GYG -2.26%: Shares soared +26% in early trade after the AFR reported a $100bn buy-back before later clarifying it was $100m – bit of a difference, bringing shares back down to Earth before ending the day lower.
The quarterly update was underscored by healthy sales growth in Australia (+4%) and the US (+6.7%), with five new openings further expanding its global footprint and an additional 32 new restaurants in Australia this year.
- EBITDA margins are expected to lift to 5.9–6.3% in FY26 vs 5.7% in FY25
- A $100m on-market buyback earmarked for Q2 FY26
The forward blended P/E of ~120x remains lofty for the fast-food goliath, though it has halved from ~240x at listing, with investors now paying a little less for solid growth and momentum in store rollouts, though clearly the market isn’t convinced on the numbers just yet based on today’s price action.
MM is neutral toward GYG
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