GYG Reports 18.6% Sales Growth and Plans 32 New Restaurants in FY26
Guzman y Gomez reports robust Q1 FY26 sales growth and network expansion, alongside a significant $100 million share buyback to enhance shareholder value.
- Global network sales up 18.6% driven by comp sales growth and new openings
- Five new restaurants opened globally with no closures
- Digitised operational improvements rolled out nationally in Australia
- FY26 guidance reaffirmed with expected EBITDA margin expansion
- Announced $100 million on-market share buyback starting Q2 FY26
Strong Start to FY26
Guzman y Gomez Limited (GYG) has kicked off fiscal year 2026 with impressive momentum, reporting an 18.6% increase in global network sales for the first quarter ended 30 September 2025. This growth was fueled by both comparable sales increases and the strategic rollout of new restaurants across key markets including Australia, Singapore, and the United States.
During the quarter, GYG opened five new restaurants globally, three in Australia, one in Singapore, and one in the US, without any closures, underscoring the company’s confidence in its expansion strategy. The US segment, in particular, showed promising sales momentum with a 6.7% comp sales growth, reflecting successful operational execution and strong guest experience metrics.
Operational Excellence and Innovation
Operationally, GYG has made significant strides in Australia by implementing digitised chicken temperature monitoring nationwide, a critical step in mitigating food safety risks. The company is also advancing its Culinary Excellence program by digitising recipes and procedures, which will enhance crew training and consistency across its network. Additionally, 23 restaurants have extended trading hours to operate 24/7, supporting daypart expansion and catering to evolving customer demands.
The launch of the new Caesar menu items on 30 September has been well received, contributing positively to comp sales growth post-quarter. This menu innovation aligns with GYG’s broader strategy to diversify offerings and drive customer engagement.
Confident Outlook and Growth Plans
Reaffirming its FY26 guidance, GYG expects continued strong sales growth supported by menu innovation, operational improvements, and marketing initiatives. The company anticipates opening 32 new restaurants in Australia this year, with a focus on drive-thru locations and strip sites, reflecting consumer preferences for convenience and accessibility.
Underlying EBITDA margins are projected to expand to between 5.9% and 6.3% of network sales, up from 5.7% in FY25, signaling improved operational leverage as the business scales.
Capital Management, $100 Million Buyback
In a move that underscores its robust financial position, GYG’s Board has announced an on-market share buyback program of up to $100 million, set to commence in Q2 FY26. This buyback aims to enhance shareholder returns while preserving capital for ongoing network expansion. The timing and scale of the buyback will be flexible, subject to market conditions and regulatory compliance.
This capital management initiative complements the recently declared fully-franked final dividend of 12.6 cents per share, reflecting the company’s commitment to returning value to shareholders without compromising growth ambitions.
Bottom Line?
GYG’s strong operational and financial momentum sets the stage for an ambitious growth trajectory, with the $100 million buyback signaling confidence but also inviting scrutiny on execution risks ahead.
Questions in the middle?
- How will GYG balance aggressive expansion with maintaining operational quality?
- What impact will the $100 million buyback have on share price and liquidity?
- Can the new Caesar menu sustain comp sales growth momentum beyond Q1?
