‘You’re not the same as GYG’: CEO slams “comical” rumours that Guzman y Gomez is merging with Zambrero
Australian fast food brand Guzman y Gomez will absolutely not be merging with its competitor Mexican chain Zambrero, according to its founder.
Australian fast food brand Guzman y Gomez (GYG) will absolutely not be merging with its competitor Mexican chain Zambrero and has absolutely no need, desire or intention to considering how great things are going, according to GYG’s founder.
Yesterday The Australian Financial Review reported in its Street Talk column that Blackstone’s private equity unit was running the numbers on whether to invest in rival Mexican food chain Zambrero, another Australian success story.
“Zambrero’s strategic review has had bankers thinking about all types of potential deal structures, including a sale or partial sale to a hungry PE shop such as Blackstone,” the column continued.
“Other deals being talked about inside investment banks include merging Zambrero with Guzman y Gomez (good chance for the ACCC to also order a few burritos), or with PAG’s Craveable Brands, which owns Oporto and Red Rooster.”
It comes as GYG scored a $1.2 billion valuation when Magellan Financial Group sold its 11.6% stake in May. It also recently invested more than $10 million in the chain’s app, API, and company’s point of sale software amid plans for a rapid expansion of another 30 stores this year.
CEO Steven Marks released an indignant and lengthy statement yesterday via his head of public relations on Linkedin, which stated in bold, emphasised letters that “there is absolutely no truth to that report”.
“GYG has no need, no desire, and no intention of undertaking a merger with any other business,” he wrote.
“Others putting ‘rumours’ into market to prop themselves up is an unfortunate and mildly comical distraction which should not gain any further traction as it’s simply not true.”
Marks, who was born in Brooklyn, founded the company in 2007 after trading in his wunderkind life on Wall Street — as a graduate, he was one of just two people in his class to win a spot on US investor Steve Cohen’s New York equities team.
By 27, Marks was heading up a London trading desk, but by 30 he decided to book a one-way ticket to Australia. His dream was to start a hotel on our shores, but missing New York’s authentic Mexican food, he decided to pivot to casual dining.
In Marks’s statement, he continues that GYG is now one of a handful of Australian businesses to be deemed a unicorn — having a private valuation of over $1 billion dollars — which he says is a result of the brand’s revenue per restaurant, profitability, expansion and potential.
“I do not want those efforts to be diminished by others assuming they are the same as GYG,” Marks continued.
“GYG knows our place in the market and the results are reflective of this.”
Marks listed no fewer than 14 points in the statement to detail the scope of GYG’s success — mentioning that the company had broken its national sales record, transaction record, breakfast sales record and app sales record last week alone — and finished with a flourish.
“As you can see, GYG isn’t stopping anytime soon,” he said.
“Love ya!”
