Yum! Brands completed $375 million acquisition
Yum! Brands has added another banner to its portfolio of restaurant brands.
The restaurant giant announced the completion of its acquisition of The Habit Restaurants. The transaction marks the addition of the first fast-casual concept to Yum! Brands’ portfolio. The company acquired all of the issued and outstanding common shares of The Habit Burger Grill for $14 per share in cash or a total of approximately $375 million.
The Habit Burger Grill, which operates nearly 300 restaurants in 13 states, features a grill-focused, California-inspired menu. With the closing of the deal, it is now a subsidiary of Yum! Brands. Habit Burger Grill will continue to be operated as an independent brand and remain based in Irvine, Calif. It will also .continue to be managed by Habit Burger Grill president and CEO Russell Bendel and CFO Ira Fils.
“Being part of Yum! will take The Habit Burger Grill to the next level by leveraging Yum!’s global scale, resources and franchising capabilities to strengthen and significantly grow our beloved brand for many years to come,” said Bendel.
Yum! Brands, based in Louisville, Kentucky, has more than 50,000 restaurants in more than 150 countries and territories primarily operating the company’s brands: KFC, Pizza Hut, and Taco Bell.
“The Habit Burger Grill is a sweet spot within fast-casual because of its delicious California-inspired menu with premium ingredients at a QSR-like value, strong unit economics and tremendous untapped growth potential in the U.S. and internationally,” said David Gibbs, CEO, Yum! Brands.
Yum! Brands estimates minimal impact to non-GAAP earnings per share before special items in 2020, with accretion beginning in 2021 and increasing thereafter.