LOUISVILLE, KY. – Yum! Brands, Inc., parent company of Pizza Hut, KFC and Taco Bell, has completed its acquisition of The Habit Restaurants Inc.
Yum! acquired all 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 company funded the transaction using cash on hand and available borrowing capacity under its credit facilities. Yum! said the company expects minimal impact to non-GAAP earnings per share before special items in 2020, with accretion beginning in 2021.
“Today marks an important milestone in our company’s history as we officially welcome The Habit Burger Grill to the Yum! family,” said David Gibbs, chief executive officer of Yum! Brands. “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 US and internationally. We couldn’t be more excited about what the future holds for The Habit Burger Grill and believe our acquisition of this trend-forward brand is a ‘win-win-win’ all around. We’ve added another great restaurant brand with a huge runway for growth to our company, our franchisees have a new investment opportunity in an award-winning, fast-casual concept and The Habit Burger Grill can access Yum!’s unmatched scale and strengths in franchising, purchasing and brand-building.”
The Habit Burger Grill, which operates nearly 300 company owned and franchised restaurants across the United States and China, offers a variety of made-to-order items chargrilled over an open flame. Menu items include charburgers, hand-filleted and marinated chargrilled chicken sandwiches, sushi-grade chargrilled ahi tuna sandwiches, fresh salads, sides and handmade frozen desserts. The Habit Burger Grill was named Best Regional Fast Food in USA Today’s 2019 Best Readers’ Choice Awards.
“This is a historic day for The Habit Burger Grill and we’re extremely proud to join the Yum! family of brands,” said Russ Bendel, chief executive officer of The Habit Burger Grill. “Our amazing team members and franchisees have always been focused on taking great care of our customers by providing a superior in-store experience and incredible food and none of that will change. 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.”