Company Interview / Hungry for more: why GYG is not giving up on the US

Key points:

Guzman y Gomez (ASX:GYG) reports $10.6 million net profit after tax, up 45%Transitioning US delivery partner from DoorDash to UberStrong focus on expanding drive-thru restaurants and international growthLong-term strategy prioritises operational efficiency and financial discipline

Guzman y Gomez (ASX:GYG) reports a record net profit after tax of $10.6 million for the half-year, up 45%, with revenue reaching $261.2 million. Co-CEO Steven Marks states the company remains optimistic about future growth, particularly in the United States, despite an expectation of slightly increased losses as US operations expand. Marks highlights the transition from DoorDash to Uber for US deliveries, which may influence short-term sales, but stresses optimism for long-term growth and an increased focus on operational efficiency.

Marks points to Guzman y Gomez's position in the quick service restaurant space, noting the brand’s strong drive-thru performance in Australia and a unique offering compared to competitors like Chipotle in the US. The company operates 240 restaurants in Australia, many of which are drive-thrus, and currently has eight US locations with plans to expand to at least 15. Marks emphasises the strong performance of drive-thrus, the brand's focus on breakfast, lunch, and dinner, and the evolving mini range menu, which caters to changing consumer preferences.

While acknowledging that the share price has reached a record low, Marks contends significant value exists in the company’s long-term strategy. He stresses a focus on financial discipline, operating leverage, and continued growth across Australia, Singapore, Japan, and the US.