Guzman y Gomez (ASX: GYG) has reported record underlying earnings for FY26, with strong Australian sales offsetting the impact of its exit from the US market, which the company said was wholly unsuccessful.

Sales rose 17.9% to $1.38 billion, while underlying EBITDA increased 28.7% to $85 million. Statutory NPAT climbed 31.6% to $40.6 million, and underlying NPAT rose 29.7% to $53.4 million.

GYG opened 35 restaurants during the year, lifting its global network to 284 locations as at June 30. The company now plans to focus its domestic expansion on Australia, with another 35 openings targeted in FY27. That pace of rollout matters because the chain’s growth story is increasingly tied to execution at home, where it already has a larger operating base and a visible development pipeline.

Australian sales increased 5.3%, supported by higher customer numbers and larger average transactions. GYG said its value-focused menu continued to attract customers despite a tougher economic backdrop, with products including its $12 Brekkie Bundle and $3 taco helping support demand.

The result also marks the completion of GYG’s withdrawal from the US, where the company abandoned its expansion plans after determining that further investment would be required to make the model viable. The exit contributed to a $67.3 million write-down, pushing statutory group NPAT including discontinued operations to a loss of $26.7 million.

GYG ended FY26 with $171 million in cash and no debt. The company declared a fully franked full-year dividend of 48 cents per share, including a special dividend.

GYG said it has 117 Australian restaurants in its development pipeline, providing a significant runway for domestic expansion following its decision to leave the US market. For investors and industry watchers, the next milestones are straightforward: whether the company can keep converting new openings into higher customer volumes and maintain momentum in its Australian store rollout without the distraction of overseas expansion.