Overview
Guzman y Gomez combines a sizeable quick-service restaurant business with rapid reported revenue growth, but its figures also show a profitability challenge. The company’s A$2.6 billion market capitalisation and P/E ratio of 64.44x reflect a growth-oriented valuation, while a reported -4.84% profit margin makes the path from expansion to sustained earnings central to the story. Its shares recently traded at A$26.58, within a 52-week range of A$14.82 to A$33.39.
Guzman y Gomez is an Australian-founded quick-service restaurant group specialising in Mexican-inspired food. It operates restaurants in Australia, Singapore and Japan, with sales through restaurant, drive-through and delivery formats, and also manages franchise operations. Revenue is A$551.8 million, with reported growth of 22.60%, giving the business a meaningful operating base and an expansion-led profile. However, the reported -4.84% profit margin shows that scale and growth have not yet translated into positive profitability in the figures supplied.
Key facts
- Ticker
- GYG
- Exchange
- AU
- Sector
- Consumer Cyclical
- Industry
- Restaurants
- Country
- Australia
- Currency
- AUD
- Price
- A$26.48
- Previous close
- A$27.09
- Day change
- -A$0.61 (-2.25%)
- Market cap
- 2.6B
- 52W low
- A$14.82
- 52W high
- A$29.63
Price and trend
Last price: A$26.48
- Price
- A$26.48
- 52W range
- A$14.82 – A$29.63
- 50-day SMA
- A$25.95
- 200-day SMA
- A$21.31
- Price vs 50D SMA
- 2.06%
- Price vs 200D SMA
- 24.26%
Valuation
- P/E
- 63.90
- EPS
- 0.41
- Dividend yield
- 1.24%
- Beta
- 1.02
At a market capitalisation of A$2.6 billion and a P/E ratio of 64.44x, Guzman y Gomez is valued on expectations of continued growth rather than a low earnings multiple. That valuation deserves context: revenue growth is 22.60%, but the reported profit margin is -4.84%, so earnings quality and the path to stronger profitability remain important. The stated dividend yield of 1.29% adds an income component, though it does not remove the valuation or execution risks.
Profitability and growth
- Revenue growth
- 22.60%
- Revenue TTM
- 551.8M
- Profit margin
- -4.84%
Analyst view
Comparison uses the last price shown; targets are analyst estimates.
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- Price
- A$26.48
- Target price
- A$27.04
- Target vs last price
- 2.11% from last price
The supplied target price is A$27.04, or 1.73% from the last price of A$26.58. This is only secondary context: the central investment question is whether Guzman y Gomez can sustain its growth while improving profitability. The supplied figures do not establish how that balance will evolve.
Risks
Guzman y Gomez’s revenue growth is strong, but the reported -4.84% profit margin highlights the difficulty of translating expansion into profitability. Restaurant operators are exposed to shifts in consumer spending and operating costs, while growth across company-operated and franchise formats and different markets brings execution demands. A P/E ratio of 64.44x also means the valuation is sensitive to whether growth and future earnings meet expectations. The 1.29% dividend yield is a feature of the current profile, not a guarantee of future payments.
FAQ
What does Guzman y Gomez do?
Guzman y Gomez operates quick-service restaurants serving Mexican-inspired food in Australia, Singapore and Japan. It sells through restaurant, drive-through and delivery formats and also manages franchise operations.
How has the business been growing?
The supplied figures show revenue of A$551.8 million and revenue growth of 22.60%. Growth is an important part of the business story, but it needs to be considered alongside the reported -4.84% profit margin, which indicates that growth has not translated into a positive margin in the figures provided.
Does Guzman y Gomez pay a dividend?
The supplied dividend yield is 1.29%, with a dividend-per-share figure of A$0.336. Dividends can change, and the yield alone does not show whether future payments will be maintained.
What are the main risks to consider?
Key considerations include the challenge of converting rapid sales growth into sustained profitability, execution risks as the restaurant and franchise network expands, and the possibility that consumer spending or operating costs pressure restaurant performance. The valuation also leaves the share price sensitive to changes in growth expectations.
*This content is aimed to provide general information only, and does not take your personal objectives, financial situation or needs into account.
