GYG Shares Down 63% From ATH Amid Earnings Growth

The stock of Guzman y Gomez (ASX:GYG) is seeing a sell-off on Friday despite the company’s sales and earnings growth in the first half of FY26.

Debt-free Balance Sheet and Earnings Growth

According to the Australia-based Mexican fast-food chain, the group underlying earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 23% to 33 million during the six-month period ending December 31, 2025. The statutory net profit after tax (NPAT) increased by 44.9% to $10.6 million. 

GYG delivered strong sales growth after opening 17 new restaurants worldwide, including 14 in Australia, bringing its global store count to 272. The company also reported $236.4 million in cash and term deposits with a debt-free balance sheet.

Australia Segment Underlying EBITDA Growth

The firm’s Australia segment, which also comprises Singapore and Japan, delivered $673.6 million in network sales during the period, representing a 17.5% increase year-on-year.

GYG’s stock debuted on the ASX in June 2024, marking the nation’s largest listing in three years. Founder and co-CEO Steven Marks said that the Australia segment— the company’ biggest contributor to sales, continues to deliver. 

“This growth translated to strong earnings growth, with the Australia segment underlying EBITDA growing 30.0%, demonstrating operating leverage in the business model,” Marks said as reported by Yahoo Finance Australia.

Investors Not Impressed

Despite the reported earnings, GYG’s stock fell to a low of  $17.00 on Friday, representing a drop of 16.5%. The price is about 23% below the IPO price of $22 and 63% off the all-time high of $45.99.

Citi stock analysts explained to Reuters why investors remain cautious despite GYG’s earnings report.

”The company is executing well, but not as fast as the market is expecting. It's hard to see what's new in this result that would make investors chase the stock higher, especially given the valuation.”