Company Interview / GYG hungry for growth after US retreat

Key points:

Marks highlights strong earnings and network sales despite one-off US exit lossExpansion plan targets 35 new Australian restaurants in FY27, mostly drive-thruGrowth in Singapore and Japan seen as key long-term opportunity

CO-CEO of Guzman y Gomez (ASX:GYG) Steven Marks states that FY26 marks a milestone year, with underlying earnings of $85 million and network sales of $1.38 billion from continuing operations, despite a $26.7 million net loss tied to the decision to exit the United States and close Chicago restaurants. Marks highlights like-for-like sales growth of 5.3% in Australia, stronger transaction growth, and increased customer visits, supported by a focus on low pricing, higher wages for staff and ongoing investment in systems and innovation.

Marks outlines an ambitious expansion pipeline, with 117 restaurants currently trading and 32 openings in FY26, around 85% of which are drive-thrus. He indicates plans for 35 new outlets in FY27, building towards a medium-term pace of 40 openings a year, and rejects analyst concerns that current guidance falls short of the company’s roadmap. Marks views restaurant economics and franchisee profitability as stronger than ever, underpinning demand for more sites.

Internationally, Marks points to “amazing” progress in Singapore, with 26 restaurants, and growing momentum in Japan, where he sees long-term brand-building now beginning to pay off after more than a decade in market.