The Habit Restaurants acquired by Yum! Brands

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $300–700M

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 [members only] in 2019, is valued in this transaction at an EV/EBITDA multiple of 10x–18x.

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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.

Ent. Value

$300–700M

Equity Value

[members only]

Multiples

EV / Revenue

below 1.5x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2019

2018

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REFERENCES

Valuation range: EV $300–700M

Revenue range: $250–500M

EBITDA range: $25–50M

EV/Revenue range: below 1.5x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of The Habit Restaurants by Yum! Brands are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: the habit restaurants

FAQ

What transaction does this page cover?

This page covers Yum! Brands’s acquisition of 100% of The Habit Restaurants, an American company specialised in Hospitality, in 2020.

How was the acquisition of The Habit Restaurants by Yum! Brands valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $300–700M band, its EV/EBITDA multiple within the 10x - 18x range, and its EV/revenue multiple within the below 1.5x range. Exact figures are available to members.

What were The Habit Restaurants’s revenue and EBITDA at the time of the deal?

At the time of the transaction, The Habit Restaurants generated annual revenue estimated in the $250–500M range and EBITDA in the $25–50M bracket (FY 2019). Detailed financial figures are available to members.

What sources support the information on this transaction?

Transaction intelligence is supported by independent reporting from specialized financial publications, alongside a private document shared by the community and verified by the mynth team to ensure the accuracy of the shared information.

What is mynth?

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