Yum! Brands, Inc. stock research
FY2023 Q3
Yum! Brands (YUM) Gross Margin — Quarter Ended Sep 30, 2023
Revenue and gross profit were higher year-over-year, while gross margin remained stable sequentially and slightly lower compared to the same quarter last year. The filing notes the company's substantial cash flows from franchise operations and company-owned stores, supporting its investment and capital return plans.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue and gross profit were higher year-over-year, while gross margin remained stable sequentially and slightly lower compared to the same quarter last year. The filing notes the company's substantial cash flows from franchise operations and company-owned stores, supporting its investment and capital return plans.
- Gross margin held steady sequentially but edged lower year-over-year, as revenue growth was accompanied by a proportionally larger increase in cost of revenue.
- Compared to the prior quarter, revenue and gross profit were unchanged, cost of revenue was higher, and gross margin was unchanged. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
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
$421.0M
Quarter-over-quarter change
-0.0 pts
Year-over-year change
-0.1 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% |
| Sep 30, 2023 | $1.7B | $1.3B | $421.0M | 75.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
-0.0 pts
Year-over-year change
Sep 30, 2022
-0.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin held steady sequentially but edged lower year-over-year, as revenue growth was accompanied by a proportionally larger increase in cost of revenue.
Compared to the prior quarter, revenue and gross profit were unchanged, cost of revenue was higher, and gross margin was unchanged. Compared to the same quarter last year, revenue and gross profit were higher, cost of revenue was higher, and gross margin was slightly lower.
Monitor the trend in cost of revenue, which increased both sequentially and year-over-year.