Highlights

  • Guzman y Gomez (ASX:GYG) reported FY2026 results showing strong growth across continuing operations.
  • Revenue increased 22 per cent, while underlying EBITDA and underlying NPAT recorded double-digit growth.
  • The company completed its US exit, allowing greater focus on Australian and established Asian markets.
  • GYG increased Shareholder returns through a higher Dividend and expanded buyback program.

Guzman y Gomez Limited (ASX:GYG) reported FY2026 results highlighting stronger underlying Business performance following the completion of its US market exit. While the company recorded a statutory net loss due to costs associated with exiting the United States, continuing operations delivered Revenue growth, improved profitability and stronger Earnings momentum.

The result marked a strategic reset for GYG, with management shifting focus towards its Australian restaurant network and established international Franchise markets. The company continues to expand its store footprint while targeting further Margin improvement through scale, technology and operational efficiencies.

What Just Happened?

GYG released its FY2026 results to the ASX on 21 August 2026, alongside its Appendix 4E, Annual Report and shareholder communication. The company also confirmed the closure of its remaining US restaurants in Chicago, completing its exit from the market.

The statutory result showed a group net loss of $26.7 million, compared with a $14.5 million profit in FY2025. The decline was primarily related to discontinued US operations, which generated a $67.3 million loss including asset impairments, lease-related costs and exit expenses.

Excluding the impact of the US business, continuing operations delivered a stronger performance. Revenue increased 22 per cent to $520.4 million, underlying EBITDA rose 28.7 per cent to $85.0 million, and underlying net profit after tax increased 29.7 per cent to $53.4 million.

System-wide network sales reached $1.38 billion, representing growth of 17.9 per cent during the year.

The company declared a final dividend of 40.6 cents per share, fully franked, taking the full-year dividend to 48.0 cents per share. GYG also extended its share buyback program by up to $100 million.

Digging Into the Numbers

The Australian business remained the primary contributor to GYG’s performance. Underlying EBITDA increased to approximately $85 million, while the underlying EBITDA margin improved to around 6.2 per cent of network sales from 5.7 per cent in FY2025.

During FY2026, GYG opened approximately 32 net new restaurants in Australia, primarily focused on drive-thru formats. The company expanded its network beyond 280 locations across Australia, Singapore and Japan.

Management continues to maintain a Long-term Growth ambition of reaching 1,000 restaurants, supported by a development pipeline of more than 100 potential locations.

Comparable sales performance also remained positive, with Australian comparable sales growth reaching 6.6 per cent in the March quarter. Management indicated that early FY2027 trading has remained ahead of its mid-single-digit comparable sales guidance.

Earnings per share from continuing operations increased to 40.4 cents from 30.4 cents, while net tangible assets per share declined to 232.7 cents following US-related write-offs and Capital returns through dividends and buybacks.

Why the Market Is Paying Attention

The FY2026 result highlighted the difference between GYG’s statutory outcome and the underlying performance of its core business. While the US exit resulted in significant accounting charges, the Australian operations delivered improved earnings, stronger margins and increased cash returns.

The company’s decision to exit the US market allows management to redirect capital towards higher-performing areas, including Australian restaurant expansion, technology initiatives and operational improvements.

FY2027 guidance also supported continued focus on domestic growth. Management expects around 35 new Australian restaurants, ongoing mid-single-digit comparable sales growth and an Australian underlying EBITDA margin target of 6.7 per cent to 6.9 per cent of network sales.

However, GYG continues to operate in a highly competitive quick-service restaurant market, where consumer spending patterns, cost pressures and competition from other food operators remain ongoing considerations.

The Bigger Story

GYG’s FY2026 result represents a transition towards a more focused operating model. After expanding into the US market, the company has now concentrated resources on Australia and established Asian franchise markets including Singapore and Japan.

The US exit removes a significant operational challenge, allowing management to focus on markets where GYG has established Brand Recognition and stronger operating performance.

The company is also using technology as part of its efficiency strategy, including initiatives related to order management, automated monitoring systems and digital tools designed to improve restaurant operations.

Long-term growth will depend on the company’s ability to maintain customer demand, successfully execute new restaurant openings and convert scale into improved profitability.

What Investors Should Watch Next

  • Comparable sales performance through FY2027 and whether current momentum continues.
  • Delivery of around 35 new Australian restaurants planned for FY2027.
  • Progress towards the targeted Australian EBITDA margin range of 6.7 per cent to 6.9 per cent.
  • Completion of the US exit process without additional material costs.
  • Ability to maintain higher shareholder returns through dividends and buybacks.

Conclusion

Guzman y Gomez (ASX:GYG) delivered a FY2026 result that highlighted strong underlying Australian business performance despite the financial impact of exiting the US market. Revenue growth, improved margins and higher earnings from continuing operations demonstrate the strength of its core restaurant network.

The company’s next phase will focus on expanding its Australian footprint, improving operational efficiency and maintaining earnings growth. While the US exit provides a clearer strategic direction, execution across store expansion, margins and customer Demand will remain key factors shaping future performance.