Strategic Reset for Growth
Guzman y Gomez Posts Statutory Loss Following US Market Exit Despite Strong Australian Growth
Key Points
The US exit costs were specific: US$15.2 million trading loss and US$32.8 million in one-off closure costs, contributing to the statutory NPAT loss for FY26.
Management notes the wind-down of US operations is now complete, with the exit costs at the lower end of guidance (US$30-40 million) and no material financial impact expected in FY27.
The FY26 dividend totaled 48.0 cents per share fully franked, and includes a 14.4 cents per share special dividend.
The group has already deployed about AUD 100 million in share buybacks and announced a further AUD 100 million programme, supported by a robust balance sheet.
Underlying EBITDA margin as a percentage of network sales rose to 6.2% (up 210 basis points since FY23), alongside a 20% network margin and 22% drive-thru margin.
Guzman y Gomez reported record underlying earnings of $85 million for fiscal 2026 after completing its exit from the loss-making U.S. market. The fast-casual Mexican restaurant group posted a statutory net loss of $26.7 million due to one-off U.S. closure costs, but underlying profit from continuing Australian operations hit $53.4 million, up sharply from the prior year Kalkine Media.
The company is now focused squarely on Australia and Asia, with 284 restaurants across its network and a strong pipeline of 117 new sites. Management deployed about $100 million in share buybacks and announced a further $100 million program, backed by a debt-free balance sheet and fully franked dividends of 48.0 cents per share Kalkine.
The Cost of Getting Out of America
The U.S. exit hit harder than expected. Guzman y Gomez took a $15.2 million trading loss and $32.8 million in closure costs—totaling roughly $48 million in exit charges QSR Media Asia. This pushed the company into a $26.7 million statutory loss for FY26, even though the core Australian business thrived.
Management says the good news is the exit costs landed at the lower end of guidance, between $30-40 million U.S. dollars. The wind-down is now complete, and the company expects no material financial impact in fiscal 2027 Business News Australia.
Record Earnings From Australia and Asia Expansion
The real story is growth at home. Continuing revenue jumped 22% to $520.4 million, driven by strong sales in Australia, Singapore, and Japan Kalkine. Network sales across all operations hit $1.38 billion, up 17.9% year-over-year, showing the core business remains healthy after shedding U.S. losses.
Underlying EBITDA—a measure of operating profit—climbed 28.7% to $85 million, the highest on record Kalkine Media. Margins improved sharply: network margin reached 20%, with drive-thru locations hitting 22%. The company now operates 24/7 at 36 locations, capturing late-night customer demand.
Aggressive Shareholder Returns on Strong Cash Position
Guzman y Gomez is returning cash to investors at a rapid pace. The company paid a full-year dividend of 48.0 cents per share (fully franked), including a 14.4 cents special dividend Kalkine. Management has already deployed roughly $100 million in share buybacks and announced an additional $100 million buyback program.
These moves are possible because the company carries zero debt. Strong cash generation from the Australian and Asian operations funds both shareholder returns and growth. The company is marking its 20th anniversary while repositioning as a pure-play Australia and Asia growth story Kalkine Media.
A Robust Pipeline Signals Confidence in the Reset
Looking ahead, Guzman y Gomez has lined up 117 new restaurant sites, mostly drive-thru formats that command higher margins. Drive-thrus deliver 22% margins versus the network average of 20%, so the expansion mix should boost overall profitability Kalkine.
The underlying EBITDA margin as a percentage of network sales rose to 6.2%, up 210 basis points since fiscal 2023. This shows the company is getting leaner and more efficient as it scales. Management framed FY26 as a strategic reset—shedding a money-losing market to focus on higher-returning geographies Business News Australia.
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