Why the Guzman Y Gomez share price was smashed like avocado in February
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The Guzman Y Gomez Ltd (ASX: GYG) share price had a rough ride in February.
During the month, the Mexican fast-food chain’s shares sank 13% to close at $34.60.
Though, that is only telling half the story. At one point, its shares had surged almost 16% month to date to a record high of $45.99, meaning they ultimately fell around 25% from their peak.
So, what went wrong? Let’s take a closer look.
Strong results but concerns remain
The catalyst for the decline was Guzman Y Gomez releasing its half-year results.
While those results showed impressive growth in its Australian operations, they left investors concerned about its US expansion. Here are the key highlights:
- Network sales up 22.8% to $577.9 million
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