of 96 cents. Analysts had been waiting for revenue of $1.59 billion and EPS of 80 cents. CFO David Gibbs remarked, “Despite headwinds from refranchising dilution and lapping a 53rd week, we delivered full-year core operating profit growth of 7%. We are on track with our strategic transformation to accelerate growth and made significant progress towards achieving these objectives in 2017.” Last year the company opened 1,407 net new stores and refranchised 1,470 restaurants. CEO Greg Creed in a statement: “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.” Yum! Brands announced that it will purchase $200 million of stock in Grubhub and Grubhub will be Yum!’s only national partner in online ordering for KFC and Taco Bell.

Access RDI’s Yum! Brands, Inc. Research Report at:
https://rdinvesting.com/report/?ticker=YUM

Our Actionable Research on GrubHub Inc. (NYSE: GRUB) and Yum! Brands, Inc. (NYSE: YUM) can be downloaded free of charge at Research Driven Investing.

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