Core Viewpoint - Yum China Holdings Inc. has announced an expanded share repurchase program and a long-term capital return strategy, which has positively impacted its stock price [1]. Share Repurchase Program - The company has entered into share repurchase agreements in the U.S. and Hong Kong, covering approximately $460 million in buybacks during the first half of 2026 [1][2]. - The repurchases will commence on January 12, 2026, with about $350 million falling under the Rule 10b5-1 in the U.S. [1]. Capital Return Strategy - Yum China plans to return $1.5 billion to shareholders in 2026 through dividends and buybacks, representing roughly 9% of its market value as of December 11, 2025 [3]. - The company aims to return approximately $4.5 billion to shareholders from 2024 through 2026, with a commitment to return about 100% of annual free cash flow after subsidiary dividend payments starting in 2027 [4]. Future Returns - The company expects average annual returns of approximately $900 million to over $1 billion in 2027 and 2028, with expectations to exceed $1 billion by 2028 [5]. Authorization Expansion - Yum China's board has increased the share repurchase authorization by $1 billion, bringing the total authorization to about $5.4 billion [6]. - From 2017 through December 11, 2025, the company repurchased nearly 97.7 million shares for a total of about $4.2 billion, leaving approximately $1.2 billion available for future repurchases [6]. Stock Performance - Yum China Holdings shares rose by 1.91% to $48.53 at the time of publication [7].
Why Is Yum China Stock Gaining Friday? - Yum China Holdings (NYSE:YUMC)