The Mexican-themed restaurant chain has delivered strong growth despite a period of back-room drama. A big float valuation will rely on growth accelerating.
The lesson from Jayne Hrdlicka’s departure from Virgin Australia is that it’s hard to contemplate an IPO without a chief executive. The potential float of Guzman y Gomez later this year raises a very different question – can you IPO with two CEOs?
Average weekly volumes across Guzman y Gomez’s 183 Australian stores rose from $78,000 to $87,000 year-on-year, and Marks says they have hit $92,000 in February.“The business is still performing very strongly, especially compared to other quick service restaurants, so we’re very proud of that performance,” Marks says.
But the window for major floats has been shut for the best part of two years, and that’s unlikely to change without a more supportive macroeconomic environment – and particularly interest rate cuts in the US and possibly Australia.When it does arrive, the success of Guzman y Gomez’s float will rest on three key questions: its growth story, confidence in management and, most importantly, its valuation.
The improvement in earnings growth in the half – and particularly the rise in restaurant margin from 14.5 per cent 18.5 per cent – will no doubt please prospective investors.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Reddit IPO: RDDT’s debut raises hopes of IPO market revivalA steady, sustained rise in activity would breathe life into the market for initial public offerings, which has been largely shut down since 2021.
Read more »
GYG: Guzman y Gomez lures new investors and hits $1.73b valuationThe Mexican-themed restaurant chain has four new heavyweight backers on its shareholder register after raising $135 million to support its growth.
Read more »
Reddit IPO: Should you invest after 48 per cent pop?The issue for individual investors is returns like this don’t always last.
Read more »
Redddit share price: Newhouse billionaires’ 5800pc IPO gain helps ease their media woesThe family members have watched one clan after another surpass their wealth as their multi-generational media business sputtered, save for one key wager.
Read more »
Reddit leaps in debut after IPO priced at top of rangeReddit’s offering, the fourth largest this year, is a high-profile addition to 2024’s roster of newly and soon-to-be public companies.
Read more »
Done deal: Tasmea IPO fast-tracked, deal underwrittenAbout $26 million of the IPO proceeds will go towards paying out selling shareholders, with $12 million marked for reducing leverage.
Read more »