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Guzman y Gomez Shares Hit Record Low After U.S. Sales Miss Despite Profit Beat

Investor selling followed a U.S. shortfall with guidance flagging slightly higher losses.

Overview

  • GYG reported net profit after tax of A$10.6 million for the half year to December 31, topping Visible Alpha’s A$9.2 million consensus.
  • Shares fell as much as 16.5% to A$17.00, a record low that sits below the A$22 IPO price and far from last year’s A$45.99 peak.
  • U.S. network sales rose 67% to A$8.2 million but missed the A$9.2 million consensus, with Chicago weather cited as a drag on comps.
  • The company guided to slightly higher U.S. losses this year and warned of short-term sales pressure after switching delivery partners from DoorDash to Uber Eats.
  • Australia remained the profit engine with A$673.6 million in network sales, up 17.5%, a margin outlook up to 6.2%, an interim dividend of 7.4c, and continued expansion to 237 stores with 108 sites in the pipeline.