Yum! Brands, Inc. Announces Authorization of up to $4.2 Billion in Share Repurchases & Declares Quarterly Dividend of $0.46 P...
May 20 2016 - 1:12PM
Business Wire
Yum! Brands, Inc. (NYSE: YUM) today announced that its Board of
Directors authorized repurchases of up to $4.2 billion in
additional shares of common stock and declared a quarterly dividend
of $0.46 per share of common stock.
Greg Creed, CEO of Yum! Brands, said, “Today’s announcement
marks another step towards our goal of delivering meaningful cash
returns and demonstrates the commitment of our Board and management
team to creating shareholder value. Our capital return plans
reflect our continued confidence in our long-term growth prospects
as we move towards the separation of our China business, which will
result in two distinct and attractive investment opportunities for
all of our shareholders.”
The additional share repurchases are part of Yum! Brands’
previously announced commitment to returning $6.2 billion of
capital to shareholders prior to the planned separation of its
China business, which is on track to be completed by the end of
2016. The capital will be returned in the form of share
repurchases, a special dividend or a combination thereof. From
October 2015 through May 19, 2016, Yum! repurchased 27.6 million
shares of common stock totaling approximately $2 billion at an
average price of $72 per share. The $4.2 billion in additional
share repurchases of outstanding common stock is authorized through
December 31, 2016 and supersedes all previous unutilized
authorizations. Repurchases of common stock may be made from time
to time in the open market or through privately negotiated
transactions and will be subject to market conditions and other
factors.
The quarterly dividend is in addition to the targeted $6.2
billion in return of capital and will be distributed August 5, 2016
to shareholders of record at the close of business on July 15,
2016. Since initiating a dividend in 2004, Yum! has increased its
dividend at a double-digit percentage rate each of the past 11
years, placing Yum! in a select group of companies from the S&P
500 to do so.
Yum! Brands, Inc., based in Louisville, Kentucky, has nearly
43,000 restaurants in more than 130 countries and territories. Yum!
is ranked #228 on the Fortune 500 List with revenues of over $13
billion in 2015 and is one of the Aon Hewitt Top Companies for
Leaders in North America. The Company’s restaurant brands - KFC,
Pizza Hut and Taco Bell - are the global leaders of the chicken,
pizza and Mexican-style food categories. Worldwide, the Yum! Brands
system opens over six new restaurants per day on average, making it
a leader in global retail development.
This announcement may contain “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,” “plan,” “estimate,” “target,” “predict,” “likely,”
“will,” “should,” “forecast,” “outlook” 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 reflect our current expectations,
estimates or projections concerning future results or events,
including, without limitation, statements regarding the intended
capital return to shareholders as well as the related borrowing
required to fund such capital return, the planned separation of the
Yum! Brands and Yum! China businesses, the timing of any such
separation, the future earnings and performance as well as capital
structure of Yum! Brands, Inc. or any of its businesses, including
the Yum! Brands and Yum! China businesses on a standalone basis if
the separation is completed. Forward-looking statements are not
guarantees of performance and are inherently subject to known and
unknown risks, uncertainties and assumptions that are difficult to
predict and could cause our actual results to differ materially
from those indicated by those statements. We cannot assure you that
any of our expectations, estimates or projections will be achieved.
The forward-looking statements included in this announcement are
only made as of the date of this announcement and we disclaim any
obligation to publicly update any forward-looking statement to
reflect subsequent events or circumstances. Numerous factors could
cause our actual results and events to differ materially from those
expressed or implied by forward-looking statements, including,
without limitation: whether we are able to return capital to
shareholders at the times and in the amounts currently anticipated,
if at all, as well as the corresponding costs of borrowing to fund
such capital return as well as other costs; whether the separation
of the Yum! Brands and Yum! China businesses is completed, as
expected or at all, and the timing of any such separation; whether
the operational and strategic benefits of the separation can be
achieved; whether the costs and expenses of the separation can be
controlled within expectations, including potential tax costs; as
well as other risks. In addition, other risks and uncertainties not
presently known to us or that we currently believe to be immaterial
could affect the accuracy of any such forward-looking statements.
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
“Forward-Looking Statements” in our Annual Report or Form 10-K) for
additional detail about factors that could affect our financial and
other results.
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version on businesswire.com: http://www.businesswire.com/news/home/20160520005820/en/
Yum! Brands, Inc.Analysts are invited to contact:Donny Lau,
888-298-6986Senior Director, Investor Relations & Corporate
StrategyorElizabeth Grenfell, 888-298-6986Director, Investor
RelationsorMembers of the media are invited to contact:Virginia
Ferguson, 502-874-8200Director, Public Relations
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