Yum China Holdings Inc. (NYSE: YUMC) announced share repurchase agreements totaling approximately $512 million for the second half of 2026, beginning July 1, according to a company statement.

The agreements include approximately $384 million under Rule 10b5-1 of the Securities Exchange Act in the U.S. and approximately HK$1 billion for a program in Hong Kong. These agreements supplement existing share repurchase agreements for the first half of 2026.

The restaurant operator said it remains on track to return $1.5 billion to shareholders in 2026, comprising approximately $400 million in dividends and $1.1 billion in share repurchases through systematic and discretionary buybacks.

"Our target to return $1.5 billion in capital to shareholders in 2026 represents approximately 9% of our current market capitalization," said Joey Wat, CEO of Yum China. "Supported by our healthy balance sheet and strong cash generation, we remain dual-focused on driving business growth and delivering solid capital returns to shareholders."

Beginning in 2027, Yum China stated it intends to return approximately 100% of annual free cash flow after subsidiaries' dividend payments to non-controlling interests. The company anticipates this will translate into an average annual return of approximately $900 million to over $1 billion in 2027 and 2028, and to exceed $1 billion in 2028.

Since 2017, Yum China has returned $6.4 billion to shareholders through dividends and share repurchases. The company operates over 18,000 restaurants under six brands across more than 2,600 cities in China.