Two major names in the consumer staples and discretionary sectors released full-year results late last week.
Inghams Group Ltd (ASX: ING), which supplies poultry products, notably to major Australian supermarkets Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL), and quick-service restaurants including McDonald's and KFC, saw its share price sink 7% on Friday.
On the positive side, fast/casual franchise Guzman y Gomez Ltd (ASX: GYG) shares soared over 11% following its full-year announcement.
Full results can be found here:
Following these results, the team at Bell Potter released updated guidance on both Inghams and GYG shares.
Here is what the broker had to say.
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Inghams results in line with guidance
Bell Potter said the company reported a FY26 underlying EBITDAL broadly in line with expectations and guidance at $186.4 million.
However, Bell Potter sees pressure from wholesale and grain, with FY27 guidance of $190 to $220 million EBITDAL coming in below its $213.5 million estimate, and broadly in line with consensus.
The outlook assumes 2.5% to 4% volume growth, 4% to 5% general cost inflation excluding feed, and a further $40 to $50 million increase in feed costs, highlighting ongoing cost pressures that are expected to constrain earnings growth in FY27.
Looking ahead, the broker sees little upside for Inghams shares over the next 12 months.
The broker has a hold recommendation and a $2.10 price target.
Inghams shares closed last week trading at $2.06.
GYG shares fairly priced
Bell Potter saw GYG's FY26 result as broadly in line with expectations, with comparable sales growth of 5.3% and Australian underlying EBITDA of $85 million, up 28.7% year over year and consistent with prior guidance.
The key positive surprise was a much higher 48 cents per share dividend, including a 14.4 cents per share special dividend, supported by the exit from loss-making US operations, a lower share count following the buyback, and a higher earnings base.
GYG added 35 net stores during the year, in line with Australian guidance.
For FY27, management expects comparable sales growth to remain in the mid-single digits and EBITDA margins to improve from 6.2% to 6.7%-6.9%, driven largely by the full-year contribution from recently opened restaurants.
Looking ahead, Bell Potter sees GYG shares as fairly priced after Friday's 11% gain.
The broker has a hold recommendation and a $27.30 price target on GYG shares.
While we think GYG is a clear leader in the QSR space after displaying strong comp sales growth, margin expansion, and further network growth opportunities, we see near-term cost headwinds and a consumer slow-down as a risk to FY27 guidance and view the current multiple as fairly valued. While we increase our PT ~11%, it is only a modest premium to the share price, so we downgrade to HOLD.
