Yum China to Buy Back Shares up to $750M in 2024 in the US and Hong Kong
Portfolio Pulse from Benzinga Newsdesk
Yum China Holdings, Inc. (YUMC) has announced plans to repurchase shares worth $750 million in 2024 across the U.S. and Hong Kong markets. This buyback is part of a broader capital allocation strategy to return $3 billion to shareholders through dividends and share repurchases from 2024 to 2026. The repurchase agreements are divided between $600 million in the U.S. under Rule 10b5-1 and approximately HK$1.2 billion in Hong Kong, with a waiver from the Hong Kong Stock Exchange to ensure equal access for all shareholders. The buyback program was authorized by the board of directors on November 2, 2023.
November 16, 2023 | 10:47 am
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Yum China plans to repurchase $750 million of its shares in 2024, as part of a larger commitment to return $3 billion to shareholders by 2026. The buyback is expected to be conducted in both the U.S. and Hong Kong markets.
Share buybacks are typically viewed positively by the market as they can increase earnings per share and are often a sign of management's confidence in the company's financial health. Yum China's announcement of a substantial buyback program indicates a commitment to returning value to shareholders, which is likely to be well-received by investors and could lead to a short-term increase in the stock price.
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