GYG FY26 Underlying EBITDA Up 28.7%; US Exit Complete

Guzman y Gomez (ASX:GYG) reported FY26 network sales of $1,377.8 million, up 17.9%, for its Australia Segment, which the release states includes Singapore and Japan and which is its continuing operations. Revenue was $520.4 million, up 21.8%, underlying EBITDA rose 28.7% to $85.0 million, representing 6.2% of network sales against 5.7% a year earlier, and statutory NPAT from continuing operations rose 31.6% to $40.6 million. Underlying NPAT was $53.4 million, up 29.7%, and underlying diluted earnings per share were 52.1 cents, up 33.9%. Including discontinued operations, the Group recorded a statutory net loss of $26.7 million, against a profit of $14.5 million in FY25, after a $67.3 million statutory loss from discontinued operations. The company said it has completed its exit from US operations with costs at the lower end of the guided range of US$30 million to US$40 million. Comparable sales growth was 5.3% and was outpaced by transaction growth, and network restaurant margin expanded 20 basis points to 20.3%, which the company attributed to margin expansion in drive thru and other legacy formats despite minimal menu price increases.

GYG had 284 restaurants across Australia, Singapore and Japan at 30 June 2026, having opened 35 and closed one during the period, and had commercial terms agreed on 117 Australian restaurant sites, about 85% of them drive thru format. Group operating cash flows rose 33.4% and cash conversion from continuing operations was 120%, which the company said was largely driven by the timing of supplier payments and of construction payments made on behalf of franchisees. Capital expenditure net of lease incentives was $55 million, and the company ended the year with $171 million of cash and term deposits and no debt after deploying $100 million on an on-market buyback; the board has approved an extension of that program by up to a further $100 million. A fully franked final dividend of 40.6 cents per share was declared, including a special dividend of 14.4 cents intended to retrospectively lift the implied payout ratio on the 7.4 cent interim dividend, taking the full year dividend to 48.0 cents and the implied payout ratio to about 90% of underlying earnings. For FY27, GYG expects to open 35 new restaurants in Australia, comparable sales growth to continue at mid-single digits and underlying EBITDA to expand to 6.7% to 6.9% of network sales; it said Australia Segment comparable sales growth tracked above that guidance, at high-single digit levels, in the first seven weeks of FY27, reflecting the timing of delivery campaigns and the cycling of a softer prior corresponding period.