Domino’s Pizza Enterprises vs Guzman y Gomez shares

If you’re hungry for fast food stocks on the ASX, Domino’s Pizza Enterprises Ltd (ASX: DMP) and Guzman y Gomez Ltd (ASX: GYG) are two tempting names. Both companies run sizeable quick-service restaurant networks with bold growth ambitions, but their shares come with very different price tags and outlooks. So, which looks better value today?

The case for Domino’s Pizza Enterprises

Domino’s Pizza Enterprises is Australia’s largest pizza chain, with operations spanning not just locally but across Europe and parts of Asia. According to its company profile, it controls the Domino’s brand in countries including Australia, New Zealand, Japan, Taiwan and several European nations. Domino’s has also extended its reach into Malaysia, Singapore and Cambodia as of its most recent public description.

On the numbers front, Domino’s is sitting on a $1.87 billion market cap and offers a dividend yield of 2.91%. That’s pretty solid for a fast food business, and investors have banked fully franked dividends in the past – though recent payments have not been franked. The company’s P/E ratio stands at 29.61, though its latest earnings per share (EPS) figure is negative at -1.418. That mismatch suggests the P/E may be based on an adjusted or forward measure rather than statutory profit. Note: Domino’s reported P/E ratio may be based on a different earnings measure than the EPS shown, so they appear inconsistent.

Year to date, Domino’s shares have slipped 3.2%. Its dividend history shows regular payments over many years, but recent dividends have switched from full franking to 0% franking. That may impact after-tax yield for local investors.

The case for Guzman y Gomez

Guzman y Gomez is a homegrown, Mexican-inspired fast food operator and franchisor. The company’s main focus is its growing Australian footprint, with an ambition (per its company profile) to expand toward 1,000 local stores over the next couple of decades. Internationally, it’s kept a footprint in Singapore and Japan but has exited the US market as of May 2026 to double down on core regions.

Guzman y Gomez sports a larger market cap at $2.57 billion and an impressive 18.2% year-to-date share price gain. Its P/E ratio comes in steep at 62.21, considerably higher than Domino’s. However, its latest EPS is positive at 0.404 and, notably for income-focused investors, its current dividend yield is 1.34% with 100% franking on all recent payouts.

The company paid its first dividends in 2026, including a final, interim, and special dividend, all fully franked. That means Guzman is a much newer name on the dividend scene, but every payout so far maximises franking credits, which provides extra value for some investors.

Valuation comparison

There are some clear contrasts in the numbers here, especially with respect to valuation and income:

Metric	Domino’s Pizza Enterprises	Guzman y Gomez
Market Cap	$1.87 billion	$2.57 billion
P/E Ratio	29.61	62.21
EPS	-1.418	0.404
Dividend Yield	2.91%	1.34%
Franking	0% on recent dividends	100% on recent dividends
Dividend per share	$0.58	$0.34

A few things stand out to me:

• Guzman y Gomez trades at a much higher P/E, suggesting the market is pricing in faster expected growth (or perhaps factoring in its more recent profitability). Meanwhile, Domino’s posted a negative EPS but still carries a P/E ratio—so that headline multiple may not reflect underlying earnings as neatly as it seems.
• Domino’s currently offers a higher yield but with recent dividends not franked, whereas Guzman y Gomez’s yield is lower but fully franked, which can be a game-changer for Australian shareholders looking for tax-effective income.
• In terms of size, Guzman y Gomez is now the larger business by market cap.

Recent share price momentum

Comparing recent share price performance as at 2 October 2026:

• Domino’s Pizza Enterprises closed at $19.76 on 2 October 2026, down 3.2% year-to-date.
• Guzman y Gomez closed at $25.12 on 2 October 2026, up a whopping 18.2% year-to-date.
• Short-term movement reveals Domino’s shares have been relatively soft, while Guzman y Gomez has enjoyed recent positive momentum, with a more pronounced upward trend over the past few months.

Which is the better buy?

Personally, I’d lean toward Guzman y Gomez as the better value play today—despite its higher P/E ratio and lower stated yield. Guzman y Gomez is delivering positive earnings, fully franked dividends, and strong share price momentum—plus the market seems to be rewarding its clear growth strategy and recent profitability. The promise of future growth is being bid up, but that’s common with strong consumer brands gaining ground.

Domino’s, on the other hand, is offering a higher yield but has posted a recent loss, and its dividend franking has dried up. The negative EPS clouds the value of its headline P/E and puts question marks over near-term earnings recovery.

If growth and fully franked income are your priority, Guzman y Gomez looks like the fresher, more energetic pick to me. Domino’s might appeal as a recovery story if you believe strongly in its turnaround potential, but based on the numbers in front of me, my pick would be Guzman y Gomez.

The post Domino’s Pizza Enterprises vs Guzman y Gomez: Which fast food stock offers better value? 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 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. 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.

For retirees, a good ASX dividend share needs to offer more than a high headline yield.

I would want businesses with strong earnings, the capacity to continue paying dividends, and the potential for income to grow over time.

These are three ASX passive income shares I particularly like.

Coles Group Ltd (ASX: COL)

Coles would be one of my first choices because grocery spending tends to be relatively resilient.

