Guzman Y Gomez tops forecasts in first six months of trading

A fast-growing Australian food chain has revealed its best selling item as it announced a $7.3 million profit for the first half of this financial year.

Mexican fast food retailer Guzman Y Gomez says its value menu has been a hit with Aussie customers, helping to drive same store sales as the business flags potential issues out of the US.

The Australian owned and operated food retailer – which became one of the hottest initial public offerings in 2024 – came out with a $7.3m profit for the first half beating estimates, while also opening 19 new restaurants.

GYG flags strong same store sales off the back of its $12 value items. Picture: NewsWire/ Monique Harmer

Most of this growth was in the local market with Australian stores posting 9.4 per cent same store sales growth, to $573m half year sales to December 31, largely off the back of a $12 Chicken Mini Meal, growth in breakfast items and more delivery sales.

Guzman Y Gomez co-chief executive Steven Marks said the Australian business showed strong same store growth over the first six-months.

“This result was led by Australia and reflects momentum driven by the delivery channel, our impactful marketing and demand for value menu items like our $12 Chicken Mini Meal,” he said.

“GYG’s first-half 2025 performance and growth in sales and earnings showcases our guest’s love for our food, but also the strong execution of our strategy and our unwavering commitment to exceptional guest experience,” Mr Marks said.

While GYG is growing strongly in Australia, its US operations is falling. Picture: Guzman y Gomez via NewsWire

The company said it has a number of initiatives to help grow the business, including expanding its trading hours, with 11 stores now open 24/7, growth in breakfast trade, additional menu items and increasing its involvement in digital and delivery services.

While the retailer is still growing strongly in Australia, growth per store is slowing compared to this time last year, down from 10.1 per cent to 9.4 per cent.

The business flagged strength in its Singapore and Japan but its US operations is proving challenging.

Singapore network sales went up 35.7 per cent to $30.2 million and Japanese sales improved by 8.6 per cent to $4.6 million.

The company flagged that while the US “remains a priority” and it was aiming to grow brand awareness through guest experiences, so far sales had stalled.

Its latest financial results show US network sales fell 12.7 per cent to $4.9m, while overall underlying EBITDA loss sank 62 per cent to $5m.

Shares in Guzman y Gomez fell 11.31 per cent to $39.90 following the results at the time of writing.

Originally published as Guzman Y Gomez tops forecasts in first six months of trading