SHAK - Yum! Brands Acquires Shake Shack Competitor
Ever wondered why KFC, Taco Bell, and Pizza Hut parent Yum! Brands (NYSE: YUM) has never added the hamburger to its fast food portfolio? No need to wonder any longer as the giant restaurant operator and franchise licensee has now rounded out its lineup of American fare by putting in a bid for Southern California-based The Habit Restaurants (NASDAQ: HABT).
The regional better-burger chain is unlikely to become a fourth major pillar for Yum! any time soon, but the transaction has some implications for other companies in the industry, namely The Habit's regional rival Shake Shack (NYSE: SHAK) and exclusive Chinese KFC, Pizza Hut, and Taco Bell franchisee Yum China (NYSE: YUMC).
Image source: The Habit Burger