The Guzman Y Gomez Ltd (ASX: GYG) share price is up more than 1% after reporting strong FY27 first quarter sales.
GYG is a Mexican food business that started in Australia and now has a presence in Japan and Singapore too.
FY27 first quarter sales
Guzman Y Gomez reported that total network sales grew 18.8% year on year for the three months to 30 September 2026, faster than the 18.1% sales growth in the prior corresponding period.
Within that total, Australian total network sales grew 18.8% to $363 million and Asian sales grew 17.8%.
Its growth was driven by the impressive 7.1% comparable sales growth in Australia, Japan and Singapore. In the prior corresponding period, comparable sales grew 4%.
Comparable sales growth is an important driver, but so is the opening of new restaurants.
Over the 12 months in Australia, it opened 10 new company-owned restaurants and 21 franchise restaurants. The Australian total network rose 31 or 13.7% year on year. It also added one more restaurant in Singapore over the year to take the total to 23, while the Japan network stayed at five.
Therefore, the total network across Australia, Singapore and Japan grew 12.6% to 286. In the three months to September 2026, it added three restaurant openings in Australia.
What happened?
GYG said that its comparable sales growth continues to be underpinned by strong transaction growth, which showed robust guest demand for “clean, fresh food, and GYG’s focus on delivering value, choice and innovation in its menu.”
Guzman Y Gomez said that growth was broad across all formats, channels, ownership types and dayparts, with improvements for both lunch and dinner.
The Mexican food business said that it made strong progress on key strategic and operational initiatives during the quarter.
Its new fully-operating proprietary order management system has enabled simplification and digitisation of operational processes in restaurants.
The company also highlighted that 40 restaurants are now trading 24/7 by the end of the quarter. It also said it enhanced its GOMEX loyalty rewards program in September with new features.
Final thoughts on the Guzman Y Gomez share price
GYG reaffirmed that it expects to deliver mid-single digit comparable sales growth in FY27, with the underlying EBITDA (EBITDA explained) as a percentage of network sales expected to expand to between 6.7% to 6.9%, up from 6.2% in FY26.
It also expects to open 35 new restaurants in Australia during FY27, with approximately 12 restaurants expected to open in the second quarter of FY27.
Overall, I think this is one of the most compelling non-tech ASX growth shares, which is why I’m a shareholder myself. In three years, I believe it’ll be significantly more profitable and it could be a solid long-term buy today.
