Guzman y Gomez exits US after succumbing to ‘graveyard’ for Australian fast food chains
Summary
Guzman y Gomez is closing its US stores after failing to compete in a market with many Mexican food options. The company will focus on growing in Australia and Asia instead.Key Facts
- Guzman y Gomez (GyG) is shutting its US business due to poor sales performance.
- The US market has many Mexican food chains, making it hard for GyG to stand out.
- GyG’s US stores, mostly in Chicago, will close, costing up to $40 million USD.
- The company tried offering larger burritos in the US to attract customers.
- Analysts said GyG’s US business might not break even for at least ten years.
- GyG will focus on expanding in Australia, Singapore, and Japan.
- There were 237 GyG stores in Australia at the end of 2025, making it the ninth largest chain.
- After the closure announcement, GyG’s share price rose over 15% but remains below its initial public offering price.
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