Yum Brands Joins The Burger Category With Its $375 Million Acquisition Of Habit Restaurants

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Yum Brands announced today that it will bring Habit Restaurants under its vast umbrella. The company is paying about $375 million for the deal, according to a press release

, Gibbs alluded to such a move, stating: “Now that we’ve got a better machine, we’d like to drive faster and grow faster … Now that we are more of a franchise, or less of an equity operator, that gives us the ability to turn our focus to leveraging the scale on behalf of the entire system … I do think that potentially could be something that would give us a benefit if we did an acquisition. We don’t need acquisition to grow … but we certainly wouldn’t rule out an acquisition.

Further, The Habit is shifting its attention to off-premise and digital, bringing its drive-thru count to over 50 in Q3 and adding a partnership with Postmates in April 2019, for example. Yum’s digital muscle and partnership with Grubhub will no doubt accelerate these initiatives. All of this could catapult The Habit into a top 10 burger brand .

The Habit Burger Grill has an extensive history, marking its 50th anniversary in 2019. The company went public in November 2014, during a bit of a better-burger concept glut in the domestic restaurant space that included Five Guys, Shake Shack and Smashburger. The Habit has been able to stand out a bit, however, earning Consumer Reports’ best burger in America title in 2014 and being named the fastest-growing chain in the U.S. in 2015 by Nation’s Restaurant News.

Like its burger peer In-N-Out Burger, The Habit has cultivated a bit of a cultish fan following for its unique menu that includes a teriyaki charburger, a portabella charburger, a golden fried chicken sandwich, an ahi tuna filet sandwich and handcrafted shakes and malts.

 

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Looking forward to try more of that Yum meat

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