Guzman Y Gomez participates in the expansion costs in the high United States, a slow start in Australia

Written by Sunaha Kumar

(Reuters)-The fast food chain titled Mexican Guzman Y Gomez was a year profit before expectations on Friday, but the high costs related to American expansion and a defeated start for the new commercial year in Australia sent their shares by 21 %.

Guzman Y Gomez (Gyg) first appeared in ASX in June 2024, which represents the largest list in Australia in three years. Its performance is considered a bell for the public subscription market in the country, and its performance is also a standard for the manufacture of fast -service restaurants.

The company recorded an operational loss of 13.2 million dollars (8.48 million dollars) for its American section in 2025 and learned that the losses are expected to expand and margins to be pressured in the current fiscal year, as it begins to expand in the Greater Chicago region.

The company said: “It is expected that this investment will be compensated … continuous improvements in the profitability of the current restaurants, and as a result it is expected that the US losses will increase slightly in the 26th fiscal year.”

Network sales in Australia increased by 3.7 % in the first seven weeks of the current commercial year, which are 7.6 % less than the first half of the first half through the consecutory consensus.

GYG shares decreased by 21 % to the lowest level of life at $ 22.740, a few shy points from their price of $ 22. The stock was the worst session during its day in the registry.

Craig Sydney, the chief investment consultant in Shaw and Partners, estimates that Gyg is “expensive, so there is a point of view that they have to achieve very strong growth in order to prove the share price.”

“So anything is sold slightly in this environment.”

In Australia, the strong demand for the famous breakfast list raised its sales by 22 % to a record of $ 1.09 billion per year ending June 30, while sales in its secondary markets also increased: 40 % in Singapore and 16 % in Japan.

This paid his net profits for the entire year to $ 14.5 million, or more than twice the amount of $ 5.7 million that he obtained last year, and before its own expectations and the market.

The company also announced the first distribution of its profits of 12.6 Australian cents per share, noting the strong public budget and the generation of cash flow.

For the current commercial year, Gyg expects operating profits from its sector in Australia, which includes its operations in Singapore and Japan, to expand up to 6.3 %, compared to a growth of 5.7 % in 2025.

($ 1 = 1.5567 Australian dollars)

(Sneha Kumar reports in Bangaluru; additional reports by Samir Manicar; edited by Alan Barona and Sherry Jacob Philips)