Tortilla Mexican Grill PLC said on Wednesday that it remains on track to meet 2024 trading expectations due to improved profitability in the first half.
Tortilla is the largest fast-casual Mexican restaurant group in the UK and Europe.
Tortilla said its pretax loss narrowed to £235,045 in the first half of 2024 from £615,107 a year before, despite a 3.7% decrease in revenue to £31.5 million from £32.7 million a year before.
Adjusted earnings before interest, tax, depreciation and amortisation for the half remained unchanged at £1.8 million.
The firm attributed this to work done to improve efficiencies, enhance purchasing power and supplier relationships
It also noted a strategic decision to revise its delivery partner strategy in the period.
Back in June, Tortilla acquired Fresh Burritos, Europe’s second largest fast-casual Mexican restaurant group.
The €4.0 million acquisition was part of Tortilla’s ’Vital Five’ growth strategy and will act as a ‘springboard’ into the European market.
Looking ahead, Tortilla said it expects to be able to produce consistent food at scale for the European market by the final quarter of 2024.
Tortilla also expects UK sales to grow, and plans to open at least three more UK franchise stores in the second half of the year.
Chief Executive Officer Andy Naylor commented: ‘We are very proud of the positive momentum we have driven throughout the business over the last six months. The UK business had lost momentum at the start of the year, and we had to make some big decisions to overhaul the trend. We have driven the UK business forward by revitalising our food offering and investing in people, brand awareness and technology.’
Tortilla shares were up 1.0% to 50.00 pence each in London on Wednesday morning.
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