GYG shares: Guzman y Gomez plummets on ASX but expansion still on the menu as increased US losses rattle investors

GYG shares plummet by more than 20% on ASX despite global sales in the Sydney-based restaurant chain passing $1bn, as co-CEOs say ‘we are seeing momentum’ in American market

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Mexican-themed chain Guzman y Gomez plans to open at least 15 restaurants in the US despite doubling its losses on its “relentless” bid to expand into the competitive American market.

Despite its struggles in the US, GYG recorded more than $1bn in sales across its network for the first time and more than doubled its net profit to $14.5m in the 12 months to July – its first year on the Australian Stock Exchange (ASX).