Guzman y Gomez (GYG) H2 2024 earnings summary

Executive summary

• Ended FY24 with 220 restaurants globally and network sales of $959.7 million, surpassing growth forecasts.

• Achieved 8.1% comparable sales growth in Australia, opened 25 new restaurants, and maintained a robust pipeline of 91 sites.

• Launched GYG Delivery, expanded digital capabilities, and introduced menu innovations like crispy chicken tenders.

• Franchisees achieved a median ROI of 53%, with strong profitability and day-part growth, especially in breakfast.

• Transitioned to PFAS-free, compostable packaging and implemented new payroll and people systems.

Financial highlights

• Statutory loss after tax was $13.7 million, impacted by IPO and one-off costs; pro forma NPAT was $5.7 million, up 94.1% year-over-year.

• Pro forma EBITDA rose 52.9% to $44.8 million; underlying EBITDA reached $39 million, up 48% year-over-year.

• Corporate restaurant sales grew 32% with margins improving to 17.4%; franchise revenue increased 30%.

• Operating cash flows reached $56.3 million, with net cash and term deposits of $294.5 million and no debt.

• Median franchisee AUV rose to $5.1 million (+12.7%), and franchise restaurant margins increased to 21.4%.

Outlook and guidance

• FY25 trading started strongly, with 7.4% comp sales growth in Australia in the first seven weeks.

• Expect to open 31 new restaurants in Australia in FY25, with a robust pipeline and a 60:40 franchise-to-corporate mix.

• On track to meet FY25 prospectus forecasts and medium-term targets, including opening 40+ restaurants per year and expanding margins.