SHANGHAI, May 15, 2017 /PRNewswire/ -- Yum China Holdings, Inc. ("Yum China") (NYSE: YUMC) today announced that it has entered into a definitive agreement to acquire a controlling interest in the holding company of DAOJIA.com.cn ("Daojia"). The transaction is expected to close by the end of May 2017, subject to customary closing conditions.
Daojia, which also operates Sherpa's, was founded in 2010 and is an established online food delivery service provider focusing on higher-end orders in large cities in China including Beijing, Shanghai, Guangzhou and Shenzhen. This transaction marks another step in executing Yum China's strategy to accelerate growth through digital and delivery by building know-how and expertise in this growing segment.
Following the transaction, Hank Sun, founder of Daojia, will continue to lead the business. "We are honored to integrate our business with Yum China, which operates China's two leading restaurant brands, KFC and Pizza Hut," said Mr. Sun. "With the combination of the Yum China business and our technological infrastructure, we look forward to achieving digital and delivery synergies for both of us."
Micky Pant, CEO of Yum China, commented: "Digital and delivery are long-term strategic drivers of our business, and I am pleased to build on our technological know-how and capabilities in this high growth area."
Yum China has one of the largest restaurant delivery networks in China, with over 4,400 of its 7,663 restaurants offering delivery services as of the end of first quarter of 2017. In the first quarter of 2017, delivery represented approximately 12% of Company sales.
Forward-Looking Statements
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 the expected timing of the closing of the acquisition, expected leadership at Daojia following the closing of the acquisition, anticipated synergies from the acquisition and beliefs regarding the long-term drivers of Yum China's business. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "likely," "will," "should," "forecast," "outlook," "look forward to" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under 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 to differ materially from those indicated by those statements. Some of the risks and uncertainties that could cause actual results to differ materially include, but are not limited to: the possibility that conditions to closing the acquisition may not be satisfied in a timely manner or at all; the fact that the integration of Daojia may require significant time, attention and resources, potentially diverting attention from the conduct of our business; and the expected synergies from the acquisition may not be realized. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this press release are only made as of the date of this press release, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions "Risk Factors" and "Forward-Looking Statements" in our Annual Report on Form 10-K) for additional detail about 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, the leading casual dining restaurant brand in China, and Taco Bell, which opened its first restaurant in China at the end of 2016. Yum China also owns the Little Sheep and East Dawning concepts outright. Yum China is well positioned for growth thanks to its strong competitive position, integration of its brands into Chinese popular culture and consumers' daily lives, expanding geographic footprint in China and existing operational expertise. It has a strong capital position, no external debt and expects to continue growing its system sales and profit by adding new restaurants and through growing same-store sales. Yum China had more than 7,600 restaurants and more than 420,000 employees in over 1,100 cities at the end of February 2017. A new generation of younger consumers who are digitally sophisticated and brand driven are fueling growth in consumption in China. The ongoing growth of the middle class and urban population in China is expected to create the world's largest market for restaurant brands, with Yum China poised to be the market leader.
Analysts are invited to contact:
Christie Ju, Vice President – Finance, Investor Relations, at +86 21 2407 8090
Elaine Lai, Director – Finance, Investor Relations, at +86 21 2407 8278
Members of the media are invited to contact:
Forest Liu, Director, Public Affairs, at +86 21 2407 7505
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