Mexican-inspired fast food chain Guzman y Gomez plans to increase morning sales and has rejected shrinkflation concerns about its product.
Mexican-inspired fast-food chain Guzman y Gomez is hoping to flog more breakfast burritos to tradies to keep pace with the expectations of investors, who have received more than $1.5 billion in rising stock gains just two months since listing on the ASX.
GYG’s full-year results beat its prospectus forecasts but could not keep up with market expectations, with its shares dropping as much as 9 per cent on Tuesday to $32.54 despite delivering sales and underlying earnings above forecasts. Sales in Australia rose 7.4 per cent for the first seven weeks of the current financial year.“We will never, ever decrease the size of our portions to trick customers. It’s not the values and the ethics of this business,” he said.
Wilson Advisory’s James Ferrier noted that the local sales growth of 7.4 per cent for the year-to-date was also ahead of IPO prospectus forecasts of 4.8 per cent.
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