Yum China Unveils Massive Buyback Push

Yum China Holdings Inc. (NYSE:YUMC) stock climbed Friday after the restaurant operator unveiled an expanded share repurchase program and outlined its long-term capital return strategy.

Yum China said it entered share repurchase agreements in the United States and Hong Kong. The arrangements cover about $460 million in buybacks during the first half of 2026.

The repurchases will begin Jan. 12, 2026, according to the company’s statement. Roughly $350 million falls under the Rule 10b5-1 in the United States.

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The remaining portion includes about 880 million Hong Kong dollars for a similar program in Hong Kong. Management described these agreements as part of a broader shareholder return strategy.

Capital Return Strategy In Focus

Yum China plans to return $1.5 billion to shareholders in 2026 through dividends and buybacks. The company said that the amount equals roughly 9% of its market value as of Dec. 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 company expects average annual returns of roughly $900 million to over $1 billion in 2027 and 2028. Management expects returns to exceed $1 billion by 2028.

Authorization Expansion Adds Flexibility

In a separate release, Yum China said its board increased share repurchase authorization by $1 billion. The total authorization now stands at about $5.4 billion.

From 2017 through Dec. 11, 2025, the company repurchased nearly 97.7 million shares. Those transactions totaled about $4.2 billion.

The expanded authorization leaves approximately $1.2 billion available for future repurchases. The company noted the authorization does not carry an expiration date.

YUMC Price Action: Yum China Holdings shares were up 1.91% at $48.53 at the time of publication on Friday, according to Benzinga Pro data.

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