Guzman y Gomez posts 30% profit jump on Australia sales growth

Mexican-themed fast-food chain Guzman y Gomez (GYG) reported a significant 30% increase in annual profit, driven by higher network sales in Australia, with shares reaching their highest level in nearly a year. Network sales in the Australia segment, which now serves as the company’s primary growth engine after exiting the United States in May due to weak sales, grew 17.9% to A$1.4 billion ($997.22 million) for the year ended June 30.

Citi noted that growth was coming from volume rather than price, which is seen as higher quality growth compared to other quick-service restaurant (QSR) peers. The company also declared a final dividend of 40.6 Australian cents per share, surpassing analyst expectations.

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