Domino’s’ latest downgrade tells a story about long-term growth plans that investors in Guzman y Gomez should take note of.
Already a subscriber?In the lead-up to the float of Mexican fast-food chain Guzman y Gomez last month, countless column inches were spent comparing the kid on the bourse to former sharemarket darling Domino’s Pizza.
As a result, Domino’s’ total store count in the 2025 financial year is likely to be flat. But more than this, the company has been forced to wind back its longer-term ambitions; Meij will temporarily abandon Domino’s’ medium-term target of store growth between 7 per cent and 9 per cent a year until he can improve franchisee profitability, and it will not achieve its goal of reaching 7100 stores by 2033 as previously hoped.
But Guzman y Gomez also put its bigger and bolder growth target front and centre in its float pitch: 1000 stores in Australia in 20 years. And here’s where the comparison with Domino’s does get interesting. But that long-term, relentless growth is not easy. As the Domino’s example shows, execution is really hard, and arguably even harder in a listed setting. To take one example, getting the balance right between shareholders and franchise returns – and then maintaining it – is a challenge Domino’s has struggled with.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
GYG ASX: Who’s who at the Guzman y Gomez fiestaThis wasn’t an IPO debut. It was a pep rally. Steven Marks gathers the believers for his special debut on the ASX.
Read more »
GYG ASX: Guzman y Gomez surges to $30 in biggest ASX float in three yearsThe Mexican-themed restaurant’s $2.2 billion listing had divided the market. It intends to use the proceeds to rapidly increase the number of its stores.
Read more »
GYG ASX: Gen Z demand makes Guzman y Gomez the hottest on retail platformsSome 30 per cent of all shares traded on Superhero, a popular online platform, were in the Mexican restaurant group on Thursday. Still, demand is falling.
Read more »
GYG IPO: Guzman y Gomez’s secret was Morgan Stanley elusive quest to the ASX boardsThe founder of Guzman y Gomez, Steven Marks, had been working with one Wall Street giant for years to get the Mexican chain’s $3 billion float off the ground.
Read more »
GYG ASX: Morgans joins the Guzman y Gomez hallucinationNew coverage from the Brisbane firm puts out a bull case of an imagined reality.
Read more »
Should you join the Guzman y Gomez fiesta?Investors should be wary of piling into initial public offerings (IPOs) because for every Nvidia, Google, Apple or Microsoft that turns out to be a big winner, there are thousands of losers.
Read more »