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Guzman y Gomez Shares Slide After Results Flag Wider US Losses and Soft Start in Australia

Investors weighed a strong first year on the ASX against a pledge to keep funding a loss‑making US rollout.

A general view of a Guzman y Gomez store in Sydney, Australia June 14, 2024. REUTERS/Scott Murdoch/File Photo
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Overview

  • Shares fell about 20%–21% toward the IPO price after the company reported FY results and an early trading update.
  • Annual network sales topped A$1bn and net profit rose to A$14.5m, with a maiden fully‑franked dividend of 12.6 cents per share.
  • Australian growth was supported by expanded late‑night and breakfast trading and more 24/7 outlets.
  • GYG’s US division recorded an A$13.2m operating loss for FY25 and the company said US losses are likely to increase slightly in FY26 as it focuses on Chicago.
  • The group opened 39 restaurants to reach 256 globally and reiterated ambitious long‑term expansion plans in Australia and overseas.