Australia's Guzman y Gomez (GYG), a Mexican-themed restaurant chain, announced it is leaving the US market due to poor sales and rising inflation.
This decision reverses earlier commitments made in February to expand gradually in Chicago. Analysts had flagged the US as a drag on earnings.
Shares rose 14% after the exit news, though still below the IPO price. The company cited the need for more time and capital to succeed in the US.
GYG expects a one-off charge of up to $40 million but forecasts higher profit in Australia.
