YUMNEUTRAL

YUM Gross Margin Analysis

44.7%

Higher than 65% of Consumer Cyclical sector peers

Updated 1236h ago·SEC filings & market data

Key Takeaway

Gross margin measures the percentage of revenue that remains after deducting the cost of goods sold — here, 44.7% of YUM's sales are left to cover operating expenses and profit.

Sector Performance

65th percentile

YUM

44.7%

Sector Median

34.2%

Sector Avg

27.7%

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Deep Analysis

Gross margin measures the percentage of revenue that remains after deducting the cost of goods sold — here, 44.7% of YUM's sales are left to cover operating expenses and profit.

That figure sits above the Consumer Cyclical sector median of 36.5%, placing YUM in the 62nd percentile among its peers, meaning it performs better than about 62% of comparable companies. Because the year-over-year change, quarter-over-quarter change, and trailing eight-quarter trend are all reported as N/A, no directional movement can be assessed. The combination of a relatively strong margin level with an unknown trend makes it difficult to gauge whether this advantage is stable or eroding, adding a layer of uncertainty for investors. The gross margin does not contradict the overall NEUTRAL verdict — it shows a solid competitive position, but the lack of trend data prevents it from signaling a clear opportunity or warning.

Frequently Asked Questions

What does the Gross Margin tell investors about YUM?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does YUM's Gross Margin compare to its sector?

YUM's Gross Margin of 44.7% compares to a Consumer Cyclical sector median of 34.2%, placing it in the 65th percentile.

Who are YUM's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: CHWY (30.1%), W (30.0%), JACK (29.9%), ROST (29.6%), CAVA (25.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.