Why Are Yum China Shares On The Rise Today?
Portfolio Pulse from Shivani Kumaresan
Yum China Holdings Inc (NYSE:YUMC) shares are trading higher after the company announced its refreshed RGM 2.0 strategy, aiming to accelerate network expansion, drive sales growth, and boost profits. The company plans to reach 20,000 stores by 2026 and achieve high-single-to-double-digit CAGR for system sales and operating profit, as well as double-digit EPS CAGR from 2024 to 2026. Yum China also plans to return approximately $3 billion to shareholders through dividends and share repurchases over the next three years.
September 14, 2023 | 6:05 pm
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POSITIVE IMPACT
Yum China's new strategy and growth plans are likely to positively impact its stock price in the short term.
The company's announcement of its refreshed RGM 2.0 strategy, which includes plans for network expansion, sales growth, and profit boost, as well as plans to return $3 billion to shareholders, is likely to increase investor confidence and drive up the stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100