Mexican-themed fast-food operator Guzman y Gomez reported a 30% increase in annual profit after tax, reflecting strong growth in its core Australia market following the exit from the U.S. in May.
Underlying net profit after tax reached A$53.4 million for the year ended June 30, up from A$41.2 million a year earlier. The company attributed the improvement to a 17.9% rise in network sales within its Australia segment, which includes operations in Singapore and Japan, to A$1.4 billion. Comparable sales growth in the segment was 5.3%, below the 9.6% recorded a year prior but in line with Citi’s Visible Alpha consensus of 5.24%.
Guzman y Gomez’s Australia segment has become the primary growth driver after the company divested its U.S. operations, which generated a A$67.3 million loss from discontinued operations. Citi noted that the company’s network growth was volume-driven rather than price-led, distinguishing it from peers in the quick-service restaurant sector.
The company declared a final dividend of 40.6 Australian cents per share, including a 14.4-cent special dividend, exceeding the Visible Alpha consensus of 7 cents. Shares surged as much as 12.6% to A$27.00, the highest level since October 31, 2025, while the S&P/ASX 200 declined 0.2% at the time. The Australian dollar was trading at $1 = 1.4039 at the time of the announcement.
