GYG’s Q1 momentum strengthens its restaurant growth plan

Q1 Network Sales Reach $387.5 Million

Guzman y Gomez Limited (ASX:GYG) has started FY27 with another quarter of double-digit network growth, reporting sales of $387.5 million for the three months to 30 September. The 18.8% increase on the prior corresponding period combined 7.1% comparable sales growth with continued restaurant expansion.

Australia remained the main engine, generating $363.0 million in network sales compared with $305.5 million a year earlier. The Asia contribution, covering Singapore and Japan, rose to $24.5 million from $20.8 million. GYG said comparable sales growth was supported by transaction growth and was broad across formats, channels, ownership types and dayparts, with lunch and dinner performing strongly.

Restaurant Expansion Adds to Comparable Growth

GYG opened three restaurants in Australia during the quarter, taking its Australian network to 258 venues at period end, including 94 corporate and 164 franchise restaurants. The total network reached 286 restaurants across Australia, Singapore and Japan, up from 254 a year earlier.

The pace is consistent with the company’s 35 new Australian restaurant target for FY27, excluding the South Australian master franchise market. GYG expects about 12 openings in the second quarter, putting a sizeable portion of the annual rollout into the next reporting period.

The update extends the momentum reported in the company’s FY26 earnings result, which included 35 new restaurant openings and a continued focus on Australian growth after its US exit. This quarter’s announcement does not provide statutory revenue, profit or actual EBITDA, so the next test will be how the sales growth converts into earnings and cash flow.

Margin Guidance Holds as Operations Become More Digital

GYG reaffirmed its FY27 guidance for mid-single-digit comparable sales growth and underlying EBITDA of 6.7% to 6.9% of network sales, compared with 6.2% in FY26. The company highlighted menu launches including Crispy Chicken Tenders and Honey Habanero Ranch sauce, alongside a proprietary order management system now fully operational across its Australian network.

Daypart expansion also continued, with 40 restaurants trading 24/7 by the end of the quarter. GYG said its GOMEX loyalty program was enhanced in September with new features and an improved app experience, although the announcement did not quantify the financial contribution from those initiatives.

Further Buyback Extension Approved

The board has approved an extension of the on-market share buyback of up to a further $100 million beyond its current 23 October 2026 end date. The amount actually spent and the timing of purchases will depend on market conditions, trading volumes and other factors, meaning the approved maximum is not a commitment to buy the full amount.

For shareholders, the combination of sales momentum, continued network investment and capital returns creates a favourable operating picture, but it also raises the execution bar. GYG must deliver the planned restaurant openings while expanding its margin and maintaining comparable sales growth as the network becomes larger.