Yum China Holdings Raises Cash Allocation for Shareholder Returns to $4.5 Billion!

Yum China Holdings Ltd. announced significant increases to its shareholder returns while reporting strong financial results for the third quarter of 2024. The company achieved a 5% growth in revenue and an 18% increase in core operating profit despite facing a challenging environment. The new commitment of $4.5 billion for share buybacks and dividends over three years is a considerable rise from its earlier commitment of $3 billion. Yum China's proactive approach to shareholder returns is exemplified in its recent spending of over $1 billion on share repurchases and $187 million in quarterly dividends within the first nine months of the year. The company continues to execute its share repurchase strategy, having canceled shares to enhance shareholder value. With over 27 million shares repurchased this year, Yum China's actions have effectively boosted its earnings per share, which saw a remarkable 33% increase in Q3, outpacing the 22% growth in net profit. Since its IPO in the U.S. in 2016, cumulative shareholder returns have surpassed $4 billion, reflecting Yum China’s unwavering commitment to enhancing shareholder wealth. The growth trajectory of Yum China, which began when it opened its first KFC in Beijing in 1987, has established it as the largest restaurant operator in the country. The solid financial performance and robust cash position of $3.1 billion as of the end of September underscore the company’s resilience in a challenging market. The upward revision of Yum China’s share buyback and dividend commitments signifies confidence in future growth and the effectiveness of its operational strategies, ensuring continued returns for its invested shareholders.