Half-year Report

 

 

 

 

 

 

 

 

 

30 September 2025

Tortilla Mexican Grill plc

("Tortilla", the "Group" or the "Company")

Unaudited Interim Results for the 26 weeks ended 29 June 2025

 

Record UK EBITDA; France conversion project progressing with adjusted timetable

 

Tortilla Mexican Grill plc, the largest and most successful fast-casual Mexican restaurant business in the UK and Europe, today announces its unaudited interim results for the 26 weeks ended 29 June 2025 ("H1 FY25", "the Period"). All numbers are shown on an IFRS basis unless otherwise stated.

 

Commenting on the results, Andy Naylor, Chief Executive Officer of Tortilla said:

 

"We are pleased with the strong progress made in the UK during the first half, where LFL sales grew by 5.0%, materially outperforming the CGA Coffer benchmark which reported LFL revenue declines of (2.5%) and (3.4%) in Q1 and Q2 respectively. Encouragingly this has continued into Q3 with total LFL sales growth of 7.0% to date.

 

Our ongoing investment in food quality and innovation as well as brand marketing continues to resonate with customers. New launches such as protein pots and seasonal salads have been well received, supported by the growth of our Burrito Society loyalty app, which has now surpassed 200,000 members.

 

In France, the conversion project is underway with four sites now trading under the Tortilla brand, with a further two due to open by early October. Whilst it's too early to comment on current post-conversion trading, we look forward to providing an update later in the year. The sites are fully supported by our operational Central Production Kitchen in Lille, which provides the infrastructure for significant scale across France and neighbouring markets.

In the UK, FY25 is forecast to be our most profitable year ever which is an achievement the team should be proud of considering the wider challenges reported by the sector. In France, despite the short-term challenge with the timing of store conversions, we remain confident of the longer-term prospects for our brand in this market following our strategic acquisition last year."

 

 

Operational and strategic highlights

 

·       New Chief Financial Officer: The Board is today pleased to announce the proposed appointment of Richard Haley to the Board as CFO. Josie Whelan will return to her previous role, following the proposed change.

·       Strategic (Vital 5) highlights:

 

o  Improve UK profitability: The UK business delivered Adjusted EBITDA (pre-IFRS 16) of £2.4m in H1 FY25, up 33% year-on-year (H1 FY24: £1.8m). Like-for-like sales growth of +5.0% outperformed the CGA Coffer benchmark by 8 percentage points (ppt), supported by disciplined cost control. UK Gross margin was 78.3% (HY24: 77.7%) on an underlying basis with inflationary pressures offset by strong supplier negotiations. Delivery performance also strengthened, reflecting increased brand visibility and promotional activity. Momentum has continued into the second half, with LFL sales up 7.0% in Q3 to date.

o  Invest in brand to drive growth: Investment in food quality, menu innovation and brand marketing has continued to strengthen customer loyalty and awareness. Core menu upgrades and sourcing initiatives improved flavour and quality, while seasonal innovation (e.g. summer salads, protein pots) delivered strong incremental sales. The Burrito Society loyalty app has grown to over 200,000 members, driving frequency and repeat purchase. Brand awareness has been further supported by collaborations, partnerships and targeted campaigns.

o  Invest in team and technology: Manager retention improved by 7% to 58%, supported by training initiatives, new induction processes and high levels of internal promotion. The roll-out of Hospitality Guest Experience Management (HGEM) system has improved responsiveness to feedback, with NPS scores a focus. On the technology-front, self-order kiosks expanded by 25 new sites in H1 (34 in total), consistently delivering strong sales uplift and rapid payback. The Group is exploring the potential for a robotics trial in FY26, to continue improving operational efficiency.

