Yum! Brands Inc.’s KFC and Pizza Hut haven’t kept up with rivals amid steep fast-food discounting.
Comparable sales trailed estimates in the first quarter, as diners flocked to competitors including McDonald’s Corp. and Burger King for inexpensive fast food. That sent the shares down the most in 2 1/2 years.
…With delivery becoming increasingly important, Yum Brands in February agreed to buy a $200 million stake in Chicago-based GrubHub Inc. The partnership will expand delivery for KFC and Taco Bell in the U.S.
Yum recorded $66 million in pretax investment income from the GrubHub stake, which added 16 cents per share of profit, the company said.