Holy guacamole! Guzman y Gomez shares smashed | Australian Markets
Guzman y Gomez buyers have abandoned the Mexican-themed restaurant chain even after it declared a maiden dividend and cracked $1 billion in gross sales for its nachos, burritos and tacos for the primary time.
Global community gross sales rose a staggering 23 per cent to $1.18b within the 2025 financial 12 months, delivering a maiden revenue of $14.5 million — an enchancment from the $13.8m loss in 2024.
But Friday’s outcomes and the payout of 12.6¢ a share weren’t enough to please some analysts and buyers.
RBC Capital Markets analyst Michael Toner stated Guzman’s underlying earnings earlier than curiosity, tax, depreciation and amortisation of $52.8m missed consensus expectations by 3 per cent.
The stock had its worst day since itemizing final 12 months, with shares tanking 18.2 per cent, or $5.27, to $23.70 by the close.
Guzman listed on the Australian Securities Exchange to a lot fanfare in June 2024, with shares hitting $45 earlier this 12 months — more than doubling its IPO price of $22.
The full-year outcome was led by its eating places in Australia, Singapore and Japan, which achieved a 9.6 per cent same-store gross sales growth to $1.17b.
Guzman stated this was pushed by growth in its breakfast vary — together with the favored breakfast burrito — and late-night trading segments.
It stated it was additionally accelerating its 24/7 trading, with 18 shops now working across the clock.
Guzman founder and co-chief government Steven Marks stated it was one other “exceptional year” for the company.
It opened 32 new shops in Australia, 4 in Singapore, one in Japan and two within the US during the 12 months, taking the full to 256 eating places throughout the globe.
Operations within the US — the place Guzman’s six shops face stiff competitors from Chipotle and different unbiased Mexican eating places — stay difficult.
The US section posted a $13.2m loss in earnings — more than double than final 12 months’s $6.5m loss.
These losses are anticipated to widen this financial 12 months with the opening of two new shops in Chicago, the place it intends to have 15 shops over time.
“We’ve made progress in the US, particularly in the second half,” Mr Marks advised analysts and buyers on a call, including its strategy was to “demonstrate proof of concept”.
Mr Marks stated the store positioned at Northwestern University in Illinois was trading effectively and there have been “lines around the corner” as pupil prospects embraced different choices in addition to Chipotle.
Trading within the first seven weeks for the Australian section noticed growth of 3.7 per cent, effectively under consensus of 7.6 per cent.
But Guzman stated the company it anticipated to ship stronger gross sales growth within the present financial 12 months by means of menu innovation, growth into much less conventional meal occasions, operational excellence, advertising and digital initiatives.
Guzman — set up in 2006 in Sydney by Mr Marks, a former hedge fund supervisor, and Robert Hazan — has bold plans to have 1000 shops in Australia over the subsequent 20 years.
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