Yum! Brands, Inc. stock research
FY2023 Q4
Yum! Brands (YUM) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was higher than the prior quarter, and gross profit also increased, while cost of revenue rose in proportion. Gross margin weakened compared to the immediately preceding quarter, but was stable relative to the same quarter one year earlier.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was higher than the prior quarter, and gross profit also increased, while cost of revenue rose in proportion. Gross margin weakened compared to the immediately preceding quarter, but was stable relative to the same quarter one year earlier.
- Revenue growth exceeded the increase in cost of revenue, supporting a higher gross profit. The strongest observable driver was the relationship between revenue and cost of revenue, as revenue rose while gross margin narrowed slightly versus the prior quarter.
- Compared with the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared with the same quarter one year earlier, revenue was similar, gross profit was similar, cost of revenue was slightly lower, and gross margin was broadly stable.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.7%
Gross profit
$1.5B
Revenue
$2.0B
Cost of revenue
$535.0M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-0.2 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% |
| Dec 31, 2023 | $2.0B | $1.5B | $535.0M | 73.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2023
-1.6 pts
Year-over-year change
Dec 31, 2022
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue growth exceeded the increase in cost of revenue, supporting a higher gross profit. The strongest observable driver was the relationship between revenue and cost of revenue, as revenue rose while gross margin narrowed slightly versus the prior quarter.
Compared with the immediately preceding quarter, revenue was higher, gross profit was higher, and cost of revenue was higher, but gross margin was lower. Compared with the same quarter one year earlier, revenue was similar, gross profit was similar, cost of revenue was slightly lower, and gross margin was broadly stable.
Monitor the trajectory of cost of revenue relative to revenue, as its growth rate influenced the gross margin decline from the prior quarter.