Guzman y Gomez to go public on stock exchange with $2.2bn Initial Public Offering

Australian fast food chain Guzman y Gomez will go public next month – in an offer that will value the company at $2.2 billion.

The retailer, known for its casual Mexican-style meals, on Friday announced a fully underwritten initial public offering (IPO) of 11.1 million shares at AUD$22 per share.

Guzman y Gomez expects the offering to raise approximately $242.5 million.

Of this, $200 million will be used to “significantly expand the corporate restaurant network in Australia”, the company said in a statement.

The offering is being underwritten by Barrenjoey Markets Pty Limited and Morgan Stanley Australia Securities Limited, acting as joint lead managers.

The shares are expected to list on the ASX under the symbol “GYG” from June 20, initially on a “contingent and deferred” settlement basis.

“As we embark on our next chapter as an ASX-listed company, our vision of reinventing fast food and changing the way the masses eat will remain central to what we do,” said Guzman y Gomez founder and co-chief executive Steven Marks.

“We truly believe that fast food doesn’t have to be bad food and we look forward to sharing our food with more diners across Australia and overseas as we look to realize the opportunity we have to grow our network to over 1,000 restaurants around the world. for the next 20+ years.”

The first Guzman y Gomez restaurant was opened in Sydney in 2006.

It has since expanded to 210 restaurants in four countries – 185 in Australia, 16 in Singapore, 5 in Japan and 4 in the US.

The company’s global sales rose to $759 million in the last fiscal year.

“We expect our sales growth to continue by opening new restaurants and increasing sales at existing restaurants,” Hilton co-CEO Brett said.

“We also expect our profitability to improve as we continue to improve our restaurant execution and continue to take advantage of our growing scale.”

Another 30 new restaurants are expected to open in the 2025 financial year.

Guzman y Gomez said the company believes it has “significantly built the team, the restaurant and the infrastructure” to increase this to 40 restaurants a year in the next five years.

“The focus will be on drive-thru restaurants because of their potential to provide superior restaurant economics,” the company said.

“GYG believes there is an opportunity to grow its Australian network to over 1,000 restaurants over the next 20+ years.”

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