This morning, we got a look at the latest numbers from fast food share Guzman y Gomez Ltd (ASX: GYG). It's fair to say investors did not like what they saw.
As we covered earlier this afternoon, the Guzman y Gomez share price has taken a 20.5% dive this Friday, dropping from $28.97 a share to the current $23.02. That puts the ASX 200 fast food stock down a horrid 42% or so year to date over 2025 so far.
This was despite Guzman reporting some pretty impressive figures. These included a 23% rise in store network sales to $1.18 billion, as well as a 45.5% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to $65.1 million. Net profits after tax (NPAT) were $14.5 million, up 151.8% year on year.
But today, let's talk dividends. Specifically, Guzman y Gomez's inaugural dividend payment.
One of the biggest bits of news from Guzman today was the announcement that the company would be making its maiden dividend payment this year.
Everything you need to know about Guzman y Gomez's first dividend
To kick things off, this maiden dividend will be worth 12.6 cents per share.
It will be paid on 30 September next month. However, any investor wishing to receive the payment will need to own Guzman y Gomez shares before the ex-dividend date of 15 September. Any buyers of Guzman y Gomez shares on or after that date will leave the rights to receive this dividend behind with the seller.
There is no dividend reinvestment plan in effect though, so investors have no option but to receive the dividend in cash.
It will also come with full franking credits attached.
Guzman y Gomez has indicated that this dividend covers the previous 12 months, not six. This means that either shareholders will have to get used to one dividend payment annually, or else expect that if there is another one in six months' time, it will be worth substantially less than 12.6 cents per share.
If indeed, Guzman even pays another dividend – remember, dividend payments are never a sure thing on the ASX, and one dividend payment is not indicative of any other.
As of yesterday's closing share price, this dividend would have been worth a yield of 0.43%. However, at the new Guzman share price, this forward yield has jumped up to 0.55%.
It will be interesting to see how Guzman's income track record builds out from here.
