Yum Brands (WBO:YUM) Gross Margin % : 47.79% (As of Dec. 2023)

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What is Yum Brands Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Yum Brands's Gross Profit for the three months ended in Dec. 2023 was €892 Mil. Yum Brands's Revenue for the three months ended in Dec. 2023 was €1,867 Mil. Therefore, Yum Brands's Gross Margin % for the quarter that ended in Dec. 2023 was 47.79%.

The historical rank and industry rank for Yum Brands's Gross Margin % or its related term are showing as below:

WBO:YUM' s Gross Margin % Range Over the Past 10 Years
Min: 38.83 Med: 47.14 Max: 50.28
Current: 49.41

During the past 13 years, the highest Gross Margin % of Yum Brands was 50.28%. The lowest was 38.83%. And the median was 47.14%.

WBO:YUM's Gross Margin % is ranked better than
53.64% of 343 companies
in the Restaurants industry
Industry Median: 46.87 vs WBO:YUM: 49.41

Yum Brands had a gross margin of 47.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Yum Brands was 0.50% per year.

Yum Brands Gross Margin % Historical Data

The historical data trend for Yum Brands's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Yum Brands Gross Margin % Chart

Yum Brands Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Gross Margin %

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50.28

47.54

48.09

48.33

49.41

Yum Brands Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Gross Margin %	Get a 7-Day Free Trial															46.81	49.30	50.50	50.35	47.79

Competitive Comparison of Yum Brands's Gross Margin %

For the Restaurants subindustry, Yum Brands's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Yum Brands's Gross Margin % Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Yum Brands's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Yum Brands's Gross Margin % falls into.

Yum Brands Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Yum Brands's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )	=	Gross Profit (A: Dec. 2023 )	/	Revenue (A: Dec. 2023 )
	=	3205.8	/	6488.692
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(6488.692 - 3282.86)	/	6488.692
	=	49.41 %

Yum Brands's Gross Margin for the quarter that ended in Dec. 2023 is calculated as

Gross Margin % (Q: Dec. 2023 )	=	Gross Profit (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	892.2	/	1867.012
	=	(Revenue - Cost of Goods Sold)	/	Revenue
	=	(1867.012 - 974.771)	/	1867.012
	=	47.79 %

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.

Yum Brands (WBO:YUM) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Yum Brands had a gross margin of 47.79% for the quarter that ended in Dec. 2023 => Durable competitive advantage

Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.

Yum Brands Gross Margin % Related Terms

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Yum Brands (WBO:YUM) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Restaurants » Yum Brands Inc (WBO:YUM) » Definitions » Gross Margin %

Comparable Companies

Traded in Other Exchanges

YUM:USA YUM:Mexico TGR:Germany YUMR34:Brazil

Address

1441 Gardiner Lane, Louisville, KY, USA, 40213

Website

https://www.yum.com

Yum Brands is a U.S.-based restaurant operator featuring a portfolio of four brands: KFC (27,760 global units at year-end 2022), Pizza Hut (19,034 units), Taco Bell (8,203 units), and The Habit Burger Grill (346 units). With $59 billion in 2022 systemwide sales, the firm is the second-largest restaurant company in the world behind McDonald's ($116 billion), ahead of Restaurant Brands International ($39 billion) and Starbucks ($27 billion). Yum is 98% franchised, with the largest franchisee, Yum China, spun out in 2016 (after which Yum China agreed to pay 3% royalties to Yum Brands in perpetuity). Yum is the newest evolution of Tricon, formerly a division of PepsiCo, and generates the bulk of its revenue from franchise royalties and marketing contributions.