It is pitched as ‘clean food’ and the company has big ambitions, but one analyst warns ‘there’s plenty of things that can go wrong’
Guzman y Gomez, whose share price surged on its ASX debut, wants to grow five-fold to 1,000 Australian stores, which is comparable to McDonald’s.Guzman y Gomez, whose share price surged on its ASX debut, wants to grow five-fold to 1,000 Australian stores, which is comparable to McDonald’s.It’s fast food, but “clean” – and clean is the new healthy, according to the Mexican-themed chain.
“The shares have been priced to perfection and there’s very little room for a slip-up. It’s a good business but I struggle to make this valuation stack up,” Joshi says. This refers to shares that board members, senior management and existing backers won’t trade for at least 12 months, limiting selling pressure. This helped create a scenario of more interested investors than available shares, leading to a sharp stock price increase.“The initial public offering felt more like a funding round rather than an IPO. It’s different to one where you’ve got lots of new investors coming on board.
He called it a “significant milestone” but said “we are still early in our mission to reinvent fast food and change the way the masses eat”.Each week our editors select five of the most interesting, entertaining and thoughtful reads published by Guardian Australia and our international colleagues.
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