Yum! Brands, Inc.’s (YUM Quick QuoteYUM - Free Report) board of directors, in an attempt to woo investors’ confidence has authorized a share repurchase program of roughly $4.2 billion, through Dec 2016.

Further, these share repurchases are a part of Yum! Brands’ previously announced commitment to return $6.2 billion of capital to its investors, ahead of the planned separation of its China business. The separation is on track to be completed by the end of 2016.

The company has repurchased 27.6 million shares of common stock totaling approximately $2 billion from Oct 2015 through May 19, 2016. The buyback of the common stock will take place at frequent intervals in the open market or through privately negotiated transactions. These will be subject to market conditions and other factors.

We appreciate Yum!’s efforts to bolster long-term shareholders’ value. We believe that the share repurchase authorization affirms the company’s positive outlook and reflects its confidence in its fundamentals. It also underlines the company’s strategy to increase shareholders’ value in the long run. The announcement is not only expected to reinforce their confidence but also boost the market value of the outstanding shares.

In fact, since initiating its dividend in 2004, Yum! has increased the same at a double-digit percentage rate each year.

Yum! Brands presently has a Zacks Rank #3 (Hold). Stocks which are better-ranked in the same sector are Carrols Restaurant Group, Inc. (TAST Quick QuoteTAST - Free Report) , Dave & Buster's Entertainment, Inc. (PLAY Quick QuotePLAY - Free Report) , and Restaurant Brands International Inc. (QSR Quick QuoteQSR - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy).

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