Guzman y Gomez FY24 Earnings Call Highlights

Guzman Y Gomez (ASX: GYG) shares soared to all-time highs on Tuesday after its FY24 results topped prospectus forecasts. Here are some of the key insights from the company's earnings call.

FY24 Earnings Summary

• Revenue up 32.1% to $342.2m and 0.7% ahead of prospectus guidance

• Pro forma EBITDA up 52.9% to $44.8m and 4.1% ahead of prospectus guidance

• Pro forma NPAT up 94.1% to $5.7m and 71.2% ahead of prospectus guidance

• Trading update – Australian segment comparable sales growth of 7.4% for the first seven weeks of FY25

• FY25 outlook – Expects to open 31 new restaurants and achieve prospectus forecasts

Earnings Call Highlights

The below topics have been answered by Co-CEO Steven Marks and CFO Erik Du Plessis

FY24 results: "Today's results demonstrate strong guest demand ... Our statutory loss after tax for the year was $3.7 million better than prospectus forecasts ... our pro forma net profit after tax was $5.7 million."

Customer trends: "Our 100% clean, crispy, delicious chicken tenders... have been extremely popular with our guests."

Breakfast expansion: "Breakfast expansion has been a highlight, reporting 18% comp sales growth for the yea r... we have five restaurants trading 24 hours a day, seven days a week."

Balance sheet: "We ended the year with a robust balance sheet ... net cash and term deposit position of $295 million."

Marketing campaigns: "In 2024, we launched the Clean is the New Healthy campaign, which contributed to the improvement in sales momentum."

Profitability: "As at June 30, 2024, we are delighted to share that our franchisees achieved a median ROI of 53% and profitability continues to grow."

Store rollout: "We rolled out 25 new restaurants in Australia ... our real estate pipeline continues to strengthen ... We are pleased to report that we have 91 board approved sites in the pipeline as of June 30, 2024."

International expansion: "We were also pleased with the growth in our restaurants in Singapore and Japan ... network sales increased 82% to $11 million."

Analyst Q&A Highlights

IPO impact: "I wouldn't say the IPO process in particular has had a significant impact on ourselves. What is much more important is how Clean is the New Healthy campaign and the great food we're serving in our restaurants."

24/7 store conversion: "The comp growth of those stores has been positive."

On margins: "The primary reason that we see improvement in corporate restaurant margins is operating leverage as a result of higher sales."

Delivery contribution: "Delivery performance was also stronger than we expected... we outperformed prospectus forecast as a result of an improvement in trading momentum above our expectations."

On customer demographic: "We continue to see strength in the younger demographic... which is great for us to see."

On breakfast and coffee: "It's a huge focus for us... it's the best thing that we sell."

On pipeline buffers: "We have always got more restaurants in the pipeline than what we plan to open."

New store development costs: "We've seen that moderate and we're seeing consistency now in terms of our growth."

This article was generated with the support of AI and reviewed by an editor.