Where to invest $10,000 in ASX growth shares

ASX growth shares can deliver the biggest returns over the long term as they compound their profit at a strong rate which justifies higher share prices.

When companies sell a compelling product or service to customers, they can continue to grow their market share over time and benefit from stronger profit margins, helping earnings accelerate.

If I had $10,000 to invest in ASX growth shares, I'd buy the two names below with an even split of $5,000 each.

Siteminder Ltd (ASX: SDR)

Siteminder provides software for more than 50,000 hotels around the world, helping them sell rooms and run their operations, including deciding what room price to choose.

As of the end of October 2026, the Siteminder share price is down more than 50% since 3 November 2025, so we can buy the ASX growth share at much better value at a time when revenue is expected to soar and profit margins continue rising. The market is paying close attention to the risk of potential AI competition, but I think its underlying numbers can help give investors confidence. I believe Siteminder's offering will seem even more attractive in this AI era because it's a trusted, market-leading provider.

Siteminder held its annual general meeting (AGM) at the end of October, which was very promising.

Thanks to rising adoption of its smart platform and dynamic commerce engine modules, it expects annual recurring revenue (ARR) to grow in the "mid-20s". It also expects the adjusted EBITDA (operating profit) margin to "expand meaningfully".

The world is becoming increasingly digital, hotels need to connect with potential guests through online means and offer rooms at the right price – Siteminder offers both of those services. I believe that's why it's seeing strong adoption of its software (and additional modules) – between FY22 to FY26, its property base grew at a compound annual growth rate (CAGR) was 13%, while average revenue per property rose 9% annually.

According to the earnings per share (EPS) projection for FY28 on CMC Invest, the Siteminder share price is valued at 34x FY28's estimated earnings, which looks cheap if revenue (ARR) grows by more than 20% per year, combined with rising margins.

Guzman Y Gomez Ltd (ASX: GYG)

GYG is a Mexican restaurant business with a significant network of locations in Australia, including both franchise and company-owned outlets. It also has a franchise presence in Singapore and Japan.

I'm attracted to the company's impressive comparable sales growth at its existing network as well as ongoing network expansion efforts, combined with rising profit margins.

The last update was a good demonstration of the company's growth potential. There's a lot of competition in the quick service restaurant (QSR) sector, which is a risk, but its growth shows customers are loving the GYG food.

On 9 October 2026, the ASX growth share revealed its quarterly update for the three months to 30 September 2026. Guzman Y Gomez's total network sales increased 18.8% to $387.5 million, with Australian network sales growing by 18.8% to $363 million and Asian network sales increasing 17.8% to $24.5 million.

Perhaps the more important growth figure was its comparable sales growth of 7.1% across Australia, Singapore and Japan. That level of improvement shows the existing store network is performing strongly, in my view.

Guzman Y Gomez has significant growth plans. It wants to grow its Australian network from 258 at September 2026 to 1,000 within 20 years.

Not only could revenue rise significantly in the coming years, but management think profit margins can rise too. In FY27 alone, the underlying EBITDA (operating profit) as a percentage of network sales is expected to expand to between 6.7% to 6.9%, up from 6.2% in FY26. Rising margins are a great sign of future profitability.

According to the EPS projection on CMC Invest for FY28, the Guzman Y Gomez share price is valued at 36x FY28's estimated earnings.

The post Where to invest $10,000 in ASX growth shares appeared first on The Motley Fool Australia.

Motley Fool contributor Tristan Harrison has positions in Guzman Y Gomez and SiteMinder. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026