View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. News
March 19, 2020

Yum! Brands closes $375m The Habit Burger Grill acquisition

Yum! Brands has completed its previously announced acquisition of the US-based fast-casual restaurant chain The Habit Burger Grill for $375m.

Yum! Brands has completed its previously announced acquisition of the US-based fast-casual restaurant chain The Habit Burger Grill for $375m.

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

The deal closed after the transaction secured a green light from The Habit Burger Grill stockholders.

In January, Yum! Brands signed a definitive agreement to acquire the company to further strengthen its restaurant brand portfolio that already includes KFC, Pizza Hut and Taco Bell.

According to the agreement, Yum! Brands purchased all issued and outstanding common shares of the restaurant chain for $14 per share, using available cash and borrowing capacity.

Yum! Brands CEO David Gibbs said: “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.”

Founded in 1969, the burger chain specialises in chargrilled burgers and sandwiches. Currently, the company operates approximately 300 restaurants, including some international locations.

The company will continue to operate as an independent brand as a subsidiary of Yum! Brands.

The Habit Burger Grill CEO Russ Bendel said: “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 operate more than 50,000 restaurants across 150 countries and territories.

It expects that the deal will be accretive from next year, increasing thereafter.

 

Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Verdict Food Service