Yum China Announces US$460 Million Share Repurchase Agreements for First Half of 2026 as Part of US$1.5 Billion Full-Year Capital Return Plan

Rhea-AI Summary

Yum China (NYSE: YUMC) announced share repurchase agreements totaling ~US$460 million for the first half of 2026, commencing on January 12, 2026.

The repurchases include ~US$350 million under a U.S. Rule 10b5-1 plan and ~HK$880 million for a Hong Kong program. These agreements form part of a US$1.5 billion full-year 2026 capital return plan combining dividends and buybacks, equivalent to ~9% of market capitalization as of December 11, 2025.

Management said the company is on track to return US$4.5 billion to shareholders from 2024–2026 and expects average annual returns of ~US$900 million–>US$1 billion in 2027–2028, exceeding US$1 billion in 2028. Since 2017, Yum China has returned US$5.8 billion to shareholders.

Positive

• US$460 million in share repurchase agreements for H1 2026
• US$350 million allocated under a U.S. Rule 10b5-1 plan
• HK$880 million allocated to a Hong Kong repurchase program
• US$1.5 billion full-year 2026 capital return target (dividends + buybacks)
• US$4.5 billion planned returns to shareholders for 2024–2026
• Returned US$5.8 billion to shareholders since 2017

Negative

• None.

News Market Reaction

+1.93%

1 alert

+1.93% News Effect

On the day this news was published, YUMC gained 1.93%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

H1 2026 repurchases: US$460 million U.S. 10b5-1 repurchases: US$350 million Hong Kong program: HK$880 million +5 more

8 metrics

H1 2026 repurchases US$460 million Aggregate share repurchase amount for first half of 2026

U.S. 10b5-1 repurchases US$350 million Portion of H1 2026 buybacks under Rule 10b5-1 in U.S.

Hong Kong program HK$880 million Similar H1 2026 share repurchase program in Hong Kong

2026 capital return US$1.5 billion Planned full-year capital return via dividends and buybacks in 2026

2024–2026 returns US$4.5 billion Target total capital returned to shareholders from 2024 through 2026

2027–2028 avg return US$900M–over US$1B Expected average annual shareholder return in 2027 and 2028

Capital returned since 2017 US$5.8 billion Dividends and share repurchases since 2017

Market capitalization reference 9% 2026 capital return as ~9% of market cap as of Dec 11, 2025

Market Reality Check

Price: $48.64 Vol: Volume 1,048,490 is below...

low vol

$48.64 Last Close

Volume Volume 1,048,490 is below 20-day average of 1,565,284 shares. low

Technical Price $47.62 is trading above 200-day MA of $45.79 and 11.8% below 52-week high.

Peers on Argus

Peers show mixed moves: DPZ up 3.45%, DRI up 1.81%, TXRH and BROS modestly posit...

Peers show mixed moves: DPZ up 3.45%, DRI up 1.81%, TXRH and BROS modestly positive, while QSR is slightly negative. This points to stock-specific dynamics around Yum China’s capital return news rather than a uniform restaurant-sector trade.

Historical Context

5 past events · Latest: Nov 16 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 16	Investor Day strategy	Positive	+0.5%	Unveiled RGM 3.0 strategy and three-year financial and capital-return outlook.
Nov 10	Investor Day notice	Neutral	+2.8%	Announced scheduling and access details for upcoming Investor Day event.
Nov 04	Q3 2025 earnings	Positive	+1.9%	Reported revenue and operating profit growth plus significant capital returns.
Oct 22	Dividend consideration	Neutral	-0.0%	Board to consider possible quarterly dividend under HKEX disclosure rules.
Oct 15	Earnings date set	Neutral	+2.3%	Announced timing and access details for Q3 2025 earnings release and call.

Pattern Detected

Recent news, including strategy updates, earnings, and capital-return communications, has generally been followed by modest positive price reactions, suggesting the stock often trades constructively around corporate updates.

Recent Company History

Over the last few months, Yum China has focused on growth and capital returns. The Q3 2025 results on Nov 4 showed revenue of $3.2B and higher operating profit, alongside $414M returned to shareholders. Subsequent disclosures covered dividend considerations and an Investor Day, where management reiterated returning $1.5B annually in 2024–2026. Today’s buyback-focused announcement extends that capital return framework into 2026 and beyond, consistent with this trajectory.

Market Pulse Summary

This announcement details H1 2026 repurchase agreements totaling US$460M as part of a broader US$1.5...

Analysis

This announcement details H1 2026 repurchase agreements totaling US$460M as part of a broader US$1.5B 2026 capital-return plan, reinforcing Yum China’s focus on sustained buybacks and dividends. It fits with earlier guidance to return US$4.5B from 2024–2026 and to distribute roughly 100% of annual free cash flow from 2027 onward. Investors may watch subsequent disclosures on actual buyback execution, cash generation, and any adjustments to long-term return targets.

Key Terms

rule 10b5-1, free cash flow, stock appreciation right, rule 144, +1 more

5 terms

rule 10b5-1 regulatory

"approximately US$350 million under the Rule 10b5-1 of the United States..."

