Guzman y Gomez Ltd's stock soared 7.98% intraday on Monday, driven by positive analyst sentiment following the company's strategic exit from the U.S. market.
The surge comes after multiple analysts upgraded their outlook on the Australian fast-food franchiser. Bell Potter upgraded its recommendation to buy from hold, raising its underlying EBITDA forecasts by 11% for fiscal 2027 and 6% for fiscal 2028, citing the removal of projected U.S. losses. The firm increased its target price by 11% to A$24.50, noting that the increased focus on the core domestic opportunity will be more beneficial to shareholders.
Similarly, Macquarie maintained an outperform rating, viewing the U.S. exit positively as it removes regional losses and provides additional flexibility for shareholder returns and expansion in Australia. Morningstar added that the abandoned U.S. expansion was a 'long shot' and that the company's focus is rightly returning to its Australian business, which is holding up well despite broader retail challenges.