**HEADLINE: "AMERICAN DREAM? NO GRACIAS." MAJOR MEXICAN CHAIN PULLS OUT OF U.S.**
**The Snippet:**
In a stunning reversal of the American expansion playbook, Mexico's third-largest restaurant chain, **Cocina del Sol**, has announced the immediate closure of all 42 U.S. locations, citing "unsustainable regulatory hostility" and a "structural misalignment with shareholder returns."
**Why it matters:**
- **The Cost:** The exit triggers a $120 million write-down, but analysts note the move was prescient—U.S. labor costs had spiked 35% in two years, eroding margins that depend on high-volume, low-ticket sales.
- **The Strategic Pivot:** The chain is redirecting all capital to its booming domestic market and a new "near-shore" expansion in Central America, targeting a 22% EBITDA lift by Q1 2025.
- **The Ripple Effect:** Five U.S. franchise partners now face bankruptcy; Texas alone lost 1,200 jobs.
**The Takeaway for CEOs:**
Forget "growth at all costs." This is the first major casualty of a new era where multinationals are ruthlessly optimizing for margin over market share. If your U.S. subsidiary can't generate a 15%+ ROI *after* factoring in labor volatility, cut it. Cocina del Sol just showed you how to walk away clean—and profitably.