marketexit News & Analysis

Guzman y Gomez (GYG) Shares Surge 20.58% After US Exit Announcement

Shares of Guzman y Gomez (GYG) increased by as much as 20.58% after the company announced its exit from the U.S. market to refocus on Australia. The decision came after three months of operations in the U.S., which founder Steven Marks indicated required more resources than anticipated. The company will shut down its restaurants in Chicago immediately while maintaining operations in Australia, which has 237 locations and aims for a long-term goal of 1,000. Analysts at Citi expressed support for the decision, citing low likelihood of long-term success in the U.S. market.