Yum! China reveals US$360M share buyback in first half of 2025

HONG KONG/USA – Leading QSR operator Yum China Holdings, Inc. has revealed that it has entered into share repurchase agreements in both the US and Hong Kong, amounting to approximately US$360 million for the first half of 2025, starting on January 6, 2025.

The share buyout plan includes about US$290 million under Rule 10b5-1 of the U.S. Securities Exchange Act of 1934 for the U.S. program and approximately HK$550 million (US$70.2 million) for a similar initiative in Hong Kong.

These agreements are part of a broader capital allocation plan, which aims to return US$4.5 billion to shareholders through dividends and share buybacks between 2024 and 2026, with US$1.5 billion allocated for the full year of 2024.

In the first 11 months of 2024, Yum China returned a record US$1.37 billion to its shareholders, including US$1.18 billion in share repurchases and US$187 million in cash dividends.

A total of 30 million shares have been repurchased, representing approximately 7% of its outstanding shares as of December 31, 2023.

Joey Wat, CEO of Yum China, emphasized the company’s focus on both 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, aiming for a balanced approach between share repurchases and dividends. Our goal is to create long-term, sustainable value for our shareholders.”

Since 2017, Yum China has returned US$4.3 billion to shareholders through dividends and share repurchases, underscoring its commitment to returning excess capital.

Analysts from Stock Titan noted that the US$360 million share repurchase plan for H1 2025 highlights Yum China’s solid financial position and commitment to shareholder returns.

With US$4.3 billion returned since 2017, the company has maintained an impressive track record while balancing growth investments.

The use of Rule 10b5-1 plans for buybacks suggests careful consideration of market conditions and regulatory compliance.

This systematic capital return strategy positions Yum China favorably among consumer discretionary stocks, particularly in a market where investors prioritize companies with strong cash flows and shareholder-friendly policies.

The company’s ability to maintain such aggressive capital returns while operating in China’s competitive restaurant market highlights its strong operational execution and market positioning.

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