GYG Reports Record FY26 Earnings and Completes US Market Exit

Record Earnings Backed by Strong Australian and Asian Growth

Guzman y Gomez Limited (ASX:GYG) closed its 2026 financial year with a robust set of results, showcasing 17.9% growth in network sales to $1.378 billion and a 29.7% jump in underlying net profit after tax to $53.4 million. The company’s core Australian and Asian markets powered this momentum, with 35 new restaurants opened across Australia, Singapore, and Japan, expanding the global footprint to 284 restaurants.

Underlying EBITDA surged 28.7% to $85.0 million, driven by strong sales and operational leverage, pushing margins higher despite minimal menu price increases. The Australian segment alone accounted for $1.291 billion in network sales, supported by 32 new restaurant openings and a growing pipeline of 117 sites with commercial terms agreed, 85% of which are drive-thru formats.

US Exit Completed, Impacting Statutory Results

In a strategic pivot, GYG completed its exit from the US market in May 2026, closing all Chicago restaurants and ceasing operations. This move resulted in a statutory loss of $67.3 million from discontinued operations, including impairments and exit costs, culminating in a Group net loss after tax of $26.7 million for the year. The company reported that the one-off US closure costs were at the lower end of the guided range (US$30-40 million), with no material financial impact expected in FY27.

This exit reflects GYG’s disciplined capital allocation approach, prioritising markets where the brand’s growth and profitability prospects are strongest. The company reaffirmed its confidence in its master franchise markets of Singapore and Japan, which continue to deliver solid comp sales growth and operational progress.

Capital Management and Shareholder Returns

Consistent with its cash-generative model and strong balance sheet, boasting $170.5 million in net cash and term deposits with zero debt, GYG declared a fully franked total dividend of 48.0 cents per share. This includes a 40.6 cents final dividend and a 14.4 cents special dividend to align the interim payout with the full-year ratio, representing approximately 90% of underlying earnings.

Alongside dividends, GYG deployed $100 million in on-market share buybacks during FY26 and announced an extension of this program for an additional $100 million, underscoring management’s commitment to returning surplus capital to shareholders while maintaining capacity for high-return investments in its restaurant network.

Technology, Innovation, and Sustainability Initiatives

GYG is investing heavily in technology to enhance operational efficiency and guest experience. The rollout of its proprietary Order Management System (OMS) across Australian restaurants has optimized order processing for over 15 million transactions, freeing crew to focus on food quality and service. Digital sales now account for 25% of total sales, boosted by the GYG app’s integration with Apple CarPlay, the first for an Australian quick service restaurant.

On the sustainability front, GYG’s FY26 report highlights integration of climate risk into enterprise risk management, waste reduction initiatives diverting over 150 tonnes of organic waste from landfill, and trials of electric cooking equipment aimed at reducing emissions and improving food quality. The company’s community programs in Mexico and Australia, including the Misión Posible Fund and grassroots sports sponsorships, continue to underpin its social impact commitments.

Governance and Leadership Updates

The Board welcomed two new non-executive directors, George Wahby and Guy Fowler, bringing experience in retail transformation and investment banking respectively. Governance remains a focus, with continued oversight of climate-related risks and enterprise risk management embedded at the Board and Audit and Risk Committee levels.

Executive remuneration aligns with financial performance, with fixed salaries, short-term incentives linked to annual targets, and long-term equity incentives designed to retain leadership and align interests with shareholders. Climate-related metrics are not yet incorporated into remuneration frameworks.

What to Watch Next

Looking ahead, GYG targets opening 35 new Australian restaurants in FY27, with comp sales growth expected to continue at mid-single digit rates. The company anticipates underlying EBITDA margins expanding to 6.7–6.9%, driven by stronger corporate restaurant margins and increased drive-thru penetration.

Investors will be watching how GYG balances its aggressive network expansion with operational execution and capital discipline, especially as it navigates post-US exit integration and scales sustainability initiatives. The extended buyback program adds an additional lever for shareholder value, contingent on market valuation.