Long-term investing is the best approach for ASX shares.
If $1,000 rises 10%, it becomes $1,100. Achieving a solid rate of return over a long time period can lead to good results.
Guzman Y Gomez is a Mexican food business with restaurants in Australia, Singapore and Japan. Some of the Australian places are corporate-owned, while the rest across Australia and Asia are franchise operations.
In terms of its compounding growth, the ASX share is delivering results.
Network sales have grown at a rate year after year. In FY26, Australian network sales grew 17.9% to $1.29 billion and Asian network sales rose 17.9% to $87.1 million.
When a company's top line is growing in the teens, it looks like an appealing investment to me. In FY26, comparable sales growth was 5.3%.
In FY26, it added 32 Australian places to bring the total to 255.
In Australia, it expects to open 35 new restaurants, three more than it opened in FY26.
GYG wants to reach 1,000 Australian restaurants within the next 20 years, which means a lot of compounding.
Since inception in September 2024, the GARP ETF has returned an average of 15.4% per year.