Guzman y Gomez to Exit US Market, Focus on Australia and Asia
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- Guzman y Gomez is exiting the US market after determining that continued investment would require more time and capital than anticipated.
- The company will focus on its Australian expansion and growth in Singapore and Japan.
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Warum es wichtig ist
Guzman y Gomez has been assessing its US market performance, which has not translated into expected sales momentum despite confidence in its food and guest experience. The company has concluded that continued investment in the US would require significantly more time and capital than initially anticipated.
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.
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Guzman y Gomez will successfully refocus its capital and infrastructure on its Australian expansion.
Wahrscheinlich · Mittelfristig
Guzman y Gomez will continue to see substantial growth in Singapore and Japan.
Wahrscheinlich · Mittelfristig
Offene Fragen
- What is the specific timeline for the US exit?
- What are the financial implications of the US exit?
- What specific strategies will be employed for growth in Australia, Singapore, and Japan?
- What is the current performance of the US operations?