Fast-food challenger Guzman y Gomez (ASX: GYG) has kept the burrito train rolling in Q3 FY25, posting another strong quarter of growth across its global network — and giving investors something extra to chew on with the introduction of a dividend policy.
Another spicy quarter
For the three months to 31 March 2025, GYG lifted global network sales to $289.5 million, up 23.6% on the prior year. Australia continues to do the heavy lifting, contributing $267.6 million in sales, while overseas markets like Singapore, the US, and Japan also pushed forward.
Comparable sales growth in Australia hit 11.1%, a big jump from 5.9% in Q3 last year, with momentum across all channels and dayparts — particularly breakfast and late-night trading.
What’s behind the numbers? A few smart moves:
- GYG introduced a new Street Corn menu item
- Rolled out more 24/7 trading locations
- Continued its Good Mornings Start with GYG breakfast push
- Launched a “Clean is the New Healthy” campaign in the US, underscoring its ethical sourcing and fresh ingredients
New stores, new markets
GYG’s footprint also expanded this quarter, with:
- 3 new restaurants in Australia
- 2 new openings in the US
That takes the global network to 241 restaurants — up from 210 a year ago. The Australian network now includes 211 restaurants, of which 138 are franchised.
In the US, where GYG sees significant growth potential, the company noted stronger guest experience metrics thanks to deliberate investments in labour — a sign that it’s playing the long game to win over new markets.
Dividend policy unveiled
Alongside its results, GYG announced its dividend policy — a notable move for a high-growth, fast-casual player. Details weren’t spelled out in the update, but the introduction signals growing confidence in its cash flows and long-term earnings profile.
The company also reaffirmed guidance for FY25 in its Australia segment, including:
- 31 new restaurants (13 corporate, 18 franchise)
- Corporate restaurant margins of ~17.8%
- Franchise royalty rate of 8.3%
- G&A costs at 6.7% of network sales
And for investors wondering about the bottom line — GYG expects to exceed its FY25 NPAT forecast set out in its IPO prospectus.