 

o  Double down on franchise: We have a clearly executable franchise operating model that continues to provide capital-light growth. SSP Group opened two new UK travel hub sites in H1 and expansion continues in line with expectations under the current agreement. Compass Group delivered stable performance across higher education campuses. The Group signed Heads of Terms with Growth Kitchen to pilot delivery-led kitchens in major metropolitan areas. Internationally, Eathos continued to grow the estate in the Middle East, with a flagship Dubai Mall site due to open in Q4. As of September 2025, the franchise estate comprised 37 sites globally (UK 14, Middle East 12, France 11).

o  Develop brand internationally: The conversion of stores in France is progressing, with foundations now in place to support long-term growth. Tortilla food has been rolled out across the estate, a full French head office team is in place under  MD Gilles Boehringer (ex-KFC France), and the 1,400 sqm Central Production Kitchen in Lille is fully operational. Six sites are scheduled to be trading under the Tortilla brand by early October, with one additional conversion planned for Q4 and more in FY26.

Financial highlights 

 

·    Revenue for H1 FY25 £36.0m (H1 FY24: £31.5m). This includes a £0.6m statutory adjustment between revenue and cost of sales in relation to Franchise Income. This has no impact on Gross Profit in pound terms (£25.4m), but the reported Group margin rate appears lower at 77.0% compared with 78.2% on an underlying basis.

 

·    Adjusted EBITDA (pre-IFRS 16)[1] of £1.2m (H1 FY24: £1.8m). The UK delivered £2.4m, an increase of 33% on the prior year, offset by a £1.2m loss in France as the Group invests in site conversions and brand-building across the continent.

 

·    Loss before tax was £2.3m in H1 FY25 (H1 FY24: £0.2m loss). The UK delivered a small loss before tax of £0.3m, reflecting resilient trading performance and disciplined cost control. The French operations reported a loss before tax of £2.0m, reflecting the early stage of investment in the region, including site conversions to the Group's core brand and associated overhead costs.

 

·    Our adjusted net debt[2] was £9.8m at period end (H1 FY24: £3.3m adjusted net debt). During the Period the Group successfully refinanced its debt facilities with Santander, increasing total available facilities from £10.0m to £12.5m, with £1.5m drawn in H1 and a further £1.0m available in H2. At Period end, £0.9m of French bank loans remained outstanding from the Fresh Burritos acquisition.

 

Current trading and full year outlook

 

·     Current Trading in the UK is slightly ahead of management expectations for the full year 2025, with sales benefitting from our improvements in food, brand awareness and technology (+7.0% LFL in Q3 to date, up from +5.9% in Q1). We also continue to see our revised delivery strategy and cost savings initiatives improving profit conversion. While the important Q4 trading period remains key, the Board is encouraged by the record results being delivered in the UK.

·     In France, the conversion of stores to Tortilla is moving forward strategically. The extended planning processes in the first phase are front-loading complexity which is expected to streamline future site rollouts. As a result, the Board now expects Adjusted EBITDA for H1 FY25 to be below market expectations, and the year-end net debt position is expected to correspondingly improve, reflecting the phasing of capex expenditure into 2026. While planning process delays will temper near-term profitability at the Group level, the Board remains confident that the conversion programme, supported by the fully operational Central Production Kitchen in Lille, will provide a scalable platform for European expansion and improved returns in FY26 and beyond.

·     Overall, the Board now expects adjusted EBITDA for FY25 to be around 10 per cent below previous expectations. This reflects record results from the core UK business, offset by continued investment in France due to the timing of site conversions.

 

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

 

 

ENQUIRIES:

 

Tortilla Mexican Grill PLC	Via Eggmedia
Andy Naylor, Chief Executive Officer
Josie Whelan, Interim Chief Financial Officer
Panmure Liberum Limited (Nominated Adviser, Sole Broker)	Tel: 020 3100 2222
Andrew Godber
Edward Thomas
Gaya Bhatt
Eggmedia Ltd (Public Relations)	Tel: 07710 571452
Ian Edmondson	[email protected]
Ross Gow	[email protected]

 

 

About Tortilla Mexican Grill plc

Founded in 2007, Tortilla is Europe's largest fast-casual Mexican restaurant brand. With 80 UK locations (of which 14 are franchise stores), 24 in France (of which 11 are franchise stores) and 12 franchise stores in the Middle East, Tortilla offers authentic California-style burritos, tacos and salads.

