<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><a href="https://www.9news.com.au/national/guzman-y-gomez-share-price-fall-australia-asx/fa92fb80-c9ce-4c64-822c-603de49c8ee2" rel="" target="_blank" title="Guzman y Gomez"><span>Guzman y Gomez</span></a><span> has scuttled plans for an ambitious expansion in the </span><a href="https://www.9news.com.au/usa" rel="" target="_blank" title="United States"><span>United States</span></a><span> and will immediately shut its existing stores in Chicago, in a development that has sent its </span><a href="https://www.9news.com.au/asx" rel="" target="_blank" title="Australian share prices"><span>share prices</span></a><span> soaring.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Australian-owned Mexican-style </span><a href="https://www.9news.com.au/food" rel="" target="_blank" title="fast food giant"><span>fast food giant</span></a><span> will instead focus efforts on local growth after it struggled to compete in an already-saturated US market.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Founder and chief executive Steven Marks said he could not justify further investment in the US after GYG's weak financial performance in the region had "not been acceptable".</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/australian-man-dies-machu-picchu-peru/7df3f26c-9b02-4ddc-a416-c305e288d15b" rel="" target="_blank" title="Australian tourist dies after falling during hike on Inca Trail in Peru"><strong><span>Australian tourist dies after falling during hike on Inca Trail in Peru</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/world/dangerous-and-unacceptable-russian-fighter-jets-target-unarmed-british-spy-plane-in-black-sea-nearmiss/e75eb67d-ed89-4da8-aef0-d27bdd06cca0"><strong><span>Russian jets targeted British spy plane in Black Sea near-miss, UK says</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I have always been confident in the differentiation of our food and guest experience, however this was not translating to an improvement in sales momentum," Marks said in a statement to the Australian Securities Exchange (ASX).</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Having spent the last three months in the US, I realised this was going to take significantly more time and capital than we had expected.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/guzman-y-gomez-mexican-fast-food-giant-abandons-plans-for-us-expansion/48e399c2-4843-41d1-8d9e-4858373d6d1f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"In assessing the trajectory of the current network, the board and I have concluded that the business is unlikely to deliver the performance that would justify continued investment of shareholder capital."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GYG will close its eight stores in Chicago immediately.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The business praised its US staff for their "passion, professionalism and conviction" and said the team would be supported throughout the exit strategy.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GYG had failed to establish a strong share of the market in the US, with the likes of Taco Bell and Chipotle dominating the country's Mexican fast food industry.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Marks said the Australian market tells a very different story and assured investors the local network of stores are performing solidly.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GYG shares soared by 20 per cent after Marks made the announcement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE: </span></strong><a href="https://www.9news.com.au/national/pauline-hanson-swears-as-staffer-tells-journalist-to-shut-up/207f5f1e-7735-4ffd-a87c-10e622d61f46" target="_blank" title=""><strong><span>Hanson caught blasting reporter after walk-out</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Before today, the underperforming US expansion had weakened the company's share price, falling more than 40 per cent over the past 12 months.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Mexican-inspired fast food chain is on track to open 32 restaurants in Australia this financial year.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It currently operates around 250 restaurants in Australia. Marks said the brand is eyeing a national target of 1000 stores.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>GYG expects to deliver an operating profit of about $85 million in the 2026 financial year, a year-on-year growth of 29 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The cost of exiting the US market will result in a one-off impact of at least $42 million to its 2026 full-year results.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We have a long runway ahead of us in Australia as we progress towards our long-term target of 1000 restaurants and segment underlying EBITDA as a percentage of network sales of 10 per cent," Marks said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long-term."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>However, the company's decision to abandon its US expansion does not diminish GYG's "global appeal", Marks added.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The brand is performing well in Japan and Singapore.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Beyond Singapore and Japan, we continue to believe there will be the right opportunities, in the right markets, with the right models," Marks said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"When those opportunities arrive, we will be ready.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Today's decision is about the US specifically, it is not a statement about GYG's global potential."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><strong><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>