Guzman Y Gomez on track to pay maiden dividend as | Australian Markets
Mexican-themed fast food chain Guzman Y Gomez expects to pay a maiden dividend to shareholders later this yr after recording robust gross sales growth within the March quarter.
Total community gross sales grew to $289.5 million within the three months to the tip of March, in contrast with $234.2m a yr in the past. The outcome was led by its 211 Australian shops, the place gross sales jumped to $267.6m from $217.5m.
In a trading replace on Tuesday, Guzman stated restaurant community growth additionally continued within the quarter, with three new shops in Australia and two within the US. This takes the full to 241 shops throughout Australia, Singapore, Japan and the US.
It expects to open 31 eating places in Australia this financial yr.
Guzman credited the introduction of a new menu merchandise Street Corn, 24/7 trading and its breakfast vary — together with the favored breakfast burrito — for the gross sales growth over the period.
The company says it plans to pay the bulk of earnings to shareholders in a maiden dividend in September, given its robust stability sheet and money circulation era.
During the quarter, gross sales additionally elevated in its different markets of Singapore and Japan. Sales within the US additionally bounced back, growing $3.2m during the quarter, from $2.6m a yr in the past.
Founder and co-chief govt Steven Marks informed The Nightly earlier this yr it was taking a measured strategy to growth within the US, the place it desires to have 15 shops over the subsequent few years.
“We know things take time and I think where brands get it wrong is they rush,” Mr Marks stated on the time, including it was assured in its potential to crack the US market regardless of dealing with stiff competitors from main gamers like Chipotle.
“We think our food is far superior . . . we have breakfast, lunch and dinner, we have drive-throughs, so there’s so many points that differentiate us from Chipotle.”
The company on Tuesday reiterated it was on track to beat its full-year prospectus forecast of $6m.
Guzman listed on the Australian Securities Exchange final June, with shares hitting $45 in February — more than doubling its IPO price of $22. Shares closed up 3.7 per cent to $31.10 on Tuesday.
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