Guzman y Gomez makes $2.2billion move as Mexican chain eyes up massive expansion

Australian fast food chain Guzman y Gomez will list on the stock exchange next month – with a bid that will take the company’s valuation to $2.2 billion.

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

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

Of that, $200 million will be spent on “significantly expanding its corporate restaurant network in Australia,” the company said in a statement.

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

The shares are expected to list on the ASX under the ticker ‘GYG’ from June 20, initially on a ‘conditional and deferred’ settlement basis.

“As we embark on the next chapter as an ASX-listed company, our vision to reinvent fast food and change the way the masses eat will remain at the heart of what we do,” said Guzman y Gomez founder and co-chef 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 in Australia and beyond as we take advantage of the opportunity we have to expand our network to over 1,000 restaurants in the course of time. next 20+ years.’

The first Guzman y Gomez restaurant 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 revenue rose to $759 million last fiscal year.

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

“We expect our sales growth to continue as we open new restaurants and increase sales at existing restaurants,” said company co-chief executive Hilton Brett.

“We also expect our profitability to improve as we continue to improve our execution in restaurants and further leverage the benefits of our increasing scale.”

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

Guzman y Gomez said the company believes it has “substantially built the team, restaurant pipeline and infrastructure” to increase this to 40 restaurants per year within the next five years.

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

“GYG believes there is an opportunity to expand its Australian network to more than a thousand restaurants over the next twenty years.”