Guzman y Gomez accelerates drive-thru push

Mexican-style fast food chain Guzman y Gomez (ASX:GYG) is set to double down on its drive-thru strategy, with 85% of future restaurant openings expected to feature the format, co-CEO and founder Steven Marks announced at the Macquarie Australia Conference.

Currently, GYG operates 220 restaurants in Australia, with half already functioning as drive-thrus.

Marks highlighted the format’s strong performance, revealing, "Our drive-thrus are doing over $200,000 a week. Our top drive-thru is doing over $250,000 a week."

Breakfast items continue to be a major sales driver, and the company is placing a new focus on coffee to compete with major players like McDonald's.

Beyond Australia, Marks expressed growing optimism about the US market, where GYG is accelerating its expansion efforts.

The company has committed to 15 new sites in the Chicago area and has begun moving more Australian staff to the US to help build the brand's presence.

"We've made a deliberate labour investment to ensure every order is perfect and guests feel the energy and culture of GYG," Marks said. "As momentum builds, we're planning to ramp up US investment in the second half of FY25."

The company reaffirmed its guidance to open 31 stores in Australia this year and maintained its corporate restaurant margin forecast at 17.8%.

At the time of reporting, Guzman y Gomez's share price was $33.12.