Guzman y Gomez slides after mixed Q1 earnings
Make us a preferred source
Make us a preferred source on Google
More news: Shares in Guzman y Gomez dropped in early trading after the Mexican food chain posted a mixed report card for the September quarter.
GYG shares were 1.6% lower at $38 at 10:45am AEDT.
RBC Capital Markets analyst Michael Toner said GYG's performance in Australia was stronger than consensus estimates, continuing strong positive domestic trading momentum.
Meanwhile, trading in the US was "significantly softer" than average forecasts though in line with GYG's expectations, following strong initial trading in the previous corresponding period.
What they said: "Result is broadly in line with our expectations, with Australia and Japan stronger and US weaker," said Toner. "However, market may have been anticipating an upgrade to prospectus forecasts for FY25."
Guzman y Gomez posts better-than-expected quarterly sales growth
The news: Mexican food chain Guzman y Gomez reported double-digit sales growth in the September quarter, boosted by better-than-expected performance in Australia.
The numbers: First-quarter sales growth, taking into account GYG's Australia, Singapore, Japan and US markets, grew 20.7% year on year to $278.8 million. That compared to a 32.8% rise reported a year earlier.
Australia sales climbed 21.1% year on year to $260.2 million, while US sales fell 3.7% to $2.6 million.
GYG said it expects to meet its prospectus forecasts for the 2025 financial year including the opening of 31 new restaurants in Australia.
At the end of September, GYG had 226 restaurants operating across all markets, compared to 204 a year earlier.
The context: GYG said comparable sales growth in Australia was above expectations, driven by strong delivery performance, successful execution of its "Clean is the New Healthy" campaign, and guest demand for value menu items.
The company said its US segment performed in line with expectations during the quarter, with the prior corresponding period benefitting from initial higher sales associated with new restaurant openings.
The source: ASX announcement
