Guzman y Gomez (GYG) H1 2025 earnings summary

Executive summary

• Global network sales rose 22.8% year-over-year to $577.9 million for 1H25, driven by strong demand, operational execution, and expansion to 239 restaurants globally, with 210 in Australia.

• EBITDA increased 28.3% to $31.6 million, and net profit after tax rose 91.2% to $7.3 million, reversing a prior year loss.

• Opened 19 new restaurants globally (16 in Australia), with franchisees achieving a median ROI of 50% and franchise AUV at $5.4 million.

• Strong sales momentum driven by delivery channels, digital initiatives, impactful marketing, and value menu items.

• Robust cash position with $274.5 million in cash and term deposits, no debt, and adjusted cash conversion of 109%.

Financial highlights

• Revenue increased 27.0% year-over-year to $212.4 million; corporate restaurant sales in Australia up 29.3% to $179.3 million.

• Segment Underlying EBITDA in Australia up 37.3% to $31.8 million; profit before tax rose 51.4% to $15.2 million.

• Corporate restaurant margin in Australia improved to 18.0% (up 0.5pp year-over-year); drive-thru margins reached 21.8%.

• Franchise and other revenue up 30%; franchise restaurant margin at 20.2%.

• Operating cash flow of $19.2 million; net assets increased to $367.6 million.

Outlook and guidance

• Expects to exceed FY25 NPAT prospectus forecast, supported by 31 new Australia restaurant openings (18 franchise, 13 corporate).

• Corporate restaurant margins expected at approximately 17.8% for the full year; franchise royalty rate at 8.3%.

• G&A costs to network sales ratio guided at 6.7% for FY25.

• First seven weeks of 2H25 saw 12.2% comp sales growth in Australia, exceeding expectations.

• Strategic priorities include continued rollout, margin improvement, digital growth, and international expansion.