Guzman y Gomez has unique avenues to drive sales growth, says Morgan Stanley

Collins Foods

17/10/2024 23:03

** Analysts at Morgan Stanley say Guzman y Gomez  GYG.AX 
has more areas to growth comparable sales as compared to its
market peers as an early quick service restaurant operator
    ** Brokerage forecasts the Australian fast food chain's
comparable sales growth of 7.5% per annum over the next three
years 
    ** The sales growth estimate is above the industry's and
higher as compared to 1%-3% for established operators like pizza
maker Domino's  DMP.AX  and restaurant business Collins Food
 CKF.AX  
    ** MS reiterates "overweight" rating on stock with co's
brand resonance and offering to customers strong and growing
    ** Early stage QSR companies like GYG present a superior
outlook for growth, says brokerage
    ** GYG earlier in the month posted total first-quarter
network sales of A$278.8 mln ($186.66 mln) and said comparable
sales growth at its Australia segment was better than expected
    ** GYG ended Thursday at A$38; brokerage has a PT of A$38.5
for stock


($1 = 1.4937 Australian dollars)

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com))