Australian fast food chain Guzman y Gomez will be publicly listed on the stock exchange next month – with an offer that will put the company’s valuation at $2.2bn.
The retailer, known for their Mexican-style casual dining, on Friday announced a fully underwritten Initial Public Offering (IPO) of 11.1 million shares at a price of $AUD22 per share.
Guzman y Gomez expects the offer to raise about $242.5m.
Of that, $200m will be spent on “the significant expansion of its corporate restaurant network in Australia”, the company said in a statement.
The offer is underwritten by Barrenjoey Markets Pty Limited and Morgan Stanley Australia Securities Limited, who are acting as joint lead managers.
Shares are expected to be listed on the ASX under the ticker “GYG” from June 20, initially on a “conditional and deferred” settlement basis.
“As we commence the next chapter as an ASX-listed company, our vision to reinvent fast food and change the way the masses eat will remain central to what we do,” Guzman y Gomez founder and co-chief Steven Marks said.
“We truly believe that fast food doesn’t have to be bad food and we look forward to sharing our food with more guests across Australia and overseas as we look to realise the opportunity we have to grow our network to more than 1,000 restaurants over the next 20+ years.”
The first Guzman y Gomez restaurant opened in Sydney in 2006.
Since then, it has expanded into 210 restaurants across four countries – 185 in Australia, 16 in Singapore, 5 in Japan and 4 in the US.
The company’s global sales increased to $759m over the last financial year.
“We expect our sales growth to continue through the opening of new restaurants and increasing sales in existing restaurants,” the company’s co-chief Hilton Brett said.
“We also expect our profitability to improve as we continue to improve our execution in restaurants and we further leverage the benefits of our increasing scale.”
Another 30 new restaurants are expected to be opened over the 2025 financial year.
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 thru restaurants due to their potential to deliver superior restaurant economics,” the company said.
“GYG believes there is an opportunity to grow its Australian network to more than 1,000 restaurants over the next 20+ years.”