Guzman y Gomez Shares Surge 20% on US Exit, $40M Write-Down

Guzman y Gomez shares jumped 20% after the fast-food chain announced it will exit the US market. The Silicon Review reports on the $40M write-down and the company's renewed focus on Australia.

Guzman y Gomez shares surged as much as 20 percent on Friday after the Australian fast-food chain announced it would immediately exit the United States, shuttering its Chicago restaurants and taking a one-off hit of up to $40 million.

The Guzman y Gomez shares rally came as investors cheered the company's decision to end a costly six-year push into the world's biggest fast-food market. The ASX-listed burrito chain said its US operations had failed to meet financial targets despite progress in brand awareness and customer experience.

Founder and co-CEO Steven Marks said stronger sales momentum had not materialised, and the turnaround would require significantly more time and capital than expected. He added that the board concluded the US business was unlikely to deliver the performance that would justify continued investment of shareholder capital.

The exit from the United States will result in a one-off profit and loss impact of between 30million & 40 million in the company's 2026 results, subject to audit. Cash costs are capped at about $15 million. The one-off costs are not expected to affect the company's final dividend for 2026.

Investors instead focused on the strength of Guzman y Gomez's Australian operations, where the company forecast segment underlying EBITDA of around A$85 million for fiscal 2026, up 29 percent from a year earlier. The burrito chain reiterated its long-term goal of reaching 1,000 stores in Australia.

Guzman y Gomez first opened in Chicago in January 2020. The company's US experiment lasted about six years. Its franchise markets in Singapore and Japan continue to deliver strong sales growth and healthy unit economics.

Shares of the company closed at 18 on Thursday, giving it a market value of 1.8 billion. The stock surged as much as 21 percent to a $21.8 following the announcement.

The Silicon Review's analysis indicates that Guzman y Gomez's US exit is a strategic retreat that investors are rewarding. The company is redirecting capital from a money-losing expansion to its profitable home market, where it has a clear path to 1,000 stores.

Q: Why did Guzman y Gomez shares surge despite exiting the US market?
A: Investors cheered the end of a costly six-year US expansion that was draining resources. The company is redirecting capital to its profitable Australian operations, where it has a long-term goal of reaching 1,000 stores.

Q: How much will Guzman y Gomez's US exit cost the company?
A: The company expects a one-off hit of between 30millionand30millionand40 million in its 2026 results. Cash costs are capped at about $15 million.

Q: When did Guzman y Gomez first enter the US market?
A: Guzman y Gomez opened its first US restaurant in Chicago in January 2020. The company's US experiment lasted about six years before the exit was announced on May 22, 2026.

Q: What did founder Steven Marks say about the US expansion failure?
A: Marks said stronger sales momentum had not materialised and the turnaround would require significantly more time and capital than expected. The board concluded the US business was unlikely to justify continued investment of shareholder capital.

Q: Does Guzman y Gomez operate in any other countries outside Australia?
A: Yes. Guzman y Gomez has franchise markets in Singapore and Japan, which continue to deliver strong sales growth and healthy unit economics. The US exit does not affect those operations.

Q: What is Guzman y Gomez's long-term goal in Australia?
A: The Company has reiterated its long-term goal of reaching 1,000 restaurants in Australia, up from about 250 currently.