Households may change what they buy when budgets become tighter, but supermarkets remain an essential part of everyday life. That gives Coles an earnings base that I think suits investors who depend on their portfolio for income.

There is also growth behind the story. Coles generated earnings per share (EPS) of 81.3 cents in FY26. Consensus forecasts point to 98.2 cents in FY27, $1.05 in FY28, and $1.15 in FY29.

I expect that profit growth will create room for dividends to rise as well.

For retirees, I think that combination of defensive demand and potentially rising income is compelling.

Telstra Group Ltd (ASX: TLS)

Telstra could be another quality share for an ASX passive income portfolio.

Mobile and internet services have become essential for households and businesses, giving Australia’s largest telecommunications company a substantial base of recurring demand.

I also think Telstra’s investment case has improved because management is aiming to grow the business rather than simply protect the dividend.

Under its Connected Future 30 strategy, Telstra is targeting mid-single-digit growth in cash earnings through to FY30 and has expressed an ambition to deliver a sustainable and growing dividend.

That is the direction I would want to see as a retiree.

I would still expect periods of share price volatility, but the underlying telecommunications demand gives me confidence in Telstra as a long-term income holding.

Commonwealth Bank of Australia (ASX: CBA)

CBA would round out my three picks.

The bank is not necessarily the highest-yielding option on the ASX, but I think the strength of the franchise counts for a lot when passive income reliability is important.

CBA has leading positions across deposits and home lending, a huge customer base, and one of Australia’s strongest digital banking platforms.

That has helped it consistently generate the profits needed to fund substantial fully-franked dividends.

CBA paid $5.05 per share in FY26. Consensus forecasts point to $5.15 in FY27 and $5.30 in FY28, alongside modest earnings growth over the same period.

The shares can trade at a premium valuation, and that is something I would consider before buying. But for retirees looking beyond the highest immediate yield, I think CBA’s financial strength and dividend record make it one of the ASX banks worth considering.

Foolish takeaway

For retirees looking for passive income, I think Coles, Telstra, and CBA are three strong options to consider.

Each has an established business, dependable cash flow, and the potential to keep growing dividends over time.

The post My favourite ASX passive income shares for retirees appeared first on The Motley Fool Australia.

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Motley Fool contributor Grace Alvino has positions in Commonwealth Bank Of Australia. 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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Macquarie Group Ltd (ASX: MQG) share price has been an excellent performer over the long term. This year, it’s up 22%; over the past three years, it’s up 50%; and over the past decade, it’s up around 200%, at the time of writing.

The business has four divisions – Macquarie Asset Management (MAM), banking and financial services (BFS), commodities and global markets (CGM), and Macquarie Capital (investment banking).

Some of those divisions are quite cyclical/volatile, but the BFS division is growing rapidly in each result, which is a great sign of success. It’s quickly growing to challenge National Australia Bank Ltd (ASX: NAB) and ANZ Group Holdings Ltd (ASX: ANZ) in scale.

Let’s look at what experts think could happen with the Macquarie share price in the year ahead and how the business is performing.

Analyst projections for the Macquarie share price

Excitingly, experts are expecting the ASX financial share to rise from here.

According to CMC Invest, there have been 9 analyst ratings in the last 3 months. Six of those ratings calls were a buy rating and three were a hold rating.

Those analysts each issued a price target. A price target tells investors where the analyst thinks the share price will go in the next 12 months. Of course, this is not a guaranteed return; it’s just a projection.

The average price target of those nine ratings calls is $267.99. At the time of writing, that implies a possible rise of around 7% over the next year. When you add in the projected dividend yield of 3% (excluding franking credits), the total return could be around 10%, according to CMC Invest.

From those nine analysts, the most optimistic price target is $301.73, implying a possible rise of 21% over the next year (at the time of writing).

The most pessimistic Macquarie share price target is $241.38, suggesting a possible decline of 3% over the next 12 months.

How is the ASX financial share performing?

The latest update from the business was the first quarter of FY27, being the three months to 30 June 2026.

The Macquarie Asset Management division reported it had $748 billion in assets under management (AUM) at June 2026, up 4% compared to 31 March 2026, primarily driven by increased net asset valuations, favourable market movements, and positive net flows.

BFS saw its deposits grow 4% quarter over quarter to $223.3 billion at 30 June 2026. The home loan portfolio grew 6% quarter over quarter to $191.5 billion. Finally, the business banking loan portfolio improved by 3% quarter over quarter to $18.7 billion. Those are strong growth trends on an annualised basis.

The CGM division saw a higher quarterly profit year over year, thanks to increased trading activity in North American Gas and Power.

The ASX financial share said that Macquarie Capital had higher investment-related and brokerage income. At 30 June 2026, the private credit portfolio of $27.2 billion was in line with 31 March 2026, and the equity portfolio was $5.1 billion, broadly in line with 31 March 2026.

According to CMC Invest, the Macquarie share price is valued at 18 times FY27’s estimated earnings. It seems like the company has a positive future, but there could be even stronger returns available with other ASX shares.

The post How much could the Macquarie share price rise in the next year? appeared first on The Motley Fool Australia.

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• Are ASX 200 bank stocks a buy in October?
• How high could Macquarie shares go? RBC Capital Markets has its say

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.