Categories Retail

Yum! Brands announces acquisition of The Habit Restaurants

Yum! Brands Inc. (NYSE: YUM) announced an agreement to acquire The Habit Restaurants Inc. (NASDAQ: HABT) (The Habit Burger Grill) for approx. $375 million. The deal, which equals $14 per share in cash, is expected to be completed by the end of the second quarter of 2020.

Yum! plans to finance the transaction using cash on hand and available borrowing capacity under its credit facilities. After the close of the deal, Habit Burger will continue to be run by CEO Russell Bendel, who will report to Yum’s CEO David Gibbs.

David Gibbs, CEO of Yum! Brands, said, “We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our existing brands and leverage our scale to unlock value from strategic acquisitions. 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 US and internationally.”

During the period from 2009 to 2018, The Habit Burger Grill grew its company-operated restaurant average unit volumes by 49.9%, from approx. $1.2 million to $1.9 million. The company has been working to improve its customer experience through delivery partnerships and digital capabilities.

Shares of Yum! were down slightly in afternoon hours but Habit’s stock skyrocketed 32% after the deal was announced.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Key highlights from Autodesk (ADSK) Q4 2021 earnings results

Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per

Infographic: Beyond Meat (BYND) reports wider Q4 loss; Revenue up 4%

Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus

Virgin Galactic stock tanks on delayed test flight

Virgin Galactic (NYSE: SPCE) reported fourth-quarter 2020 financial results after the regular market hours on Thursday. The space tourism company reported zero revenue in the fourth quarter, compared to $529,000

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top