Yum! (YUM, $101.79) to buy Habit (HABT, $13.91) for $375 million
Yum! Brands is acquiring charbroiled hamburgers-famed Habit Restaurants, for around $375 million.
Yum, parent of casual dining restaurant chains KFC, Pizza Hut and Taco Bell, said on Monday that it was buying Habit for $14 a share in cash.
The acquisition could potentially bolster/expand Yum’s menu offerings by adding Habit's specialties like flame-grilled burgers, chargrilled chicken, tuna and other sandwiches.
“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 U.S. and internationally,” Yum! Brands CEO David Gibbs said in a statement.
Yum! Brands indicated that it is expecting minimal impact to non-GAAP earnings per share before special items in 2020, with accretion starting in 2021 and increasing after that.
YUM in upward trend: price rose above 50-day moving average on November 22, 2024
YUM moved above its 50-day moving average on November 22, 2024 date and that indicates a change from a downward trend to an upward trend. In of 42 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on November 25, 2024. You may want to consider a long position or call options on YUM as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for YUM just turned positive on November 25, 2024. Looking at past instances where YUM's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for YUM crossed bullishly above the 50-day moving average on November 11, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 19 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where YUM advanced for three days, in of 342 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 233 cases where YUM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 10 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where YUM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
YUM broke above its upper Bollinger Band on November 07, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (10.775). P/E Ratio (25.819) is within average values for comparable stocks, (57.461). Projected Growth (PEG Ratio) (2.427) is also within normal values, averaging (1.856). Dividend Yield (0.019) settles around the average of (0.037) among similar stocks. P/S Ratio (5.435) is also within normal values, averaging (8.703).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. YUM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
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General Information
a company that owns and franchises quick-service restaurants
Industry Restaurants