Yum China Holdings Inc said it will acquire a controlling stake in food delivery company Daojia, to expand delivery services for its KFC and Pizza Hut chains in the country. The transaction is expected to close by the end of this month, the company said…Full Article: China Daily May 2017

Key Point

  • From January to March 2017, food deliveries accounted approximately 12% Yum China’s sales. At the time, just over 4,400 of Yum China’s 7,663 restaurants had delivery services.

ChinaAg Comments

  • KFC is owned by Yum Brands, a company that also manages Taco Bell, Pizza Hut, and East Dawning. The company also manages a high-end Italian restaurant in Shanghai called “Atto Primo”.
  • In early 2017, Yum China Holdings (YUMC) will reportedly open Taco Bell outlets in mainland China.
  • As of late 2016, Daojia.com.cn operated in the cities of Beijing (since 2010), Shanghai (since 2011), Hangzhou (2013), Suzhou (2014), Nanjing (2014), Changzhou (2014), Tianjin (2014), Wuxi (2014), Shenzhen (2015), and Guangzhou (2015).
  • In December 2016, Yum China Holdings was in talks to acquire Daojia.com.cn.
  • In November 2016, Yum China Holdings began trading at the NYSE (YUMC). At the time, Yum China Holdings had approximately 5,000 Kentucky Fried Chickens (~1,100 cities), 1,600 Pizza Hut restaurants (~400 cities), and 350 Pizza Hut Delivery/E-commerce stores (~50 cities) in China.
  • In September, 2014, JD.com (e-commerce) and Macquarie Capital (finance) co-invested US$50 million in Daojia.com.cn.
  • Founded in April 2010 and headquartered in Beijing, Daojia.com.cn is an e-commerce food delivery platform that currently works with more than 6,000 restaurants.
  • Founded in 2004 and headquartered in Shanghai, East Dawning (a subsidiary of Yum Brands) is a fast food chain that sells various Chinese noodle dishes, steamed buns, and fruit tea beverages.
  • Founded in 1969 and headquartered in Sydney Australia, Macquarie Group (ASX:MQG) is an investment bank with offices in Hong Kong, Shanghai, and Beijing.

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