On Friday, shares of Guzman y Gomez surged by as much as 20.58% following the announcement that the fast-food chain would withdraw from the U.S. market to concentrate on its Australian business. Steven Marks, the company's founder and co-CEO, indicated that the U.S. operations required more time and capital than anticipated, and the current performance did not justify further investment.
The company will immediately cease its operations in Chicago and has committed to supporting its U.S. team during this transition. Analysts from Citi expressed support for the decision, noting skepticism about the company's prospects in the U.S. due to challenges such as competition with Chipotle and structural issues in Chicago.
They highlighted that the exit allows Marks to refocus on Australia, where the company has significant growth potential, aiming to expand from 237 restaurants to a long-term target of 1,000. Guzman y Gomez, which entered the U.S. market in 2020, also operates in Singapore and Japan and plans to open over 40 restaurants globally each year.
The shares last traded approximately 14% higher at 20.56 Australian dollars