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Guzman Y Gomez Pulls the Plug on ‘Underperforming’ US Expansion, Shutters Stores
The burrito chain expects a one-time hit of up to $US40 million after deciding the U.S. business could not meet sales targets.
- On Friday, Australian fast-food chain Guzman y Gomez announced it will immediately close its Chicago restaurants and cease all U.S. operations, ending its six-year American expansion effort.
- Founder and co-CEO Steven Marks stated the U.S. business failed to meet sales targets, requiring "significantly more time and capital than we had expected" to turn around.
- Shares rose around 14% following the announcement, yet the company expects a $56 million financial hit from the exit, according to its latest financial guidance.
- Returning to Australia, Marks will focus on local operations where the company operates 237 restaurants and targets 1,000 locations long-term, analysts said.
- Guzman y Gomez maintains established operations in Singapore and Japan under master franchise arrangements and remains committed to disciplined global expansion beyond the U.S.
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Guzman y Gomez exits US after succumbing to ‘graveyard’ for Australian fast food chains
Company founder Steven Marks says US stores will close as it can no longer justify cost of trying to break into crowded market Follow our Australia news live blog for latest updates Get our breaking news email, free app or daily news podcast Guzman y Gomez is closing its US business after failing to establish [...]
Sydney Morning Herald+3 Reposted by 3 other sources
Guzman founder moved to Chicago to save its US dream. It wasn’t enough
The Australian-founded Mexican chain has spent six years and more than $100 million on its US expansion, but on Friday announced it was shutting down all stores in the country.
·Sydney, Australia
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Total News Sources24
Leaning Left8Leaning Right2Center3Last UpdatedBias Distribution62% Left
Bias Distribution
- 62% of the sources lean Left
62% Left
L 62%
C 23%
15%
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