Guzman y Gomez has decided to pull out of the U.S. market and will immediately stop operations at its Chicago restaurants, the Australian fast-food chain said on Friday. The company said it reached the conclusion after determining the U.S. business is unlikely to reach the performance thresholds it had set.
In a statement, the chain said that while it had made progress on brand development, customer experience and back-of-house operations in the United States, the financial returns have not met expectations. Founder and co-CEO Steven Marks was quoted as saying that the stronger sales momentum the company had anticipated did not materialise and that scaling in the U.S. would require "significantly more time and capital" than originally planned.
Guzman y Gomez said the exit will generate a one-off charge of between $30 million and $40 million to its 2026 results, subject to audit. The company added that these one-off costs are not expected to affect its final dividend for 2026.
The company also said it will provide support to employees affected by the U.S. closures during the transition period. No further operational details or timelines for employee support were provided in the announcement.
Guzman y Gomez listed on the Australian Securities Exchange in June 2024 in what was at the time the country’s largest listing in three years. The decision to exit the U.S. comes after the company assessed that its current investment and growth trajectory in that market would not deliver the required financial outcomes within its expected timeframe.
Summary
- Guzman y Gomez will exit the U.S. market and close its Chicago restaurants immediately after concluding U.S. performance is unlikely to meet targets.
- The company expects a one-off hit of $30 million to $40 million in its 2026 results related to the exit, subject to audit, and said this is not expected to affect its final 2026 dividend.
- Guzman will support U.S. employees through the transition and cited progress on brand and operational fronts despite financial underperformance.
Key points
- Company strategy - Guzman concluded the U.S. business will need substantially more time and capital than anticipated to scale, prompting the exit decision.
- Financial impact - The exit will trigger a one-off charge of $30 million to $40 million in fiscal 2026, subject to audit; the company stated this should not affect its final dividend for 2026.
- Employee and operational impact - Guzman said it will support affected U.S. employees during the transition; immediate operational effects include the cessation of activity at Chicago locations.
Risks and uncertainties
- Audit adjustments - The $30 million to $40 million estimated one-off cost is subject to audit and could change pending finalisation.
- Employee transition - The form and adequacy of support for U.S. staff were not detailed in the announcement, leaving uncertainty about the practical impact on employees.
- Financial performance - The company reported that U.S. financial performance did not meet targets despite operational and brand progress, indicating continued uncertainty about future international expansions.
This is a company-led strategic withdrawal from an international market after internal assessment of scalability and return on capital. Guzman y Gomez will recognise a material one-off charge in its 2026 results related to the exit, will maintain its planned final dividend for 2026 according to the announcement, and will provide transition support to impacted U.S. employees. The company’s ASX listing in June 2024 was referenced as context for its public-market position.