2245 GMT [Dow Jones]--Barrenjoey remains hungry for shares of Mexican food chain Guzman y Gomez, pushing back on concerns of some investors that its valuation is too rich. Analyst Tom Kierath sees scope for Guzman y Gomez to open more stores in Australia, which would support future profits. "Current levels of profitability are relatively low compared with steady state levels," Barrenjoey says. It thinks margins from franchised and corporate store operations are understated, and that general and administrative costs should fall as a percentage of sales over time. "U.S. losses are not deductible in Australia," Barrenjoey adds. That means the tax rate is high at some 55% in FY 2025 compared to the 30% corporate tax rate, the bank says. It retains an overweight call on Guzman y Gomez, which ended Monday at A$32.38. (david.winning@wsj.com)
(END) Dow Jones Newswires
May 19, 2025 18:49 ET (22:49 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。