Guzman Y Gomez (ASX:GYG) has released its FY27 Q1 sales update posting network sales up nearly +19% vs pcp “driven by strong comp sales … and continued expansion.”
Guzman opened three new restaurants in Australia during the quarter; for Guzman’s original vision of itself at listing it would basically need to become as large as McDonald’s in Australia.
It also ditched its plans to take on the US market back in May of this year.
And perhaps that’s why the market didn’t appear terribly interested in Guzman Y Gomez’s results published Friday.
Shares were down around -1% heading into the second hour of trade, but it was the volume that suggested relative disinterest.
Only 48,390 shares had traded hands as of 11.10am AEDT – shares are worth $26.80/sh at the time of writing – but compare that to a 4wavg of 324,995.
To be fair, it’s early in the trading day, but it seems clear that GYG has lost a certain degree of its former hype.
Can it get it back? That may depend on whether GYG can com good on its plans, revealed Friday, to open 35 new restaurants in the next nine months. In Q2 of FY27, it expects to open twelve new restaurants around the nation.
That’s twelve new restaurants before Jan 1. Last quarter, it opened three. This finance journalist admits he has never run a fast food chain before, but if they can pull it off, that might re-inject some volume back into the filling.
While GYG remains well off its April low of $16/sh, it’s also a world away from its former ATH of A$43/sh back in late 2024.
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