Q3 FY25 Update
Stock | Guzman Y Gomez Limited (GYG.ASX) |
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Release Time | 8 Apr 2025, 8:26 a.m. |
Price Sensitive | Yes |
GYG reports strong Q3 FY25 performance and announces dividend policy
- Global network sales increased, demonstrating guest demand for clean, fresh food
- Three new GYG restaurants opened in Australia and two in the US during the period
- Comparable sales growth in the Australia segment continued across all channels, dayparts, formats and ownership types
GYG today announced its quarterly results for the period 1 January 2025 to 31 March 2025 (Q3 FY25). The company continued to drive strong sales growth during the quarter as it executes its vision to reinvent fast food and change the way the masses eat. Global network sales increased, demonstrating guest demand for clean, fresh food, supported by solid operational execution. Restaurant network expansion also continued, with three new GYG restaurants opening in Australia and two in the US during the period. Strong operational and marketing initiatives during the quarter included the introduction of a new menu item, Street Corn, the expansion of 24/7 trading, and the continuation of the Good Mornings Start with GYG campaign. GYG's commitment to ethically sourced, high-quality ingredients continued in the quarter with the launch of the Clean is the New Healthy campaign in the US and a new marketing campaign highlighting the company's 100% Free Range Chicken in Australia. Comparable sales growth in the Australia segment continued across all channels, dayparts, formats and ownership types, with an acceleration of sales growth in breakfast and after 9pm trading. In the US segment, network sales increased during the quarter, largely due to the opening of two new restaurants. Guest experience metrics improved throughout the quarter, driven by a deliberate investment in restaurant labour. The Board of Directors also announced the implementation of GYG's dividend policy, supported by the company's strong balance sheet position and cash flow generation.
GYG reaffirms the following guidance for its Australia segment in FY25: - 31 restaurant openings in Australia, including 18 franchise and 13 corporate (21 drive thru and 10 strips) - Corporate restaurant margins of approximately 17.8% - A franchise royalty rate of 8.3% - A general and administrative costs ('G&A') costs to network sales ratio of 6.7% Overall, GYG expects to exceed its FY25 NPAT prospectus forecast.
The Board of Directors intends to apply the new dividend policy following the finalisation of the Company's FY25 results. Subject to Board discretion, the Company anticipates its maiden dividend will be payable in September 2025.