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A record $1.2 billion sales result has been unable to excite the palates of investors in Sydney-based Mexican fast food chain Guzman y Gomez (ASX: GYG), with shares falling to their lowest levels since active trading began in June last year.
At the time of publication GYG shares are down by more than 15 per cent in early trading today at just under $24.50, which is still technically above the $22 initial public offer (IPO) price but below the $29 close on their first day of trading last year.
GYG shares have declined by almost 40 per cent since February, representing a loss of shareholder value of around $1.68 billion.
The company reported today that global network sales were up 23 per cent at $1.18 billion in FY25, surpassing the $1 billion milestone for the first time.
In terms of profitability, earnings increased 45.5 per cent to $65 million on a pro forma basis, while NPAT more than doubled to $14.5 million.
"FY25 was another exceptional year for GYG. This performance is a direct result of our guests’ love for our clean, delicious food and the world-class execution from our crew and franchisees," says founder and co-CEO Steven Marks.
"We stayed true to our strategy, stayed obsessed with the guest experience, and proved once again that we’re building something truly special.
"We’ve delivered an incredible performance this past year, but for us, this is just the beginning. At GYG, we’re in it for the long haul, building a better, more sustainable way to feed this generation and the next. When we stay true to that mission, we know we’ll keep creating lasting value for our people, our guests, and our shareholders."
Marks says Guzman y Gomez wrapped up the year with 256 restaurants around the world, including 39 new restaurant openings in the financial year of which 32 were in Australia.
"With 98 locations in our Australian pipeline and an incredible real estate team our expansion plans have never been stronger," he says.
"Our franchise partners have also delivered another incredible year. Their passion, hustle, and commitment are at the heart of GYG’s success.
"With a median ROI (return on investment of 50 per cent, they’re not just building amazing businesses, they’re helping GYG deliver on our mission to become the best and biggest restaurant company in the world."
Sales in the US were up 13 per cent at $12.2 million, but the underlying EBITDA loss more than doubled to $13.2 million.
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