Guzman Y Gomez loses $270 million in market capitalisation due to below-expectation half-year results despite rising profit and sales

Guzman Y Gomez, Australia’s most popular burrito chain, has recorded a $270m crash after it announced weaker-than-expected sales and faced the heat from dissatisfied investors. The restaurant chain released its half-yearly results on Friday (February 20, 2026) and reported nearly $682 million in sales and earnings before interest, taxes, depreciation and amortisation (EBITDA) of $33 million, reported 9News.

The two have seen significant rise from the same time in 2025. The earnings of the burrito chain rose 23.3 per cent to $33m, and they opened another 17 restaurants in the first half of the financial year 2026, according to SKY News Australia.

Total sales of the Mexican-themed casual fast food restaurant chain lifted 18 per cent to $681.8m, and its profit after tax was up 45 per cent to $10.6m. Analysts had expected that figure to come in at 19 per cent, as reported by 9 News.


The restaurant chain expressed confidence and stated that its half-yearly results show sales momentum and growth in earnings. Despite the positive outlook, the share price of the chain on the ASX dropped about 10 per cent following the declaration of results. With a market capitalisation of around $2.1 billion, that represents a hit of more than $200 million.

Guzman Y Gomez shares dropped, wiping out market capitalisation

Despite the rise in profit after tax, investors sold off the stock in large quantities, with its share price falling 10.3 per cent in the first hour and 45 minutes of trading and shedding around $270m off the company’s market capitalisation.

The restaurant chain saw weaker sales than anticipated in the US, falling from Visible Alpha’s consensus of $9.2m to $8.2m.

What did Guzman Y Gomez founder Steven Marks say?

Guzman Y Gomez founder and co-CEO Steven Marks said that the result came in “another exceptional period” for the chain.

“GYG achieved solid sales momentum and earnings growth during the half, driven by our guest’s love for clean, fresh, delicious, made-to-order food at incredible speed and our team’s consistent execution on core strategic and operational initiatives,” Marks told investors, as quoted by Sky News Australia.

Guzman Y Gomez to open 32 restaurants

The burrito chain is expecting to add as many as 32 restaurants in the 2026 financial year. The plan includes one store in Singapore and two in the United States alongside 14 in Australia, taking its global network to 272 by the end of December, 2026, as reported by SKY News Australia.

Guzman Y Gomez declared a fully franked interim dividend at 7.4 AU cents per share, according to news agency Reuters. It is reportedly above expectations of a six-cent-per-share dividend.