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In a “Letter from the Co-CEOs” released by Guzman Y Gomez (ASX:GYG) along with its FY25 reports on Friday morning, one which reads painfully like a LinkedIn-influencer post, the company chiefs told investors the trillion-dollar global fast food industry is ready for disruption.
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The company, perhaps, mightn’t have expected itself to be disrupted. Guzman shares were down -20.5% to $23.19/sh heading into the second hour of Friday trade as the company’s FY25 results failed to excite.
Despite an American expansion (into a heavily saturated Latin America-themed fast food market) and fairly bold claims of being able to execute Australian fast food dominance, the first yearly report we’ve seen from GYG reflects NPAT of $14 million.
But seeing as the company lost $13.6M in FY2024, that really means it just broke even.
Earnings before taxes were around the mid $60M mark, and the company even issued a dividend of around 12c. But that hasn’t been enough to save a sell-off on Friday, which has brought the stock to an all-time low.
“When we opened our first restaurant in the Sydney suburb of Newtown in 2006, it was doing $11k a week in sales. We were losing money. Most would have called it quits. We didn’t,” the letter from the co-CEOs continued.
“This is what fuels us on our mission at GYG.”
GYG last traded at $23.19/sh.
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