The Guzman Y Gomez Ltd (ASX: GYG) share price has jumped more than 17% after the business reported its March 2026 quarterly sales growth.
GYG is a Mexican restaurant business with major growth ambitions.
March quarter sales update
The business revealed how it performed in the three months to 31 March 2026.
It said that it delivered strong network sales growth during the quarter, driven by continued guest demand. It also kept adding to its restaurant network expansion, with five new GYG restaurants opening in Australia.
Total network sales grew by 19.5% to $345.9 million across its three regions.
Regional performance
Within that total, Australian network sales grew 19.7% to $320.4 million. Asian network (Singapore and Japan) network sales increased 15% to $21.5 million. US network sales rose 25% to $4 million.
The business reported that Australia and Asia achieved comparable sales growth of 6.6%, while the US segment generated comparable sales growth of 2.2%.
GYG noted that the Australia segment (Australia and Asia) comparable sales growth accelerated as its value proposition “continues to resonate” with guests, with transaction growth outperforming comparable sales growth, reflecting a focus on delivering value and the increase in guest frequency.
Delivery sales also contributed to growth, boosted by the strong performance of its partnership with Uber Eats.
US network sales growth was driven primarily by two new restaurant openings, while comparable sales momentum improved, partially offset by the ending of DoorDash deliveries. GYG said it made progress building its brand and executing key culinary and supply chain initiatives, while improving operational execution.
Compared to the third quarter of FY25, its global restaurant network grew by 37 to 278, with a year on year increase of 31 in Australia to 242, three in Singapore to 23, one in Japan to five and two in the US to eight.
Final thoughts on the Guzman Y Gomez share price
I’m not surprised to see that investors loved this update because of the acceleration of growth for the business. Unexpected good news is exciting.
It’s seeing strong (comparable) sales growth in Australia and ongoing network expansion across the world.
I’m curious to see how the business performed in terms of its margins – is it sacrificing margin to deliver this growth? Larger scale by itself can be a margin booster, though.
I think Guzman Y Gomez is one of the more interesting ASX growth shares to keep an eye because of its major Australian and global ambitions. It’s good to see that Asian and US sales continue to grow strongly.
