Guzman y Gomez shares jump after U.S. exit to refocus on Australian growth

Shares in Guzman y Gomez surged by as much as 20.58% on Friday after the Mexican-inspired restaurant group announced its withdrawal from the U.S. market in order to concentrate on its Australian operations.

Steven Marks, the company’s founder and co-chief executive, explained that after spending three months in the United States, he had concluded that expanding there would require far more time and financial resources than originally anticipated. He stated that the current performance of the American business did not justify further investment from shareholders.

Despite the decision, the company emphasized that it still believes strongly in the international potential of the GYG brand and remains committed to expanding into new markets in a careful and strategic manner. Guzman y Gomez also confirmed the immediate closure of its Chicago restaurants and pledged to support its U.S. employees throughout the transition with professionalism and respect.

Analysts from Citigroup welcomed the move, noting that they had previously questioned the company’s prospects in the United States. They argued that the brand struggled to distinguish itself from competitors such as Chipotle Mexican Grill and faced structural difficulties in Chicago. Shares were later trading around 14% higher at 20.56 Australian dollars.