Fast-food conglomerate Yum! Brands is getting a burger joint.
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The company, owner of Pizza Hut, KFC, Taco Bell and WingStreet, announced in a statement that it has acquired The Habit Burger Grill for $375 million. The Habit has nearly 300 open-kitchen restaurants across 13 states as well as seven international locations.
The chain will remain headquartered in Irvine, California, and will continue to operate under current CEO Russell Bendel and Chief Financial Officer Ira Fils.
“We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our brands and leverage our scale to unlock value from strategic acquisition,” Yum! Chief Executive Officer David Gibbs said in the memo. “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 U.S. and internationally.”
From 2009 to 2018, The Habit reached almost $2 million in corporate restaurant average-unit volumes. And in the third quarter ending Sept. 24, revenue hit $117 million.
As for Yum!, the company made $49 billion in system sales through its portfolio of brands. Its stock is up 11 percent on the year, including a 2.5 percent increase in the last month.
Yum! Intends to fund the acquisition with cash on hand and available borrowing capacity under its credit facilities, according to QSR Magazine. The deal is pending stockholder approval from The Habit but is expected to close near the end of the second quarter.