Australia-based Mexican-themed casual fast food restaurant chain Guzman y Gómez (GYG) has decided to exit the US market.
The restaurant brand has closed its restaurants in Chicago with immediate effect.
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In a statement today (22 May), the company said it decided to leave the US because the business was failing to generate “acceptable” financial returns or achieve its performance targets.
GYG founder and co-CEO Steven Marks said: “I have always been confident in the differentiation of our food and guest experience; however, this was not translating to an improvement in sales momentum.
“Having spent the last three months in the US, I realised this was going to take significantly more time and capital than we had expected.
“In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital.”
The business also announced it will support every member of the US team through the transition with the “respect and integrity they deserve”.
Meanwhile, GYG’s board said its Australian operations are in a “solid position”, reporting business and network growth.
The company remains scheduled to open 32 new restaurants in Australia this financial year.
GYG now expects its Australia segment to deliver underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$85m ($60.7m) in FY26, which it said represents growth of 29% on the previous year.
Marks added: “We have a long runway ahead of us in Australia as we progress towards our long-term target of 1,000 restaurants and segment underlying EBITDA as a percentage of network sales of 10%.
“Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long-term.”
The group expects the US withdrawal to result in a one-off profit and loss charge of between A$30m and A$40m in its FY26 results, subject to audit review.
The company said quitting the US does not change the board’s view of the brand’s international potential or its plans to enter further markets.
GYG said that its partners in Singapore and Japan are continuing to post sales growth and maintain “healthy unit economics”. Both markets plan additional outlets over the next 12 months.
Marks concluded: “We are very proud of our international partners in Singapore and Japan and see substantial growth ahead in each market.”
In January, GYG signed a multi‑year exclusive strategic partnership with Uber Technologies and Portier Pacific, making Uber Eats its sole delivery platform partner in the Australian market.
