Inghams Share Price Dives 7%, GYG Soars 11% Amid Earnings Results

In recent weeks, two major companies in the consumer staples and discretionary sectors released their full-year results. Inghams Group Ltd (ASX: ING), a leading poultry product supplier to Australian supermarkets like Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL), as well as quick-service restaurants such as McDonald's and KFC, saw its share price drop 7% after releasing its results. In contrast, fast-casual franchise Guzman y Gomez Ltd (ASX: GYG) shares surged over 11% following its announcement.

Bell Potter, a broker, provided updated guidance on both companies' shares. According to the company's full-year results, Inghams reported an underlying EBITDAL of $186.4 million, which was in line with expectations and guidance. However, Bell Potter sees pressure from wholesale and grain costs, with FY27 guidance of $190 to $220 million EBITDAL coming in below its estimate of $213.5 million.

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. This highlights ongoing cost pressures that are expected to constrain earnings growth in FY27. As a result, the broker has a hold recommendation and a price target of $2.10 for Inghams shares.

On the other hand, 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.

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%. The broker has a hold recommendation and a price target of $27.30 on GYG shares.