Yum! Brands, Inc. stock research
FY2024 Q4
Yum! Brands (YUM) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin declined over both periods as cost of revenue rose more than proportionally.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year. Gross margin declined over both periods as cost of revenue rose more than proportionally.
- The filing describes a franchise-based business with over 61,000 restaurants globally under four major brands. The primary observable driver of the margin change is the increase in cost of revenue relative to revenue, which rose from both the prior quarter and the year-ago quarter while gross margin declined.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
69.2%
Gross profit
$1.6B
Revenue
$2.4B
Cost of revenue
$727.0M
Quarter-over-quarter change
-2.1 pts
Year-over-year change
-4.5 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, 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% |
| Dec 31, 2024 | $2.4B | $1.6B | $727.0M | 69.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-2.1 pts
Year-over-year change
Dec 31, 2023
-4.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The filing describes a franchise-based business with over 61,000 restaurants globally under four major brands. The primary observable driver of the margin change is the increase in cost of revenue relative to revenue, which rose from both the prior quarter and the year-ago quarter while gross margin declined.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was lower. Compared to the same quarter one year earlier, revenue and gross profit were also higher, while gross margin was lower.
Monitor the trend of cost of revenue relative to revenue in future periods.