LOUISVILLE, Ky. – The board of Yum! Brands Inc. authorized a share repurchase of up to $4.2 billion and declared a quarterly dividend of 46 cents per share of common stock.
The $4.2 billion share repurchases of outstanding common stock is authorized through Dec. 31 and supersedes all previous unutilized authorizations. Yum! already has repurchased 27.6 million shares of common stock totaling approximately $2 billion at an average price of $72 per share from October 2015 through May 19, 2016.
The quarterly dividend is in addition to the $6.2 billion in capital the company has pledged to return to shareholders on Aug. 5.
“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,” CEO Greg Creed said in a statement. “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.”
Meanwhile, a Chinese consortium that includes China Investment Corp. (CIC) and KKR & Co. has ended discussions to buy a stake in the company’s China business, Reuters reported. One of the major hurdles to negotiations was CIC’s desire to have majority control in the business.