- January 9, 2020 / 4 min readThis agreement will make Habit Burger Grill the first fast-casual chain in Yum Brands' fast-food-centric portfolio.
Yum! Brands, the parent company of KFC, Taco Bell, and Pizza Hut, has signed a definitive agreement to buy a fast-casual concept operator, The Habit Burger Grill. This agreement will make Habit Burger Grill the first fast-casual chain in Yum Brands' fast-food-centric portfolio.
The transaction will likely get completed by the end of the second quarter of 2020. It is valued at approximately $375 million. Under the deal, Yum! Brands will acquire Habit Burger for $14 per share in cash.
With this acquisition, Yum! Brands will significantly increase its international portfolio. It will further enable the brand to diversify its portfolio beyond Taco Bell, KFC and Pizza Hut brands.
David Gibbs, CEO of Yum! Brands, said, “As a fast-casual concept with strong unit economics, The Habit Burger Grill is a fantastic addition to the Yum! family and has significant untapped growth potential in the U.S. and internationally.”
“With its delicious burgers and fresh proteins chargrilled over an open flame, The Habit Burger Grill offers consumers a diverse, California-style menu with premium ingredients at a QSR-like value. The transaction is a win-win because it allows us to offer an exciting new investment to our franchisees and to expand an award-winning, trend-forward brand through the power of Yum!'s unmatched scale and strengths in franchising, purchasing and brand-building,” he added.
Portfolio of Habit Burger
Started in 1969, The Habit Burger Grill provides charburgers, hand-filleted and marinated chargrilled chicken sandwiches, sushi-grade chargrilled ahi tuna sandwiches, fresh salads, sides and handmade frozen treats.
The brand launched its first restaurant in Santa Barbara, California. The fast-casual concept is now operating approximately 300 company-owned and franchised restaurants across the US and China.
Russell Bendel, President and Chief Executive Officer, The Habit Burger Grill, stated, “On behalf of The Habit Burger Grill board of directors, this transaction represents an exciting new chapter to strengthen and significantly grow The Habit Burger Grill by leveraging Yum! Brands’ global scale, resources, and franchising capabilities.”
“We’re confident the agreement delivers immediate value to The Habit Burger Grill shareholders and will greatly benefit our beloved brand, team members, franchisees and loyal guests for many years to come,” Bendel further added.
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