Revenue growth has shown significant volatility, ranging from a 2.9% contraction in 2024Q1 to a 15.2% expansion by 2026Q1, while gross margins have trended downward from 50.1% to 44.7% over the same period.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Jan'08 | Dec'06 | Mar'06 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 |
|---|
| Sales/Revenue | 8.48B | 8.21B | 7.55B | 7.08B | 6.84B | 6.58B | 5.65B | 5.6B | 5.69B | 5.88B | 6.36B | 6.42B | 13.28B | 13.08B | 13.63B | 12.63B | 11.34B | 10.84B | 11.28B | 10.42B | 9.56B | 9.35B | 9.01B | 8.38B | 7.76B | 6.95B | 7.09B | 7.82B | 8.47B | 9.68B |
| Revenue Growth % | 9.65% | 8.81% | 6.68% | 3.42% | 3.92% | 16.49% | 0.98% | -1.6% | -3.23% | -7.52% | -0.97% | -51.67% | 1.49% | -4.03% | 7.98% | 11.31% | 4.68% | -3.93% | 8.29% | 8.94% | 2.27% | 3.75% | 7.53% | 8.03% | 11.56% | -1.97% | -9.32% | -7.63% | -12.53% | - |
| Cost of Goods Sold | 4.61B | 4.42B | 3.96B | 3.58B | 3.54B | 3.42B | 2.96B | 2.78B | 3.03B | 3.19B | 3.69B | 3.87B | 9.84B | 9.66B | 9.98B | 9.14B | 8.12B | 8.05B | 8.54B | 7.81B | 7.09B | 7.12B | 4.72B | 4.34B | 3.92B | 3.57B | 3.25B | 3.67B | 4.13B | 4.91B |
| COGS % of Revenue | - | 53.83% | 52.52% | 50.59% | 51.67% | 51.91% | 52.46% | 49.72% | 53.27% | 54.29% | 58.06% | 60.25% | 74.12% | 73.82% | 73.24% | 72.39% | 71.59% | 74.31% | 75.71% | 75.01% | 74.2% | 76.18% | 52.39% | 51.8% | 50.47% | 51.29% | 45.86% | 46.87% | 48.82% | 50.69% |
| Gross Profit | 3.88B | 3.79B | 3.58B | 3.5B | 3.31B | 3.17B | 2.69B | 2.81B | 2.66B | 2.69B | 2.67B | 2.55B | 3.44B | 3.42B | 3.65B | 3.49B | 3.22B | 2.78B | 2.74B | 2.6B | 2.47B | 2.23B | 4.29B | 4.04B | 3.84B | 3.39B | 3.84B | 4.16B | 4.33B | 4.77B |
| Gross Margin % | 45.67% | 46.17% | 47.48% | 49.41% | 48.33% | 48.09% | 47.54% | 50.28% | 46.73% | 45.71% | 41.94% | 39.75% | 25.88% | 26.18% | 26.76% | 27.61% | 28.41% | 25.69% | 24.29% | 24.99% | 25.8% | 23.82% | 47.61% | 48.2% | 49.53% | 48.71% | 54.14% | 53.13% | 51.18% | 49.31% |
| Gross Profit Growth % | - | 5.8% | 2.52% | 5.72% | 4.45% | 17.83% | -4.51% | 5.87% | -1.08% | 0.79% | 4.51% | -25.78% | 0.35% | -6.11% | 4.65% | 8.16% | 15.77% | 1.61% | 5.26% | 5.51% | 10.78% | -48.09% | 6.21% | 5.13% | 13.43% | -11.8% | -7.6% | -4.11% | -9.22% | - |
| Operating Expenses | 1.2B | 1.26B | 1.18B | 1.18B | 1.12B | 1.03B | 1.18B | 884M | 362M | -74M | 984M | 1.12B | 1.04B | 1.63B | 1.35B | 1.53B | 1.34B | 1.19B | 1.22B | 1.25B | 1.21B | 1.13B | 971M | 2.98B | 2.84B | 2.52B | 2.98B | 3.26B | 3.58B | 4.11B |
| OpEx % of Revenue | - | 15.36% | 15.64% | 16.65% | 16.37% | 15.6% | 20.95% | 15.79% | 6.36% | -1.26% | 15.48% | 17.4% | 7.84% | 12.44% | 9.93% | 12.09% | 11.85% | 11.02% | 10.84% | 11.96% | 12.6% | 12.04% | 10.78% | 35.56% | 36.57% | 36.26% | 41.97% | 41.7% | 42.24% | 42.5% |
