Taco Bell's parent is buying Habit Burger as a way to break into the fast casual industry

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Yum Brands, the parent company of Taco Bell, KFC and Pizza Hut, announced Monday that it is buying the operator of The Habit Burger Grill for $375 million.

Yum Brands's $375 million deal for Habit Burger Grill allows the owner of Taco Bell and KFC to break into the fast-casual restaurant industry.

Visits to U.S. fast-casual restaurants increased by 3% in the year ending November 2019, according to data from the NPD Group's Crest service.' $375 million acquisition of Habit Restaurants gives the owner of Taco Bell, KFC and Pizza Hut an opportunity to break into the fast-casual industry at a time when fast-food restaurants are struggling.

"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," Yum CEO David Gibbs, who took the reins of the company last Wednesday, said in a statement. Taco Bell, which is consistently Yum's top performer, has managed to grow its sales by offering customers competitive value deals and quirky limited-time offers. KFC has seen success by focusing on international growthIts U.S. sales only make up 17% of its business. But Pizza Hut, the laggard of Yum's portfolio, is closing hundreds of stores as the company tries to put a greater emphasis on pick-up and delivery orders, rather than dine in.

 

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Anyone had or heard of this before? Is it any good? Asking as a shareholder. I like the idea of diversifying into burgers, but is this the right move?

JohnWadsworth

Once Whitianga gets a fast food joint things will be so perfect over here I can't wait!

Great way to expand business tacobell

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