shutting down eight stores in Chicago<\/a>.<\/p>\nThe company booked a $67.3 million write-down from closing these stores in a major blow to its $40.6 million underlying profit in the 2026 financial year.<\/p>\n
A letter from co-CEOs Steven Mark and Hilton Brett said the closures were right for the Mexican-themed chain.<\/p>\n
\u201cWhile we made the difficult decision to close our US operations earlier this year, we believe this was the right long-term decision that we will discuss in more depth in this letter,\u201d the letter said.<\/p>\n
\u201cThe exit from our US operations is now complete. While we take with us many learnings, our conviction in the success of GYG outside Australia has not changed.\u201d<\/p>\n
The co-CEOs also highlighted widespread cost of living problems plaguing Australians, but noted it was maintaining customers.<\/p>\n
\u201cDespite a more challenging macroeconomic environment this year, the value embedded in our menu (for example, our $12 Brekkie Bundle, $12 Chicken Mini Meal or $3 taco) has increasingly resonated with guests,\u201d they said.<\/p>\n
The company reported an 18 per cent jump in revenue to about $1.38 billion and declared a 48 cent per share franked full-year dividend.<\/p>\n
Investors rallied behind the burrito chain after it shared its results.<\/p>\n
Its share price jumped 12.4 per cent as of 12.10pm, boosting the company\u2019s value by about $300 million.<\/p>\n
Investors were also buoyed by GYG’s strong performance in the first seven weeks of the 2027 financial year.<\/p>\n
Sales growth was expected to continue at \u201cmid-single digits\u201d throughout FY27 but has tracked above this at \u201chigh-single digit levels\u201d.<\/p>\n
Guzman Y Gomez opened 32 new restaurants in Australia and another three in Singapore throughout the past financial year.<\/p>\n
The chain added 20 restaurants in the second half of the financial year, lifting the global number of GYG restaurants to 284.<\/p>\n
It has plans for another 35 stores in Australia across FY27, with many expected to open towards the end of the financial year.<\/p>\n","protected":false},"excerpt":{"rendered":"Australia\u2019s largest burrito chain sunk to a $26.7 million loss after closing US restaurants, but its share price…\n","protected":false},"author":2,"featured_media":863066,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[2001,64,63,99,80758,80757,432352],"class_list":["post-863065","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-asx","tag-au","tag-australia","tag-business","tag-guzman-y-gomez","tag-gyg","tag-mexican-themed-chain"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/863065","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=863065"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/863065\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/863066"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=863065"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=863065"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=863065"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}