Shares of the Mexican-themed fast-food chain Guzman y Gomez surged by more than 20% on Friday following the company’s announcement that it will immediately cease operations in the United States. The decision marks a significant pivot for the Australian-based firm, which first entered the American market in 2020 but struggled to gain the necessary traction to justify further investment.

Founder and co-CEO Steven Marks explained that a recent three-month assessment of the U.S. business revealed that achieving success would require significantly more time and capital than originally anticipated. Consequently, the company has decided to shutter its Chicago locations to refocus its resources on its core operations in Australia, where it maintains a strong presence of 237 restaurants and has set a long-term goal of reaching 1,000 locations.

Market analysts have largely welcomed the move, noting that the company faced stiff competition in the U.S. and struggled to differentiate itself from established rivals like Chipotle. By exiting the American market, leadership can now dedicate its full attention to its more successful international segments in Australia, Singapore, and Japan, where the company continues to pursue an aggressive expansion strategy of opening over 40 new restaurants annually.

Despite the withdrawal from the U.S., the company’s board maintains that the brand holds significant global appeal. Management has pledged to support its affected U.S. staff throughout the transition process, ensuring the closure is handled with integrity as the firm shifts its focus back to its most profitable and scalable regions.