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 founder and co-chief executive Steven Marks said breakfast sales, driven by its $8 breakfast burrito, rose 18 per cent last year and now account for 6 per cent to 7 per cent of overall sales. The target in the “next couple of years” is for breakfast items to make up 10 per cent of sales.
“We believe it’s the best thing we sell at GYG. We just haven’t told a story around breakfast enough,” said Marks. “It’s going to be a focus of ours moving forward.”
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.