Yum China Holdings, Inc. reported its unaudited financial results for the fourth quarter and full fiscal year ended December 31, 2024. For Q4 2024, total revenues grew 4% year-over-year to $2.595 billion, slightly missing analyst consensus estimates of $2.631 billion.
Despite the revenue miss, diluted earnings per share for Q4 2024 were $0.30, which was in line with analysts' consensus estimates. Total system sales increased 4% year-over-year, excluding currency effects, driven by a 5% increase in net new units, and same-store transactions were up 4% in the quarter.
The company announced a significant increase in its quarterly dividend to $0.24 per share, representing a 50% increase from the previous $0.16 per share. This reflects confidence in the company's cash flow generation and commitment to shareholder returns.
For the full year 2024, Yum China opened a record 1,751 net new stores, demonstrating aggressive expansion. The company plans to open between 1,600 and 1,800 net new stores in 2025, with a long-term goal of reaching 20,000 stores by 2026.
Yum China reaffirmed its commitment to return a total of $4.5 billion to shareholders through dividends and share repurchases from 2024 to 2026. This capital return strategy is a key component of its financial management and value creation for investors.
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