| Selling, General & Admin | 1.28B | 1.26B | 1.18B | 1.19B | 1.14B | 1.06B | 1.06B | 917M | 895M | 999M | 1.13B | 1.06B | 1.03B | 1.41B | 1.51B | 1.37B | 1.28B | 1.22B | 1.39B | 1.29B | 1.22B | 1.21B | 1.06B | 3B | 2.84B | 2.52B | 2.62B | 2.88B | 3.16B | 3.58B |
| SG&A % of Revenue | - | 15.36% | 15.64% | 16.86% | 16.66% | 16.1% | 18.83% | 16.38% | 15.73% | 17% | 17.76% | 16.48% | 7.74% | 10.79% | 11.08% | 10.87% | 11.26% | 11.27% | 12.28% | 12.41% | 12.78% | 12.94% | 11.72% | 35.86% | 36.57% | 36.26% | 36.98% | 36.77% | 37.32% | 36.96% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 24M | 24M | 25M | 31M | 30M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | 0.38% | 0.37% | 0.19% | 0.24% | 0.22% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -3M | 0 | 0 | -15M | -20M | -33M | 120M | -33M | -533M | -1.07B | -145M | 59M | 13M | 215M | -156M | 154M | 67M | -27M | -162M | -47M | -17M | -84M | -85M | -25M | 0 | 0 | 354M | 386M | 417M | 536M |
| Operating Income | 2.67B | 2.53B | 2.4B | 2.32B | 2.19B | 2.14B | 1.5B | 1.93B | 2.3B | 2.76B | 1.68B | 1.43B | 1.52B | 1.8B | 2.29B | 1.81B | 1.77B | 1.59B | 1.52B | 1.36B | 1.26B | 1.15B | 1.16B | 1.06B | 1B | 866M | 863M | 894M | 768M | 672M |
| Operating Margin % | 31.47% | 30.8% | 31.83% | 32.76% | 31.96% | 32.49% | 26.59% | 34.48% | 40.37% | 46.97% | 26.46% | 22.34% | 11.42% | 13.74% | 16.83% | 14.38% | 15.6% | 14.67% | 13.45% | 13.03% | 13.2% | 12.33% | 12.82% | 12.64% | 12.96% | 12.46% | 12.17% | 11.43% | 9.07% | 6.94% |
| Operating Income Growth % | - | 5.29% | 3.67% | 5.99% | 2.24% | 42.32% | -22.12% | -15.94% | -16.84% | 64.15% | 17.29% | -5.47% | -15.63% | -21.62% | 26.39% | 2.6% | 11.26% | 4.81% | 11.79% | 7.53% | 9.45% | -0.17% | 9.07% | 5.37% | 16.05% | 0.35% | -3.47% | 16.41% | 14.29% | - |
| EBITDA | 2.83B | 2.74B | 2.58B | 2.47B | 2.33B | 2.3B | 1.65B | 2.04B | 2.43B | 3.01B | 1.99B | 1.75B | 1.84B | 2.52B | 2.96B | 2.45B | 2.36B | 2.17B | 2.07B | 1.9B | 1.74B | 1.62B | 1.6B | 1.46B | 1.38B | 1.22B | 1.22B | 1.28B | 1.19B | 1.21B |
| EBITDA Margin % | 33.36% | 33.31% | 34.15% | 34.92% | 34.1% | 34.98% | 29.18% | 36.48% | 42.77% | 51.28% | 31.34% | 27.31% | 13.89% | 19.25% | 21.7% | 19.42% | 20.79% | 20.03% | 18.38% | 18.23% | 18.21% | 17.35% | 17.79% | 17.42% | 17.73% | 17.55% | 17.16% | 16.36% | 13.99% | 12.48% |
| EBITDA Growth % | 8.22% | 6.13% | 4.33% | 5.92% | 1.3% | 39.66% | -19.25% | -16.07% | -19.28% | 51.31% | 13.63% | -4.99% | -26.76% | -14.87% | 20.68% | 3.99% | 8.66% | 4.68% | 9.16% | 9.08% | 7.34% | 1.19% | 9.79% | 6.18% | 12.7% | 0.25% | -4.92% | 8.02% | -1.9% | - |
