0117 GMT - Guzman y Gomez's bulls at UBS like the financial discipline displayed by the Australian fast-food franchiser's decision to exit the U.S. and focus closer to home. The investment bank's analysts think the Mexican-themed chain's efforts to expand in the U.S. were hampered by early decisions to avoid strip malls and to begin in Chicago, which they say is a high-cost market. Low brand awareness was a key challenge, they tell clients in a note. More positively, they expect lessons to be applied at GYG tries to grow in Singapore and Japan. The U.S. exit removes the prospect of multiyear losses, they add. UBS raises its target price 9.1% to A$24.00 and keeps a buy rating on the stock, which is up 2.7% at A$20.345. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

May 24, 2026 21:17 ET (01:17 GMT)

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