Guzman y Gomez Limited (ASX:GYG) has reported record financial results for the year ended 30 June 2025, with global network sales rising 23% to A$1.18 billion, passing the billion-dollar mark for the first time. Earnings followed suit, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 45.5% to A$65 million on a pro forma basis.
The Australia segment, including Singapore and Japan, contributed strongly with A$1.17 billion in network sales and A$66 million in segment underlying EBITDA, while group net profit after tax (NPAT) reached A$14.5 million, up 151.8%. GYG opened 39 new restaurants during the year, ending FY25 with a global footprint of 256 outlets. The company also declared its maiden fully-franked dividend of 12.6 cents per share.
“FY25 was another exceptional year for GYG. This performance is a direct result of our guests’ love for our clean, delicious food and the world-class execution from our crew and franchisees. We stayed true to our strategy, stayed obsessed with the guest experience, and proved once again that we’re building something truly special," Steven Marks, founder and co-CEO said.
“Our FY25 results were strong – global network sales grew 23.0%, showing just how much people love our clean, fresh, made-to-order Mexican food. That growth flowed through to a 45.5% uplift in EBITDA on a pro forma basis, highlighting the operating leverage embedded in GYG’s business model.
“We’ve delivered an incredible performance this past year, but for us, this is just the beginning. At GYG, we’re in it for the long haul, building a better, more sustainable way to feed this generation and the next. When we stay true to that mission, we know we’ll keep creating lasting value for our people, our guests, and our shareholders.
“We wrapped up the year with 256 restaurants around the world, opening 39 new restaurants, including 32 in Australia. With 98 locations in our Australian pipeline and an incredible real estate team our expansion plans have never been stronger.
“Our franchise partners have also delivered another incredible year. Their passion, hustle, and commitment are at the heart of GYG’s success. With a median ROI of 50%, they’re not just building amazing businesses, they’re helping GYG deliver on our mission to become the best and biggest restaurant company in the world.”
CEO Steven Marks, Hilton Brett (Co-CEO), and Erik du Plessis (CFO).
Group performance
Global network sales of A$1.18 billion marked a 23% increase on the prior year, reflecting robust comparable sales growth and new store openings. Revenue rose 27.4% to A$436 million, while segment underlying EBITDA increased 35.1% to A$52.8 million. Profit before tax more than doubled to A$29.2 million, underpinned by operating leverage across the network.
The company attributed the results to strong guest demand for its fresh, made-to-order Mexican food and disciplined execution by franchisees and corporate teams. Founder and Co-CEO Steven Marks described FY25 as “another exceptional year”, highlighting network growth, restaurant expansion and franchisee returns, which reached a median return on investment of 50%.
Australia, Singapore and Japan
The Australia segment delivered A$1.17 billion in network sales, up 23.1%. Australian restaurants exceeded A$1 billion in sales for the first time, with comparable sales growth of 9.6% driven by strong performance across breakfast, lunch, dinner and late-night trading. Singapore posted 39.6% growth, while Japan increased 15.7%.
Corporate margins rose from 17.4% to 17.9%, with operating leverage supporting profitability. Franchisee performance remained strong, with average unit volumes of A$6.7 million for drive-thrus and A$5.0 million for strip stores. GYG operated 250 restaurants across the three countries at year-end, with 37 new openings during the year. The pipeline for Australia alone stood at 98 outlets.
United States
In the United States, GYG recorded A$12.2 million in network sales, up 13%, despite near-term margin pressure. Comparable sales rose 2.8% in FY25, with momentum accelerating in the fourth quarter when sales climbed 57.3%. Operational improvements, including investment in labour and the deployment of Australian managers, lifted service speed and guest satisfaction to Australian benchmarks.
Two new strip restaurants were added in Chicago, as GYG executed its infill strategy. While new store openings weighed on corporate restaurant margins, the company expects significant improvements in FY26. Plans include up to 15 Chicago restaurants over time, with two additional openings in FY26. Comparable sales in the first seven weeks of FY26 rose 6.6%.
Cash flow, balance sheet and dividend
GYG delivered strong cash conversion of 108% (123% adjusted), supported by robust operations and franchise construction receivables. Capital expenditure of A$37 million net of landlord contributions funded new corporate restaurants and refurbishments. The company ended FY25 with A$282 million in cash and term deposits and no debt.
Reflecting its strong financial position, the board declared a fully-franked maiden dividend of 12.6 cents per share, payable in September 2025. The dividend policy anticipates distributing the majority of earnings while retaining flexibility for network expansion. Additional capital management options will be considered in FY26.
Outlook
GYG is targeting underlying EBITDA margins of around 10% for the Australia segment within five years, supported by expansion of drive-thru formats, higher royalty tiers, and operating leverage. For FY26, the company plans 32 new Australian restaurants, split between 20 franchised and 12 corporate, with EBITDA margins expected to rise to 5.9%–6.3%.
The release of escrowed shares later in August 2025 will lift free float to 63% of issued capital. Management signalled confidence in sustaining growth through menu innovation, operational excellence and digital initiatives