Why Habit Restaurants Stock Surged Today
Shares of Habit Restaurants (NASDAQ: HABT) were soaring today after the fast-casual burger chain agreed to be acquired by Yum! Brands (NYSE: YUM), the parent of KFC, Taco Bell, and Pizza Hut. Yum! will take over Habit for $375 million, or the equivalent of $14 a share, a 33.2% premium above Friday's closing price at $10.51.
As of 12:36 p.m. EST, Habit shares were trading up 32.5% at $13.92, indicating a strong level of confidence that the deal will go through as negotiated. Yum! shares were essentially unchanged, down 0.3% at that time, as Habit is too small a company to move the needle on the fast-food giant at this point.
Image source: Habit Restaurants.
Source Fool.com
