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Home>Yum China gains after establishing dividend, detailing CEO succession plan

Yum China gains after establishing dividend, detailing CEO succession plan

Yum China gains after establishing dividend, detailing CEO succession plan

10/06/2017

Yum China Holdings Inc. (YUMC) jumped as much as 5% in late trading Thursday after announcing earnings that included the spin-off's first dividend and an increased stock-buyback plan, and detailing plans for a new chief executive. Yum China, which spun off from Yum Brands inc. (YUM) about a year ago, said that President and Chief Operating Officer Joey Wat will succeed Mickey Pant as CEO in March 2018. For the third quarter, the operator of KFC and Pizza Hut restaurants in China reported net income of $211 million, or 53 cents a share, on sales of $2.04 billion, up from profit of $192 million on sales of $1.88 billion a year ago. Analysts on average expected earnings of 56 cents a share on sales of $1.98 billion, according to FactSet. Yum China also announced its first dividend, 10 cents a share payable Dec. 21 to shareholders of record as of Nov. 30, and said the board had expanded its stock-repurchase authorization from $300 million to $550 million. Yum China shares neared $42 in after-hours action following the report, after closing with a 0.2% increase at $39.97.

-Jeremy C. Owens; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-05-17 1653ET

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