To boost customers’ digital experience,
Yum! Brands, Inc.’s ( YUM Quick Quote YUM - Free Report) KFC recently inked partnership with Nuvei and Judopay to enable seamless mobile payments for customers throughout its branches (almost 150) in Spain. Per the agreement, Nuvei will provide acquiring services for KFC Espana. With this partnership, KFC Espana will benefit from optimized transaction approval rates and local processing costs, while its customers will enjoy effortless payment experiences across all payment channels. In order to adapt to the franchise model, Nuvei also created bespoke documentation, pricing and sub-account management.
Meanwhile, the partnership with Judopay is likely to enhance the brand with benefits of seamless and touch-free payments as well as the network of local-acquiring partners.
With regard to the partnerships, Pablo Calavia, chief commercial officer of Yum! Brands, representing KFC Espana, stated, “The innovative technology of these two leading payment providers will help us improve our omnichannel customer experience, supporting our strategy of being the leading quick-service restaurant in digital experience across Western Europe.”
Focus on Digitalization
Yum! Brands implemented various digital features in mobile and online platforms across all brand segments to enhance guest experience. The company has been working toward making its delivery services faster and the results have been positive so far. During first-quarter 2021, KFC's digital sales mix reached a record of 43%, globally. The upside was primarily driven by the rapid expansion of delivery, click and collect as well as the introduction of new channel ordering options.
Going forward, the company continues to focus on its advanced point-of-sale system that is likely to boost member experience through optimization features, accuracy speed and reliability.
Price Performance Image Source: Zacks Investment Research
Coming to price performance, shares of Yum! Brands’ have moved up 7.8% so far this year compared with the
industry's 12% growth. The dismal performance was mainly due to the coronavirus pandemic. Moreover, restaurant traffic has been significantly impacted by the same. However, the company implemented various digital features in mobile and online platforms across all brand segments to enhance guest experience. This along with focus on off-premise channels, strategic investments in digital technology and refranchising efforts are likely to benefit the company in the upcoming periods. Meanwhile, earnings estimates for 2021 have moved up in the past 60 days, depicting analysts’ optimism regarding the stock’s growth potential. Zacks Rank & Other Key Picks
Yum! Brands currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Some better-ranked stocks in the same space are Ruth's Hospitality Group, Inc. ( RUTH Quick Quote RUTH - Free Report) , Dine Brands Global, Inc. ( DIN Quick Quote DIN - Free Report) and The Cheesecake Factory Incorporated ( CAKE Quick Quote CAKE - Free Report) , each sporting a Zacks Rank #1. Ruth's Hospitality and Dine Brands 2021 earnings are expected to surge 381.6% and 269.3%, respectively. Cheesecake Factory has a three-five year earnings per share growth rate of 8.5%.