Yum Brands to Buy Habit Grill
January 06 2020 - 9:31AM
Dow Jones News
By Heather Haddon
Yum Brands Inc. said it would buy fast-casual burger chain Habit
Restaurants Inc. as it seeks to broaden its range of restaurants
and reach more customers.
Yum said Monday it had struck a deal to buy the California-based
parent of Habit Burger Grill for $14 a share, or about $375 million
in cash. Habit's shares closed Friday at $10.51, giving it a
valuation of around $275 million. The companies said they expect
the deal to close early this summer.
Yum, the parent company of fast-food chains KFC, Pizza Hut and
Taco Bell, said Habit's fast-casual model has strong potential for
international expansion. The chain of around 280 restaurants in the
U.S. and China has specialized in chargrilled burgers since opening
in 1969.
The deal is Yum's first acquisition of a stand-alone restaurant
chain since the company went public in 1997. Yum, formed by a
spinoff of the restaurant holdings of PepsiCo Inc., is the world's
largest restaurant company by stores, with more than 49,000 in 145
countries.
More U.S. restaurants companies have expanded to own a suite of
brands as they seek to keep up with changing dining trends and grow
internationally. Fast-casual burger chains in particular have
proliferated in recent years.
"We thought it was a sweet spot within fast-casual," Yum's Chief
Executive David Gibbs said in an interview. Mr. Gibbs took the helm
of Louisville, Ky.-based Yum this month, replacing veteran CEO Greg
Creed.
Write to Heather Haddon at heather.haddon@wsj.com
(END) Dow Jones Newswires
January 06, 2020 09:16 ET (14:16 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Yum Brands (NYSE:YUM)
Historical Stock Chart
From Mar 2024 to Apr 2024
Yum Brands (NYSE:YUM)
Historical Stock Chart
From Apr 2023 to Apr 2024