Guzman y Gomez, the Mexican food chain, has experienced a significant increase in its stock price since its debut on the ASX in June 2024. This surge can be attributed to an upgrade from UBS, a financial services firm, which has recognized the company's strong earnings potential.

UBS specifically highlighted the opening of 15 new stores in the first half of FY25, with a total of 31 expected by year-end, as a key driver of this potential. Additionally, UBS remains optimistic about Guzman's top-line growth, which is expected to be fueled by an expanded menu that now includes breakfast, coffee, and value offerings. The firm also noted that Guzman's EBITDA margins are robust, with same-store sales growth outpacing increases in rental, labor, and other costs. As a result, UBS has raised its EBITDA forecasts for FY25, FY26, and FY27. Specifically, they project that Guzman y Gomez could achieve AU$450 million in revenue and AU$30 million in earnings before interest and tax (EBIT) in FY25, following a reported revenue of AU$342.2 million in FY24.