Guzman y Gomez exits US market to refocus on Australia, Singapore and Japan

Guzman y Gomez will exit the US market and close its Chicago restaurants with immediate effect, after deciding the business was unlikely to deliver the performance needed to justify further investment.

The ASX-listed Mexican fast-food chain said its US operations had made progress on brand building, guest experience and operational standards, but financial performance had not met its targets.

Founder and co-CEO Steven Marks said the decision followed three months spent in the US assessing the business.

“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 3 months in the US, I realised this was going to take significantly more time and capital than we had expected,” Marks said.

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“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 move shifts attention back to Australia, where GYG said its business remains in a strong position with solid growth, strong unit economics and a significant pipeline of future restaurant sites.

The company remains on track to open 32 restaurants in Australia this financial year and expects to deliver Australia Segment underlying EBITDA of about $85 million in FY26, representing 29% growth on the prior year.

Marks said concentrating capital and infrastructure behind the Australian opportunity was the clearest path to long-term value creation.

“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%,” Marks said.

“Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long-term.”

GYG said the US exit does not change its belief in the global appeal of the brand, but signals a more disciplined approach to international expansion.

The company pointed to Singapore and Japan as stronger examples of its international model, where master franchise partners continue to deliver sales growth and healthy unit economics. Both markets are planning new restaurant openings in the next 12 months, with Singapore opening its 24th restaurant earlier this week.

“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,” Marks said.

“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.”

The US exit is expected to result in a one-off profit and loss impact of between US$30 million and US$40 million in GYG’s 2026 full year results, subject to audit review. The cash component of the exit costs is not expected to exceed US$15 million and includes lease liabilities, employee costs, contractual commitments and other exit costs.

GYG said the one-off items are not expected to affect its final dividend for FY26. The company’s buyback program will remain active, with its blackout period now starting from the close of ASX trading on 30 June 2026.