SHANGHAI, May 11, 2022 /PRNewswire/ — Yum China Holdings, Inc. (the “Company” or “yum china“) (NYSE: YUMC and HKEX: 9987) today announced that it has invoked the dispute resolution process with Yum! Brands, Inc. (“YUM”), pursuant to the Master License Agreement dated October 312016, to resolve a disagreement over royalties charged on delivery and aggregation platform fees.
The Company believes that, in accordance with the master license agreement, delivery and aggregation platform fees should not be subject to royalties. The Company has informed YUM that it will cease paying royalties on these charges. The amount of royalties in dispute for the first quarter ended March 31, 2022 is about $2 million. The Company may also seek to recover additional royalty payments from November 1, 2016 at December 31, 2021 in respect of such delivery charges. The Company does not expect the dispute resolution process to have a material impact on its business, financial results and long-term partnership with YUM.
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements regarding actions to be taken regarding the dispute referred to in this press release. Press release. and the impact of the dispute on our operations, financial results, and our long-term partnership with Yum! Trademarks. We intend that all forward-looking statements be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the fact that they do not relate strictly to facts historical or current and by the use of forward-looking words such as “expect”, “seek”, “expect”, “believe”, “anticipate”, “may”, “could”, “have the intention to”, “believe”, “plan”, “estimate”, “target”, “predict”, “project”, “probable”, “will”, “continue”, “should”, “expect”, “commit”, “prospects” or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, and other factors we believe to be appropriate and reasonable. in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by such statements. We cannot assure you that our expectations, estimates or assumptions will be realized. The forward-looking statements included in this press release speak only as of the date of this press release, and we undertake no obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances, except as required by law. required. All forward-looking statements should be evaluated taking into account their inherent uncertainty. You should review our filings with the Securities and Exchange Commission (including information set forth under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K and subsequent quarterly reports Reports on Form 10-Q) for further details on factors that could affect our financial and other results.
About Yum China Holdings, Inc.
Yum China Holdings, Inc. is a licensee of Yum! brands in mainland China. It has exclusive rights in mainland China to KFC, China’s leading quick-service restaurant brand, Pizza Hut, China’s leading casual dining brand. Chinaand Taco Bell, a California-restaurant chain serving innovative Mexican-inspired cuisine. yum china also owns the Petit Mouton, Huang Ji Huang and the COFFii & JOY concepts. In addition, yum china has partnered with Lavazza to explore and develop the Lavazza coffee concept by China. The Company had 12,117 restaurants in more than 1,700 cities at the end of March 2022.
In 2021, yum china ranked #363 on the Fortune 500 list and was named to the TIME100 list of most influential companies. yum china was also selected as a member of the two Dow Jones Sustainability Indices (DJSI): World Index and Emerging Market Index. In 2022, the company was named to the Bloomberg Gender-Equality Index and was certified Top Employer 2022 in China by the Top Employers Institute, both for the fourth consecutive year. For more information, please visit http://ir.yumchina.com.
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SOURCEYum China Holdings, Inc.