The ASX’s only ‘restaurant tech’ stock to be acquired by Yum Brands
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Restaurant tech stock Dragontail Systems (ASX:DTS) is set to be acquired by Yum Brands – the fast food giant behind KFC, Pizza Hut and Taco Bell.
Dragontail offers various technological solutions including an AI camera technology that can detect the quality of pizzas and a software platform which deploys an “optimisation algorithm” which helps streamline efficiencies in the restaurant order and delivery process.
Dragontail had already been collaborating with Yum prior to the takeover offer.
Yum is offering 23.5 cents per share, a premium nearly 50 per cent to yesterday’s closing price of 18 cents.
Yum’s CFO Chris Turner said it would help his brands, especially Pizza Hut, utilise AI to accelerate and enhance delivery technology capabilities.
Dragontail is endorsing the bid labelling it as an “attractive opportunity”.
“The activities of Dragontail and Yum Brands are complementary, the synergy is natural and we bless the completion of the acquisition,” said Dragontail Managing Director Ido Levanon.
Dragontail shares rose this morning although not quite to the price of Yum’s offer.
On the ASX Dragontail is the only company offering broad solutions for restaurants but there are a trio of stocks in the food delivery game.
The biggest is $600 million company Marley Spoon (ASX:MMM) which gained over 800 per cent due to heavy demand for its services during the COVID-19 lockdowns.