Guzman y Gomez Shares Dip to IPO Price as Sales Growth Slows (3)

Shares of Guzman y Gomez Ltd. tumbled the most since their Sydney listing last year after the Mexican-themed fast-food chain flagged a sales slowdown at its Australian restaurants.

The stock plunged as much as 24% in Sydney, at one point touching its A$22 initial public offering price. By the time the shares closed down 18% at A$23.70, about A$543 million ($348 million) had been wiped from the company’s market value.

The rout started after Guzman y Gomez said sales in Australia rose 3.7% in the first seven weeks of the current fiscal year. The number fell short of analyst expectations, ...