Tortilla Mexican Grill H1 revenue rises 5.9% on UK demand, France store conversion

By Reuters News


Overview

  • UK fast-casual Mexican chain's H1 revenue rose 5.9% yr/yr on strong UK LFL sales

  • Adjusted EBITDA turned positive in H1, reflecting improved trading and cost reductions

  • Gross margin in converted French stores reached 70% at end of H1


Outlook

  • Company says UK trading remains strong with LFL sales up 19.4% for 13 weeks to 27 Sep

  • Company reports France LFL sales at converted stores up 24.4% for 13 weeks to 27 Sep

  • Management expects focus on Average Unit Volume to drive improved profit conversion


Result Drivers

  • DELIVERY SALES - UK LFL sales growth was driven by a strong increase in delivery sales, particularly after the return to a multi-aggregator model

  • FRENCH STORE CONVERSIONS - Conversion of Fresh Burritos sites to the Tortilla brand and closure of loss-making stores in France led to higher sales and improved gross margins

  • MENU INNOVATION - Introduction of new menu items and seasonal offerings supported sales growth and customer engagement


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Adjusted EBITDA

GBP 4.17 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the restaurants & bars peer group is "buy"

  • Wall Street's median 12-month price target for Tortilla Mexican Grill PLC is GBp72.50, about 0.7% below its September 28 closing price of GBp73.00

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 21 three months ago


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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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