Guzman Y Gomez Reports Strong Annual Profit Despite Stock Plunge

Reported 2 days ago

Mexican fast-food chain Guzman Y Gomez exceeded annual profit expectations but saw a 21% drop in shares due to high U.S. expansion costs and a slow start in Australia. The company reported a significant operating loss in its U.S. division and indicated that these losses may continue to widen amid ongoing expansions. Despite challenges, sales in Australia rose 3.7%, boosting full-year net earnings to A$14.5 million, prompting a dividend payout for shareholders.

Source: YAHOO

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