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(Sharecast News) - Tortilla Mexican Grill reported a record year for UK profitability in 2025 on Wednesday, underpinned by strong like-for-like sales growth and market outperformance, while early trading from newly-converted French sites delivered encouraging initial results.
The AIM-traded firm said in an update that group revenue for the year ended 28 December rose 8.5% to 73.8m, while total system sales increased 9.2% to 98.3m.
In the UK, like-for-like sales grew 6.2% over the year, significantly outperforming the CGA benchmark, which recorded a 1.3% decline over the same period.
Momentum strengthened through the year, with UK LFL growth rising from 5.9% in the first quarter to 7.8% in the fourth, while in-store LFL sales in the final quarter increased 3% despite lapping strong prior-year comparatives.
The franchise estate also delivered solid growth, with like-for-like revenue up 4.5% in the UK, 14.7% in the UAE and 2.6% in France.
Weekly sales records were achieved across 13 franchise locations, and the group opened seven new franchise stores during the year, including three in the UK and four in the UAE.
Tortilla said it continued to invest in technology, with self-ordering kiosks now installed in 38 UK restaurants.
The group said all suitable sites were expected to have kiosks in place by the end of the first quarter of the new financial year, reinforcing its focus on operational efficiency and customer experience.
In France, progress continued following the acquisition of Fresh Burritos, with seven sites now successfully converted to the Tortilla brand, including the flagship Gare du Nord location in Paris, which opened in December.
Early trading from the first six converted restaurants showed an average uplift of 39% in transactions and 30% in sales, driven by a strategic pricing reset designed to build brand awareness in the market.
Adjusted EBITDA for the year, excluding IFRS 16, was expected to be in line with management expectations after a strong fourth quarter, while adjusted net debt stood at 10.7m at the period end.
During the year, Tortilla refinanced its debt facilities with Santander to support the next phase of growth.
"I'm happy to report that we finished 2025 positively, with a strong fourth quarter capping off a record year for UK profitability," said chief executive Andy Naylor.
"It is testament to the hard work of the team that we were able to achieve UK fourth quarter LFL sales growth of 7.8%."
Commenting on France, Naylor said "we are encouraged by the early signs of the performance uplift after conversion of 39% increase in transactions and 30% increase in sales."
Looking ahead, Tortilla said it made a positive start to 2026, with the UK outperforming the wider market in the first three weeks of the year, although it continued to monitor potential pressure on consumer spending and cost headwinds.
The board said it remained confident that trading in the new financial year would show further improvement over 2025, supported by menu innovation, ongoing investment and early progress in France.
At 0919 GMT, shares in Tortilla Mexican Grill were up 1.92% at 53p.
Reporting by Josh White for Sharecast.com.