When this was written — On 27 July 2026. The figures are as at that date or earlier and have not been updated since.
Guzman Y Gomez was supposed to be the ultimate post-IPO valuation short. Bears lined up to bet against the burrito chain's premium multiples, but a sudden corporate pivot left them holding expensive, loss-making positions.
The turning point came on May 22, 2026, when GYG abandoned its US operations to focus entirely on Australia 23. The decision triggered a 15% single-day surge 4 and a broader 28% rebound from its lows 5. This rally was backed by a 44.9% jump in H1 FY2026 statutory NPAT to $10.58M R1, following a 151.8% NPAT surge in FY2025 R6. Even a subsequent exit from the ASX 200 index in June 7 and substantial share sales by Aware Super 8 and Citigroup 9 in July could not resurrect the bear case.
Short interest has dropped 3.59 percentage points from its 90-day high of 14.34% to sit at 9.02% today. The 30-day short slope of -0.1366 points per day indicates a steady, orderly retreat rather than a chaotic squeeze, even as the share price gained 13.9% over the last month. With a 30-day price-to-short correlation of 0.197, the bears are quietly closing positions as the stock defies their premium-valuation thesis. At 9.02%, GYG's short position remains above the peer sector average of 7.57%, but the trend is firmly downward.
Escaping the US cash burn secured the home front. For now, GYG's premium valuation remains intact, and the short sellers are looking elsewhere for easier targets.