Revenue growth has accelerated to 12.3% in 2026Q2, while operating margins have expanded to 30.2% due to SG&A discipline, with expenses falling to 14.7% of revenue.
Yum! Brands, Inc. (YUM) annual income statement — 29-year revenue, gross profit & net income history
| 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 | 8.72B | 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 % | 10.31% | 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 | 4.73B | 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 | 4B | 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 % | 45.8% | 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 | 1.29B | 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 | 1.3B | 1.26B | 1.09B | 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% | 14.44% | 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 | -1000K | 0 | 91M | -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 | 2.7B | 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 % | 30.99% | 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 | 2.89B | 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 % | 33.09% | 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 % | 9.57% | 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) | 177M | 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 | 2.71B | 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 | -513M | -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 | 513M | 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 | -506M | -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 | 2.2B | 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 % | 25.19% | 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 | -20M | 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 % | -0.91% | 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 | 2.22B | 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 % | 25.42% | 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 % | 54.82% | 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) | 2.22B | 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) | 7.95 | 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 % | 57% | 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% | - | - | - | - | - | - | - |
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.
Key Metrics
Top Statement Risk
Franchisee health and unit growth sustainability
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates on Digital Momentum
YUM's revenue growth has accelerated from a -2.9% decline in 2024Q1 to a robust 12.3% increase in 2026Q2, suggesting the digital platform and international expansion are gaining significant traction.
The acceleration appears driven by a combination of system-wide sales growth and the scaling of digital transaction fees, which are increasingly embedded in the revenue stream. This trend indicates that the company's investments in its 'Yum! Commerce' platform are beginning to translate into top-line momentum, moving beyond simple unit growth to higher-value transactions.
Gross Margin Volatility Amidst Structural Efficiency
Gross margin has fluctuated between 44.4% and 50.1% over the past ten quarters, with the latest 2026Q2 reading of 47.3% reflecting a blend of high-margin royalties and lower-margin company-operated store sales.
The volatility in gross margin is likely a function of the mix between company-operated and franchised sales, as well as the timing of advertising fund contributions. The structural operating margin, however, remains consistently strong in the 30-34% range, indicating that the core franchisor model efficiently converts gross profit into operating income regardless of short-term revenue mix shifts.
Operating Leverage Demonstrated in SG&A Control
Operating income grew 16.3% year-over-year in 2026Q2, outpacing revenue growth of 12.3%, which suggests effective control over general and administrative expenses as the business scales.
The ability to grow operating income faster than revenue points to inherent operating leverage in the asset-light model, where incremental revenue from digital fees and royalties flows through with minimal incremental corporate cost. This efficiency is a key differentiator from more capital-intensive peers and supports the thesis of a high-quality, scalable royalty stream.
Net Income Volatility Masks Underlying Quality
Net income surged 128% year-over-year in 2026Q2 to $853 million, but this follows a period of negative EPS growth, suggesting the quality of earnings is heavily influenced by non-operating items and tax timing.
The extreme volatility in net income and EPS, particularly the swing from -18.2% EPS growth in 2025Q1 to 131.6% in 2026Q2, indicates that reported net income is not a reliable proxy for operational performance. Investors should focus on the more stable operating income trend, as the bottom line appears distorted by factors such as refranchising gains, tax benefits, or investment income that are not part of the core business.
SG&A Discipline Underpins Margin Expansion
SG&A expenses as a percentage of revenue have trended downward from 17.9% in 2024Q1 to 14.7% in 2026Q2, indicating management's success in scaling the corporate infrastructure without proportional cost increases.
This disciplined cost control is critical for a franchisor, as it allows a greater portion of gross profit to flow to operating income. The trend suggests that the centralized digital and support platform is achieving economies of scale, which may provide a structural advantage in funding future growth initiatives without pressuring margins.
Margin Compression Risk from Franchisee Strain
The strong parent company margins could be vulnerable if inflationary pressures on franchisees, particularly in food and labor, force a slowdown in new unit openings or limit the company's ability to implement future royalty increases.
While YUM's income statement shows robust margins, this is predicated on the health of its franchisee network. If commodity and wage inflation persist, franchisee profitability could erode, potentially leading to a deceleration in the net new unit growth that underpins the long-term revenue trajectory. This risk is not yet visible in the parent's financials but represents a key vulnerability in the business model.