Yum! Brands, the parent company of KFC, Burger King and Taco Bell, has added a fast-casual restaurant concept to its portfolio with the $375 million acquisition of The Habit Burger Grill.
Founded in California in 1969, The Habit Burger Grill offers a variety of made-to-order items including ‘charburgers’ and sandwiches chargrilled over an open flame. It operates nearly 300 company-owned and franchised restaurants across the US and in China.
“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 US and internationally,” said David Gibbs, CEO of Yum! Brands.
He added that the deal was a “win-win” allowing the company to “offer an exciting new investment to our franchises” and to expand a “trend-forward brand” though Yum!’s franchising, purchasing and brand-building.
The deal follows Yum! Brand’s three-year transformation, a process which, Gibbs says, has seen it emerge “stronger and in a better position to accelerate the growth of [its] existing brands and leverage [its] scale to unlock value from strategic acquisitions”.