GyG reported FY26 network sales growth of 18% and underlying EBITDA of $85 million, up 29% on the pcp. We forecast comp sales growth to settle at 5.6% in FY27e, after delivering “high single digit” growth in its trading update. Strong sales growth will be needed to improve corporate restaurant margins, which is the primary driver of group margin expansion in FY27e. The prospects for ongoing double-digit store and EPS growth is strong and GyG is a cleaner investment proposition without its US earnings drag.

GyG reported network sales up 18% and EBITDA 30% higher for 1H26. While comparable sales momentum has slowed, EBITDA margin improvement was strong, helped by modest overhead cost growth. GyG’s comparable sales growth is more likely to settle near 4%-5% going forward. Operating leverage in 1H26e is likely to soften in 2H26e as overhead cost growth follows store growth more closely.  We expect US losses of $11-$16 million to persist for at least the next three years, which may frustrate some investors.

GyG reported FY25 network sales growth of 23% and EBITDA at $65.1 million, up 46%. The company reported a step-down in comparable sales growth to 3.7% in the first seven weeks of 1Q26 vs 8.6% in 4Q25. The debate will be whether this lower growth persists and tempers expectations for margin expansion. While operating leverage may soften, the store rollout is skewed toward higher earning drive-thru sites and favourable moves in input costs will offset lower sales expectations in FY26e. The rebasing of comparable sales growth may be scrutinised, but even 4%-5% comp growth is still market leading.