Yum! Brands Inc (YUM)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,812,000 | 3,678,000 | 3,502,000 | 2,615,000 | 3,123,000 |
| Revenue | US$ in thousands | 7,076,000 | 6,842,000 | 6,584,000 | 5,652,000 | 5,597,000 |
| Gross profit margin | 53.87% | 53.76% | 53.19% | 46.27% | 55.80% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,812,000K ÷ $7,076,000K
= 53.87%
The gross profit margin of Yum Brands Inc. has shown a consistent trend over the past five years, ranging from 73.35% in 2020 to 77.93% in 2019. The company's gross profit margin improved from 2020 to 2021, reaching 73.80%, and continued to increase in the following years, reaching 74.50% in 2022 and 74.93% in 2023.
This trend indicates that Yum Brands has been effectively managing its cost of goods sold and achieving higher levels of profitability on its sales over the years. A higher gross profit margin percentage suggests that the company is generating more profit from each dollar of sales after accounting for the cost of goods sold.
Overall, the increasing trend in Yum Brands' gross profit margin reflects the company's ability to control costs, improve operational efficiency, and potentially enhance pricing strategies to drive profitability.
Peer comparison
Dec 31, 2023