LOUISVILLE, Ky .– (COMMERCIAL THREAD)–Yum! Brands, Inc. (NYSE: YUM) (Yum! Brands) announced the completion of its acquisition of Dragontail Systems Limited (Dragontail), an innovative provider of technology solutions for the food industry, following the successful implementation of the plan previously announced shareholding. arrangement in accordance with Australian Company Law.
Yum! Brands acquired all of the issued and outstanding common shares of Dragontail for A $ 0.235 per share in cash, totaling approximately A $ 93.5 million. With the announcement, following approval by the Australian Federal Court and by the shareholders of Dragontail and certain other waivers and regulatory decisions, Dragontail is now a wholly owned subsidiary of Yum! Brands, Inc. Yum! Brands believes that this cash acquisition will have an immaterial impact on its 2021 financial results.
Dragontail’s platform is focused on optimizing and managing the entire food preparation process from order to delivery. Its connected, intelligent, end-to-end AI-based solution automates the kitchen flow combined with the driver dispatch process. It helps restaurants sequence and time each order, while planning optimal delivery routes and combining delivery orders by location. The technology also offers consumer-oriented features that allow customers to track their order along the way. In addition, it can work with external food delivery partners.
“A key growth driver for our business and our teams is the continued acceleration of our digital and technology strategy, including how we leverage our global scale with investments in technology initiatives that enhance the customer experience and employee, strengthen the restaurant unit economy and provide a competitive advantage for our franchisees, ”said David Gibbs, CEO, Yum! Brands. “We are delighted to welcome Dragontail and its world-class talent to Yum! family and look forward to deploying its AI kitchen order management, delivery and other technologies globally for our brands and franchisees over time. ”
Yum! Brands is focused on continuously accelerating its digital and technology initiatives around the world, aimed at providing customers with new and transparent ways to access its brands, simplify the lives of restaurant teams and improve the economy units for franchisees. Delivery, what a Yummy! Branding in more than 39,000 restaurants is a key part of the company’s strategy, driven by a combination of expanded partnerships with aggregators and continued investments in its own brand chains.
“Dragontail’s cutting-edge restaurant technology allows us to harness the power of AI to optimize the end-to-end food preparation process and further accelerate and improve our technology delivery capabilities,” said said Chris Turner, CFO, Yum! Brands. “We believe Dragontail will make it easier for team members to operate and manage a restaurant, help our franchisees strengthen their in-store operations, and provide a superior customer experience.”
Dragontail’s kitchen order management and delivery technology is deployed in nearly 1,500 Pizza Hut restaurants in more than 10 countries. Many Pizza Hut restaurants using the Dragontail platform have already seen a positive impact on sales, order fulfillment, and customer satisfaction scores, including product freshness and on-time delivery.
Yum! Brands’ purchase of Dragontail also brings in-house other emerging technologies from Dragontail, including its QT AI camera quality control system.
Dragontail Managing Director Ido Levanon commented: “It is exciting to see the completion of the acquisition of Dragontail by Yum! Brands with which we have collaborated for years. This transaction is positive for the shareholders of Dragontail and it brings Yum! Brands with even more innovative technology. We look forward to working together to deploy this technology to more of Yum! Restaurant brands around the world.
The addition of Dragontail to Yum! The portfolio marks the company’s third technology acquisition in 2021. In March, Yum! Brands acquired the business from Kvantum, Inc., an AI-based marketing performance and consumer insights analysis company that has a proven track record of adding significant value by enabling decision-based decisions. data to drive a return on advertising investment and increase sales. That same month, Yum! Brands also acquired Tictuk Technologies, a leading omnichannel ordering and marketing platform company giving consumers worldwide more ways to access and order its brands through text, social media and more. conversation channels.
With the announcement, Dragontail Systems Limited is now a subsidiary of Yum! Brands, Inc., and will continue to operate as an independent brand.
The Dragontail business unit, as part of Yum! Brands, will continue to offer technological solutions to its existing customers.
Dragontail employees will be primarily located in Israel, the United States and Australia, and will continue to be led by Dragontail Managing Director Ido Levanon.
Baker McKenzie acted as senior legal counsel to Yum! Brands and Thomson Geer acted as legal counsel to Dragontail Systems Limited.
About Miam! Brands
Yum! Brands, Inc., headquartered in Louisville, Kentucky, has more than 51,000 restaurants in more than 150 countries and territories, operating the company’s brands – KFC, Pizza Hut and Taco Bell – the world’s leading chicken, pizza and food categories. mexican style. The company’s family of brands also includes The Habit Burger Grill, a fast-paced, casual restaurant concept specializing in grilled-to-order burgers, sandwiches and more. Yum! Brands was included in the 2021 Bloomberg Gender Equality Index. In 2020, Yum! Brands has been named in the Dow Jones Sustainability Index North America and ranked among the Top 100 Corporate Citizens by 3BL Media.
Dragontail is focused on revolutionizing the Quick Service Restaurant (QSR) and catering industry with its two core technology offerings, sold under a software-as-a-service model, monthly subscription-based and customer-based. cloud. Dragontail’s Algo platform is the world’s first system to fully automate and streamline the kitchen workflow to deliver immediate and significant ROI to fast food and quick service restaurants, integrating directly into the kitchen system. point of sale of a restaurant. In addition, the sensor and camera system of its QT AI Camera System automatically monitor the preparation and cooking process in the kitchen, improving its efficiency and diagnostics using patented and advanced learning technology. automatic AI. Dragontail is present throughout Australia, New Zealand, the United States, Latin America, Canada, Europe – United Kingdom, Belgium, Singapore, South Africa and Israel. The company is deploying its technology globally and has partnered with global delivery services in a growing number of countries.
Caution Regarding Forward-Looking Statements
Certain statements contained 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 regarding future results or events, including, without limitation, the expected closing of the transaction, the anticipated benefits of the transaction and the anticipated impact of the transaction on Yum! 2021 brands results. 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 these statements. We cannot assure you that the expectations, estimates or projections expressed in this document will be realized. Many factors relating 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 transaction on Yum! and Dragontail, operating results and business in general; the risk that the proposed transaction could disrupt current plans and operations and the potential difficulties in retaining employees as a result of the transaction; the ability to achieve the synergies and the creation of value envisaged; the ability of Yum! to quickly and efficiently integrate the activities of Dragontail; the risk that operating costs and business disruptions (including, without limitation, difficulties in maintaining employee relationships) will be greater than expected; the assumption of unexpected risks and responsibilities; the diversion and attention of the leadership of the two Yum! and Dragontail on transaction-related issues; and other factors discussed in the “Risk Factors” section of Yum! www.sec.gov. Yum! assumes no obligation to update the information contained in the communication, unless the law requires otherwise. Therefore, you should not place undue reliance on these forward-looking statements.