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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.
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‘It’s a travesty’: Guzman y Gomez closes U.S. locations
Just before 11 a.m. on Friday morning, two Northwestern students approached the door of Guzman y Gomez Mexican Kitchen in downtown Evanston. They stopped, looking at the bright yellow sign on the door that read “permanently closed” in bold letters. One leaned forward, cupping his hands around his eyes and squinting through the glass door... The post ‘It’s a travesty’: Guzman y Gomez closes U.S. locations appeared first on The Daily Northwestern.
Australian burrito chain Guzman y Gomez abruptly shutters all Chicago-area locations
Australian restaurant chain Guzman y Gomez’s attempt to build a burrito empire in the Chicago area came to an abrupt halt Friday when the company closed all eight locations, including one in Chicago’s Bucktown neighborhood.
·Chicago, United States
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Coverage Details
Total News Sources39
Leaning Left9Leaning Right3Center12Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 38%
C 50%
12%
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