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Highlights
- Strong Q3 sales growth of 26.3%
- Expansion with five new restaurant openings
- Forecast to surpass annual net profit expectations
Guzman y Gomez (ASX:GYG), the popular Mexican-style fast food chain, announced it is on track to distribute its first-ever dividend in September following a remarkable quarter of sales growth. The upcoming dividend marks a significant milestone as it will be the first since the company went public on the Australian Securities Exchange.
In the third quarter, Guzman y Gomez reported a substantial 26.3% increase in global network sales, reaching $289.5 million, up from $217.5 million in the same period last year. This growth was primarily driven by the strong performance of its Australian operations. The company also expanded its footprint during the quarter, opening three new locations in Australia and two in the United States, bringing the total number of restaurants to 241.
One of the key drivers of this growth has been the introduction of new offerings such as Street Corn, alongside the implementation of 24/7 trading hours and an expanded breakfast menu, which have been well received by Australian consumers. This is reflected in the 11.1% rise in comparable sales in Australia during the quarter.
In the United States, the brand continued to gain traction with the launch of two additional sites, contributing to increased sales. Guzman y Gomez also emphasized its commitment to enhancing the dining experience by increasing staff numbers, which has positively impacted guest experiences.
Financially, the company is performing robustly with projected profit margins from company-owned sites at 17.8%. Moreover, Guzman y Gomez is expected to substantially exceed its full-year net profit forecast, previously set at $6 million. Analysts are now predicting the figure to more than double, highlighting the company's strong financial health and operational success.
The board, under the leadership of Guy Russo, has expressed confidence in the company’s strong balance sheet and cash flow, which supports the decision to return the majority of its earnings to shareholders through the upcoming dividend. Detailed information regarding the dividend will be provided in the full-year results announcement expected in August 2025.
This strategic move to initiate a dividend payout reflects Guzman y Gomez's commitment to delivering value to its shareholders while continuing to invest in growth and operational excellence. As the company continues to expand and innovate, it remains a significant player in the fast food industry, both in Australia and internationally.
