Sydney, Australia – After relocating to Australia in the early 2000s, Steven Marks was dismayed by the lackluster quality of Mexican cuisine he encountered. Disappointed by the bland burritos and tacos, the Long Island native, with a background at SAC Capital and Cheyne Capital, decided to take matters into his own hands by opening his own restaurant.
In 2006, Marks along with childhood friend Robert Hazan launched the first Guzman y Gomez in Newtown, a suburb located in Sydney’s inner west. Almost two decades later, the fast-food chain has expanded to 185 restaurants throughout Australia, 17 in Singapore, five in Japan, and four in the US, generating impressive network sales of A$759 million ($506 million) in the last year.
With Guzman y Gomez Ltd. making its debut on the Australian Securities Exchange under the ticker GYG with a valuation of A$2.2 billion, Marks, 52, emerged as the second-largest shareholder, following investment firm TDM Growth Partners. The company’s shares swiftly rose 36% to A$30 during its trading debut in Sydney.
Setting its sights on growth, GYG’s offering aims to raise A$335.1 million, with the primary goal of funding expansion initiatives. The company aims to reach 1,000 restaurants in Australia, mirroring the same number as McDonald’s, with plans to open between 30 to 40 new locations annually.
Former CEO of McDonald’s Australia, Guy Russo, whose son operates several GYG franchises, invested in Guzman y Gomez in 2009 and currently serves as the company’s chairman. The family ties extend further with the son of GYG’s Co-CEO, Hilton Brett, looking to become a franchisee later in the year.
Analysts caution against the lofty valuation of GYG, expressing reservations about granting the company an “economic moat” to maintain a competitive edge. Overall, while GYG faces challenges ahead, its growth trajectory and strategic vision continue to capture investor interest.
Having embarked on a journey from Wall Street to the land down under, Steven Marks’ entrepreneurial spirit and determination have propelled Guzman y Gomez to become a prominent player in the competitive fast-food industry, carving out a niche with its distinct Mexican-themed offerings.