Guzman y Gomez annual profit jumps 30% on strong Australia network sales
Guzman y Gomez reported a 30% rise in annual underlying profit, driven by strong Australian network sales, sending shares to a near one-year high.
Mexican-themed fast-food chain Guzman y Gomez (GYG) reported a roughly 30% jump in annual underlying profit on Friday, driven by robust network sales in its Australia segment. The news sent its shares to their highest level in nearly a year.
For the year ended June 30, network sales in the Australia segment, which also includes Singapore and Japan, rose 17.9% to A$1.4 billion. This segment has become the company's primary growth engine following its exit from the United States in May due to weak sales.
The segment recorded comparable sales growth of 5.3%, in line with market expectations. While this was lower than the 9.6% growth logged a year earlier, analysts at Citi noted the health of the network as a positive, highlighting that growth was driven by volume rather than price increases.
"This seems higher quality than other QSR (quick-service restaurant) peers which are relying more heavily on price to drive growth," Citi said.
GYG reported an underlying net profit after tax of A$53.4 million, up from A$41.2 million a year earlier. The company declared a final dividend of 40.6 Australian cents per share, which includes a special dividend of 14.4 cents, well ahead of the consensus estimate of 7 cents.
Shares in the company rose as much as 12.6% to A$27.00, their highest since October 31, 2025, while the broader S&P/ASX 200 index was down 0.2%.
However, GYG swung to a statutory loss after tax of A$26.7 million, compared with a profit of A$14.5 million in the previous year. The company attributed this to a A$67.3 million loss from its discontinued operations in the U.S.