Yum! Brands, Inc. stock research
FY2025 Q1
Yum! Brands (YUM) Gross Margin — Quarter Ended Mar 31, 2025
For the current quarter, revenue and gross profit both increased compared to the same quarter last year but decreased compared to the prior quarter. Gross margin improved sequentially but weakened year-over-year, reflecting a mixed performance.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
For the current quarter, revenue and gross profit both increased compared to the same quarter last year but decreased compared to the prior quarter. Gross margin improved sequentially but weakened year-over-year, reflecting a mixed performance.
- The gross margin improvement from the prior quarter was driven by a lower proportion of cost of revenue relative to revenue, while the year-over-year decline was due to a higher proportion of cost of revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.9%
Gross profit
$1.3B
Revenue
$1.8B
Cost of revenue
$520.0M
Quarter-over-quarter change
+1.7 pts
Year-over-year change
-4.1 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2025 | $1.8B | $1.3B | $520.0M | 70.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.7 pts
Year-over-year change
Mar 31, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement from the prior quarter was driven by a lower proportion of cost of revenue relative to revenue, while the year-over-year decline was due to a higher proportion of cost of revenue.
Compared to the immediately preceding quarter, revenue and gross profit were lower, but gross margin was higher. Compared to the same quarter one year earlier, revenue and gross profit were higher, but gross margin was lower.
Monitor the trend in company sales versus franchise revenues, as company sales carry higher associated costs and the filing notes refranchising gains that may shift this mix.