** Shares of Australia's Guzman y Gomez GYG.AX rise 0.44% to A$39.645

** Stock gains as much as 2.3% to A$40.36 earlier in the day

** Analysts at Morgan Stanley expect same-store-sales growth to be the likely area of upside for the quick-service restaurant chain at its 1H25 results

** Sees GYG's 1H25 same-store-sales to grow by 7.5%, compared with prospectus forecast of 4.8%, reflecting higher volumes

** Brokerage expects margins at GYG to benefit from both operational leverage and higher volumes

** Sees operational leverage to be driven by volume growth, providing a significant tailwind to margins and profitability over the next three to five years

** Says GYG is an early stage QSR operator with a long runway for growth, supported by network expansion and an above-industry average same-store-sales trajectory

** MS has "overweight" rating on stock and a PT of A$38.5

** Stock has lost 2.3%, YTD

(Reporting by Rishav Chatterjee in Bengaluru)

((Rishav.Chatterjee@thomsonreuters.com;))