SHANGHAI, May 11, 2022
/PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or
"Yum China") (NYSE: YUMC and HKEX:
9987) today reported that it has invoked the dispute resolution
process with Yum! Brands, Inc. ("YUM"), pursuant to the Master
License Agreement dated October 31,
2016, to resolve a disagreement over royalties charged on
delivery and aggregator platform fees.
The Company believes, pursuant to the Master License Agreement,
delivery and aggregator platform fees should not be subject to
royalties. The Company has informed YUM that the Company will
stop paying royalties on such fees. The royalty fee amount in
dispute for the first quarter ended March
31, 2022 is approximately $2
million. The Company may also seek to recoup additional
royalty fee payments from November 1,
2016 to December 31, 2021 with
respect to such delivery-related fees. The Company does not expect
the dispute resolution process to have a material impact on its
operations, financial results and its long term partnership with
YUM.
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, including
statements regarding actions to be taken with respect to the
dispute mentioned in this press release and the impact of the
dispute on our operations, financial results and long term
partnership with Yum! Brands. 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," "seek," "expectation,"
"believe," "anticipate," "may," "could," "intend," "belief,"
"plan," "estimate," "target," "predict," "project," "likely,"
"will," "continue," "should," "forecast," "commit," "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 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 Holdings, Inc. is a licensee of Yum! Brands in
mainland China. It has exclusive rights in mainland China to KFC,
China's leading quick-service restaurant brand, Pizza Hut, the
leading casual dining restaurant brand in China, and Taco Bell, a California-based restaurant chain serving
innovative Mexican-inspired food. Yum
China also owns the Little Sheep, Huang Ji Huang and COFFii & JOY concepts
outright. In addition, Yum China has
partnered with Lavazza to explore and develop the Lavazza coffee
shop concept in China. The Company
had 12,117 restaurants in over 1,700 cities at the end of
March 2022.
In 2021, Yum China ranked # 363
on the Fortune 500 list and was named to TIME100 Most Influential
Companies list. Yum China has also
been selected as member of both Dow Jones Sustainability Indices
(DJSI): World Index and Emerging Market Index. In 2022, the Company
was named to the Bloomberg Gender-Equality Index and was certified
as a Top Employer 2022 in China by
the Top Employers Institute, both for the fourth consecutive year.
For more information, please visit http://ir.yumchina.com.
Investor Relations
Contact:
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Tel: +86 21 2407
7556 /+852 2267 5801
IR@YumChina.com
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Media
Contact:
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Tel:
+86 21 2407 7510
Media@YumChina.com
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SOURCE Yum China Holdings, Inc.