Guzman y Gomez (GYG), a Mexican-inspired fast-food chain, is on the brink of becoming a publicly listed company on the Australian Securities Exchange (ASX), 18 years after the first store opened in Sydney.
Today, GYG operates 210 restaurants across four countries including Australia, Singapore, Japan and the US, making it the fastest-growing fast-food chain in Australia.
The company’s founders, Americans Steven Marks and Robert Hazan, aspire to expand GYG to a scale comparable to McDonald's (NYSE:MCD).
Rapid expansion on horizon
The decision to go public is part of GYG’s strategy to secure the necessary capital for its ambitious growth plans.
GYG intends to open approximately 30 new stores in Australia within the year and aims to increase its total number of outlets to around 1,000 over the next 10 to 20 years.
Achieving these goals requires substantial investment, which the company plans to raise through an initial public offering (IPO).
GYG will offer 11.1 million shares at $22 each, aiming to raise $242.5 million.
Of this amount, $40 million will be distributed to existing shareholders and management as a reward for their efforts, while the remaining $200 million will be used to fund the company’s expansion.
This share offering values GYG at $2.2 billion, which is more than four times the value of department store Myer.
Listing under ‘GYG’ ticker
The company is expected to list with the ticker 'GYG' on June 20, on a conditional and deferred settlement basis. Shares will be officially issued on June 24, with the first day of regular trading slated for June 25.
While GYG is focused on growing its presence in Australia, the company also has international ambitions, particularly in the United States.
Success in the large and competitive US market could dramatically increase GYG’s share value.
The company’s founders view the US market as a crucial element of their long-term growth strategy, aiming to replicate their Australian success on a larger scale.
Guzman y Gomez sold more than 27 million burritos and bowls in 2022, with about 700,000 people eating at a GYG restaurant every week.
"And the most exciting part is that we are just getting started," Marks told investors.