Fast food chain Guzman y Gomez (ASX: GYG) has reported solid sales across its network for the three months to the end of March while it continues to execute its vision to “change the way the masses eat”.
The company’s global sales hit $289.5 million, compared to the previous corresponding period’s $234.2m.
Australia remained its strongest market with sales of $267.6m, followed by $16.6m in Singapore, $2.1m in Japan and $3.2m in the US.
Sales from the company’s network of 241 restaurants worldwide demonstrated customer demand for clean and fresh food, supported by strong operational and marketing initiatives.
This included the introduction of new menu items, a move to 24/7 trading and the continued rollout of the Good Mornings Start with GYG breakfast campaign.
Guzman added three new Australian restaurants to the network during the period (taking the domestic total to 211) and two in the US.
The company experienced comparable sales growth in Australia of 11.1% across all channels, dayparts, formats and ownership types.
This was up 5.2% on the previous corresponding period.
Daypart growth was a highlight during the quarter, with an acceleration of trade in the breakfast and after 9pm time slots.
In the US segment, the two new restaurants helped increase network sales.
Customer experience metrics also improved, driven by a deliberate investment in staff numbers.
During the period, Guzman launched the Clean is the New Healthy campaign across its US restaurants.
The program offers a menu free of added preservatives, colours, artificial flavours and additives, focusing instead on fresh ingredients.
Guzman plans to open 31 new restaurants in Australia before the end of the 2025 financial year, including 18 franchised outlets and 13 corporate.
The company expects to have 144 franchised and 79 corporate restaurants nationwide by the end of June.
Its corporate restaurant margin is on track to be 17.8% while the franchise royalty rate will sit at 8.3%.
Guzman’s board of directors has announced the implementation of a dividend policy, supported by a strong balance sheet and cash flow generation.
The policy takes the company’s future funding requirements into consideration, as well as the availability of franking credits.
The board expects to distribute of the majority of earnings to shareholders in dividends moving forward, while retaining significant flexibility for continued investment in growth.
The company has scheduled the maiden dividend payment for September.
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