Guzman y Gomez shares surge on Q3 sales boost
Make us a preferred source
Make us a preferred source on Google
More news: Guzman y Gomez shares lifted in morning trade after the fast food chain reported double-digit growth in third-quarter sales and said it expects to exceed its full-year profit forecast.
GYG shares were up 4.6% to $31.39 at 11am AEST.
RBC Capital Markets analyst Michael Toner noted GYG's third-quarter comparative sales growth of 11.1% in Australia "remains strong", supported by increased strength in breakfast and extended trading.
However, Toner flagged that GQG only added one new net store in Australia during the quarter, so it will need to establish 13 new net additions in the fourth quarter to hit consensus forecasts. He therefore expects consensus downgrades to total Australian stores in order to account for higher-than-expected store closures during the current financial year.
Guzman y Gomez set to top FY profit forecast after Q3 sales jump
The news: Mexican food chain Guzman y Gomez reported 24% growth in network sales for the March quarter, as the company expanded its footprint in Australia and the US, and said it expects to exceed its full-year profit forecast.
The number: GYG reported quarterly network sales of $289.5 million, up 23.6% compared to the prior corresponding period.
Sales increased in each of its markets of Australia, Singapore, Japan and the US. Australia sales climbed 23% year on year to $267.6 million.
GYG recorded 241 restaurants by the end of March, up from 210 a year earlier. Three new restaurants were opened in Australia, and two more in the US, during the March quarter.
The company reaffirmed full-year guidance for its Australia segment, including 31 restaurant openings, corporate restaurant margins of around 17.8% and franchise royalty rate of 8.3%.
The context: GYG said daypart growth was a highlight of the quarter in its Australia segment, supporting sales growth at breakfast and after 9pm trading.
In the US segment, network sales increased due to the opening of two new restaurants and improved guest experience metrics driven by investment in restaurant labour.
GYG also said that it intends to pay a maiden dividend to shareholders on September 2025.
The source: ASX
