The Australian share market retreated from record highs near midday, with Guzman y Gomez (GYG) experiencing a significant drop in share price. GYG’s shares plunged 20 per cent after results disappointed some investors, despite the Mexican-themed restaurant chain reporting $1 billion in sales. Some shareholders are expressing concern about whether GYG can meet its ambitious expansion targets, having previously touted significant growth prospects. Guzman y Gomez is a fast-casual dining chain specializing in Mexican cuisine. The company listed on the ASX in June 2024 following an IPO.
In other market news, Zip Co shares surged as the company considers a Nasdaq listing. Cuscal, a payments provider that listed on the ASX last November after a $337 million IPO, announced it is acquiring smaller rival Indue for $75 million. Cuscal posted a 9 per cent dip in annual profit.
Elsewhere, Foreign Minister Penny Wong has criticised plans for further Jewish settlement. The UK government has taken over Sanjeev Gupta’s key steel business following a High Court ruling of insolvency. There is growing discussion around the potential for existing drugs to be repurposed as anti-ageing pills, an idea attracting significant investment. Critics are also questioning the artificial intelligence boom, with some suggesting the bubble may burst.
