Note 15 – Subsequent Events

Acquisition of Ownership of the Pizza Hut Brand in Mainland China

In August 2026, the Company completed the acquisition of ownership of the Pizza Hut brand in Mainland China at a cash consideration of $1.2 billion and secured an approximately $1.2 billion equivalent offshore bridge loan to finance the transaction. Upon closing, the Company will no longer be subject to the license fees previously payable to YUM for the Pizza Hut brand.

Amendment of Master License Agreement with YUM

In August 2026, the Company entered into an amended and restated master license agreement with YUM, pursuant to which the Company continues to be granted the exclusive right and license to use certain intellectual property associated with the KFC and Taco Bell brands in Mainland China in exchange for a license fee equal to 3% of net system sales, and will have the opportunity to earn certain annual financial incentives over the next twelve years from YUM based on the achievement of specified system sales growth targets for KFC China. The amendment also establishes a framework between the Company and YUM to discuss and develop a mutually agreed long-term growth plan for Taco Bell China, with remedies for any failure to agree upon or implement such a plan limited to the Taco Bell brand.

Cash Dividend

On July 30, 2026, the Company announced that the Board of Directors declared a cash dividend of $0.29 per share on Yum China’s common stock, payable on September 17, 2026, to stockholders of record as of the close of business on August 27, 2026. Total estimated cash dividend payable is approximately $99 million.