Guzman y Gomez (GYG) Investor update summary

Decision to exit U.S. operations

• Exiting the U.S. market and ceasing Chicago operations immediately due to underperformance, lack of sales momentum, and unmet financial targets, despite strong brand and guest experience differentiation.

• Board concluded continued investment in the U.S. would not justify shareholder capital, with higher-than-expected capital requirements.

• Suburban drive-through strategy and Chicago market challenges contributed to difficulties.

• No attempt was made to sell U.S. sites to franchisees due to weak economics.

• Two additional U.S. sites (South Naperville and Lakeview) will not open; amicable wrap-up underway, with leadership supporting the U.S. team through the transition.

Financial impacts and guidance

• One-off P&L impact of US$30–40 million expected in FY26, mostly non-cash, with cash outflow not exceeding US$15 million; exit costs include lease liabilities, employee costs, and other contractual commitments.

• Non-cash costs relate to impairment of property, plant, equipment, and lease assets in the U.S.

• Exit costs will not affect the final FY26 dividend.

• Group earnings profile to improve materially as U.S. losses fall away, supporting higher dividends and continuation of the buyback program; updated blackout period for trading begins 30 June 2026.

• Updated Australian segment underlying EBITDA guidance of approximately AUD 85 million, representing 29% growth year-on-year, at the upper end of margin guidance.

Australian business outlook and strategy

• Core Australian business remains healthy, with strong growth, world-class unit economics, and a robust real estate pipeline.

• On track to open 32 restaurants this financial year, with a medium-term goal of 40 per annum.

• Pipeline continues to grow at 4–5 sites per month, with 18–24 months from commercial terms to opening.

• No change in strategy or pace due to U.S. exit; quality of sites remains the key constraint, not capital.

• Long-term target set at 1,000 restaurants and 10% segment underlying EBITDA as a percentage of network sales.