LOUISVILLE, Ky.--(BUSINESS WIRE)--Yum! Brands Inc. (NYSE: YUM) announced that its Board of Directors approved a 19% increase in the Company's quarterly dividend. The quarterly cash dividend will increase from $0.21 to $0.25 per share and will be effective with the dividend payment to be distributed on November 5, 2010 to shareholders of record at the close of business on October 15, 2010.
David C. Novak, Chairman and Chief Executive Officer, said, "I am pleased to inform our shareholders we have increased our quarterly dividend 19%, the sixth consecutive annual increase since we initiated a quarterly dividend in 2004. Yum! Brands' consistent performance and substantial annual free cash flow generation enables us to return significant cash to our shareholders through both a meaningful quarterly dividend and share buybacks."
"Our first priority for the operating cash we generate is to continue to use a disciplined approach as we reinvest in the global growth opportunities of our business along with our franchise partners."
The Yum! dividend policy continues to target a payout ratio of 35 to 40% of annual net income.
Yum! Brands, Inc., based in Louisville, Kentucky, is the world's largest restaurant company in terms of system restaurants, with more than 37,000 restaurants in over 110 countries and territories. The company is ranked #216 on the Fortune 500 List, with revenues of nearly $11 billion in 2009. Four of the company's restaurant brands - KFC, Pizza Hut, Taco Bell and Long John Silver's - are the global leaders of the chicken, pizza, Mexican-style food and quick-service seafood categories, respectively. A&W Restaurants is the longest running quick-service franchise chain in America. Outside the United States in 2009, the Yum! Brands system opened more than four new restaurants each day of the year, making it a leader in international retail development.