Guzman y Gomez posts 1H26 earnings

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.

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.

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The post Guzman y Gomez posts 1H26 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.