Australian fast-food chain Guzman y Gomez says 'adios' to tough US market
Australian listed fast-food chain Guzman y Gomez announced it will close its seven US restaurants and exit the market. According to Nikkei Asia, the company is redirecting capital toward its struggling Australian home market and an Asian expansion plan.
In comments to Nikkei Asia, Guzman y Gomez Chief Executive Steven Marks said the seven US restaurants would shut by 30 September and that the regional office in the Chicago area would be wound up. The company said the US operation was generating annual losses of about A$25 million.
Listed on the Australian Securities Exchange in 2024 and operating 220 restaurants in Australia at the end of March, the chain is reallocating capital to defend its Sydney-led home market through a softer consumer cycle and accelerate expansion in Singapore, Japan and the Philippines. Macquarie Securities analyst Mitchell Sneddon described the move as 'positive focus for the company'.
Guzman y Gomez announced its first Tokyo restaurant will open in Shibuya by the end of June and signed a 35-store master franchise deal in the Philippines. Readers should weigh decisions on ASX:GYG shares with a licensed financial adviser.
More from Australia-Pacific
Aspiration has changed since the Howard era. This budget is finally catching up
Treasurer Jim Chalmers's 2026-27 budget proposes a sweeping reorientation of housing, childcare and education incentives. According to ABC analysis, the budget breaks with the middle-class identity of the John Howard era and refocuses on a younger generation of renting voters.
Caution and long-term thinking as federal budget softens real estate market
ABC News Australia reports that recent federal budget tax changes are starting to cool Australian property markets, especially in Adelaide. Real-estate agents and buyers say they are shifting to longer-term strategies and more cautious bidding.
Will drastic NDIS overhaul repeat the mistakes of the past?
Australia's planned overhaul of the National Disability Insurance Scheme is raising fears that the cuts could repeat the mistakes of the 1980s deinstitutionalisation wave. Advocates and health experts warn sudden changes could leave a serious care gap.