The Guzman y Gomez Ltd (ASX: GYG) share price is in focus after the company reported record earnings for the first half of FY26, with network sales up 18% to $681.8 million and net profit after tax (NPAT) surging 44.9% to $10.6 million.
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What did Guzman y Gomez report?
- Global network sales rose 18.0% to $681.8 million
- Group Segment underlying EBITDA jumped 23.3% to $33.0 million
- NPAT climbed 44.9% to $10.6 million (underlying NPAT: $16.9 million)
- Australia Segment underlying EBITDA soared 30.0% to $41.3 million
- Seventeen new restaurants opened globally, bringing the total to 272
- Fully franked interim dividend declared at 7.4 cents per share
What else do investors need to know?
Guzman y Gomez (GYG) grew strongly in Australia, with local network sales up 17.5% to $673.6 million. The increase was driven by new restaurant openings and continued positive like-for-like sales momentum, especially in breakfast and late-night trading.
The company continues to focus on expansion, adding 33 new restaurants to its Australian pipeline for a total of 108 in development, most of which will be drive-thrus. GYG's balance sheet remains robust, with $236.4 million in cash and no debt, supporting both its fully franked dividend and ongoing $100 million on-market share buyback. The buyback saw $27 million in shares repurchased during the half.
What did Guzman y Gomez management say?
Founder and Co-CEO Steven Marks said:
GYG achieved solid sales momentum and earnings growth during the half, driven by our guest's love for clean, fresh, delicious, made-to-order food at incredible speed and our team's consistent execution on core strategic and operational initiatives.
What's next for Guzman y Gomez?
Looking ahead, GYG plans to open 32 new restaurants in Australia in FY26, with around 85% expected to be drive-thrus. Management is confident in continued strong sales growth, underpinned by menu innovation, digital initiatives, and network expansion.
In the US, while early-stage operating losses are expected to continue in the short term, the company is focusing on improving restaurant margins and leveraging new strategic partnerships.
Guzman y Gomez share price snapshot
Over the past 12 months, Guzman Y Gomez shares have declined 52%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 9% over same period.
