Mexican fast food chain Guzman y Gomez (ASX: GYG) has posted a beefy result for the first half of FY25, with the company generating $528 million in global sales reflecting a year-on-year boost of 23 per cent.

The Australian arm drove the rise, posting a 9.4 per cent lift in same-store sales growth and accounting for 16 of 19 new store openings for the half. Revenue was bolstered by strong demand for value items like the $12 chicken mini meal, increased delivery orders and a 19 per cent boost in breakfast-hour revenue.

However, the chain’s US segment is continuing to struggle, with network sales falling from $5.6 million to $4.9 million year-on-year, reflecting a drop of 12.7 per cent. The group noted that “demonstrating proof of concept in the US” will remain a priority as it continues to increase brand awareness.

Despite the hiccups in the US, GYG said it expects to exceed its FY25 prospectus forecast based on the strong progress it has made in the half.

Out of the new Australian store openings, five were corporate and 11 were franchised, with the locations expected to experience a margin ramp-up in three to six months.

“Our strong 2025 half-year results demonstrate the appeal of our clean, fresh, made-to-order, Mexican-inspired food, leading to significant global network sales growth of 23 per cent. The growth in network sales contributed to a 28 per cent EBITDA uplift as corporate restaurant margins expanded and franchise revenues increased,” Guzman y Gomez founder and co-CEO Steven Marks said.

“GYG achieved outstanding results in our Australian segment, with $573 million in sales and 9.4 per cent comp sales growth. This result was led by Australia and reflects momentum driven by the delivery channel, our impactful marketing and demand for value menu items like our $12 Chicken Mini Meal.

“Our franchisees and their unwavering commitment are fundamental to the success of GYG. With franchisees achieving a median return on investment of 50 per cent, we are creating shared value and together are on a mission to create the best and biggest restaurant company in the world.”

Sales in Singapore for the half also grew by 35.7 per cent to generate $37.7 million, while Japan’s sales rose from $4.2 million to $4.6 million. NPAT came in at $7.3 million, reflecting a 92 per cent increase from $3.8 million.

While all those segments saw growth, the US arm – where Guzman has five stores across Chicago, saw network sales for the half decrease 12.7 per cent to $4.9 million. This comes after the group posted apro forma underlying EBITDA loss of $6.5 million in FY24.

“The performance of the US restaurants reflects the opportunity to increase brand awareness and improve the guest experience,” the company told shareholders.

“During the period, restaurant-level leadership was strengthened in Chicago to drive performance. Local area marketing initiatives were also undertaken, including partnerships with schools and sporting groups.”

Looking ahead, the company noted that trading in the first seven weeks of trading exceeded expectations, recording 12.2 per cent growth.

GYG remains confident in demonstrating proof of concept in the US while also prioritising expansion, increasing sales growth, improving margins and enhancing its digital presence through its mobile app and website.

Shares in GYG are down 10.11 per cent to $40.44 each at 12:15pm AEDT.

Help us deliver quality journalism to you.As a free and independent news site providing daily updates during a period of unprecedented challenges for businesses everywherewe call on your support