Australia's Guzman Y Gomez gains most in over a month on US exit

Guzman Y Gomez

22/05/2026 02:27

Updates

** Guzman Y Gomez GYG.AX stock rise as much as 19.1% to A$21.54, on track for biggest intraday pct gain since April 7

** Stock touches highest level since April 23

** Mexican-themed fast-food chain says it has decided to exit US market, cease trading its restaurants in Chicago

** "Business is unlikely to deliver the performance that would justify continued investment of shareholder capital" - Steven Marks, founder and Co-CEO of GYG

** Expects to recognise one-off impact of between $30 million-$40 million in FY results

** Adds, one-off costs not expected to affect FY26 final dividend

** Losses from the US business were weighing on the group's earnings, so the sooner-than-anticipated exit is positive, says RBC Capital Markets analyst

** YTD, stock down 2.5%

(Reporting by Aamir Sheik Khalid and Rajasik Mukherjee in Bengaluru)

((Rajasik.Mukherjee@thomsonreuters.com))