Guzman Y Gomez’s $12 Meal Takes Australia by Storm as U.S. Sales Stumble

Guzman Y Gomez’s $12 Meal Takes Australia by Storm as U.S. Sales Stumble

Mexican fast-food giant Guzman Y Gomez (GYG) has revealed that its value menu has been a surprise best-seller, driving same-store sales growth in Australia while the company faces mounting challenges in the U.S. market.

The Australian-born food chain, which became one of 2024’s most highly anticipated IPOs, posted a $7.3 million first-half profit, surpassing expectations and adding 19 new stores to its portfolio.

$12 Chicken Mini Meal Drives Record-Breaking Sales

GYG’s impressive 9.4% same-store sales growth in Australia was fueled by a surging demand for value meals, with the $12 Chicken Mini Meal emerging as a top performer.

Co-CEO Steven Marks attributed the brand’s continued success to its strategic marketing, growing breakfast menu, and strong digital presence.

“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,” Mr. Marks said.

“GYG’s first-half 2025 performance and growth in sales and earnings showcases our guest’s love for our food, but also the strong execution of our strategy and our unwavering commitment to an exceptional guest experience.”

GYG Expands Operating Hours & Delivery Options

To sustain growth, the company is expanding trading hours, with 11 stores now operating 24/7. Additional strategies include:

  • Enhancing its breakfast menu
  • Introducing new menu items
  • Strengthening digital and delivery services

Despite strong sales, same-store growth slowed slightly from 10.1% to 9.4% compared to last year.

GYG Sees Success in Singapore & Japan, Faces Setbacks in U.S. Market

While Guzman Y Gomez continues to thrive in Australia, its international markets are a mixed bag:

  • Singapore network sales surged 35.7% to $30.2 million
  • Japan recorded an 8.6% increase in sales to $4.6 million
  • U.S. sales fell 12.7%, plummeting to $4.9 million
  • Overall underlying EBITDA loss widened by 62% to $5 million

The company acknowledged that the U.S. market remains a priority, but efforts to build brand awareness and drive sales have struggled to gain traction.

GYG Shares Drop as Investors React

Following the financial update, shares in Guzman Y Gomez dropped 11.31% to $39.90, reflecting investor concerns over slowing domestic growth and ongoing U.S. struggles.

While Australia remains a stronghold, the brand’s expansion strategy will need to evolve if it hopes to turn things around in the highly competitive U.S. fast-food market.

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