Linda Huang's questions to Yum China Holdings Inc (YUMC) leadership • Q3 2024
Question
Linda Huang from Macquarie questioned the sustainability of the increased $4.5 billion capital return plan, noting it exceeds historical free cash flow. She asked if this implies a focus on organic growth and rules out large M&A, or if the company would consider taking on debt for a major opportunity.
Answer
CFO Adrian Ding clarified that while the company is confident in its cash generation, the current pace of returns is not indefinite. He affirmed that Yum China remains prudent and proactive regarding M&A. If a compelling, value-accretive opportunity arose, the company might adjust its capital return plan and would consider taking on debt, but only if the deal created significant shareholder value.