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 offering that will value the company at $2.2 billion.

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

Guzman y Gomez expects the offer to bring in about $242.5 million.

Of this, $200 million will be spent on “significantly expanding the 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 book-running managers.

The shares are expected to list on the ASX under the ticker symbol “GYG” from 20 June, 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 eating habits of the masses will continue to be at the heart of everything we do,” said Steven Marks, founder and co-chief executive of Guzman y Gomez.

“We firmly believe that fast food doesn’t have to be bad food and we look forward to sharing our food with more guests in Australia and abroad as we embrace the opportunity to grow our network to over 1,000 restaurants over the next 20+ years.”

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

Since then, the company has expanded its operations to 210 restaurants in four countries – 185 in Australia, 16 in Singapore, 5 in Japan and 4 in the USA.

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

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

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

A further 30 new restaurants are to be opened in the 2025 financial year.

Guzman y Gomez said the company believes it has “sufficiently expanded the team, restaurant pool and infrastructure” to increase the number to 40 restaurants per year within the next five years.

“The focus will be on drive-in restaurants as they have the potential to provide better 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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