May 22 (Reuters) – Australia’s Guzman y Gomez said on Friday it will exit the U.S. market and immediately cease operations at its restaurants in Chicago, after concluding the business is unlikely to meet performance thresholds.
The Mexican-themed fast-food chain said the financial performance of its U.S. operations had not met their targets, despite progress in brand building, customer experience and operations.
Founder and co-CEO Steven Marks said stronger sales momentum had not materialised, adding the company would require “significantly more time and capital” than expected to scale in the United States.
The company said it would also incur a one-off hit of between $30 million and $40 million in its 2026 results related to the exit, subject to audit.
Guzman added that the one-off costs were not expected to affect its final dividend for 2026.
The company said it would support its U.S. employees through the transition.
Guzman made its debut on the Australian stock exchange in June 2024, at the time the country’s largest listing in three years.
(Reporting by Rajasik Mukherjee; Editing by Shailesh Kuber)
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