Rule 10b5-1 is a regulation that allows company insiders to buy or sell their shares at predetermined times, even if they have access to non-public information. It acts like setting a schedule in advance for transactions, helping prevent accusations of unfair trading. This rule provides a way for insiders to plan trades transparently, giving investors confidence that these transactions are not based on hidden information.

free cash flow financial

"we plan to return approximately 100% of annual free cash flow after..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

stock appreciation right financial

"acquired these shares on 02/05/2016 via a stock appreciation right (SAR) exercise..."

A stock appreciation right (SAR) is a form of employee pay that gives the holder the right to receive the increase in a company's share price over a set reference price, paid in cash or shares, without having to buy stock first. It matters to investors because SARs can create future cash outflows or dilute existing shareholders if settled in stock, and they align employee incentives with share-price performance like a bonus tied to a home's price rise.

rule 144 regulatory

"has a shareholder planning to sell common stock under Rule 144."

Rule 144 is a U.S. securities regulation that sets conditions under which restricted or insider-held shares can be legally resold to the public, such as required holding periods, availability of public information, limits on how much can be sold at once, and certain filing requirements. For investors it matters because it determines when previously locked-up shares can enter the market — like a release valve that can increase supply, affect share price, and signal insider intent.

form 144 regulatory

"filed a Form 144 notice for a proposed sale of 4,888 shares..."

Form 144 is a document that investors must file with the government when they plan to sell a large number of shares of a company's stock. It helps ensure transparency so everyone knows how many shares are being sold and when, which can impact the stock's price.

AI-generated analysis. Not financial advice.

SHANGHAI, Dec. 12, 2025 /PRNewswire/ -- Yum China Holdings, Inc. (the "Company" or "Yum China") (NYSE: YUMC and HKEX: 9987) announced that it has entered into share repurchase agreements in the U.S. and Hong Kong for an aggregate repurchase amount of approximately US$460 million for the first half of 2026, commencing on January 12, 2026.

The share repurchase agreements include approximately US$350 million under the Rule 10b5-1 of the United States Securities Exchange Act of 1934 in the U.S. and approximately HK$880 million for a similar program in Hong Kong. These agreements are one component of the share repurchase program, and part of the broader plan to return US$1.5 billion to shareholders through dividends and share repurchases in 2026. This annual amount of capital return is equivalent to around 9% of our market capitalization as of December 11, 2025.

"Yum China is committed to maintaining a dual focus: investing to drive business growth and delivering favorable capital returns to shareholders. Supported by a healthy cash position and strong cash-generation capabilities, we are on track to return US$4.5 billion to shareholders from 2024 through 2026. Starting in 2027, as outlined at our 2025 Investor Day, we plan to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests," said Joey Wat, CEO of Yum China.

The average annual return in 2027 and 2028 is expected to be approximately US$900 million to over US$1 billion, and to exceed US$1 billion in 2028, through steadily increasing dividend per share over time and value-enhancing share repurchases.

Since 2017, Yum China has returned US$5.8 billion to shareholders through dividends and share repurchases.

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 relating to our projected capital returns from 2025 and 2026. 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," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" 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 include, without limitation, statements regarding the Company's future strategies, growth, business plans, capital allocation strategy, capital return plans (including dividend and share repurchase plans). 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. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements. Our plan of capital returns to shareholders (including dividend and share repurchase plans) is based on current expectations, which may change based on market conditions, capital needs or otherwise. 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 Factor" 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 operates over 17,000 restaurants under six brands across over 2,500 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 https://ir.yumchina.com/.

Contacts

Investor Relations Contact:
Tel: +86 21 2407 7556
IR@YumChina.com 

Media Contact:
Tel: +86 21 2407 3824
Media@YumChina.com

View original content:https://www.prnewswire.com/news-releases/yum-china-announces-us460-million-share-repurchase-agreements-for-first-half-of-2026-as-part-of-us1-5-billion-full-year-capital-return-plan-302640085.html

SOURCE Yum China Holdings, Inc.

FAQ

What is the size and timing of Yum China’s H1 2026 share repurchase (YUMC)?

Yum China will repurchase approximately US$460 million starting January 12, 2026 for the first half of 2026.

How much of the H1 2026 repurchase is under a U.S. Rule 10b5-1 plan for YUMC?

About US$350 million of the H1 2026 repurchase is executed under a U.S. Rule 10b5-1 plan.

What is Yum China’s total capital return target for 2026 and how does it compare to market cap (YUMC)?

The company targets US$1.5 billion in capital returns for 2026, equal to roughly 9% of market capitalization as of December 11, 2025.

How much will Yum China return to shareholders from 2024 through 2026 (YUMC)?

Yum China expects to return approximately US$4.5 billion to shareholders from 2024 through 2026.

What are Yum China’s expected annual shareholder returns for 2027–2028 (YUMC)?

Average annual returns are expected at about US$900 million to over US$1 billion in 2027–2028, and to exceed US$1 billion in 2028.

How much has Yum China returned to shareholders since 2017 (YUMC)?

Since 2017, Yum China has returned US$5.8 billion to shareholders through dividends and repurchases.