The Guzman Y Gomez (ASX: GYG) share price is taking a dive today.
Shares in the Mexican fast food restaurant chain closed yesterday trading for $35.85. In morning trade on Monday, shares are changing hands for 34.00 apiece, down 5.3%.
For some context, the All Ordinaries Index (ASX: XAO) is up 0.2% at this same time.
This underperformance follows the release of Guzman y Gomez's results for the 12 months ending June 30 (FY 2024).
Guzman y Gomez began trading on the ASX on 20 June.
Read on for the highlights.
Guzman y Gomez share price tumbles on net loss
- Revenue of $342.2 million, up 32.1% year on year
- Global network sales of $959.7 million, up 26.4% from FY 2023
- Statutory earnings before interest, taxes, depreciation and amortisation (EBITDA) of $27.3 million, down 7.9% from FY 2023
- Statutory loss before tax of $11.6 million, down from a profit before tax of $200,000 last year
What else happened with the fast food retailer during the year?
While the statutory year on year declines in earnings and profits are sizeable and likely pressuring the Guzman y Gomez shares today, the pro forma figures look much sharper.
(Pro Forma adjustments include costs related to GYG's IPO, system implementation and other non-recurring costs.)
Looking at those figures, pro forma net profit after tax (NPAT) came in at $5.7 million, up 94.1% on the prior year.
Pro forma EBITDA was $44.8 million, an increase of 52.9% from FY 2023.
And pro forma profit before tax was $16.3 million, a 113.7% increase from the prior year.
The big boost in global network sales was driven by both strong comparable restaurant sales growth and network expansion.
As at June, Guzman y Gomez had 220 restaurants operating across Australia, Singapore, Japan and the United States.
The company reported a net cash and term deposits position of $294.5 million with no debt.
What did management say?
Commenting on the results that have failed to boost the Guzman y Gomez share price today, co-CEO Steven Marks said, "GYG delivered network sales growth of 26% for the year, ahead of prospectus forecasts."
Marks added:
This result was underpinned by strong comparable sales growth and the continued delivery of restaurant network expansion across Australia. Strong sales growth and ongoing margin expansion resulted in significant growth in earnings, exceeding prospectus forecasts.
What's next?
Looking at what could impact the Guzman y Gomez share price in the year ahead, the fast food retailer expects to open 31 restaurants in FY 2025.
The new financial year looks to be off to a promising start, with comparable same sales growth of 7.4% in its Australian segment coming in above expectations.
Overall, management said they expect to achieve the company's prospectus forecasts for FY 2025.
Guzman y Gomez share price snapshot
With today's intraday fall factored in, the Guzman y Gomez share price remains up 13.3% since the stock began trading on the ASX on 20 June.
