Yum! Brands, Inc. stock research
FY2025 Q3
Yum! Brands (YUM) Gross Margin — Quarter Ended Sep 30, 2025
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened slightly versus both periods, as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue increased compared to both the prior quarter and the same quarter last year, while gross profit also rose. Gross margin weakened slightly versus both periods, as cost of revenue grew at a faster pace than revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew while cost of revenue increased at a higher rate, compressing margin.
- Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
70.3%
Gross profit
$1.4B
Revenue
$2.0B
Cost of revenue
$587.0M
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-1.0 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, 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% |
| Sep 30, 2025 | $2.0B | $1.4B | $587.0M | 70.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.7 pts
Year-over-year change
Sep 30, 2024
-1.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue; revenue grew while cost of revenue increased at a higher rate, compressing margin.
Compared to the prior quarter, gross margin was lower; compared to the same quarter last year, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Monitor the trend in cost of revenue relative to revenue, as its faster growth has been the primary factor behind the margin decline.