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    Why Guzman y Gomez (ASX:GYG) Is Up 8.6% After Revenue Jumps But Profit Turns To Loss

    Simply Wall St·08/22/2026 11:21:11
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    • Guzman y Gomez Limited has reported its full-year results for the year ended 30 June 2026, with sales rising to A$520.4 million from A$427.11 million, while the company moved from net income of A$14.48 million to a net loss of A$26.7 million.
    • Despite higher basic and diluted earnings per share from continuing operations, the shift to a basic loss per share of A$0.266 highlights rising cost pressures and profitability challenges beneath the strong top-line growth.
    • We’ll now examine how robust revenue growth alongside a swing to a full-year net loss affects Guzman y Gomez’s existing investment narrative.

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    Guzman y Gomez Investment Narrative Recap

    To own Guzman y Gomez, you need to believe its fast growth in quick-service Mexican food can ultimately translate into sustainable profits, not just higher sales. The latest result, with sales up to A$520.4 million but a net loss of A$26.7 million, puts more focus on the short term catalyst of restoring margin momentum and intensifies the key risk around cost inflation and store economics, particularly in newer markets.

    The most relevant recent announcement here is the confirmation in April 2026 that GYG remains on track to open 32 new Australian restaurants in FY26, including 23 drive thrus. Against a backdrop of strong top line growth but a swing to loss, this accelerates both the potential upside from scale and operating leverage, and the risk of overextension if new sites do not reach targeted economics quickly enough.

    Yet behind the headline sales growth, there is a less obvious risk investors should be aware of around...

    Read the full narrative on Guzman y Gomez (it's free!)

    Guzman y Gomez's narrative projects A$808.6 million revenue and A$73.6 million earnings by 2029.

    Uncover how Guzman y Gomez's forecasts yield a A$23.64 fair value, a 11% downside to its current price.

    Exploring Other Perspectives

    ASX:GYG 1-Year Stock Price Chart
    ASX:GYG 1-Year Stock Price Chart

    Before this result, the most pessimistic analysts still expected revenue of about A$768.8 million and earnings of A$50.4 million by 2028, but they flagged rising labor and delivery costs as a serious long term margin risk; this loss-making year may or may not push their already cautious view even further, so it is worth weighing that against more optimistic narratives.

    Explore 5 other fair value estimates on Guzman y Gomez - why the stock might be worth 11% less than the current price!

    Decide For Yourself

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.