Yum BrandsMEX:YUM +1.01%70 Gross Margin % is 44.68% as of Mar. 2026, which is 6% below its 10-year median of 47.51. GuruFocus rates MEX:YUM with a GF Score™ of 70/100 and a GF Value™ of MXN2,966.56 (Fairly Valued). The stock has 4 warning signs investors should review. Among 359 Restaurants companies, Yum Brands ranks worse than 50.42% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Yum Brands's Gross Profit for the
three
months ended in Mar. 2026 was MXN16,590 Mil. Yum Brands's Revenue for the
three
months ended in Mar. 2026 was MXN37,129 Mil. Therefore, Yum Brands's Gross Margin % for the quarter that ended in Mar. 2026 was 44.68%.
The historical rank and industry rank for Yum Brands's Gross Margin % or its related term are showing as below:
MEX:YUM'
s Gross Margin % Range Over the Past 10 Years
Min: 41.94 Med: 47.51 Max: 50.28
Current: 45.66
During the past 13 years, the highestGross Margin % of Yum Brands was 50.28%. The lowest was 41.94%. And the median was 47.51%.
MEX:YUM's Gross Margin % is ranked worse than 50.42% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs MEX:YUM: 45.66
Yum Brands had a gross margin of 44.68% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Yum Brands was -0.50% per year.
Yum Brands (MEX: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 44.68% for the quarter that ended in Mar. 2026 => 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
Yum Brands Gross Margin % Historical Data
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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.
MEX:YUM vs CMG, DRI, YUMC: Gross Margin % Comparison
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 Gross Margin % vs 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.
* 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.
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 (MEX:YUM) has a Gross Margin % of 44.68% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Yum Brands and its competitors. This is near median its historical median of 47.51. Over the past decade, Yum Brands' Gross Margin % has ranged from 41.94 to 50.28. According to the industry distribution chart, Yum Brands ranks #181 out of 359 companies in the Restaurants industry, placing it in the top 50.4%.
Is Yum Brands' Gross Margin % too high?
Yum Brands' current Gross Margin % of 44.68% is near median its 10-year median of 47.51. Over the past 10 years, this metric has ranged from a low of 41.94 to a high of 50.28. The Restaurants industry median Gross Margin % is 45.71. Yum Brands' value of 44.68% is 2.3% below this industry median. Based on the distribution chart, Yum Brands ranks #181 out of 359 companies in the Restaurants industry, which is below the industry midpoint. Overall, Yum Brands has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Yum Brands' Gross Margin % compare to CMG and DRI?
According to the Restaurants industry distribution chart, Yum Brands ranks #181 out of 359 companies for Gross Margin %. This places Yum Brands in the lower half of its industry. The industry median Gross Margin % is 45.71. Yum Brands' value of 44.68% is 2.3% below this benchmark. Historically, Yum Brands' own Gross Margin % has ranged from 41.94 to 50.28 over the past decade. While the company's 10-year median is 47.51 vs. the industry median of 45.71, Yum Brands has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Yum Brands's current Gross Margin % of 44.68% is 2.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Yum Brands and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Yum Brands's current Gross Margin % is 44.68%, which is near median its own 10-year median of 47.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Yum Brands stock overvalued right now?
Based on GuruFocus' analysis, Yum Brands (MEX:YUM) is currently considered Fairly Valued. The stock's GF Value™ is MXN2,966.56, compared to a current price of MXN2,686.88 — trading 9.4% below its estimated fair value. The current Gross Margin % is 44.68%, which is near median its 10-year median of 47.51 and 2.3% below the Restaurants industry median of 45.71. Yum Brands' overall GF Score™ is 70/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Yum Brands (MEX:YUM), the current Gross Margin % is 44.68% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Yum Brands (MEX:YUM) Overvalued in 2026?
Based on GuruFocus' analysis, Yum Brands stock appears to be undervalued.
The current stock price of MXN2,686.88 is trading 9.4% below its estimated GF Value™ of MXN2,966.56.
GuruFocus considers Yum Brands to be Fairly Valued.
Key valuation signals for MEX:YUM:
Gross Margin %: 44.68% (near median its 10-year median of 47.51)
GF Value™: MXN2,966.56 vs. price of MXN2,686.88 (9.4% below fair value)
Industry Position: 2.3% below the Restaurants median (#181 of 359)
No single metric tells the full story. See the MEX:YUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
As of the end of 2025, Yum Brands generated over $68 billion in systemwide sales from more than 63,000 restaurants across 155 markets, making it the world's second-largest restaurant firm by dollar sales. Its portfolio includes KFC (33,897 stores), Pizza Hut (19,974), Taco Bell (9,030), and Habit Burger (384), with 72% of locations in international markets. As 97% of its portfolio is franchised, Yum's business model is tilted toward recurring franchise royalties and marketing contributions (64% of revenue), with the balance derived from sales at company-owned locations. The company traces its roots to a 1997 spinoff of PepsiCo's restaurant assets.
70GF Score
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