Yum! Brands, Inc. (NYSE: YUM) announced that its Board of Directors
approved an 11% increase in the Company’s quarterly dividend. The
quarterly cash dividend will increase from $0.37 to $0.41 per share and
will be effective with the dividend payment to be distributed on
November 7, 2014 to shareholders of record at the close of business on
October 17, 2014. This increase raises the annual dividend rate to $1.64
per share.
David C. Novak, Chairman and Chief Executive Officer, said, “I am
pleased to inform our shareholders we increased our dividend by 11%,
marking the tenth consecutive year we have raised our dividend at a
double-digit percentage rate. Over the last five years we have returned
nearly $6 billion of cash through a combination of share repurchases and
dividends.
“Our first priority with the operating cash we generate is to invest in
high-return global growth opportunities. In addition to investing in
future growth, Yum!’s substantial free cash flow generation allows us to
return significant cash to our shareholders through a meaningful
quarterly dividend and share buybacks.”
Yum! initiated its dividend in 2004 and is in a select group of
companies from the S&P 500 to increase its dividend at a double-digit
percentage rate each of the past ten years. Over the long term, Yum! is
now targeting a payout ratio of 40% to 45% of annual net income, before
special items.
Yum! Brands, Inc., based in Louisville, Kentucky, has over 40,000
restaurants in more than 125 countries and territories. Yum! is ranked
#216 on the Fortune 500 List with revenues of over $13 billion and in
2014 was named among the top 100 Corporate Citizens by Corporate
Responsibility Magazine. The Company’s restaurant brands - KFC, Pizza
Hut and Taco Bell - are the global leaders of the chicken, pizza and
Mexican-style food categories. Outside the United States, the Yum!
Brands system opened over five new restaurants per day, making it a
leader in international retail development.
Copyright Business Wire 2014