| D&A (Non-Cash Add-back) | 161M | 206M | 175M | 153M | 146M | 164M | 146M | 112M | 137M | 253M | 310M | 319M | 328M | 721M | 665M | 637M | 589M | 580M | 556M | 542M | 479M | 469M | 448M | 401M | 370M | 354M | 354M | 386M | 417M | 536M |
| EBIT | 2.67B | 2.58B | 2.39B | 2.33B | 2.19B | 2.22B | 1.56B | 1.86B | 2.29B | 2.72B | 1.65B | 1.39B | 1.52B | 1.8B | 2.29B | 1.84B | 1.79B | 1.61B | 1.54B | 1.38B | 1.32B | 1.15B | 1.16B | 1.06B | 1B | 866M | 863M | 894M | 768M | 672M |
| Net Interest Income | -508M | -501M | -489M | -513M | -527M | -544M | -543M | -486M | -452M | -445M | -305M | -141M | -143M | -247M | -149M | -156M | -175M | -194M | -226M | -166M | -154M | -127M | -129M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 23M | 20M | 28M | 20M | 18M | 27M | 0 | 0 | 20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 508M | 500M | 489M | 513M | 527M | 544M | 543M | 486M | 452M | 445M | 305M | 141M | 143M | 270M | 169M | 184M | 195M | 212M | 253M | 166M | 154M | 147M | 129M | 173M | 176M | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -507M | -453M | -503M | -500M | -525M | -465M | -483M | -557M | -457M | -487M | -337M | -181M | -143M | -247M | -149M | -156M | -175M | -194M | -226M | -166M | -154M | -127M | -129M | -173M | -147M | -133M | -179M | 144M | -12M | -707M |
| Pretax Income | 2.16B | 2.08B | 1.9B | 1.82B | 1.66B | 1.67B | 1.02B | 1.37B | 1.84B | 2.27B | 1.34B | 1.25B | 1.37B | 1.55B | 2.15B | 1.66B | 1.59B | 1.4B | 1.29B | 1.19B | 1.11B | 1.03B | 1.03B | 886M | 858M | 733M | 684M | 1.04B | 756M | -35M |
| Pretax Margin % | 25.49% | 25.29% | 25.17% | 25.69% | 24.29% | 25.43% | 18.05% | 24.53% | 32.33% | 38.69% | 21.16% | 19.52% | 10.35% | 11.85% | 15.73% | 13.14% | 14.05% | 12.88% | 11.45% | 11.43% | 11.59% | 10.97% | 11.39% | 10.57% | 11.06% | 10.54% | 9.64% | 13.27% | 8.93% | -0.36% |
| Income Tax | 425M | 518M | 414M | 221M | 337M | 99M | 116M | 79M | 297M | 934M | 327M | 327M | 368M | 487M | 537M | 324M | 416M | 313M | 316M | 282M | 284M | 264M | 286M | 268M | 275M | 241M | 271M | 411M | 311M | 76M |
| Effective Tax Rate % | 19.65% | 24.94% | 21.79% | 12.16% | 20.28% | 5.91% | 11.37% | 5.75% | 16.15% | 41.07% | 24.31% | 26.1% | 26.78% | 31.4% | 25.03% | 19.53% | 26.1% | 22.42% | 24.48% | 23.68% | 25.63% | 25.73% | 27.88% | 30.25% | 32.05% | 32.88% | 39.62% | 39.6% | 41.14% | -217.14% |
| Net Income | 1.74B | 1.56B | 1.49B | 1.6B | 1.32B | 1.57B | 904M | 1.29B | 1.54B | 1.34B | 1.64B | 1.29B | 1.05B | 1.09B | 1.6B | 1.32B | 1.16B | 1.07B | 964M | 909M | 824M | 762M | 740M | 617M | 583M | 492M | 413M | 627M | 445M | -111M |
| Net Margin % | 20.48% | 18.98% | 19.68% | 22.57% | 19.37% | 23.92% | 15.99% | 23.12% | 27.11% | 22.8% | 25.85% | 20.15% | 7.91% | 8.34% | 11.71% | 10.45% | 10.21% | 9.88% | 8.55% | 8.73% | 8.62% | 8.15% | 8.21% | 7.36% | 7.52% | 7.08% | 5.82% | 8.02% | 5.26% | -1.15% |
