Markets live updates: ASX set to rise, Wall Street climbs, oil falls on US–Iran deal hopes

In an ASX statement today, the Mexican fast-food chain said it will immediately stop trading at its restaurants in Chicago, after deciding the US business was not meeting its financial targets.

Founder and co-CEO Steven Marks said the brand and food offering were strong, but sales momentum was not improving enough, and cracking the US would take more time and money than expected.

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. Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected.

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.

We have a long runway ahead of us in Australia as we progress towards our long-term target of 1,000 restaurants and segment underlying EBITDA as a percentage of network sales of 10%.

Concentrating our capital, focus and infrastructure behind this opportunity is the most effective way to compound shareholder value over the long-term.

We are very proud of our international partners in Singapore and Japan and see substantial growth ahead in each market.

Beyond Singapore and Japan, we continue to believe there will be the right opportunities, in the right markets, with the right models. When those opportunities arrive, we will be ready. Today’s decision is about the US specifically, it is not a statement about GYG’s global potential.

The company says Australia will remain its core focus. It is still on track to open 32 restaurants this financial year and now expects its Australian segment underlying EBITDA to reach about $85 million in FY26, up 29 per cent on last year.

The US exit will come with a one-off hit of US$30 million to US$40 million, although the cash cost is expected to be no more than US$15 million. Guzman y Gomez says the exit should not affect its final dividend.