SHANGHAI, March 17, 2022 /PRNewswire/ -- Yum China
Holdings, Inc. (the "Company" or "Yum
China") (NYSE: YUMC and HKEX: 9987) today reported that its
Board of Directors (the "Board") has increased the Company's share
repurchase authorization by $1 billion to an aggregate of
$2.4 billion.
From 2017 to March 16, 2022, the
Company repurchased approximately 24 million shares of common stock
for $971 million, including
approximately 4 million shares repurchased for $188 million quarter-to-date 2022. This increase
brings the total remaining authorization to approximately $1.4
billion.
"The Board's approval to expand our share repurchase program
reflects the strength of our balance sheet and our ability to
generate strong cash flow. From 2017 to 2021, we generated
operating cash flow of $5.6 billion
and free cash flow of $3.2
billion[1]. To date, we have returned
approximately $1.7 billion of capital
to shareholders in the form of cash dividends and share
repurchases. Despite the significant impact from COVID-19 in 2021
and stepped-up capital investments to drive organic growth, we
generated operating cash flow of $1.1
billion and free cash flow of $442
million[2]," said Joey
Wat, CEO of Yum China. "We
are confident that our resilient business model and RGM strategic
framework -- fortifying resiliency, accelerating growth and
widening strategic moat -- will help us to capture the amazing
growth opportunities in China over
the long term. We remain committed to a disciplined capital
allocation strategy that balances returning capital to our
shareholders and investing in our business for greater growth."
The Board's authorization permits the Company to make
repurchases of its shares of common stock from time to time in open
market or privately negotiated transactions, including block
trades, accelerated share repurchase transactions and the use of
Rule 10b5-1 trading plans. The authorization has no expiration
date.
[1] 2017
to 2021 free cash flow is calculated using operating cash flow of
$5.6 billion less capital spending of $2.4 billion.
|
[2] 2021
free cash flow is calculated using operating cash flow of $1,131
million less capital spending of $689 million.
|
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements regarding the Company's business strategy and capital
allocation strategy. We intend all forward-looking statements to be
covered by the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements generally
can be identified by the fact that they do not relate strictly to
historical or current facts and by the use of forward-looking words
such as "expect," "expectation," "believe," "anticipate," "may,"
"could," "intend," "belief," "plan," "estimate," "target,"
"predict," "project," "likely," "will," "continue," "should" or
similar terminology. These statements are based on current
estimates and assumptions made by us in light of our experience and
perception of historical trends, current conditions and expected
future developments, as well as other factors that we believe are
appropriate and reasonable under the circumstances, but there can
be no assurance that such estimates and assumptions will prove to
be correct. Forward-looking statements are not guarantees of
performance and are inherently subject to known and unknown risks
and uncertainties that are difficult to predict and could cause our
actual results or events to differ materially from those indicated
by those statements. We cannot assure you that any of our
expectations, estimates or assumptions will be achieved. The
forward-looking statements included in this press release are only
made as of the date of this press release, and we disclaim any
obligation to publicly update any forward-looking statement to
reflect subsequent events or circumstances, except as required by
law. Numerous factors could cause our actual results or events to
differ materially from those expressed or implied by
forward-looking statements. In addition, other risks and
uncertainties not presently known to us or that we currently
believe to be immaterial could affect the accuracy of any such
forward-looking statements. All forward-looking statements should
be evaluated with the understanding of their inherent uncertainty.
You should consult our filings with the SEC (including the
information set forth under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our Annual Report on Form 10-K) for
additional detail about factors that could affect our financial and
other results.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! Brands in
mainland China. It has exclusive rights in mainland China to KFC,
China's leading quick-service restaurant brand, Pizza Hut, the
leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving
innovative Mexican-inspired food. Yum
China also owns the Little Sheep, Huang Ji Huang, East Dawning and COFFii &
JOY concepts outright. In addition, Yum
China has partnered with Lavazza to explore and develop the
Lavazza coffee shop concept in China. The Company
had 12,163 restaurants in over 1,600 cities at the
end of February 2022.
In 2021, Yum China ranked # 363 on the Fortune 500 list and
was named to TIME100 Most Influential Companies list. Yum China has also been selected as member of
both Dow Jones Sustainability Indices (DJSI): World Index and
Emerging Market Index. In 2022, the Company was named to the
Bloomberg Gender-Equality Index and was certified as a Top Employer
2022 in China by the Top Employers
Institute, both for the fourth consecutive year. For more
information, please visit http://ir.yumchina.com.
Investor Relations Contact:
Tel: +86
21 2407 7556 /+852 2267 5801
IR@YumChina.com
Media Contact:
Tel: +86 21
2407 7510
Media@YumChina.com
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SOURCE Yum China Holdings, Inc.