economy
Guzman y Gomez shares surge as much as 20% after fast-food chain says it will exit U.S. market
Guzman y Gomez's shares surged after announcing that it has decided to exit the U.S. market while keeping its Australian business as the main focus
TL;DR
- Guzman y Gomez shares rose as much as 20.58% on Friday.
- The company is exiting the U.S. market to focus on Australia.
- Founder and co-CEO Steven Marks stated the U.S. venture required more time and capital than expected.
- The decision to exit the U.S. is based on current business performance not justifying continued investment.
- Guzman y Gomez will cease operating restaurants in Chicago immediately.
- Analysts from Citi supported the exit, noting skepticism about the company's U.S. prospects and citing challenges like competition from Chipotle.
- The company aims for significant growth in Australia, targeting 1,000 restaurants long-term from its current 237.
- Guzman y Gomez entered the U.S. in 2020 and also operates in Singapore and Japan.
- The company plans to open over 40 restaurants globally per year.