Guzman Y Gomez to Cease All US Operations
The burrito chain expects a one-time hit of up to $US40 million after deciding the U.S. business could not meet sales targets.
- On Friday, Australian fast-food chain Guzman y Gomez announced it will immediately close its Chicago restaurants and cease all U.S. operations, ending its six-year American expansion effort.
- Founder and co-CEO Steven Marks stated the U.S. business failed to meet sales targets, requiring "significantly more time and capital than we had expected" to turn around.
- Shares rose around 14% following the announcement, yet the company expects a $56 million financial hit from the exit, according to its latest financial guidance.
- Returning to Australia, Marks will focus on local operations where the company operates 237 restaurants and targets 1,000 locations long-term, analysts said.
- Guzman y Gomez maintains established operations in Singapore and Japan under master franchise arrangements and remains committed to disciplined global expansion beyond the U.S.
28 Articles
28 Articles
Australian Mexican Fast Food Chain Guzman Y Gomez Exits US Market
Australian Mexican food chain Guzman Y Gomez (GYG) has left the United States market after it missed key sales and performance targets. In a statement to the Australian Stock Exchange (ASX), the company said it had been consistent and transparent about the thresholds the business needed to prove the U.S. concept. Despite the progress made by the team on brand and guest experience, the company said the financial performance of the U.S. business h…
Guzman y Gomez exits US after succumbing to ‘graveyard’ for Australian fast food chains
Company founder Steven Marks says US stores will close as it can no longer justify cost of trying to break into crowded market Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Guzman y Gomez is closing its US business after failing to establish [...]
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