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Yum China Expands Share Repurchase Authorization

In a significant move aimed at enhancing shareholder value, Yum China Holdings, Inc. announced the increase of its share repurchase authorization by an additional $1 billion, which now totals $5.4 billion. This decision, approved by the Company's Board of Directors, comes as part of its ongoing efforts to return capital to shareholders and reinforce confidence in its operational growth and financial health.

Historical Context of Share Repurchases

Since the inception of its buyback program in 2017, Yum China has repurchased around 97.7 million shares of its common stock, utilizing approximately $4.2 billion in capital for these transactions. This latest enhancement to their repurchase plan signifies the company's proactive approach to manage its capital efficiently while also driving shareholder returns. With approximately $1.2 billion left in the current authorization, Yum China has ample room to conduct further repurchases in the forthcoming periods.

Mechanism of Share Repurchase

The repurchase of shares will be executed strategically through various means—including but not limited to—open market transactions, privately negotiated deals, block trades, and accelerated share repurchase arrangements, all within the boundaries of applicable regulatory frameworks. Additionally, the company plans to utilize Rule 10b5-1 trading plans to facilitate the repurchase process. Notably, this authorization does not carry an expiration date, allowing Yum China to remain flexible in its approach to capital allocation.

Future Outlook and Investor Confidence

The announcement of the increased share buyback authorization has been met with positive sentiment in the market. As investors seek more transparency and concrete actions from corporations regarding capital returns, Yum China is positioning itself as a reliable entity focused on maintaining operational momentum alongside sustaining shareholder engagement. The company intends to leverage this repurchase strategy as a means to reflect confidence in its projected growth and profitability over the coming years.

Forward-Looking Statements

It is essential to note that while Yum China is committed to its growth plans, forward-looking statements made during this announcement are predicated on existing market conditions, operational strategies, and overall economic climates. Factors influencing these projections include market volatility and other risks that could significantly impact actual outcomes compared to those anticipated. Consequently, investors are advised to consider these risks while evaluating Yum China's strategic initiatives.

About Yum China Holdings, Inc.

Yum China is recognized as the largest restaurant company in China, operating over 17,000 establishments under six diverse brands in more than 2,500 cities nationwide. The company’s flagship brands such as KFC and Pizza Hut dominate the quick-service and casual dining sectors respectively, while it also embraces innovation through partnerships like the collaboration with Lavazza to introduce coffee concepts in China. Additionally, the firm has made strides in enhancing its supply chain efficiency and digital engagement with customers, placing it prominently among Fortune 500 companies. Yum China envisions taking the lead as a pioneering innovator in the global restaurant industry.

For more information regarding Yum China and its operational strategies, please refer to Yum China Investor Relations.