Yum! Brands closes $375m acquisition of The Habit Restaurants

Yum! Brands has completed the acquisition of The Habit Restaurants (The Habit Burger Grill) for approximately $375 million, marking the first fast-casual concept addition to the company’s portfolio of global restaurant brands.  

The announcement follows the approval by The Habit Burger Grill stockholders.

Following the deal, The Habit Burger Grill will become a subsidiary of Yum! Brands joining the likes of KFC, Pizza Hut and Taco Bell.

However, the fast-casual restaurant will continue to be operated as an independent brand and managed by its current president and CEO Russell Bendel and CFO Ira Fils.

Founded in California in 1969, The Habit Burger Grill offers a variety of made-to-order chargrilled burgers and sandwiches, as well as salads, sides and shakes. It operates nearly 300 company-owned and franchised restaurants across the US and China.

Over the past few years, the restaurant brand has expanded its digital and delivery capabilities through delivery partnerships and the introduction of online ordering, a mobile app, restaurant kiosks and drive-thrus.

Russ Bendel, CEO of The Habit Burger Grill, said: “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.”

Based in Kentucky, Yum! Brands is the parent company of over 50,000 restaurants in more than 150 countries.

“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,” said David Gibbs, CEO of Yum! Brands.  

Gibbs added: “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.”

As part of the transaction, Yum! Brands acquired all of the issued and outstanding common shares of The Habit Restaurants for $14 per share in cash or a total of approximately $375 million.