GYG Declares Maiden Dividend Amid 27% Revenue Surge and Global Expansion
Guzman y Gomez Limited (GYG) reported a strong FY25 turnaround with revenue up 27% and a maiden fully franked dividend declared, underpinned by robust Australia segment growth and ongoing US expansion.
- 27% revenue growth to $436 million
- EBITDA up 46% to $65.1 million
- Statutory net profit of $14.5 million reversing prior loss
- 39 new restaurants opened globally, including 32 in Australia
- Maiden fully franked dividend of 12.6 cents per share declared
Strong Financial Turnaround
Guzman y Gomez Limited (ASX – GYG) has delivered a remarkable financial turnaround in its first full year as a public company, reporting a statutory net profit after tax of $14.5 million for FY25, reversing a $13.7 million loss in the prior year. Revenue climbed 27% to $436 million, while EBITDA surged 46% to $65.1 million, reflecting the company’s successful execution of its growth strategy.
Network sales across GYG’s global restaurant network rose 23% to $1.18 billion, driven by strong comparable sales growth and the opening of 39 new restaurants worldwide, including a record 32 in Australia. The Australia segment, which includes operations in Singapore and Japan, posted a 9.6% comp sales increase and a 44.7% jump in segment underlying EBITDA to $66 million, highlighting the strength of its core market.
International Expansion and Operational Excellence
GYG’s US segment showed encouraging progress with 13% network sales growth, supported by operational improvements and the launch of its “Clean is the New Healthy” menu. While still in the early stages, the US operations are steadily building momentum, with plans to open additional restaurants in the Chicago area. The company’s focus on operational discipline, digital innovation, including a proprietary guest app accounting for nearly 20% of Australian sales, and a commitment to delivering fresh, made-to-order Mexican-inspired food continue to underpin its competitive edge.
Sustainability and Community Impact
Beyond financial performance, GYG has deepened its sustainability initiatives, embedding a comprehensive strategy focused on food quality, environmental stewardship, people, packaging, waste reduction, and community engagement. Notably, the company diverted over 9 tonnes of organic waste from landfill in a New South Wales trial and raised more than $1.3 million for community programs in Mexico, including support for vulnerable youth and nutrition education.
GYG’s governance framework was also strengthened with enhancements to risk management and the addition of experienced directors to key committees, reflecting a commitment to transparency and long-term value creation.
Dividend Policy and Future Outlook
Marking a milestone, the Board declared GYG’s maiden fully franked dividend of 12.6 cents per share, payable in September 2025. Looking ahead, the company targets opening 40 new restaurants annually in Australia within five years and aims to expand segment underlying EBITDA margins to approximately 10% of network sales, up from 5.7% in FY25. The Board also signaled intentions to pay dividends on an interim and final basis from FY26, balancing shareholder returns with ongoing investment in growth.
GYG’s leadership remains confident in the company’s ability to scale sustainably, innovate its menu and digital offerings, and deepen its international footprint while maintaining its core values of quality food and operational excellence.
Bottom Line?
GYG’s maiden dividend and robust growth trajectory signal a confident step forward, but investors will watch closely as the US expansion matures and sustainability reporting becomes mandatory.
Questions in the middle?
- How will GYG manage profitability and growth balance in its nascent US market?
- What impact will mandatory sustainability disclosures have on GYG’s operations and investor perception?
- How will the company sustain its rapid restaurant rollout while maintaining operational quality and margins?
