LOUISVILLE - Yum! Brands, Inc. (NYSE: NYSE:YUM), the parent company of fast-food chains KFC, Taco Bell, Pizza Hut, and the Habit Burger Grill, has announced a new share repurchase program. The company's Board of Directors authorized the buyback of up to $2 billion in shares of its common stock, set to commence on July 1, 2024, and extend through December 31, 2026.
This new repurchase plan follows the expiration of the previous authorization, which will end on June 30, 2024. The announcement was made alongside the declaration of a quarterly dividend of $0.67 per share, payable on June 7, 2024, to shareholders on record as of May 28, 2024.
Yum! Brands operates a global network of over 59,000 restaurants across more than 155 countries and territories. Its brands are recognized leaders in their respective food categories, with KFC, Taco Bell, and Pizza Hut holding significant market presence. The Habit Burger Grill, known for its chargrilled burgers and sandwiches, adds to the company's diverse portfolio.
In addition to its financial strategy, Yum! Brands has been acknowledged for its corporate responsibility and leadership initiatives. The company was included on the Dow Jones Sustainability Index North America for the eighth consecutive year in 2024. It also earned spots on TIME Magazine's list of Best Companies for Future Leaders and Newsweek's list of America's Most Responsible Companies.
The company's commitment to diversity and sustainability has been recognized with listings on the Bloomberg Gender-Equality Index, Forbes' list of America's Best Employers for Diversity, and Newsweek's list of America's Greenest Companies. Moreover, its three major brands, KFC, Taco Bell, and Pizza Hut, were ranked among the top five in Entrepreneur's Top Global Franchises Ranking for 2023.
This news is based on a press release statement from Yum! Brands, Inc. and reflects the company's ongoing financial and strategic developments as it continues to grow and manage its portfolio of restaurant brands.
InvestingPro Insights
As Yum! Brands embarks on a new share repurchase program and continues its quarterly dividend payments, investors are keenly observing the company's financial health and market position.
According to InvestingPro data, Yum! Brands currently boasts a market capitalization of $38.96 billion and trades at a P/E ratio of 24.14, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at 23.19. The company's PEG ratio, which indicates the relative trade-off between the price of a stock, the earnings generated per share, and the company's expected growth, stands at a favorable 0.75.
Highlighting Yum! Brands' financial stability, InvestingPro Tips suggest that the company has not only raised its dividend for 6 consecutive years but has also maintained dividend payments for 21 consecutive years. This is a testament to its consistent performance and commitment to shareholder returns. Moreover, the company's liquid assets exceed its short-term obligations, providing a cushion for operational flexibility and potential growth opportunities.
Investors looking for more detailed analysis and additional InvestingPro Tips on Yum! Brands can find them at InvestingPro's dedicated page. There are currently 19 more tips available, which could provide deeper insights into the company's financials, stock performance, and future outlook. For those interested in a subscription, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of investment knowledge and data-driven insights.
With a robust performance in the last twelve months and analysts predicting profitability this year, Yum! Brands appears to be on a solid trajectory, further supported by its strategic initiatives in share repurchases and dividend payments. These factors, combined with the company's sustainability and diversity accolades, paint a picture of a corporation that is as focused on its financial growth as it is on its corporate responsibility.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.