Asia
Guzman y Gomez Exiting US Market; Expects One-Off Impact of Up to $40 Million
Guzman y Gomez (ASX:GYG) is exiting the US market with immediate effect as the business has not delivered sales momentum and is not meeting financial targets, according to a Friday filing with the Australian bourse.As a result of the exit, the company expects to recognize a one-off profit and loss impact of between $30 million and $40 million in its 2026 results. The cash component of the exit costs, relating to lease liabilities, employee costs and other contractual commitments, is not expected to be higher than $15 million.The one-off items are not expected to impact the company's final dividend for fiscal 2026."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," Guzman y Gomez Co-CEO Steven Marks said.The company remains focused on its operations in Australia, where it plans to open 32 restaurants in the current financial year. It also expects to deliver fiscal 2026 underlying earnings before interest, taxes, depreciation, and amortization of about AU$85 million in the Australia segment.Elsewhere, Guzman y Gomez plans new restaurant openings in Singapore and Japan over the next 12 months.
ASX:GYG