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Guzman y Gomez sets sights on ASX listing with IPO to fund aggressive expansion

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By Filip Karinja - 
Guzman y Gomez IPO ASX GYG

In a bold move set to shake up Australia’s fast food landscape, Mexican-inspired chain Guzman y Gomez (GYG) is preparing to make its debut on the Australian Securities Exchange (ASX).

The company’s upcoming initial public offering (IPO) is not just another corporate event—it’s a statement of GYG’s ambition to redefine fast food in this country.

GYG plans to list June 20 on the ASX trading under the ticker ‘GYG’.

The company is offering 11.1 million shares at $22 each, valuing the company at $2.2 billion, reflecting its rapid growth since its Sydney debut in 2006.

The IPO is expected to raise approximately $242.5m, with $200m earmarked for an aggressive expansion across Australia.

The offer is being underwritten by Barrenjoey Markets and Morgan Stanley Australia Securities, who are the joint lead managers on the deal.

From burrito stand to billion-dollar brand

GYG’s journey from a single Sydney restaurant to this lofty valuation is a testament to its unique approach to fast food.

Founded by Steven Marks, the chain has grown to 210 stores across Australia, Singapore, Japan and the US, with 185 in its home country.

GYG recorded an impressive $759m in sales last financial year, a figure it projects will surge to $1.14b by 2025.

The vision of co-chief executive officer Steven Marks, however, extends beyond financial gains to a fundamental shift in fast food culture.

“We are just getting started,” he asserts.

“Our vision to reinvent fast food and change the way the masses eat will remain central to what we do.”

Marks believes that fast food doesn’t have to be synonymous with poor quality, a philosophy that resonates with health-conscious consumers.

Fivefold increase in stores

The proceeds from the IPO will fuel GYG’s ambitious plans to more than quadruple its restaurant count.

The expansion not just being about quantity but about making quality Mexican cuisine more accessible.

“We look forward to sharing our food with more guests across Australia and overseas as we aim to grow our network to over 1,000 restaurants in the next 20-plus years,” Marks explains.

Fellow co-CEO Hilton Brett also foresees improved profitability through enhanced restaurant execution and leveraging the benefits of scale, suggesting a multi-faceted approach to growth.

“We expect our sales growth to continue through new restaurant openings and increasing sales in existing ones,” he said.