Mexican Fast Food Chain wows on Stock Market Premiere
Shares skyrocketed 36% to reach a market capitalization of $3 billion on its first day of trading.
Mexican-themed fast food restaurant chain Guzman y Gomez made an impressive debut on the Australian Stock Exchange (ASX), surging 36% on its first day of trading.
The company entered the ASX at 12 p.m. on June 20 with an IPO price of $22 per share.
By the end of the trading day, Guzman y Gomez’s shares had soared by 36% to $30, valuing the company at over $3 billion.
Investors have hailed this listing as the largest public offering on the Australian market in three years.
In Australia, the company operates 185 restaurants, including 62 corporate and 123 franchise locations.
Related Stories
The company also operates 16 restaurants in Singapore, four in Japan, and four corporate locations in the United States.
The company aims to establish 1,000 stores in Australia over the next two decades, with plans to open 30 new stores annually in the near future.
During an IPO event at the ASX building in Sydney on June 20, Mr. Marks described the listing as “emotional.”
“We’ve dedicated 20 years of hard work to building this incredible business with strong values and culture, and this is just the beginning,” he shared with the media.
The company’s IPO initially valued it at $2.2 billion before its surge to over $3 billion.
Prior to the listing, Guzman y Gomez (GYG) outlined that the IPO proceeds would support its growth strategy in the coming years.
Mr. Marks highlighted the company’s commitment to providing guests with the freshest, cleanest, and fastest made-to-order Mexican-inspired food over the past 18 years.
Co-CEO Hilton Brett predicted that GYG’s sales growth would continue through new restaurant openings and increased sales in existing locations.
He emphasized that quality food is a cornerstone of the company’s operations, with all food items on the Australian menu prepared using 100% clean ingredients since September 2019.
Between the 2015 and 2023 fiscal years, the company’s global network sales surged from $101 million to $759 million.
GYG’s peers in the fast food sector on the ASX include Collins Foods, which operates KFC and Taco Bell, and Domino’s Pizza Enterprises.
On June 20, Domino’s shares rose by 0.44% to $36.48 on the ASX, while Collins Foods shares jumped by 0.54% to $9.30.
