Yum! Brands, Inc. stock research
FY2026 Q1
Yum! Brands (YUM) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue increased but gross margin weakened as cost of revenue grew faster than gross profit.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased compared to the prior quarter, while gross profit and cost of revenue also declined, resulting in a slightly lower gross margin. Versus the same quarter last year, revenue increased but gross margin weakened as cost of revenue grew faster than gross profit.
- Gross margin weakened sequentially and year-over-year, primarily reflecting a higher proportion of cost of revenue relative to revenue. The strongest observable driver is the absolute increase in cost of revenue compared to the year-ago quarter.
- Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly weaker. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue increased proportionally more, causing gross margin to be lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
67.1%
Gross profit
$1.4B
Revenue
$2.1B
Cost of revenue
$677.0M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-3.8 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, 2025 | $1.9B | $1.4B | $560.0M | 71.0% |
| Sep 30, 2025 | $2.0B | $1.4B | $587.0M | 70.3% |
| Dec 31, 2025 | $2.5B | $1.7B | $815.0M | 67.6% |
| Mar 31, 2026 | $2.1B | $1.4B | $677.0M | 67.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.5 pts
Year-over-year change
Mar 31, 2025
-3.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin weakened sequentially and year-over-year, primarily reflecting a higher proportion of cost of revenue relative to revenue. The strongest observable driver is the absolute increase in cost of revenue compared to the year-ago quarter.
Compared to the prior quarter, revenue, gross profit, and cost of revenue were all lower, and gross margin was slightly weaker. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue increased proportionally more, causing gross margin to be lower.
Monitor the trend of cost of revenue relative to revenue, as its faster growth year-over-year weighed on gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Yum! Brands, Inc. (YUM) | 67.1% |