SHANGHAI,
Dec. 5,
2024 /PRNewswire/ -- Yum China
Holdings, Inc. (the "Company" or "Yum
China") (NYSE: YUMC and HKEX: 9987)
announced that it has entered into share
repurchase agreements in the U.S. and Hong Kong for
an aggregate repurchase amount of approximately
US$360 million for the
first half of 2025,
commencing on January 6, 2025.
The share repurchase agreements
include approximately
US$290 million under
the Rule 10b5-1 of the United States Securities Exchange Act of
1934 in the U.S. and approximately
HK$550 million for a similar
program in Hong Kong. These agreements
are one component of the share repurchase
program, and part of the broader capital allocation plan
to return US$4.5
billion to shareholders through dividends and share
repurchases from 2024 to 2026, including US$1.5 billion for the full year 2024.
In the first 11 months of 2024, the Company
returned a record US$1.37 billion to
shareholders, including US$1.18 billion in share
repurchases and US$187 million in cash dividends. A
total of 30 million shares have
been bought back, equivalent to approximately
7% of its outstanding shares as of December 31, 2023.
"We maintain a dual focus on
driving business growth and returning capital to shareholders. With
our confidence in our cash generating capability, we plan to return
US$4.5 billion to shareholders
between 2024 and 2026. We will continue to evaluate our capital
return options, striving to achieve a balanced mix of share
repurchases and dividends. Our goal is to create long-term,
sustainable value for our shareholders,"
said Joey Wat, CEO of Yum China.
With a strong commitment of returning
excess capital to shareholders, Yum China has already returned US$4.3 billion to shareholders through dividends
and share repurchases since 2017.
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 under "2024 Outlook." 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," "forecast," "outlook,"
"commit" 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 include, without
limitation, statements regarding the future strategies, growth,
business plans, and dividend and share
repurchase plans. 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. Our plan of capital returns to
shareholders is based on current expectations, which may change
based on market conditions, capital needs or otherwise. 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 Securities and Exchange
Commission (including the information set forth under the
caption "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our Annual Report on Form
10-K and subsequent Quarterly Reports on Form 10-Q) for additional
detail about factors that could affect our financial and other
results.
About Yum China Holdings,
Inc.
Yum China is the largest restaurant
company in China with a mission to make every life taste
beautiful. The Company has approximately 400,000 employees and
operates over 15,000 restaurants under six brands across around
2,200 cities in China. KFC and Pizza
Hut are the leading brands in the quick-service and casual
dining restaurant spaces in China, respectively. In
addition, Yum China has partnered with Lavazza to develop
the Lavazza coffee concept in China. Little Sheep
and Huang Ji Huang specialize in Chinese cuisine. Taco
Bell offers innovative Mexican-inspired food. Yum
China has a world-class, digitalized supply chain, which
includes an extensive network of logistics centers nationwide and
an in-house supply chain management system. Its strong digital
capabilities and loyalty program enable the Company to reach
customers faster and serve them better. Yum China is a
Fortune 500 company with the vision to be the world's most
innovative pioneer in the restaurant industry. For more
information, please
visit http://ir.yumchina.com.
Contacts
Investor Relations
Contact:
Tel: +86 21 2407
7556
IR@YumChina.com
Media Contact:
Tel: +86 21 2407 8288 / +852 2267
5807
Media@YumChina.com
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SOURCE Yum China Holdings, Inc.
