Guzman y Gomez (ASX: GYG) Posts 18.8% Q1 Sales Growth

Guzman y Gomez lifted network sales by 18.8% to $387.5 million in the first quarter of FY27, supported by stronger comparable sales and continued restaurant expansion.

Comparable sales across Australia, Singapore and Japan rose 7.1% in the three months to September 30, accelerating from 4.0% in the prior corresponding period. GYG attributed the result to transaction growth, with gains across restaurant formats, sales channels, ownership types and dayparts.

The quarterly performance keeps the fast-food restaurant operator on track with its FY27 guidance. GYG continues to target mid-single-digit comparable sales growth and expects its underlying EBITDA margin, measured against network sales, to increase to between 6.7% and 6.9%. That compares with 6.2% in FY26.

Australia generated $363 million of network sales, up from $305.5 million a year earlier, while sales from the company’s Asian network increased to $24.5 million from $20.8 million. The figures exclude discontinued US operations.

Expansion weighted towards the second quarter

GYG opened three Australian restaurants during the quarter, taking its domestic network to 258 sites at period end. This comprised 94 corporate restaurants and 164 franchised locations.

Across Australia, Singapore and Japan, the group had 286 restaurants, compared with 254 a year earlier. Its international footprint included 23 restaurants in Singapore and five in Japan, with the Singapore count reflecting one closure during the quarter.

The company still expects to open 35 Australian restaurants during FY27, excluding the South Australian master franchise market. Around 12 openings are planned for the second quarter, indicating a material acceleration from the first quarter’s rollout pace.

Alongside new openings, GYG continued extending restaurant trading hours. Forty locations were operating around the clock by the end of September.

Operational changes during the quarter included the full deployment of GYG’s proprietary order management system across its Australian network. The company also updated its GOMEX loyalty program and app in September, while adding Crispy Chicken Tenders and Honey Habanero Ranch sauce to its menu.

Further $100 million buyback approved

GYG also confirmed that its board has approved an extension of the company’s on-market share buyback for up to a further $100 million.

The program is intended to continue beyond its existing October 23, 2026 end date. The number and timing of shares purchased will depend on market conditions, trading volumes and other factors, meaning the approved amount is a maximum rather than a commitment to deploy the full sum immediately.