Chipotle rival Guzman y Gomez Mexican Kitchen closes all US restaurants
Yahoo Finance • • business
Key Points:
- Guzman y Gomez Mexican Kitchen, an Australian fast-casual chain and Chipotle rival, has permanently closed all eight of its U.S. restaurants in the Chicago area after six years of operation.
- The company cited slower-than-expected sales momentum and the need for more time and capital as reasons for exiting the U.S. market, despite earlier plans to open hundreds of locations nationwide.
- Guzman y Gomez will now focus on expanding its core Australian business, aiming for 1,000 restaurants and improved profitability, which has positively impacted its Australian stock price.
- The closure reflects broader challenges facing U.S. restaurants, including cautious consumer spending, rising food costs, and declining traffic, which have pressured many chains trying to scale.
- Industry analysts view the U.S. exit as a positive move for Guzman y Gomez’s overall financial health, as the American operations were limiting earnings growth.