Restaurants Lead Grupo Gigante's First-Half Performance

Summary: Grupo Gigante's first-half 2026 results highlight restaurants as the company's primary growth engine, with Toks and Shake Shack driving a 6.7% revenue increase that offset weaker performance in retail, distribution and real estate. Despite a slight decline in consolidated revenue and net income, the company's higher capital spending on restaurants and commercial real estate signals a strategic shift toward higher-growth and recurring-income businesses while continuing investments in e-commerce, logistics and technology. 

Grupo Gigante's restaurant business was the company's strongest-performing commercial segment during the first half of 2026, offsetting weaker results across its retail, distribution and real estate operations. Restaurant revenue increased 6.7% year over year as the company continued expanding its Toks and Shake Shack brands, while consolidated revenue declined slightly.

According to the company's second-quarter results, Grupo Gigante generated consolidated revenue of MX$8.37 billion (US$446 million) during the quarter, down 0.8% compared to the same period in 2025. Same-store sales increased 1.2% to MX$8.01 billion (US$427 million), supported by the performance of its operating businesses.

As of June 30, Grupo Gigante operated 667 units across its businesses, totaling 432,534 m2 of retail floor space and 45,004 restaurant seats. The company also maintained 170 joint venture stores, including 159 Petco locations and 11 Casaideas stores.

During the first six months of the year, consolidated revenue reached MX$17.11 billion (US$913 million), representing a 0.3% decline year over year. Gross margin improved from 42.6% to 43.6%, while operating cash flow increased 2.1% to MX$2.44 billion (US$130 million). Net income declined 6.8% to MX$748.4 million (US$40 million).

The results reflect mixed performance across Grupo Gigante's business portfolio, with restaurants standing out as the only major commercial segment to report revenue growth during the period. 

Restaurants Drive Commercial Performance

While several business units recorded lower revenue, the restaurant division continued expanding its footprint and financial contribution.

Restaurant revenue increased 6.7% during the first half of 2026 to MX$4.61 billion (US$246 million), making it the only major commercial segment to post revenue growth. Segment operating income rose 5.8% to MX$474.7 million (US$25 million).

During the second quarter, Grupo Gigante opened two new Toks restaurants and one Shake Shack location. At the same time, it closed one Panda Express restaurant and two El Farolito units.

Following these changes, the restaurant portfolio consisted of 197 Toks, 26 Panda Express, 22 Shake Shack and 11 El Farolito restaurants, for a total of 256 locations. The network expanded by two restaurants compared to the end of 2025.

The continued expansion of Toks and Shake Shack reflects Grupo Gigante's focus on restaurant operations as a growth platform while selectively adjusting its portfolio across brands.

Outside the restaurant business, the company's retail and distribution operations faced weaker market conditions, contributing to lower revenue during the first half. 

Retail and Distribution Report Lower Revenue

Grupo Gigante's specialized retail segment reported first-half revenue of MX$9.12 billion (US$487 million), down 3.5% compared to the previous year.

Office Depot remained the group's largest retail format, operating 229 locations in Mexico, including two distribution centers, as well as 24 stores across Central America. The company also operated 10 RadioShack stores, 10 stores in partnership with Huawei and one Xiaomi store.

During the second quarter, Grupo Gigante closed one Office Depot location and six RadioShack stores as part of its ongoing portfolio adjustments.

Meanwhile, Distribución Prisa generated MX$2.19 billion (US$117 million) in revenue during the first half, representing a 5.8% decline year over year.

The stationery distribution business operated 48 Casa Marchand stores, three distribution centers in Mexico, Costa Rica and El Salvador, and five additional distribution centers in Chile.

Grupo Gigante said increases in inventories, supplier balances and accounts receivable reflected preparations for the back-to-school season, one of the company's most important annual commercial periods.

In addition to its operating businesses, Grupo Gigante continued investing in its real estate portfolio while maintaining high occupancy across its commercial properties. 

Real Estate Remains a Key Investment Area

The real estate business generated MX$1.16 billion (US$62 million) in revenue during the first half, a 5.5% decline compared to the previous year. Segment operating income reached MX$950.6 million (US$51 million).

Through Controinmuebles, Grupo Gigante managed 77 properties with approximately 1.11 million square meters of leasable commercial space. Occupancy reached 92.3% as of June 30.

According to the company's corporate information, its real estate portfolio also includes five G-Square self-storage facilities and 80 SET parking facilities.

The business continues to provide recurring income while supporting the group's commercial operations through its retail and restaurant locations.

The company's capital allocation during the first half indicates that restaurants and real estate remain strategic priorities for future growth. 

Capital Spending Focuses on Expansion Priorities

Grupo Gigante invested MX$786.4 million (US$42 million) in long-term assets during the first half of 2026, representing a 64.3% increase compared to the same period last year.

The largest share of investment, MX$334.7 million (US$18 million), was allocated to the real estate business. Restaurants received MX$267.1 million (US$14 million), followed by MX$126.6 million (US$7 million) for specialized retail operations, MX$8 million (US$0.4 million) for Distribución Prisa and MX$50 million (US$2.7 million) for other businesses.

Looking ahead, Grupo Gigante said it plans to continue pursuing selective expansion, organic growth, e-commerce development and investments in technology, logistics and distribution capabilities.

However, as of the end of June, the company reported no outstanding commitments to acquire additional property or equipment and did not announce specific store openings, restaurant launches or expansion projects beyond those already completed during the period.

Grupo Sanborns Strengthens Sales 

In other related news, MBN reported that Grupo Sanborns reported higher sales and operating performance in 2Q2026, driven by growth across its commercial operations despite increased technology investments, labor costs and provisions for doubtful accounts that weighed on profitability. According to Grupo Carso, revenue rose 8.4% year over year to MX$17.81 billion (US$950 million), while operating income increased 11.4% to MX$806 million (US$43 million) and EBITDA grew 7.5% to MX$1.36 billion (US$73 million).

The company attributed part of its higher operating costs to the implementation of Oracle and Salesforce platforms, reflecting continued investment in enterprise technology to improve operations and customer engagement. Grupo Sanborns accounted for 37% of Grupo Carso's consolidated revenue, 16% of operating income and 19% of EBITDA during the quarter.

Despite stronger sales, controlling net income fell 6.3% to MX$566 million (US$30 million), with net margin declining from 3.7% to 3.2%. Operating margin improved slightly to 4.5%, while EBITDA margin remained stable at 7.7%. Grupo Carso did not disclose results by individual retail formats or business segments.