Guzman y Gomez (GYG) is quitting the US restaurant scene, immediately ceasing trading in its Chicago restaurants.
Steven Marks, founder and co-CEO of GYG has spent the past three months in the US in a bid to lift the sales trajectory of its eight stores.
“I realised this was going to take significantly more time and capital than we had expected,” Marks said. “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.”
As a result of the decision to exit the US, GYG expects a one-off P&L impact of between $42 million (US$30m) and $56 million (US$40m). These one-off items are not expected to impact GYG’s final dividend for FY26.
GYG entered the US market in 2020 with the goal of “hundreds, if not thousands” of restaurants.
A focus on Australia
Australia remains the core market for GYG which is on track to open 32 restaurants this financial year. And an update to its full-year guidance revealed expectations of 29 per cent growth on underlying EBITDA for the Australian business.
Overseas, master franchisees in Singapore and Japan expect to open more restaurants in the next 12 months.
Marks said “We are very proud of our international partners in Singapore and Japan and see substantial growth ahead in each market. Beyond Singapore and Japan, we continue to believe there will be the right opportunities, in the right markets, with the right models.
“When those opportunities arrive, we will be ready. Today’s decision is about the US specifically, it is not a statement about GYG’s global potential.”
