Yum China to Outline Vision as an Independent Company at Yum! Brands Annual Investor Conference
October 11 2016 - 7:31AM
Business Wire
Yum China Holdings, Inc. (“Yum China”) will outline its vision
for the company as an independent business today at Yum! Brands,
Inc.’s (NYSE: YUM) annual investor conference in New York, NY. Yum
China expects to begin trading as an independent company beginning
November 1, 2016, on the New York Stock Exchange under the ticker
symbol “YUMC.”
“Yum China is a powerhouse business that will be one of China’s
largest publicly traded retail companies. We employ over 400,000
people and serve over 2 billion customers annually. With our unique
market position and a rapidly growing middle class and urban
population, we believe that we offer an unrivalled
opportunity for sustained long-term growth in China,”
said Micky Pant, Chief Executive Officer of Yum China. “At
separation, we will be operating a highly cash-generative business,
with no external debt and ample cash on hand. This will enable us
to invest in new restaurants, digital engagement and our delivery
network, providing job opportunities to thousands more people
across the country and contributing to economic growth.”
Mr. Pant concluded, “With leading brands and supported by U.S.
governance, Yum China is a unique investment opportunity. We are
committed to generating value for our customers, our employees and
our shareholders for decades to come.”
Yum China Highlights –
Post-separation
- Largest independent restaurant company
in China, with exclusive rights to the KFC, Pizza Hut and Taco Bell
brands in China, and ownership of China’s Little Sheep and East
Dawning brands
- No debt and expect over $900 million
cash on hand at separation, and significant free cash flow
generation, enabling shareholder cash returns and investment in new
growth engines
- Industry-leading development
capability, marketing scale and coverage, supply chain
infrastructure and brand strength in the world’s fastest-growing
major economy
- Potential to triple units over the long
term
- Substantial runway for same-store sales
growth
- Strong and experienced management team,
led by Micky Pant and a highly qualified Board of Directors, led by
Dr. Fred Hu
About Yum China
Yum China Holdings, Inc. will become a licensee of Yum! Brands
in mainland China. It will have exclusive rights to KFC, China’s
leading quick-service restaurant concept, Pizza Hut, the leading
casual dining restaurant brand in China, and Taco Bell, which is
expanding globally but is not yet in China. Yum China will also own
the Little Sheep and East Dawning concepts outright. The new
company will be well positioned for growth thanks to its strong
competitive position, integration of its brands into Chinese
popular culture and consumers’ daily lives, expanding geographic
footprint in China and existing operational expertise. It will have
a strong capital position, no external debt and expects to continue
growing its system sales and profit by adding new restaurants and
through growing same-store sales. Yum China has more than 7,300
restaurants and more than 400,000 employees in over 1,100 cities,
and generated over $8 billion in system sales in 2015. A new
generation of younger consumers who are digitally sophisticated and
brand driven are fueling growth in consumption in China. The
ongoing growth of the middle class and urban population in China is
expected to create the world’s largest market for restaurant
brands, with Yum China poised to be the market leader.
The separation is currently expected to occur after the close of
business on October 31, 2016. Yum China expects to begin trading
“regular way” as an independent company beginning November 1, 2016,
on the New York Stock Exchange (NYSE) under the ticker symbol
“YUMC.” Yum! Brands expects “when-issued” trading for both Yum!
Brands and Yum China to begin on the NYSE on October 17, 2016,
under the symbol “YUM WI” for Yum! Brands and “YUMC WI” for Yum
China.
About Yum! Brands
Yum! Brands, Inc., based in Louisville, Kentucky, has more than
43,000 restaurants in almost 140 countries and territories. Yum!
Brands is ranked #218 on the Fortune 500 List with revenues of over
$13 billion in 2015 and is one of the Aon Hewitt Top Companies for
Leaders in North America. The Company’s restaurant brands - KFC,
Pizza Hut and Taco Bell - are the global leaders of the chicken,
pizza and Mexican-style food categories. Worldwide, the Yum! Brands
system opens over six new restaurants per day on average, making it
a leader in global retail development.
Additional Information
Definitions of terms are available online at www.yum.com under
“Investors” and ir.yumchina.com.
Forward-Looking Statements
Certain statements in this communication contain
“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. 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,” “likely,” “will,” “should,” “forecast,” “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 include, without limitation,
statements regarding the future business plans and earnings and
performance of Yum China including all targets and factors related
to Yum China’s ongoing EPS growth model, statements regarding any
intended capital return to shareholders, and statements regarding
the capital structure of Yum China or any of its businesses.
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 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 on our website are only made as of the date indicated on
the relevant materials, and we disclaim any obligation to publicly
update any forward-looking statement to reflect subsequent events
or circumstances. Numerous factors could cause our actual results
to differ materially from those expressed or implied by
forward-looking statements, including, without limitation: whether
we are able to achieve development goals at the times and in the
amounts currently anticipated, if at all, the success of our
marketing campaigns and product innovation, our ability to maintain
food safety and quality control systems, our ability to control
costs and expenses, including tax costs, as well as changes in
political, economic and regulatory conditions in China. 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 Factors” and
“Cautionary Statement Concerning Forward-Looking Statements” in the
Information Statement included in our Registration Statement on
Form 10) for additional detail about factors that could affect our
financial and other results.
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Yum China Holdings, Inc.Forest Liu, +86 21 2407 7505Director,
Financial MediaorBrunswick GroupNaomi Tudhope, +86 21 6039 6388
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