Guzman y Gomez caps 20th year with record $1.38bn network sales and completed US exit
In its FY26 results presentation, delivered to mark its 20-year anniversary, Guzman y Gomez detailed record network sales of $1,377.8m, up 17.9% on FY25, alongside the completion of its exit from US operations. The figures are presented as draft, subject to audit and verification.
Management outlined a year in which continuing operations delivered strong growth across every core earnings metric, while the group navigated a clean withdrawal from the US market.
Underlying EBITDA reached $85.0m (up 28.7%), underlying NPAT came in at $53.4m (up 29.7%), and underlying earnings per share rose to 52.1 cps (up 33.9%). The company declared a total FY26 dividend of 48.0 cps fully franked, which includes a 14.4 cps special dividend.
Statutory NPAT including discontinued operations was $(26.7)m, a figure driven by one-off US exit costs and trading operation losses recorded within discontinued operations. On a continuing basis, the business remained strongly profitable.
The presentation framed FY26 as a strategic reset, returning GYG to a cleaner growth story focused on Australia and Asia.
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FY26 results: growth across every core metric
The operating scorecard pointed to continued momentum across the network. Comp sales growth in the Australia Segment reached 5.3%, network restaurant margin expanded to 20% (with drive thru margin at 22%), and median franchisee return on investment (ROI) stood at 47%. A total of 36 restaurants now trade 24/7.
The global network expanded to 284 restaurants, representing a 14% compound annual growth rate (CAGR) since FY16. Underlying EBITDA as a percentage of network sales rose to 6.2%, an increase of 210 basis points since FY23, when it sat at 4.1%.
| Metric ($m unless stated) | FY26 | FY25 | Change |
|---|---|---|---|
| Network sales | 1,377.8 | 1,168.5 | +17.9% |
| Underlying EBITDA | 85.0 | 66.0 | +28.7% |
| Underlying NPAT | 53.4 | 41.2 | +29.7% |
| Statutory NPAT (continuing) | 40.6 | 30.8 | +31.6% |
| Underlying diluted EPS | 52.1 cps | 38.9 cps | +33.9% |
The multi-year trajectory showed sustained margin expansion, with underlying EBITDA growing at a 40% CAGR since FY23.
US exit now complete
Management confirmed the wind-down of US restaurant operations is now complete, with the profit and loss impact landing at the lower end of guidance. The loss from discontinued operations totalled US$48.0m (A$67.3m), comprising trading losses and one-off closure costs of US$32.8m, within the guided US$30–40m range.
The GYG US market exit was formally announced in May 2026 alongside an upgraded EBITDA guidance figure of approximately $85 million, with management citing insufficient sales momentum and a financial trajectory that could not justify continued shareholder capital allocation to the US.
Total cash exit costs are expected to be no more than US$15m, of which US$3m was incurred in FY26. Commercial terms have been agreed for nine sites, with negotiations ongoing for one remaining site, and the US class action has been discontinued. No material FY27 impact is expected.
How GYG’s hybrid franchise model drives returns
GYG operates a hybrid model combining corporate restaurants, owned and operated directly by the company, with franchise restaurants owned by independent operators who pay royalties. The distinction matters because it shapes how capital is deployed and how earnings are generated.
The franchise earnings stream is capital-efficient, requiring minimal capital expenditure from GYG while still contributing royalty revenue. This allows the company to prioritise investment in its highest-returning corporate restaurants.
Format also influences economics. Drive thru restaurants generate higher average unit volumes (AUVs), the aggregate sales for a restaurant expressed on a per-restaurant basis, at $6.9m compared with $5.0m for strip locations, and carry higher margins.
Franchisee profitability is central to the model. Healthy franchisees underpin network growth, with median franchisee ROI at 47% and median franchise AUV rising 7.5% to $5.8m. This dynamic supports a self-reinforcing growth pipeline where prosperous operators fund further expansion.
Australia and Asia power the growth engine
The Australia business generated FY26 network sales of $1,291m, up 17.9%, across 255 total restaurants following 32 new openings and one legacy closure. The split comprised 93 corporate and 162 franchise restaurants. Comp growth was recorded across all dayparts, with 36 restaurants trading 24/7.
Asia, covering Singapore and Japan, delivered network sales of $87m, also up 17.9%. Singapore added three restaurants to reach 24 in total, while Japan held at 5. New menu launches, including the Caesar range, the BBQ Chicken Double Crunch taco and a Butter Chicken limited-time offer (LTO), supported strong comp sales growth in Singapore.
Digital and delivery momentum
- Delivery and digital sales combined accounted for 49% of network sales, up from 46% in FY25
- 25% of total sales were made through the GYG app, including GYG Delivery
- A new Order Management System (OMS) was rolled out during the period
- The company entered an exclusive strategic partnership with Uber Eats
- GYG became the first Australian quick-service restaurant (QSR) on Apple CarPlay
Pipeline accelerating
- 117 restaurants sit in the pipeline with commercial terms agreed
- 62 additions were made to the pipeline during the period
- 85% of the pipeline comprises drive thrus
- A record 26 drive thru openings were completed in a single year
Capital returns: $120m to shareholders and a bigger buyback
GYG returned $120m to shareholders in FY26, reflecting a framework of disciplined reinvestment with surplus capital distributed. Operating cash flow from continuing operations rose to $98.2m (from $70.2m), with cash conversion of 120%.
The total dividend of 48.0 cps fully franked represented approximately 90% of underlying NPAT and included a 14.4 cps special dividend, described as a “catch-up” on the lower 1H26 interim dividend.
On the buyback, $100m was deployed, acquiring 5.1m shares on-market at an average price of $19.58 per share. The Board approved an extension of the buyback program by up to a further $100m, to be pursued opportunistically when valuation is compelling. At period end, GYG held net cash and term deposits of $170.5m with no debt.
Capital allocation framework
Disciplined reinvestment in high-return growth, with surplus capital returned to shareholders.
FY27 guidance and the path to ~10% EBITDA margin
Management’s outlook for FY27 anticipated another year of network and earnings growth. The company expects to open 35 new restaurants in Australia, largely weighted to the fourth quarter, and therefore not contributing materially to FY27 sales or earnings.
Comp sales growth is guided at mid-single digits for the full year. In the first seven weeks of FY27, Australia Segment comp sales tracked above this at high-single-digit levels, which the company attributed to the timing of delivery campaigns and cycling a softer prior corresponding period. Underlying EBITDA as a percentage of network sales is expected to expand to 6.7–6.9%, compared with 6.2% in FY26.
Over the medium term, management outlined targets of around 40 new openings per year, underlying EBITDA trending toward ~10% of network sales, an implied franchise royalty rate approaching ~10%, and G&A costs moving toward ~5% of network sales.
GYG reaffirmed its medium-term underlying EBITDA margin ambition of approximately 10%, consistent with the outlook provided at the FY25 result, signalling confidence in the domestic growth runway following the US exit.
Marking two decades since inception, the FY26 presentation positioned the company around a strategic reset toward profitable, Australia-and-Asia-led growth.
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