ASX-listed Guzman y Gomez Ltd. (AU:GYG) posted double-digit sales growth in Australia for the September quarter, outperforming its expectations. Overall, GYG expects to reach the 2025 financial year targets outlined in its prospectus, which includes opening 31 new restaurants across Australia. Guzman is forecasting sales of $428.2 million, EBITDA (earnings before interest, tax, depreciation, and amortization) of $59.9 million, and profit after tax of $6 million for FY25. GYZ stock gained 0.21% in today’s session.
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Guzman y Gomez is a Mexican food chain with over 200 locations in Australia, Singapore, the U.S., and Japan. It debuted on the ASX in June 2024 and has since gained 33.5% in trading.
Key Insights into Guzman’s Q1 Sales Performance
Guzman y Gomez achieved a 20.7% rise in network sales compared to the same period last year, reaching $278.8 million. This contrasts with the 32.8% increase reported in the previous year.
The growth was primarily fueled by GYG’s Australian operations, which saw a 21.1% rise in network sales, reaching $260.2 million. Management attributed this growth to new store openings and an 8.7% increase in comparable store sales, both surpassing expectations.
On the other hand, Guzman reported U.S. network sales of $2.6 million, reflecting a 3.7% decline from the same period last year. Despite this, the company stated that its U.S. sales met expectations, noting that the same period last year benefited from an initial boost in the top line due to new restaurant openings. Among other regions, the company saw a 19.3% increase in network sales in Singapore and a 25% rise in Japan’s network sales.
What Is the Share Price Target for GYG Stock?
According to TipRanks, GYG stock has a Hold consensus rating based on two Buys, two Holds, and two Sells assigned in the last three months. At AU$37.56, the average Guzman share price target is 2.6% below the current price level.
