Chipotle rival Mexican chain closes all U.S. restaurants
The chain had recently reaffirmed plans to expand across the U.S. before abruptly exiting the market.
www.thestreet.comGuzman y Gomez has exited the U.S. market, closing all Chicago-area locations and ceasing U.S. operations as of late May 2026. This closure follows a failed expansion push and is expected to generate a sizeable one-time financial hit for the company. The announcements indicate the decision was driven by underwhelming sales targets and a need for more time and capital than anticipated.
Key points
- The U.S. shutdown became effective around May 22, 2026, with Chicago-area restaurants shuttered and all U.S. locations closed [Independent, Ground News coverage].[1][3]
- The company projects a substantial financial impact from exiting the U.S., including a potential hit reported in the tens of millions of dollars, and will refocus resources on Australia, Singapore, and Japan operations [Ground News summaries].[1]
- Legal actions have emerged in the U.S., including class-action filings related to abrupt closures and alleged failure to provide required WARN Act notice to staff [Ground News, MarketScreener, U.S. News; multiple sources].[7][8][9]
What happened and why
- Guzman y Gomez undertook an aggressive U.S. expansion in recent years but concluded the U.S. market wouldn’t deliver the required returns despite significant investment, leading to the shutdown of all U.S. stores [Independent, Ground News].[3][1]
- The U.S. exit is framed as a strategic reallocation of capital toward core markets where the chain already operates or sees stronger prospects (Australia, Singapore, Japan) [Ground News].[3][1]
Impact and next steps
- Financial: a one-time charge estimated around tens of millions of dollars as the company unwinds the U.S. business [Ground News summary].[1]
- Employment and legal: workers affected by the closures have raised questions and potential lawsuits regarding notice and WARN Act compliance in the U.S. [Ground News].[8][7]
- Business strategy: Guzman y Gomez will continue operating abroad and pursue disciplined growth outside the U.S., focusing on existing international markets and potentially future, more selective opportunities [Independent][Ground News].[3][1]
If you’d like, I can pull the most recent official statements from Guzman y Gomez and summarize the exact figures, or provide a concise timeline of the closure notices and subsequent legal actions with citations.