Guzman y Gómez Shuts Chicago Outlets, Exits US Market Citing Poor Returns

SYDNEY, May 22, 2026 — Australian Mexican-themed casual fast food chain Guzman y Gómez (GYG) announced on May 22, 2026 that it has closed all its restaurants in Chicago with immediate effect and will withdraw entirely from the United States market, citing an inability to generate acceptable financial returns or meet performance targets across its US network.

The decision ends GYG's US presence and triggers a one-off profit and loss charge of between A$30m and A$40m in the company's FY26 financial results, subject to audit review. The exit does not affect the brand's operations in Australia, Singapore or Japan.

US Business Failed to Meet Financial or Sales Targets

In a statement issued on May 22, GYG said its US operations were failing to deliver acceptable financial returns and had not achieved the performance targets set by the company. The board concluded that the trajectory of the US network made continued investment of shareholder capital unjustifiable.

GYG founder and co-CEO Steven Marks said he had spent the previous three months in the US assessing the business firsthand. While expressing confidence in the brand's food and guest experience, he said the quality of the offering was not translating into improved sales momentum. He added that returning the business to target performance would require significantly more time and capital than the company had anticipated.

Chicago Outlets Closed With Immediate Effect

All GYG restaurants in Chicago shut on the date of the announcement. The company stated it will support every member of its US team through the transition, describing its commitment to doing so with respect and integrity. No total number of closed outlets or affected staff figures were disclosed in the announcement.

The one-off P&L charge of between A$30m and A$40m associated with the US withdrawal will be recorded in FY26 results and remains subject to audit review.

Australia Segment on Track for 29% EBITDA Growth in FY26

Despite the US exit, GYG's board described its Australian operations as being in a solid position, with both business and network growth on track. The company expects its Australia segment to deliver underlying earnings before interest, taxes, depreciation and amortisation of A$85m, equivalent to approximately USD $60.7m, in FY26. That figure represents growth of 29% on the prior year.

GYG remains scheduled to open 32 new restaurants in Australia during the current financial year. Marks stated the company's long-term target for the Australian market is 1,000 restaurants, with a segment underlying EBITDA margin of 10% as a percentage of network sales. He described concentrating capital, focus and infrastructure on Australia as the most effective path to compounding shareholder value over the long term.

Singapore and Japan Partners Report Sales Growth

GYG's international partner markets, Singapore and Japan, were not affected by the US exit decision. The company said both markets are continuing to post sales growth and maintain healthy unit economics. Each market has plans to open additional outlets over the next 12 months.

Marks said the company is proud of its international partners in Singapore and Japan and sees substantial growth ahead in each market. GYG also confirmed that its decision to exit the US does not change the board's view of the brand's international potential or its plans to enter further markets in future.

Uber Eats Delivery Partnership in Australia Unaffected

In January 2026, GYG signed a multi-year exclusive strategic partnership with Uber Technologies and Portier Pacific, designating Uber Eats as its sole delivery platform partner across the Australian market. The company made no reference to any impact on this arrangement as a result of the US withdrawal.