I have just completed a build with Yocto, and it creates binary DEB packages for the target machine, and yes, that includes 'gcc', 'automake', 'autoconf', 'make', etc. Looks good.
Haven't actually installed it into a partition and tested if can actually compile anything, but intrigued enough to want to learn more about Yocto. It is a very big and complicated project, and the online docs are daunting. So, I have ordered a couple of books:
There are ebooks, but I like to have the paper! Costs a bit more -- total was just on AU$100, about US$75, including shipping to Australia.
Amazon's international shipping is odd. I say this from past experience. This order, that second book came up as does not ship to Australia, so clicked on the "22 New" link, and found that Amazon ships it to Australia, just costs a little more.
Had to go through this rigmarole even though I was logged in and had ticked the checkbox to only show items that can ship to Australia.