Yum! Brands, Inc. stock research
FY2023 Q2
Yum! Brands (YUM) Gross Margin — Quarter Ended Jun 30, 2023
Revenue increased compared to the prior quarter, while gross profit rose at a slightly slower pace, causing a marginal weakening in gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved meaningfully.
Gross margin takeaway
Quarter ended Jun 30, 2023 · FY2023 Q2
Revenue increased compared to the prior quarter, while gross profit rose at a slightly slower pace, causing a marginal weakening in gross margin. Versus the same quarter one year earlier, revenue and gross profit were higher, and gross margin improved meaningfully.
- Gross margin was stable quarter over quarter, declining by a small fraction, but improved compared to the year-ago period. The relationship among revenue, cost of revenue, and gross profit shows that revenue growth outpaced cost growth on a year-over-year basis, supporting the margin expansion.
- Compared to the immediately preceding quarter, revenue increased, cost of revenue increased, and gross profit increased, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue increased, cost of revenue was unchanged, and gross profit increased, leading to an improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
75.4%
Gross profit
$1.3B
Revenue
$1.7B
Cost of revenue
$415.0M
Quarter-over-quarter change
-0.1 pts
Year-over-year change
+0.8 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% |
| Jun 30, 2023 | $1.7B | $1.3B | $415.0M | 75.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2023
-0.1 pts
Year-over-year change
Jun 30, 2022
+0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin was stable quarter over quarter, declining by a small fraction, but improved compared to the year-ago period. The relationship among revenue, cost of revenue, and gross profit shows that revenue growth outpaced cost growth on a year-over-year basis, supporting the margin expansion.
Compared to the immediately preceding quarter, revenue increased, cost of revenue increased, and gross profit increased, but gross margin weakened slightly. Compared to the same quarter one year earlier, revenue increased, cost of revenue was unchanged, and gross profit increased, leading to an improved gross margin.
Monitor the trend in cost of revenue, which remained flat year over year despite higher revenue, as its stability could be a key factor for margin sustainability.