Guzman y Gomez Exits US Market with Focus Back to Australia
Synopsis
Guzman y Gomez confirmed its exit from the US market after shutting its Chicago restaurants, saying the business failed to meet financial targets despite ongoing investment. The company expects one-off FY26 losses linked to the closure but said cash impacts will remain limited. At the same time, GYG lifted its Australian earnings outlook, forecasting segment EBITDA of around $85 million for FY26 and reaffirming plans to open 32 new restaurants locally. Management said future international growth will now focus on franchise partnerships in Singapore and Japan as the company concentrates more heavily on expanding its stronger Australian business.
Guzman y Gomez Ltd exits US market for destined Chicago restaurants, will use proceeds of exit to focus on Australian expansion as company smooths out scope for improvement in those parts of its business.
Key Highlights
- Guzman y Gome’s trade has been discontinued in Chicago restaurants
- Australia EBITDA guidance raised to $85 million
- GYG still has 32 new Australian restaurant openings scheduled.
Guzman y Gomez is exiting US market
Guzman y Gomez Ltd has announced it is leaving US markets when it said it immediately ceased trading in Chicago with its restaurants. The UK company said that the American business did not achieve key financial targets, despite the input from a local management team.
The move is likely to lead to one-off charges of between US$30 million and US$40 million in the company’s FY26 impacting profit and loss statements, although cash outflows are expected to remain under US$15 million. The statutory and final dividend plans for FY26 remain unaffected, GYG said.
Strong GYG Australian Business Growth
Guzman y Gomez said its Australian operations are still performing strongly while the US business struggled. It increased its underlying FY26 EBITDA guidance for the Australia Segment to about $85 million, up 29% year-on-year.
GYG also reiterated plans to open 32 new restaurants across Australia this financial year as it continues driving towards its goal of 1,000 local stores. Australia continued to be its biggest growth market, with a substantial pipeline of prospective restaurant locations already secured, it said.
GYG retains international expansion strategy through Asia partnerships
US expansion “was going to take much more time and money than realized”, Founder and Co-CEO Steven Marks wrote in an email that made the case for halting investment. Instead, the firm will refocus international expansion efforts with its existing franchise partners in Singapore and Japan, where there has been strong sales momentum.
GYG recently launched its 24th GYG restaurant in Singapore. Despite the Guzman y Gomez Chicago close (and anticipated GYG FY26 loss from exit), management said it continues to see attractive, disciplined international growth opportunities in the right markets.
FAQs
- What is GYG’s new FY26 EBITDA guidance?
The firm is expecting Australian segment EBITDA of around $85m.
- Does the dividend remain unaffected by the US exit?
Will it impact GYG’s FY26 final dividend? No, according to GYG.
- Is Guzman y Gomez still going internationally?
Yes, the company continues its expansion into Singapore and Japan franchises.
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