Yum! Brands says plans to increase franchise ownership to at least 98% by FY18
Says plans increase franchise restaurant ownership from 77% now to 93% at the time of the separation of the China business, and to at least 98% by fiscal year ending 2018. Says intends to reduce annual capital expenditures from about $500M to about $100M in FY19, and reduce general and administrative costs by a cumulative $300M by FY 2019. Says Yum China will have no debt and expects more than $900M cash on hand at separation, and significant free cash flow generation, enabling shareholder cash returns and investment in new growth engines. Says expanding its plan to return capital to shareholders and now sees returning a total of $13.5B, including dividends, between Q4 2015 and 2019. Comments from Yum! Brands Investor & Analyst Conference.