Shares in Guzman y Gomez Ltd (ASX: GYG) are under heavy pressure on Friday after the Mexican restaurant chain released its half-year result.
In mid-morning trade, the Guzman y Gomez share price is down 10.11% to $18.31.
At market open, the stock fell as low as $17, marking a record low since the company listed on the ASX in June 2024.
Despite a modest rebound, the shares remain down and are now around 15% lower in 2026.
Here is what the company reported.
Image source: Getty Images
Sales and earnings climb in the first-half
For the six months ended 31 December 2025, Guzman y Gomez delivered global network sales of $681.8 million. That is an increase of 18% on the prior corresponding period.
Revenue rose 23% to $261.2 million, while group underlying EBITDA increased 23.3% to $33 million.
Statutory net profit after tax (NPAT) came in at $10.6 million, up 44.9% from $7.3 million a year earlier.
The Australia segment continues to drive performance. Australian network sales rose 17.5% to $673.6 million. Comparable sales growth in Australia was 4.4% for the half.
Segment underlying EBITDA for Australia increased 30% to $41.3 million. As a percentage of network sales, that lifted to 6.1%, up from 5.5% last year.
Average drive-thru restaurant margins were reported at 22%.
Network expansion continues
Guzman y Gomez opened 17 restaurants globally during the half, including 14 in Australia. It ended the period with 272 restaurants across Australia, Asia and the United States.
The company highlighted a strong development pipeline, with 108 restaurants in the pipeline under commercial terms agreed. More than 85% of the pipeline is drive thru format.
In Australia, management pointed to solid franchisee economics. Median franchise restaurant margins increased to 21.4%, while median franchise return on investment was 48%.
In the United States, network sales rose 67% to $8.2 million, driven by new restaurant openings. However, the US segment remains in investment mode, with segment underlying EBITDA of negative $8.3 million for the half.
Dividend declared and balance sheet remains strong
The board declared a fully franked interim dividend of 7.4 cents per share. The ex-dividend date is 13 March 2026, with payment scheduled for 31 March 2026.
Operating cash flow improved during the half, supported by earnings growth. Capital expenditure totalled $23.1 million, largely directed towards new restaurant openings and refurbishments.
As at 31 December 2025, Guzman y Gomez held $236.4 million in cash and term deposits and had no debt. Management said the strong balance sheet supports continued network expansion.
Outlook unchanged despite share price weakness
Looking ahead, Guzman y Gomez maintained its FY26 outlook.
For Australia, the company expects strong sales growth supported by new restaurant openings, menu innovation, daypart expansion, marketing, and digital initiatives. Segment underlying EBITDA as a percentage of network sales is expected to remain in the 6% to 6.2% range for FY26.
In the US, management expects restaurant productivity and margins to improve over time as the network matures. However, losses are forecast to increase slightly in FY26 compared to FY25 as expansion continues.
Despite record sales and rising earnings, investors are heading for the exits. After a strong run since listing, today's sell off suggests the market is reassessing the company's valuation and near-term growth outlook.
The coming months will show whether Guzman y Gomez can turn solid operating momentum into stronger share price performance.
