Morningstar flags macroeconomic risks for Australia's Guzman y Gomez

Guzman Y Gomez

07/04/2026 20:36

**Morningstar says Australia's Guzman y Gomez's GYG.AX third quarter update looks "solid" but warns of a clear downside for the final quarter

** Notes co's nine‑month growth tracking ahead of broakerage's 4% FY26 like‑for‑like sales forecast, but sees Q4 pressure as fuel prices surge, consumer confidence weakens and borrowers are hit from two consecutive RBA rate hikes

** However, adds share price may hinge on store rollout despite recent selloff

** "We credit Guzman with some 600 Australian stores in 10 years, up from about 240 today" - Morningstar

** Morningstar ascribes limited value to improvement in co's U.S. sales, saying "it is almost certainty below cost growth" and sees slim chances of success amid compeition from well-established Mexican chains

** GYG closed 18.6% higher on Tuesday after posting its Q3 results

** YTD, stock down 16.8%

(Reporting by Shruti Agarwal in Bengaluru)

((Shruti.Agarwal@thomsonreuters.com))