Yum! Brands, Inc. stock research
FY2025 Q2
Yum! Brands (YUM) Gross Margin — Quarter Ended Jun 30, 2025
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved marginally from the prior quarter but declined from the year-ago period.
Gross margin takeaway
Quarter ended Jun 30, 2025 · FY2025 Q2
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin improved marginally from the prior quarter but declined from the year-ago period.
- The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue, compressing the margin.
- Compared to the prior quarter, gross margin was essentially stable with a slight improvement. Compared to the same quarter last year, gross margin 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
71.0%
Gross profit
$1.4B
Revenue
$1.9B
Cost of revenue
$560.0M
Quarter-over-quarter change
+0.1 pts
Year-over-year change
-2.3 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, 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% |
| Jun 30, 2025 | $1.9B | $1.4B | $560.0M | 71.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2025
+0.1 pts
Year-over-year change
Jun 30, 2024
-2.3 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The year-over-year decline in gross margin was driven by a proportionally larger increase in cost of revenue relative to revenue, compressing the margin.
Compared to the prior quarter, gross margin was essentially stable with a slight improvement. Compared to the same quarter last year, gross margin weakened as cost of revenue grew faster than revenue.
Monitor company restaurant expenses, which increased year-over-year, as they directly affect cost of revenue and gross margin.