Guzman y Gomez (GyG) is closing all its US stores, marking the end of its attempt to break into the American fast-food market. The Mexican-themed chain informed shareholders on Friday that the performance of its eight Chicago-area outlets was unacceptable, despite its ambition to become the world's largest restaurant company.
Founder and co-chief executive Steven Marks said the US business could no longer justify the required investment. “Having spent the last three months in the US, I realised this was going to take significantly more time and capital than we had expected,” he stated. The closures are expected to cost up to US$40 million (A$56 million) in one-off costs.
The US has been described as a “graveyard” for Australian fast-food chains, with previous failures including Crust Pizza and Oporto. Analysts had warned that GyG would struggle against established rivals like Chipotle and numerous Latin American restaurants. GyG had offered larger burritos in the US to appeal to American customers, but sales momentum failed to improve.
RBC Capital Markets analyst Michael Toner described the exit as positive, noting that the US business had low prospects of success and was weighing down group earnings. GyG will now focus on its core Australian market, while also expanding in Singapore and Japan. At the end of 2025, GyG had 237 stores in Australia, making it the ninth largest chain.
Following the announcement, GyG's share price rose more than 15% in late morning trading, though it remains below the $22 initial public offer price from its 2024 ASX listing.
