Company Interview / Nacho average growth plan: GYG betting big on the US

Key Points:

Guzman y Gomez (ASX:GYG) records over $1 billion in annual revenue and a $14.5 million profitShort-term sales growth below forecast, linked to expansion costs and market conditionsExpansion into the US described as calculated, with gradual rollout in ChicagoFocus on value, clean menu, and innovation contributes to resilience amid economic pressures

Shares of Guzman y Gomez (ASX:GYG) have faced short-term pressure as the company absorbs costs related to its US expansion and experiences slower-than-forecast growth early in the new financial year. Steven Marks states that Guzman y Gomez achieved a record $14.5 million profit, more than doubling its bottom line, and surpassed $1 billion in revenue for the first time. However, Australian network sales rose 3.7% in the first seven weeks, sharply below the forecasted 7.6% first-half growth. Marks attributes the volatility to natural ebbs and flows in the retail business, emphasising the company’s long-term strategy over short-term market fluctuations.

Marks dismisses claims that the US expansion is too aggressive, highlighting a calculated rollout with board approval for 15 Chicago locations and a disciplined approach to growth. He expresses confidence in the US team, expecting store economics to eventually match Australia’s strong performance. With 32 new restaurants planned for FY26, Marks stresses the importance of a robust real estate pipeline and claims Guzman y Gomez has one of the highest average unit volumes in Australia, second only to McDonald’s.

Marks highlights maintaining value for guests, clean menu offerings, and continued menu innovation as keys to resilience during cost-of-living challenges. A maiden dividend of 12.6 cents per share is also confirmed.