Yum China Holdings, Inc. - YUMC STOCK NEWS

Yum China Holdings, Inc. has initiated a dispute resolution process with Yum! Brands over royalty fees related to delivery and aggregator platform charges. The company contends that these fees should not incur royalties, disputing approximately $2 million for Q1 2022 and seeking to recover additional payments from November 2016 to December 2021. Yum China does not expect the dispute to materially affect its operations or financial results moving forward, maintaining its long-term relationship with Yum! Brands.

Yum China reported Q1 2022 results, achieving total revenues of $2.67 billion, a 4% year-over-year increase. Despite challenges from COVID-19, it opened 329 net new stores, bringing the total to 12,117. However, same-store sales dropped by 8%, with operating profit declining 44% to $191 million. The Omicron variant's impact led to significant temporary store closures, with over 3,000 stores affected by April. Looking ahead, Yum China anticipates potential operating losses in Q2 due to falling sales and rising costs.

Yum China Holdings, Inc. (YUMC) launched the "Million Thanks, Million Gifts" initiative to honor medical workers in Shanghai amidst rising COVID-19 challenges. As part of the initiative, the company provided hundreds of free meals and prepared over 30,000 care packages with ready-to-eat products for these workers. The event coincided with International Labor Day, reflecting the company's commitment to community support. Additionally, Yum China's brands have consistently supplied food for medical personnel since early April, contributing significantly to local efforts during the outbreak.

Yum China Holdings, Inc. has launched KFC's first Green Pioneer Stores in Hangzhou and Beijing, marking a significant step in its climate strategy. These stores aim for net-zero value chain greenhouse gas emissions by 2050 and are expected to reduce GHG emissions by approximately 15% annually. Key features include solar panels, an IoT-based energy management system, and eco-friendly materials. This initiative supports Yum China's commitment to sustainable practices and raises customer awareness about eco-friendly behavior through various channels including a 'Virtual Green Store' on the KFC Super APP.

Yum China Holdings, Inc. (YUMC) announced that its board will consider the declaration of a quarterly dividend on or around May 4, 2022. This decision is in compliance with HKEX rules that require prior notice for board meetings concerning dividend declarations. Although the board has not yet adopted a resolution for the dividend, this step signals Yum China's intent to return value to shareholders if approved. Shareholders should stay tuned for updates, as the dividend amount and payment date will be disclosed if the resolution passes.

Yum China Holdings, Inc. announced the appointment of Johnson Huang as its first Chief Customer Officer, effective May 1, 2022. This role aims to enhance customer engagement within the company's culture. Warton Wang, the current Chief Development Officer, will succeed Huang as General Manager of KFC. Huang, with over 15 years at Yum China, previously led KFC's growth and digital initiatives. Wang brings 24 years of operational experience, with a history of enhancing KFC's efficiency. CEO Joey Wat emphasized the importance of digital capabilities for future growth.

Yum China Holdings, Inc. (YUMC) will announce its unaudited financial results for Q1 2022 on May 3, 2022, at 4:30 p.m. ET. The management will conduct an earnings conference call at 8:00 p.m. ET the same day. Interested parties can access a live webcast via their investor relations website. The company holds exclusive rights to KFC, Pizza Hut, and Taco Bell in mainland China, operating 12,163 restaurants in over 1,600 cities as of February 2022. Yum China continues to be recognized for its sustainability efforts and gender equality initiatives.

Yum China Holdings has increased its share repurchase authorization by $1 billion, now totaling $2.4 billion. Since 2017, the company repurchased around 24 million shares for $971 million. The remaining authorization stands at approximately $1.4 billion. From 2017 to 2021, Yum China generated $5.6 billion in operating cash flow and $3.2 billion in free cash flow. The Board's decision reflects confidence in the company's financial resilience and commitment to returning value to shareholders while investing for future growth.