Fast-growing Mexican food chain Guzman y Gomez (ASX: GYG) plans to deliver on 40 per cent of its new store openings planned this financial year within the last three months of 2025 alone, with 12 new locations planned across VIC, NSW, QLD and the ACT.
As GYG shares languish at 56 per cent below levels seen in February and net profit after tax (NPAT) sits at slightly more than 1 per cent of the company's record $1.2 billion in network sales in FY25, the Sydney-based group maintains it is on track to deliver 32 store openings in FY26.
The company has revealed 12 of these will be between October and December, of which five will be corporate run and seven will be franchised as GYG welcomes five new franchisees.
This compares to 11 new openings for the same period in 2024, as the group works towards a rhythm of 40 new store openings annually in Australia while it strives to hit a footprint of 1,000 locations over the long term. The current store count is more than 250.
"Our growth strategy is clear - GYG is building a long-term, sustainable restaurant business with real food, high volumes, and strong unit economics," says co-founder and CEO Steven Marks.
"These openings demonstrate the strength of our model and the confidence of our franchise partners."
The group claims its franchisees deliver a median return on investment (ROI) of 50 per cent, placing the brand "among the most profitable opportunities in the food and hospitality sector".
Guzman y Gomez expects the new restaurant pipeline will also add approximately 750 jobs reinforcing its role as a significant contributor to both employment and small business growth in Australia.
Three of the new franchisee teams come from GYG’s internal pathway, and two of the new store openings represent further expansion for existing franchisees.
GYG shares are up 2.57 per cent this morning at $25.54, which is well below levels above $45 seen in April and pricing close to $29 observed before the release of the company's annual results last month.
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