| Net Income Growth % | 21.96% | 4.91% | -6.95% | 20.53% | -15.87% | 74.23% | -30.14% | -16.08% | 15.07% | -18.44% | 27.07% | 23.03% | -3.67% | -31.68% | 21.08% | 13.9% | 8.12% | 11.1% | 6.05% | 10.32% | 8.14% | 2.97% | 19.94% | 5.83% | 18.5% | 19.13% | -34.13% | 40.9% | 500.9% | - |
| Net Income (Continuing) | 1.74B | 1.56B | 1.49B | 1.6B | 1.32B | 1.57B | 904M | 1.29B | 1.54B | 1.34B | 1.02B | 926M | 1.01B | 1.06B | 1.61B | 1.33B | 1.18B | 1.08B | 975M | 909M | 824M | 762M | 740M | 618M | 583M | 492M | 413M | 627M | 445M | -111M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 625M | 357M | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 5.48B | 58M | 57M | 63M | 99M | 93M | 93M | 89M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 6.23 | 5.56 | 5.22 | 5.60 | 4.57 | 5.22 | 2.94 | 4.13 | 4.69 | 3.77 | 4.10 | 2.90 | 2.32 | 2.36 | 3.38 | 2.74 | 2.38 | 2.22 | 1.96 | 1.68 | 1.46 | 1.27 | 1.21 | 1.01 | 0.94 | 0.81 | 0.69 | 0.98 | 0.71 | -0.19 |
| EPS Growth % | 23.71% | 6.51% | -6.79% | 22.54% | -12.45% | 77.55% | -28.81% | -11.94% | 24.4% | -8.05% | 41.38% | 25% | -1.69% | -30.18% | 23.36% | 15.13% | 7.21% | 13.27% | 16.67% | 15.07% | 14.96% | 4.96% | 19.8% | 7.45% | 16.05% | 17.39% | -29.59% | 38.03% | 473.68% | - |
| EPS (Basic) | - | 5.59 | 5.28 | 5.68 | 4.63 | 5.30 | 2.99 | 4.23 | 4.79 | 3.86 | 4.17 | 2.95 | 2.37 | 2.41 | 3.46 | 2.81 | 2.44 | 2.28 | 2.03 | 1.74 | 1.51 | 1.33 | 1.27 | 1.05 | 0.99 | 0.84 | 0.70 | 1.02 | 0.73 | -0.19 |
| Diluted Shares Outstanding | 279M | 278M | 285M | 285M | 290M | 302M | 307M | 313M | 329M | 355M | 400M | 443M | 453M | 461M | 473M | 481M | 486M | 483M | 491M | 541M | 564.38M | 596M | 610M | 610.89M | 620.21M | 607.41M | 596.39M | 639.8M | 626.76M | 576.62M |
| Basic Shares Outstanding | 277M | 278M | 282M | 281M | 286M | 297M | 302M | 306M | 322M | 347M | 394M | 435M | 444M | 452M | 461M | 469M | 474M | 471M | 475M | 522M | 545.7M | 572M | 582M | 587.62M | 591.88M | 585.71M | 587.9M | 613.2M | 609.59M | 576.62M |
| Dividend Payout Ratio | - | 50.61% | 50.61% | 42.45% | 48.98% | 37.59% | 62.61% | 39.49% | 29.96% | 31.04% | 45.28% | 56.46% | 63.65% | 56.37% | 34.06% | 36.47% | 35.58% | 33.8% | 33.4% | 30.03% | 17.48% | 16.14% | 7.84% | - | - | - | - | - | - | - |
International Geopolitical Exposure
According to recent quarterly filings, YUM's revenue growth has exhibited significant volatility, ranging from a 2.9% contraction in 2024Q1 to a 15.2% expansion by 2026Q1, suggesting that the company's top-line performance remains highly sensitive to seasonal fluctuations and the timing of international unit development cycles.
