Shares of Guzman y Gomez Ltd (GYG.AU) surged 12.28% during intraday trading on Friday, marking a significant upward movement for the Australian restaurant chain.
The sharp rise follows the company's announcement of strong financial guidance for its core Australian segment. Guzman y Gomez expects its Australia segment underlying EBITDA to reach A$85 million in FY26, representing a substantial 29% increase year-on-year. Additionally, the company confirmed it remains on track to open 32 new restaurants in Australia this financial year, underscoring its aggressive expansion plans in its home market.
Investors also reacted positively to the company's strategic decision to exit the US market and immediately close its Chicago restaurants. The move is seen as a refocus on more profitable operations, with the company noting that the one-off costs from the US exit are not expected to impact its final dividend for FY26. Furthermore, the cash component of the exit costs is capped at not exceeding US$15 million, which was viewed as a manageable financial impact for a strategic shift aimed at long-term profitability.