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SHANGHAI - Yum China Holdings, Inc. (NYSE: YUMC and HKEX: 9987), a major player in China’s restaurant industry, has announced an expansion of its share repurchase program, earmarking approximately $510 million for the second half of 2025, starting July 1. This move marks a significant 42% increase from the $360 million allocated for repurchases in the first half of the year and is part of a broader strategy to enhance shareholder returns. According to InvestingPro data, the company’s stock currently trades below its Fair Value, with a P/E ratio of 11.5x and strong financial health metrics.
According to the company’s CEO, Joey Wat, Yum China aims to balance business growth with rewarding shareholders, leveraging its robust cash flow and reserves. The company has projected to distribute at least $1.2 billion to its shareholders in 2025, assuming a quarterly dividend of $0.24 per share. This initiative is a component of Yum China’s commitment to return $3 billion to shareholders through dividends and share repurchases from 2025 to 2026, following the $1.5 billion returned in 2024. The company maintains a healthy 1.92% dividend yield and has demonstrated strong dividend growth of 25% over the last twelve months.
The repurchase agreements for the latter half of 2025 include approximately $410 million under the Rule 10b5-1 of the United States Securities Exchange Act of 1934 in the U.S. and around HK$790 million for a similar program in Hong Kong. Since 2017 up to May 27, 2025, the company has returned a substantial $4.8 billion to its shareholders through dividends and share repurchases.
Yum China operates over 16,000 restaurants under six brands across more than 2,300 cities in China, including well-known names like KFC and Pizza Hut. The company is recognized for its digitalized supply chain and innovative customer engagement through a robust digital platform and loyalty program. InvestingPro analysis reveals 10+ additional insights about Yum China’s performance and potential, including detailed metrics on profitability, growth, and market position.
The plans detailed in this press release contain forward-looking statements that reflect the company’s current expectations and are subject to market conditions, capital needs, and other factors. With an Altman Z-Score of 6.05 indicating strong financial stability and a "GREAT" overall financial health rating from InvestingPro, Yum China maintains a solid foundation despite market uncertainties. The company cautions that these statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially.
This report is based on a press release statement from Yum China Holdings, Inc.
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