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.

Lovisa reported 1H26 EBIT on an underlying basis (ex-Jewells) of $109 million, up 20%. Underlying gross margin improved 50bp to 82.9% and store growth of 64 stores took the store count to 1,095 stores. Total sales in the first six weeks of 2H26e grew 21.5%. Our sales forecasts lift on store count. We lift gross margin expectation but also increase both operating costs and depreciation. The result was impacted by losses in Jewells, Lovisa’s new brand. Jewells may develop into a long-term opportunity but could distract management from course correcting Australian division performance and managing the global Lovisa rollout.

Australian convenience retailers Ampol and Viva have an opportunity to roll out quick-service restaurant (QSR) counters across their high traffic sites and lift non-fuel margins to be in-line with US peers. Foodservice penetration in the US is an aspirational target for the domestic market, but Australian fuel retailers can grow gross profit per store by tapping into the circa 70% gross margins in QSR. QSR store rollout supports Ampol and Viva’s five-year outlook for growing non-fuel earnings, whilst elevated refiner margins are also supportive in the near-term.

Lovisa will hold its Annual General Meeting on 21 November. In the past Lovisa has provided an update on LFL sales and store numbers. Visible Alpha consensus has 1H26e LFL sales of 5.4%, implying a modest slowing from the first eight weeks of trade. We expect to see a LFL number above 5.3% supported by the US segment where price rises and competitor disruptions have benefitted sales. Our concern is that the LFL sales growth fades in FY27e to 2% as the US benefits are cycled and domestic competitive pressures grow.

Lovisa reported FY25 EBIT of $139 million, up 8%. Gross margins improved 100bp, to 82.0%. The trading update of 5.6% comparable sales growth was an acceleration on the strong 2H25. We lift our sales and gross margin forecasts but also our cost assumptions given 27% cost growth in 2H25.

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.

We initiate coverage on Ampol at a time when convenience sites are executing well with upside from a better sales mix and more foodservice offerings. In the next two years the company should also experience a substantial lift in profitability in its fuels businesses as throughput recovers and capital projects are completed.

Lovisa reported 1H25 EBIT of $90 million, up 11%, slightly below consensus estimates of $92 million. With revenue growth stunted by flat comparable sales, gross margin was the standout, hitting a record 82.4% (up 170bp). The trading update signaled an improvement in trading momentum with LFL at 3.7% and the company is confident that the store rollout will reaccelerate. Cost growth gives us pause. Gross margins need to be maintained to offset cost growth if comparable sales don’t deliver, which is difficult with increasing competition. Given the lack of traction in Asia, we have removed the probability of an accelerated China rollout.