Yum! Brands, Inc. stock research
FY2024 Q2
Yum! Brands (YUM) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable year over year and higher sequentially. Gross margin weakened relative to both periods, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit was stable year over year and higher sequentially. Gross margin weakened relative to both periods, as cost of revenue grew faster than revenue.
- The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter last year, revenue was higher, gross profit was stable, and gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
73.3%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$470.0M
Quarter-over-quarter change
-1.6 pts
Year-over-year change
-2.1 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 |
|---|---|---|---|---|
| Sep 30, 2023 | $1.7B | $1.3B | $421.0M | 75.4% |
| Dec 31, 2023 | $2.0B | $1.5B | $535.0M | 73.7% |
| Mar 31, 2024 | $1.6B | $1.2B | $400.0M | 75.0% |
| Jun 30, 2024 | $1.8B | $1.3B | $470.0M | 73.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
-1.6 pts
Year-over-year change
Jun 30, 2023
-2.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the increase in cost of revenue, which outpaced revenue growth, leading to margin compression.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was lower. Versus the same quarter last year, revenue was higher, gross profit was stable, and gross margin was lower.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters.