Guzman y Gomez Ltd. (GYG) AI Stock Analysis

• Market Cap: AU$2.66B
• Dividend Yield: 0.51%
• Average Volume (3M): 548.54K
• Price to Earnings (P/E): 180.6
• Beta (1Y): 0.81
• Revenue Growth: 27.40%
• EPS Growth: N/A
• Country: AU
• Employees: 13,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.07
• Shares Outstanding: 103,294,970
• 10 Day Avg. Volume: 433,588
• 30 Day Avg. Volume: 548,538
• PEG Ratio: -1.06
• Price to Book (P/B): 7.55
• Price to Sales (P/S): 6.18
• P/FCF Ratio: -711.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: AU$27.60
• Price Target Upside: 11.11% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: AU$26.00 ▲(4.67% Upside)

Guzman y Gomez Ltd. has strong revenue growth and a solid gross profit margin, but faces challenges with profitability and cash flow. The technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. These factors contribute to a moderate overall stock score.

Guzman y Gomez Ltd. Business Overview & Revenue Model

Company Description

Guzman y Gomez Limited owns, operates, and franchises quick service restaurants in Australia, Singapore, Japan, and the United States. Its restaurants offer Mexican-inspired food in various formats, including drive thru and strips, as well as delivery and catering services. Guzman y Gomez Limited was founded in 2005 and is headquartered in Surry Hills, Australia.

How the Company Makes Money

Guzman y Gomez generates revenue primarily through its restaurant operations, which include dine-in, takeout, and drive-thru services. The company earns money by selling its core menu items, which are priced to appeal to a broad customer base. Additionally, GYG has developed a successful catering business that provides food services for events, further diversifying its revenue streams. The company also benefits from partnerships with delivery services, allowing it to reach customers through third-party platforms, thereby increasing sales. Promotions, loyalty programs, and seasonal menu offerings contribute to customer retention and repeat business, enhancing overall profitability.

Guzman y Gomez Ltd. Financial Statement Overview

Summary

Guzman y Gomez Ltd. demonstrates strong revenue growth and a solid gross profit margin, indicating effective market penetration and cost management. However, profitability at the net level remains a concern, and cash flow challenges could impact future growth and financial stability. The balance sheet is stable, but careful management of debt and cash flow is essential to sustain growth and improve profitability.

Income Statement

Guzman y Gomez Ltd. has shown impressive revenue growth of 52.14% in the latest year, indicating strong market demand and expansion. The gross profit margin is robust at 75.47%, reflecting efficient cost management. However, the net profit margin is relatively low at 3.12%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are moderate, indicating operational efficiency but also highlighting potential for cost optimization.

Balance Sheet

The company's debt-to-equity ratio of 0.87 is manageable, showing a balanced approach to leveraging. Return on equity is modest at 3.81%, indicating moderate profitability relative to shareholder equity. The equity ratio stands at 48.52%, suggesting a stable capital structure but also highlighting potential risks if debt levels increase.

Cash Flow

The cash flow statement reveals challenges with a negative free cash flow growth rate of -59%, indicating potential liquidity issues. The operating cash flow to net income ratio of 0.67 suggests that operating activities are generating cash, but the negative free cash flow to net income ratio highlights concerns about cash availability for reinvestment or debt repayment.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	435.98M	464.61M	342.21M	259.04M	171.79M	119.53M
Gross Profit	97.70M	350.66M	69.78M	188.62M	126.89M	84.67M
EBITDA	87.79M	69.02M	33.29M	34.21M	27.08M	21.59M
Net Income	14.48M	14.48M	-13.75M	-2.27M	3.90M	3.99M
Balance Sheet
Total Assets	783.20M	783.20M	661.80M	324.51M	248.43M	210.38M
Cash, Cash Equivalents and Short-Term Investments	281.74M	281.74M	294.48M	36.50M	54.43M	62.09M
Total Debt	331.31M	331.31M	239.50M	184.72M	129.93M	115.94M
Total Liabilities	403.07M	403.07M	307.82M	236.54M	167.33M	144.06M
Stockholders Equity	380.12M	380.12M	353.98M	87.97M	81.10M	66.32M
Cash Flow
Free Cash Flow	4.40M	-4.04M	9.37M	-11.53M	-6.76M	7.90M
Operating Cash Flow	65.73M	57.33M	42.87M	31.13M	19.64M	23.07M
Investing Cash Flow	-34.55M	-34.55M	-311.82M	-48.40M	-31.70M	-17.56M
Financing Cash Flow	-7.72M	679.00K	248.83M	-651.00K	4.39M	32.22M

Guzman y Gomez Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 24.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:GYG, the sentiment is Negative. The current price of 24.84 is below the 20-day moving average (MA) of 25.37, below the 50-day MA of 25.22, and below the 200-day MA of 29.95, indicating a bearish trend. The MACD of -0.10 indicates Positive momentum. The RSI at 45.15 is Neutral, neither overbought nor oversold. The STOCH value of 8.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:GYG.

Guzman y Gomez Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CKF	63 Neutral	AU$1.24B	140.27	2.40%	2.42%	2.06%	-84.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
AX1	60 Neutral	AU$748.23M	12.30	12.90%	5.86%	1.58%	-4.71%
DMP	59 Neutral	AU$1.79B	―	-0.70%	4.08%	-3.09%	-104.37%
GYG	55 Neutral	AU$2.66B	180.58	3.94%	0.51%	27.40%	―
RFG	53 Neutral	$93.77M	―	-6.95%	―	10.13%	-353.94%
OLI	41 Neutral	AU$5.41M	―	―	―	-6.32%	-9.62%

Guzman y Gomez Ltd. Corporate Events

Guzman y Gomez Ltd. Initiates On-Market Buy-Back Program

Guzman y Gomez Ltd. has announced an update regarding its on-market buy-back of ordinary fully paid securities, identified by the ASX code GYG. As of October 27, 2025, the company reported the buy-back of 37,087 securities on the previous day, marking the commencement of its buy-back program which initially began on October 9, 2025. This move is part of the company’s strategy to manage its capital structure and potentially enhance shareholder value.

The most recent analyst rating on (AU:GYG) stock is a Hold with a A$26.00 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Ltd. Lists New Securities on ASX

Guzman y Gomez Ltd. announced the quotation of 107,160 ordinary fully paid securities on the Australian Securities Exchange (ASX) as of October 15, 2025. This move is part of the company’s strategy to enhance its market presence and potentially attract more investors, which could impact its operational growth and industry positioning positively.

The most recent analyst rating on (AU:GYG) stock is a Hold with a A$27.00 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Announces Hybrid Annual General Meeting

Guzman y Gomez Limited has announced that its Annual General Meeting will be held on November 13, 2025, both physically in Sydney and virtually. Shareholders are encouraged to register for the virtual meeting in advance to ensure smooth participation, and the company has made the Notice of Meeting available online for easier access.

The most recent analyst rating on (AU:GYG) stock is a Hold with a A$27.00 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

JPMorgan Chase & Co. Ceases to be Substantial Holder in Guzman y Gomez Ltd.

Guzman y Gomez Ltd. has announced that JPMorgan Chase & Co. and its affiliates have ceased to be substantial holders in the company as of September 22, 2025. This change in substantial holding is due to transactions involving securities on loan and the purchase and sale of securities by JPMorgan’s subsidiaries, including JPMorgan Chase Bank, N.A., J.P. Morgan Securities PLC, and J.P. Morgan Securities Australia Limited. The impact of this change could affect the company’s market perception and stakeholder confidence, as substantial holdings often indicate significant influence or interest in a company’s operations.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$31.20 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Director’s Interest Update

Guzman y Gomez Limited has announced a change in the director’s interest, specifically regarding Marina Joanou. The change involves the acquisition of 10,500 ordinary shares and the disposal of 10,500 options, resulting in a new holding of 24,750 ordinary shares and 31,500 options. This adjustment reflects a strategic financial decision by the director, potentially impacting the company’s governance and shareholder dynamics.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$31.20 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Ltd. Announces New Quotation of Securities on ASX

Guzman y Gomez Ltd. has announced a new application for the quotation of securities on the Australian Securities Exchange (ASX). This move involves the quotation of a total of 201,500 ordinary fully paid securities, which could potentially enhance the company’s market presence and provide additional capital for growth initiatives. The announcement signifies a strategic step in expanding its financial operations and could have implications for stakeholders by potentially increasing the liquidity and marketability of its shares.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$31.20 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Announces Director’s Interest Change

Guzman y Gomez Ltd. announced a change in the director’s interest notice, specifically regarding Thomas Cowan’s interests in securities. The change involved the disposal of 2,619,434 ordinary shares previously managed by TDM Growth Partners Pty Ltd, which are now directly managed by a subset of TDM clients following the conclusion of a management agreement. This adjustment reflects a shift in the management of shares, potentially impacting the company’s operational structure and stakeholder dynamics.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$31.20 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Achieves Record Sales and Expands Global Footprint

Guzman y Gomez Ltd. announced a record-breaking financial year in 2025, with network sales surpassing $1.2 billion, marking a 23% growth from the previous year. The company opened 39 new restaurants globally, with significant growth in Australia, Singapore, Japan, and the US, and plans to scale to 1,000 restaurants in Australia, leveraging strong restaurant economics and a focus on sustainable expansion.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$41.90 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.

Guzman y Gomez Ltd. Releases 2025 Corporate Governance Statement

Guzman y Gomez Ltd. has released its 2025 Corporate Governance Statement, detailing its adherence to the ASX Corporate Governance Council’s Principles and Recommendations. The company has outlined its governance policies, including board responsibilities, director appointments, and diversity objectives, which are accessible on its website. This statement signifies the company’s commitment to transparency and accountability, potentially strengthening its position in the market and enhancing shareholder confidence.

The most recent analyst rating on (AU:GYG) stock is a Buy with a A$41.90 price target. To see the full list of analyst forecasts on Guzman y Gomez Ltd. stock, see the AU:GYG Stock Forecast page.