SHANGHAI, April 11,
2024 /PRNewswire/ -- Joey Wat, Chief Executive
Officer of Yum China Holdings, Inc. (the "Company" or "Yum China", NYSE: YUMC and HKEX: 9987) released
her annual letter to stockholders today together with the Company's
2023 Annual Report. The letter recapped Yum
China's strong 2023 results, the Company's enduring
commitment to stockholder return, as well as its pioneering
innovation capabilities and ambitious plans for continued
expansion.
"2023 was a landmark year for Yum
China, one of our strongest ever. Transitioning out of the
pandemic, we were able not only to seize opportunities amid China's
reopening, but also adapt quickly to the year's challenges and
sustain strong momentum," said Joey
Wat, CEO of Yum China. "My
deepest gratitude goes to our 430,000 employees: they are the
backbone of our business, and it is their hard work and dedication
that powers the agility and innovation that allow us to succeed, no
matter the market conditions. We also want to thank our long-term
stockholders who have stood by us along the way."
Returning to stockholders and enhancing return on capital
invested will continue to be on top of the Company's agenda.
Yum China returned a record
$833 million to investors through
dividends and share repurchases in 2023, representing 75% of annual
operating profit. Yum China intends
to step up the pace of returns going forward, planning dividends
and share repurchases of at least $3
billion from 2024 to 2026, with $1.5
billion planned for 2024.
Growth opportunities in China
continue to be incredibly exciting, with China expected to continue
to be the largest single contributor to global economic growth in
2024. Operating in over 2,000 cities across China, Yum China currently serves approximately
one-third of China's population. The Company is targeting 20,000
stores nationwide by 2026, which will extend its reach to roughly
700 million people, still just around half of the country's
population.
"The China market will offer us ample white space for the
foreseeable future," Wat said. "On top of the opportunity to serve
more people is a favorable mix change, as Chinese consumers in
lower-tier cities gradually upgrade their consumption. As the
largest restaurant company in China, we are uniquely positioned to
capitalize on this trend. In fact, over half of our new stores have
been in lower-tier cities in recent years. A good share of our
future growth should come from the growing pool of consumers in
such markets."
Wat added, "Our core brands are deeply rooted in China and are beloved by millions of
consumers. But we can never rest on our laurels. We've worked hard
over the past decades to develop industry-leading operational
capabilities, outstanding customer care, and a world-class supply
chain – all backed by advanced technology. The breadth and depth of
these capabilities set us apart and undergird our sustained
success. As we look to the future, we remain steadfast in our
pursuit of excellence and innovation, and unwavering in our
commitment to achieving our growth targets and generating long-term
sustainable value for our stockholders."
To download the full version of Yum China CEO Joey Wat's Annual Letter to Stockholders, please
visit https://ir.yumchina.com/annual-reports
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. We intend all
forward-looking statements to be covered by the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally can be identified by the fact
that they do not relate strictly to historical or current facts and
by the use of forward-looking words such as "expect,"
"expectation," "believe," "anticipate," "may," "could," "intend,"
"belief," "aim," "plan," "estimate," "target," "predict,"
"project," "likely," "will," "continue," "should," "forecast,"
"outlook," "look forward to" or similar terminology. These
statements are based on current estimates and assumptions made by
us in light of our experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors that we believe are appropriate and reasonable under
the circumstances, but there can be no assurance that such
estimates and assumptions will prove to be correct. Forward-looking
statements are not guarantees of performance and are inherently
subject to known and unknown risks and uncertainties that are
difficult to predict and could cause our actual results or events
to differ materially from those indicated by those statements. We
cannot assure you that any of our expectations, estimates or
assumptions will be achieved. The forward-looking statements
included in this press release are only made as of the date of this
press release, and we disclaim any obligation to publicly update
any forward-looking statement to reflect subsequent events or
circumstances, except as required by law. All forward-looking
statements should be evaluated with the understanding of their
inherent uncertainty. You should consult our filings with the
Securities and Exchange Commission (including the information set
forth under the captions "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations " in our Annual Report on Form 10-K and subsequent
Quarterly Reports on Form 10-Q) for additional detail about factors
that could affect our financial and other results.
About Yum China Holdings, Inc.
Yum China is the largest
restaurant company in China with a
mission to make every life taste beautiful. The Company has over
400,000 employees and operates over 14,000 restaurants under six
brands across 2,000 cities in China. KFC and Pizza Hut are the leading
brands in the quick-service and casual dining restaurant spaces in
China, respectively. In addition,
Yum China has partnered with Lavazza
to develop the Lavazza coffee concept in China. Little Sheep and Huang Ji Huang specialize in Chinese cuisine.
Taco Bell offers innovative Mexican-inspired food. Yum China has a world-class, digitalized supply
chain which includes an extensive network of logistics centers
nationwide and an in-house supply chain management system. Its
strong digital capabilities and loyalty program enable the Company
to reach customers faster and serve them better. Yum China is a Fortune 500 company with the
vision to be the world's most innovative pioneer in the restaurant
industry. For more information, please visit
http://ir.yumchina.com.
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SOURCE Yum China Holdings, Inc.