Yum! Brands, Inc. stock research
FY2023 Q1
Yum! Brands (YUM) Gross Margin — Quarter Ended Mar 31, 2023
Revenue decreased from the prior quarter but increased from the year-ago quarter. Gross profit followed a similar pattern, while gross margin improved compared to both periods, reaching its highest level among the three quarters.
Gross margin takeaway
Quarter ended Mar 31, 2023 · FY2023 Q1
Revenue decreased from the prior quarter but increased from the year-ago quarter. Gross profit followed a similar pattern, while gross margin improved compared to both periods, reaching its highest level among the three quarters.
- The gross margin improvement was associated with a lower cost of revenue relative to revenue. Cost of revenue declined sequentially and was nearly unchanged year-over-year, while revenue experienced a larger sequential decline and a year-over-year increase.
- Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin was also higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.5%
Gross profit
$1.2B
Revenue
$1.6B
Cost of revenue
$403.0M
Quarter-over-quarter change
n/a
Year-over-year change
+1.5 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $1.6B | $1.2B | $403.0M | 75.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Previous quarter unavailable
n/a
Year-over-year change
Mar 31, 2022
+1.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was associated with a lower cost of revenue relative to revenue. Cost of revenue declined sequentially and was nearly unchanged year-over-year, while revenue experienced a larger sequential decline and a year-over-year increase.
Compared to the prior quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter last year, revenue and gross profit were higher, and gross margin was also higher.
Monitor company restaurant expenses, which based on the filing represent the primary component of cost of revenue and directly affect gross margin.