Yum Brands just sold Pizza Hut, and now its CFO is saying the company is ready to make another big move. That means the fast-food giant is shopping again.
NRN editor in chief Sam Oches and executive editor Alicia Kelso discuss the news on this week’s Extra Serving. They look at Yum’s hint that it could acquire another brand, Jersey Mike’s attempts to reach younger customers, and Walmart’s new deal to deliver Papa Johns pizzas. This week’s episode covers all three stories in detail.
Yum’s Hint at a New Acquisition
CFO Ranjith Roy spoke at the recent Barclays Global Consumer Staples Conference. He said Yum is “prepared to make bold moves around its portfolio.”
The company already owns Taco Bell, KFC, and Habit Burger. So the question is simple: what brand could fit next?
Oches and Kelso share thoughts on which brands might make good targets for Yum. The hint comes after the company offloaded Pizza Hut, which had been part of its portfolio for years.
Jersey Mike’s Struggles With Young Customers
Jersey Mike’s reported that same-store sales were tracking higher than 3% in the third quarter. That is a solid number.
But the sandwich chain has a problem. It struggles with Gen Z, the generation that grew up with social media and delivery apps. That group has different expectations about how they order food, and Jersey Mike’s has been working to catch up.
The chain plans to invest more in digital marketing initiatives to reach younger consumers. Whether that push helps remains to be seen. The strategy is straightforward: use digital channels to connect with a generation that orders sandwiches online rather than in person.
Walmart Delivers Papa Johns From Standalone Locations
Walmart is expanding its delivery business. First, it announced that it would deliver for Subway and Dunkin’ locations based inside Walmarts.
Now it is going to deliver pizzas from standalone Papa Johns. Sam and Alicia unpack this news and highlight why it makes sense from a logistics standpoint. They also point out that there are natural challenges that could prevent it from being a massive success.
The Logistics Behind Walmart’s New Delivery Role
The deal makes sense on paper. By teaming up, the two companies can offer a service that neither could manage alone. Papa Johns gets access to Walmart’s delivery network, and Walmart adds another category of items to its delivery lineup.
“Prepared to make bold moves around its portfolio.”
That is what Roy said at the conference.
What a Digital Push Might Actually Change
Jersey Mike’s is betting that digital marketing can bridge the gap with younger customers. The chain wants to appeal to a generation that eats sandwiches online. The plan is to use digital channels to build relationships with that generation.
The question is whether the investment pays off. There is no guarantee that spending on digital marketing will close the gap with Gen Z, especially since the generation has been slow to respond to traditional advertising.
Other Marketing Moves This Week
The podcast wraps with a review of new marketing campaigns across the industry. Here is what caught the editors’ attention:
- Wingstop’s Wing Pass program
- Dunkin’s ad featuring Rachel Dratch and two Spice Girls
- Taco Bell’s partnership with Topgolf to support its upcoming Live Map Open golf tournament
These are small moves compared to a Yum acquisition. But they show how chains are trying to stand out in a crowded market.
The Bottom Line on Yum’s Next Move
Yum has made bold moves before. It sold Pizza Hut and now hints at another acquisition.
The company owns Taco Bell, KFC, and Habit Burger. Each of those brands serves a different audience. An acquisition would add to that portfolio, and the company has shown it is willing to shed brands that no longer fit its strategy.
What Jersey Mike’s Is Up Against
Gen Z is the hardest demographic for most restaurants to reach. Jersey Mike’s is investing in digital marketing to fix that. The question is whether that investment changes behavior.
Why Walmart’s Deal Matters for Papa Johns
Walmart’s delivery network is one of the largest in the country. The partnership gives Papa Johns access to that network, which can help the pizza chain reach customers who might not visit a standalone location otherwise.
The challenge is execution. Delivering pizzas from standalone locations is harder than delivering from stores, because the stores are located inside Walmarts themselves. The logistics are more complex when the locations are scattered.
What Comes Next
Yum’s next move is the biggest question in the industry right now. The company has hinted, but it has not named a target.
Jersey Mike’s has a plan, but it has not proven it works. And Walmart’s deal with Papa Johns is still new.
The coming months will show which bets pay off. For now, the industry is watching closely.
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