Guzman y Gomez (ASX:GYG) has delivered its sales and earnings growth in the first half of FY26, underpinned by new restaurant openings, menu innovation and continued momentum across its Australian network.
For the six months to December 31, 2025, group underlying EBITDA increased 23% to $33 million, while statutory net profit after tax (NPAT) rose 44.9% to $10.6 million. On an underlying basis, NPAT was $16.9 million.
The Australia segment, comprising Australia and Asia, generated $673.6 million in network sales, up 17.5% year-on-year, with underlying EBITDA lifting 30% to $41.3 million. Comp sales growth accelerated through the half, rising from 4.0% in Q1 to 4.8% in Q2, with further improvement reported in Q3 to date.
Group network sales growth was supported by the opening of 17 new restaurants globally, including 14 in Australia, taking the total network to 272 sites. The company has 108 restaurants secured in its real estate pipeline, with more than 85% expected to include drive-thru formats.
GYG ended the half with $236.4 million in cash and no debt. A $27 million share buyback is underway, and the company declared a fully franked interim dividend of 7.4 cents per share.
Founder and co-CEO Steven Marks said the result reflected continued demand for the group’s made-to-order offering and disciplined execution across corporate and franchise operations.
“Australia and Asia continued to deliver, achieving $674 million in network sales for the half, up 17.5%,” he said.
“This growth translated to strong earnings growth, with Australia segment underlying EBITDA growing 30.0%, demonstrating operating leverage in the business model.”
Marks said the company opened 17 restaurants during the half and added 33 sites to its Australian development pipeline, reflecting confidence in its expansion strategy.
Despite the numbers, shares took a 17% hit to a record low of $17.00 in early trading before trimming the fall to 11 per cent. The fast food chain fell 63 per cent from a record high last February of $45.99. According to Citi’s Sam Teeger, the company is executing well but not fast enough to justify its valuation with Australian sales growth lagging forecasts and US sales falling in the second quarter.
Australian network strengthens
Australian restaurant sales reached $632.1 million, up 17.4% on the prior corresponding period.
The company reported increased uptake of extended trading hours, with 31 restaurants now operating 24/7. Menu initiatives, including the Caesar range and the BBQ Chicken Double Crunch taco — GYG Australia’s first limited-time offer — supported customer engagement.
Drive-thru restaurants recorded average unit volumes (AUVs) of $6.9 million and restaurant margins of 22.0% for the half. Strip sites delivered AUVs of $5.2 million.
Median franchise AUV rose 9.8% to $6.0 million, while median restaurant margins improved to 21.4%, up from 20.2% in 1H25. Median return on investment was 48% for the half.
The Australia segment’s underlying EBITDA margin as a percentage of network sales is expected to expand to between 6.0% and 6.2% in FY26, compared with 5.7% in FY25.
GYG is on track to open 32 new Australian restaurants in FY26, including 23 drive-thru locations.
US sales accelerate
In the US, network sales grew 67% year-on-year, supported by two new openings in Chicago at Des Plaines and Bucktown.
Existing US restaurants delivered 2.9% comp sales growth for the half. While Q2 performance was affected by unseasonable weather, the company said comp growth in the first 7 weeks of 2H26 returned to levels consistent with Q1.
A US$7 Cali Burrito campaign was cited as driving customer acquisition, and the company added new US marketing and catering leadership roles during the period.
GYG maintained its FY26 outlook for the US market, with profitability expected to improve in the second half. Following an exclusive partnership agreement with Uber Eats, the group’s relationship with DoorDash in the US will conclude.