Yum! Brands, Inc. stock research
FY2024 Q3
Yum! Brands (YUM) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit were stable compared to the prior quarter, but cost of revenue increased, leading to a lower gross margin. Compared to the same quarter last year, revenue was higher while gross profit was similar, yet cost of revenue increased more, resulting in a weakened gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit were stable compared to the prior quarter, but cost of revenue increased, leading to a lower gross margin. Compared to the same quarter last year, revenue was higher while gross profit was similar, yet cost of revenue increased more, resulting in a weakened gross margin.
- The increase in cost of revenue relative to revenue was the strongest observable driver of the gross margin decline.
- Sequentially, gross margin weakened as cost of revenue increased while revenue remained stable. Year-over-year, gross margin also weakened as cost of revenue grew faster than revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
71.4%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$523.0M
Quarter-over-quarter change
-2.0 pts
Year-over-year change
-4.0 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 |
|---|---|---|---|---|
| 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% |
| Sep 30, 2024 | $1.8B | $1.3B | $523.0M | 71.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-2.0 pts
Year-over-year change
Sep 30, 2023
-4.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The increase in cost of revenue relative to revenue was the strongest observable driver of the gross margin decline.
Sequentially, gross margin weakened as cost of revenue increased while revenue remained stable. Year-over-year, gross margin also weakened as cost of revenue grew faster than revenue.
Monitor the trend in cost of revenue, particularly company restaurant expenses as noted in the filing.