The inconsistent revenue trajectory implies that while the underlying franchise model is structurally sound, the company is susceptible to lumpy recognition of franchise fees and regional economic headwinds. Investors should monitor whether the recent acceleration in 2026Q1 represents a sustainable shift in digital adoption or merely a temporary recovery from prior period weakness.
Based on reported financial statements, YUM's gross margin has trended downward from a peak of 50.1% in 2024Q1 to 44.7% in 2026Q1, indicating that the company may be facing increased cost pressures or a shift in the mix toward lower-margin company-operated store revenue streams.
This margin contraction suggests that the company's pricing power may be reaching a ceiling, or that inflationary pressures on the supply chain are beginning to erode the benefits of the asset-light model. Analysts should investigate whether this trend reflects a permanent change in the cost structure or temporary operational inefficiencies within the system.
As reported in recent income statements, YUM maintained an operating margin of 31.3% in 2026Q1, demonstrating that the company successfully scales its centralized digital and administrative infrastructure without incurring proportional increases in overhead costs as system-wide sales grow across its diverse global brand portfolio.
The ability to sustain operating margins above 30% despite revenue volatility highlights the inherent scalability of the franchisor model. This efficiency suggests that management has successfully decoupled corporate overhead from store-level operational costs, providing a buffer against localized economic downturns in specific geographic markets.
Based on the provided data, YUM's net income reached $432 million in 2026Q1 with zero stock-based compensation reported, suggesting that the company's earnings are primarily driven by core operational performance rather than accounting adjustments or significant dilution of shareholder equity through equity-based incentive programs.
The absence of stock-based compensation in recent periods is a positive indicator of earnings quality, as it suggests that management is not relying on non-cash expenses to mask operational performance. However, investors should remain cautious regarding the sustainability of these earnings if future growth requires increased investment in digital infrastructure or talent acquisition.
Data from the last ten quarters reveals a concerning trend where gross margins have consistently failed to reclaim the 50% threshold seen in early 2024, which may indicate that the company's competitive moat is being challenged by rising operational costs within the broader restaurant industry.
Short-sellers might focus on this persistent margin erosion as evidence that the asset-light model is not as insulated from inflation as previously assumed. If the company cannot pass these costs through to franchisees without impacting unit growth, the long-term valuation may face downward pressure as the market re-rates the stock.
Quick answers to the most common questions about buying YUM stock.
For fiscal year 2025, Yum! Brands, Inc. (YUM) reported total revenue of $8.21B. This represents a 15.2% decline compared to $9.68B in 1997.
Yum! Brands, Inc. (YUM) is profitable, generating $1.56B in net income for the fiscal year ending 2025 with a net profit margin of 19.0%.
Yum! Brands, Inc. (YUM) reported an operating income of $2.53B, resulting in an operating profit margin of 30.8%. This margin reflects the operational efficiency of the business before interest and taxes.
Yum! Brands, Inc. (YUM) generated $3.79B in gross profit for the year, representing a gross profit margin of 46.2%. This demonstrates the company's core pricing power and production efficiency.