At what enterprise value was THE HABIT RESTAURANTS acquired in 2020?

During the acquisition of THE HABIT RESTAURANTS by YUM! BRANDS in 2020, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 300M - 700M USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Retail & Consumer industry currently tracks an average EBITDA multiple of 11.5x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of THE HABIT RESTAURANTS when it was acquired by YUM! BRANDS?

The estimated EV/EBITDA multiple for THE HABIT RESTAURANTS is in the range of 10x - 18x. For comparison, the Retail & Consumer sector currently shows an average EBITDA multiple of 11.5x. Join our community for free to access full valuation data and industry trends.

When was THE HABIT RESTAURANTS acquired by YUM! BRANDS?

THE HABIT RESTAURANTS was acquired by YUM! BRANDS in 2020.

What was the revenue of THE HABIT RESTAURANTS at the time of the deal?

The revenue of THE HABIT RESTAURANTS at the time of the deal is estimated to be in the range of 250M - 500M USD. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of THE HABIT RESTAURANTS during the acquisition?

THE HABIT RESTAURANTS's EBITDA is estimated to be in the range of 25M - 50M USD. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the THE HABIT RESTAURANTS acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the THE HABIT RESTAURANTS deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.yum.com/wps/portal/yumbrands/Yumbrands/news/press-releases/yum+brands+completes+acquisition+of+the+habit+restaurants

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Home Database Retail & ConsumerTHE HABIT RESTAURANTS

01/2020

THE HABIT RESTAURANTS

Acquired by

YUM! BRANDS

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

THE HABIT RESTAURANTS acquired by YUM! BRANDS

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 300M - 700M USD

Context

Yum! Brands entered a definitive agreement to acquire The Habit Restaurants, Inc., adding the fast-casual charburger chain to its portfolio. The strategic rationale centers on Yum!'s desire to diversify beyond traditional QSR into the higher-margin fast-casual segment where The Habit Burger Grill has established premium brand positioning and strong unit economics. The Habit's chargrilled menu featuring fresh beef burgers, marinated chicken, and sushi-grade tuna offers clear differentiation from Yum!'s existing chicken, pizza, and Mexican concepts while appealing to the same value-conscious consumer seeking quality upgrades. The timing follows The Habit's operational transformation including drive-thru additions, digital ordering expansion, delivery partnerships, and modernized restaurant prototypes that drove average unit volume growth from $1.2 million to $1.9 million over the past decade. Yum! management highlighted The Habit's franchise potential, estimating minimal 2020 EPS impact with significant accretion beginning 2021 through franchise conversion opportunities, international expansion using Yum!'s global infrastructure, and supply chain efficiencies.

THE HABIT RESTAURANTS, which reported an EBITDA margin of LOGIN in 2019, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a level LOGIN the average currently observed in the Retail & Consumer sector (11.5x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

The Habit Restaurants, Inc., doing business as The Habit Burger Grill, is a fast-casual burger restaurant chain founded in 1969 in Santa Barbara, California, United States. The company specializes in chargrilled burgers, chicken sandwiches, fresh salads, and sides cooked over an open flame using fresh ingredients. Signature items include the Charburger with caramelized onions, hand-filleted marinated chicken sandwiches, sushi-grade chargrilled ahi tuna sandwiches, sweet potato fries, and handmade shakes. The Habit Burger Grill operates nearly 300 company-owned and franchised restaurants across 13 U.S. states (2020). Named Best Regional Fast Food in USA Today's 2019 Readers' Choice Awards, The Habit emphasizes quality hospitality with modern designs featuring open kitchens, patios, and natural lighting. The business model combines company stores with franchising for expansion, focusing on balanced lunch/dinner traffic.

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Other operations with THE HABIT RESTAURANTS

REFERENCES

Valuation range: EV 300M - 700M USD

Revenue range: 250M - 500M USD

EBITDA range: 25M - 50M USD

Note: Detailed and exact financial metrics (Enterprise Value, Revenue, EBITDA, and precise Multiples) are reserved for Mynth community members. Register for free to unlock full data.

Authors: mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).