LOUISVILLE, Ky. (AP) — The fallout from GrubHub’s slowdown continues, this time impacting one of the country’s largest restaurant chains.
Taco Bell owner Yum Brands Inc. said Wednesday it recorded a $60 million pretax write-down on the value of its GrubHub investment in the third quarter. Yum invested $200 million in the food delivery service last year.
That lowered Yum’s third-quarter earnings by 15 cents a share, to 80 cents. Analysts surveyed by FactSet had forecast earnings of 96 cents per share.
Revenue fell 4% to $1.3 billion, also short of Wall Street’s expectations. Louisville-based Yum said global same-store sales rose at Taco Bell and KFC. Pizza Hut was flat.
Grubhub shares plunged 43% Tuesday after it sharply cut revenue expectations for the year and warned of intense competition from rivals like UberEats.
Yum shares fell almost 9% in afternoon trading.