Australia's Guzman y Gomez slips, Morningstar unimpressed with share buyback plan

Guzman y Gomez

10/10/2025 03:22

Updates

** Mexican-themed fast-food chain Guzman y Gomez GYG.AX slips as much as 4.6% to A$25.180, posting its biggest intraday pct loss since August 28

** Morningstar notes GYG's A$100 mln ($65.49 mln) share buyback with share price trading over A$26

** Investment research firm highlights how GYG issued shares at A$22 each 15 months ago; says selling low and buying high does not create shareholder value

** Morningstar expressed caution about expensive shares, which are trading at 100 times next year's earnings

** Flags no impact on fair value estimate from buyback, maintains PT at A$16 per share

** GYG stock posts record intraday pct jump on Thursday following share buyback plan and results, before closing 2.3% lower at A$26.39

** Stock last down 1.8%, taking YTD losses to 36.3%

($1 = 1.5270 Australian dollars)

 (Reporting by Nichiket Sunil and Kumar Tanishk in Bengaluru)

 ((Nichiket.Sunil@thomsonreuters.com))