Guzman y Gomez (GYG) H2 2024 earnings summary

Executive summary

• Achieved record FY24 results with network sales up 26.4% to AUD 960 million, surpassing prospectus forecasts and driven by strong Australian performance and 220 restaurants globally at year-end.

• Opened 25 new restaurants in Australia, with a robust pipeline of 91 sites and 46 board-approved for future openings.

• Launched GYG Delivery, enhanced digital guest experience, and continued menu innovation and brand campaigns, including 'Clean is the New Healthy.'

• Franchisees achieved a median ROI of 53%, with profitability and margins improving across the network.

• Sustainability initiatives included transitioning to PFAS-free, compostable packaging and implementing new payroll and people systems.

Financial highlights

• Pro forma EBITDA rose 52.9% year-over-year to AUD 44.8 million, with underlying EBITDA up 48% to AUD 39 million, driven by Australian operations.

• Pro forma NPAT increased 94.1% to AUD 5.7 million, while statutory loss after tax was AUD 13.7 million due to IPO and one-off costs.

• Operating cash flows reached AUD 56.3 million, with net cash and term deposits of AUD 295 million and no debt at year-end.

• Equity rose to AUD 354 million, reflecting IPO and pre-IPO capital increases.

• Lease liabilities increased to AUD 240 million due to network expansion.

Outlook and guidance

• On track to meet FY25 targets, including opening 31 new restaurants in Australia, with a 60:40 franchise-to-corporate mix and 85% drive-thru format.

• Comp sales growth in Australia for the first 7 weeks of FY25 at 7.4%, above expectations.

• Medium-term goals include opening 40+ restaurants per year, expanding margins, and reducing G&A as a percentage of network sales.

• Local partnership in Chicago to support US expansion, with limited near-term earnings impact.