Guzman Y Gomez Ltd (ASX: GYG) shares are on the move on Friday.
In morning trade, the quick service restaurant operator's shares are up 1% to $22.71.
Why are Guzman Y Gomez shares rising?
Investors have been buying the taco seller's shares today after it announced a partnership with Uber Technologies (NYSE: UBER).
According to the release, the two parties have signed a multi-year exclusive strategic partnership which Guzman Y Gomez believes reinforces its commitment to delivering exceptional food with even greater convenience for consumers in Australia.
The deal will see Uber Eats become Guzman Y Gomez's exclusive delivery partner in Australia from 22 February 2026. Customers using the Uber Eats platform will be able to order delivery from their local restaurant, in addition to using GYG Delivery, which is the company's white label delivery offering powered by Uber.
The release notes that as part of this multi-year partnership, Guzman Y Gomez and Uber will increase their joint investment to bring customers even more value, choice and convenience.
The partnership is being designed to strengthen the economics of the delivery channel in its restaurants by supporting sales growth and delivering improved commercial terms.
Guzman Y Gomez's franchisees across Australia are expected to also derive significant benefit from this partnership with several initiatives in place to ensure the transition to exclusivity does not adversely impact the sales performance of restaurants.
Delivery growth
This is potentially a bigger deal than it first appears. Management highlights that its delivery offering accounted for approximately 27% of its total sales in Australia during the first half of FY 2026. Any strengthening of the economics of the delivery channel could have a big impact on its earnings.
Commenting on the deal with Uber, Guzman Y Gomez's founder and co-CEO, Steven Marks, said:
Our guests love the convenience of delivery, and this exclusive partnership with Uber Eats means we can serve them even better. This isn't just about delivery, it's about creating an experience that reflects the quality and speed our guests expect, while driving innovation in how we connect with them. We're excited about what this partnership means for our guests today and for the future of GYG.
The company's chief financial officer, Erik du Plessis, adds:
We are delighted to announce an extension of our partnership with Uber on improved commercial terms, providing guests with exceptional convenience while accelerating the growth of our restaurants. Building on this momentum, we continue to deliver unrivalled value to guests, along with strong financial results in our corporate and franchised restaurants.
