Popular burrito chain Guzman y Gomez has suffered a multimillion-dollar hit after its half-yearly earnings were not as strong as expected.
The Australian company released its half-yearly results today, reporting $682 million in sales and earnings before interest, taxes, depreciation and amortisation (EBITDA) of $33 million – both significant increases from the same time last year.
However, following the results, its share price on the ASX dropped about 10 per cent. With a market capitalisation of around $2.1 billion, that represents a hit of more than $200 million.
Guzman y Gomez’s share price has more than halved in the last 12 months. (Instagram)
GYG’s sales grew 18 per cent compared to the first half of the last financial year, however analysts had expected that figure to come in at 19 per cent.
The company’s share price has plummeted from around $38 a year ago to about $18 today – far lower than the $22 offered when it was first listed on the ASX in 2024.
However, Guzman y Gomez said the results were positive, pointing to growing sales and 17 new restaurants opened around the world, keeping its expansion plans on track.
The company is still confident of success despite the setback, planning to open more than 30 new stores in Australia. (Guzman y Gomez/Facebook)
“We continue to have extremely healthy restaurant economics and share our success with our franchisees,” CEO Steve Marks said.
“GYG achieved solid sales momentum and earnings growth during the half, driven by… our team’s consistent execution on core strategic and operational initiatives.”
The company expects to open 32 more restaurants in Australia in the current financial year.
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