Tortilla Mexican Grill H1 revenue rises 5.9% on UK demand, France store conversion
Tortilla Mexican Grill H1 revenue rises 5.9% on UK demand, France store conversion
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: ID:nRSc6561Wa
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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(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.)