Guzman y Gomez Exits U.S. Market to Focus on Australia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 22 2026
0mins
Source: CNBC
- Market Exit Decision: Guzman y Gomez announced its exit from the U.S. market, with shares rising 20.58% on Friday, reflecting investor approval of the company's strategic shift back to Australia.
- Capital Allocation Optimization: Co-CEO Steven Marks indicated that the U.S. business performance could not justify continued investment, suggesting a more effective use of shareholder capital focused on growth potential in Australia.
- Future Expansion Plans: Despite exiting the U.S. market, Guzman y Gomez remains optimistic about the global appeal of its brand, planning to gradually expand into new regions with a target of 1,000 restaurants in Australia, currently operating 237.
- Employee Transition Support: The company committed to respecting and supporting its U.S. team during the exit process, demonstrating a sense of responsibility towards employees while laying a solid foundation for future expansions in other markets.
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Analyst Views on CMG
Wall Street analysts forecast CMG stock price to rise
25 Analyst Rating
18 Buy
7 Hold
0 Sell
Moderate Buy
Current: 32.420
Low
35.00
Averages
45.95
High
56.00
Current: 32.420
Low
35.00
Averages
45.95
High
56.00
About CMG
Chipotle Mexican Grill, Inc. is a restaurant company. The Company develops and operates restaurants that serve a menu of burritos, burrito bowls, quesadillas, tacos, and salads, made using fresh ingredients. The Company operates approximately 3839 restaurants in the United States, Canada, the United Kingdom, France, Germany, Kuwait, and United Arab Emirates. It owns and operates all its restaurants in North America and Europe. The Company is focused in serving sourced, classically cooked, real food with wholesome ingredients without artificial colors, flavors or preservatives. Its menu includes Burrito, Burrito Bowl, Lifestyle Bowl, Quesadilla, Salad, Tacos, Kid’s Meal, Chips and Sides, and Build your Own (digital only). It also includes Raymonte’s Chicken Bowl, The Mr. Fantasy Burrito, Carne Asada, Build-Your-Own Chipotle, catering and group order. Its subsidiaries include Chipotle Mexican Grill Canada Corp., Chipotle Mexican Grill France SAS, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- U.S. Market Exit: Guzman y Gomez has announced the closure of all its U.S. restaurants, marking a failure in its expansion plans, with founders stating that despite confidence in brand differentiation, sales did not improve, leading to this difficult decision.
- Significant Financial Impact: The exit is expected to result in a one-off loss of between $30 million and $40 million in the 2026 fiscal year, with cash costs not exceeding $15 million, putting pressure on the company's overall financial health.
- Changing Consumer Behavior: With high inflation and economic uncertainty, 30% of American consumers have reduced dining out, leading to declining restaurant traffic, and the closure of Guzman y Gomez reflects this broader trend affecting many dining establishments.
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