Yum China introduces three-year targets at investor day

Yum China hosted its 2023 Investor Day in Xi’an, China. Yum China is striving to reach 20,000 stores by 2026 and to achieve high-single-to-double-digit CAGR for system sales and operating profit as well as double-digit EPS CAGR from 2024 to 2026, compared to base year 2023 and in constant currency. The company targets to return approximately $3B to shareholders through quarterly dividends and share repurchases over the same three-year period, doubling the shareholder return of the past three years. Joey Wat, CEO of Yum China, commented, “We are excited about the significant opportunities China presents. In 2021, we implemented our “RGM” strategy, which stands for “Resilience, Growth and Moat.” Thanks to the tireless efforts of our team and their exceptional execution, we expanded our footprint, achieved robust performance and remained profitable throughout the past three years. Further, we have transformed our business, emerging even stronger and better positioned for growth. Moreover, we have strengthened emotional connections with customers. Going forward, we are transitioning our RGM strategy to place greater emphasis on growth. By leveraging flexible store formats and strategically partnering with franchisees, we are expanding into more locations. Through our delicious and innovative food offerings, combined with amazing value for money, we are winning over more customers and giving them compelling reasons to choose us. As we continue to expand, we believe our improved cost structure and proactive cost management will enable us to sustain and potentially improve our profitability over time. Our ambitious financial growth targets for 2024 to 2026 reflect our unwavering commitment to delivering value to our shareholders, affirming our confidence in our prospects, expanding our reach, and driving robust growth.”