Are Guzman Y Gomez or Dominos shares a better buy in 2026?

Should investors be targeting Pizza or Burritos?

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Both Guzman Y Gomez (ASX: GYG) and Domino's Pizza Enterprises Ltd (ASX: DMP) shares experienced plenty of volatility in 2025. 

But which is a better buy in 2026?

Here's what experts are saying. 

Guzman Y Gomez

Guzman Y Gomez shares first listed on the ASX back in mid-2024 opening at approximately $29 per share. 

Following its arrival, the Mexican restaurant chain saw a steady stock price rise as the general sentiment around the company was positive thanks to its growth prospects. 

However after hitting more than $43 per share in December 2024, it's been pretty much a steady decline for Guzman Y Gomez shares. 

The share price is now down more than 50% since that time, which included a fall of 45% in 2025. 

Why the fall?

Although Guzman Y Gomez reported record sales and profit growth in FY2025, the results still came in below what investors and analysts had expected.

Underlying earnings surged 152% to $14 million in fiscal 2025, driven by a 23% increase in global network sales and an expansion in operating margins. 

However, investor sentiment was dampened by rising losses in the early-stage US business and a slowdown in Australian sales momentum, which overshadowed the otherwise strong performance.

Where to from here?

Experts are seemingly tipping a rebound based on its current share price. 

Guzman Y Gomez shares are hovering around $21.50 at the time of writing.

Last month, Morgans placed a buy rating and $32.30 price target on the Mexican restaurant chain's shares. 

From yesterday's stock price, that indicates more than a 50% upside. 

Domino's Pizza Enterprises

Dominos Pizza shares were down 50% from yearly highs at one point last year. 

After bottoming out around $13 per share, they have now somewhat recovered and are currently trading at around $22.45. 

Dominos shares remain down more than 20% over the last 12 months. 

The sell off largely came following the company's FY25 financial results

This included: 

  • Network sales down 0.9% to $4.15 billion
  • Revenue down 3.1% to $2,303.7 million
  • EBIT down 4.6% to $198.1 million

In 2025 Dominos also changed CEO.

So after a turbulent year, is there any upside for Dominos shares?

Estimates from analysts are mixed. 

On the positive side, Morgans currently has a buy rating and $25.00 price target on Dominos shares. 

This indicates an upside of around 11%. 

Meanwhile, the average analyst rating on TradingView shows Dominos shares are now overvalued by approximately 11%. 

Similarly, online brokerage platform Selfwealth lists Dominos shares as 10% above fair value. 

Motley Fool contributor Aaron Bell has positions in Domino's Pizza Enterprises. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Domino's Pizza Enterprises. The Motley Fool Australia has recommended Domino's Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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