 

Through the acquisition of Chilango in the UK in 2022 and Fresh Burritos in France in 2024, as well as franchise partnerships with SSP Group plc, Compass UK & Ireland and Eathos, the brand continues to expand globally.

 

Tortilla breaks the mold of typical takeaways, combining quick service with quality ingredients to serve affordable, made-to-order meals in under 90 seconds, in cosy environments fitting for lunch or dinner and a beer with friends. The menu is fully customisable - there are thousands of flavour combinations to try - with produce that's fresh, never frozen, 70% plant-based and vegan-friendly, higher welfare meats and free from artificial flavours or preservatives.

Emphasising sustainability, Tortilla only uses recycled and recyclable packaging, 100% renewable electricity and sends zero waste to landfill.

Headquartered in London and listed on the London Stock Exchange (LSE: MEX), Tortilla employs over 1,200 people.

More details at tortillagroup.co.uk

BUSINESS REVIEW

Overview

The Group delivered encouraging strategic and operational progress in the first half, supported by continued investment in food, brand, people and technology. The benefits of these initiatives are clearly evident following the launch of the Vital 5 strategy in April 2024, with total UK like-for-like sales improving from a 2.4% decline in Q1 FY24 to 7.0% growth in Q3 FY25 to date.

The roll-out of self-order kiosks has expanded by 25 new sites so far this year taking the total to 34,  delivering meaningful uplifts with rapid payback and more sites to be rolled out before year end. In addition, the introduction of the guest experience management system has enabled stores to monitor and respond to customer feedback more effectively; since May, Net Promoter Scores have improved significantly, with the majority of sites now recording positive results.

Internationally, the conversion of the sites acquired in France is progressing with a focus on building the right foundations for long-term success across the continent. While extended French planning processes have presented challenges that have affected the timing of some conversions, the programme is advancing, with six sites scheduled to be trading under the Tortilla brand by early October, with one additional conversion planned in Q4 and more in FY26. The 1,400 sqm Central Production Kitchen in Lille is now fully operational, providing consistent food production at scale and supporting the Group's ambition to expand across France and neighbouring markets.

The Board is encouraged by the strengthening UK performance, the ongoing progress in France, and remains confident in the Group's ability to deliver sustainable, profitable growth.

Strategic Progress Against The 'Tortilla Vital 5'

Improve UK Profitability

The UK business delivered a strong performance in H1 FY25, with Adjusted EBITDA (pre-IFRS) increasing by 33% to £2.4m (H1 FY24: £1.8m). This reflects both robust like-for-like sales growth of 5.0% and continued focus on cost discipline. Notably, UK like-for-like sales significantly outperformed the CGA Coffer benchmark by 8 ppt, underlining the strength of our brand and customer proposition in a challenging market.

Gross profit margin in the UK improved to 78.3% on an underlying basis[3] (H1 FY24: 77.0%), with inflationary pressures on core produce offset through successful supplier negotiations and procurement benefits. We have also seen ongoing improvements in labour productivity and utility management, which have contributed to the stronger conversion of sales into profit.

To further strengthen profitability, the Group has commenced a comprehensive review of the UK estate to ensure that capital and management attention are focused on high-performing, EBITDA-contributing sites. We have engaged specialist advisors to support this process, ensuring that underperforming locations are addressed and that the estate is optimised for long-term returns. The closure of two stores so far this year reflects this disciplined approach with estate optimisation remaining a strategic priority.

Delivery performance has also strengthened meaningfully, with like-for-like delivery sales rising by 6.3% in Q2 and accelerating to 25.6% in Q3 to date, benefitting from increased brand visibility and select promotional activity in July and August. This positive trend is expected to continue into Q4 supported by further marketing and promotional activity across Uber Eats and Just Eat.

Invest in brand to drive growth

The first half of the year has seen continued momentum from our investment in food quality, menu innovation and brand marketing. These initiatives are designed to strengthen customer loyalty, attract new guests, and reinforce Tortilla's position as the UK's leading fast-casual Mexican brand.

We delivered a series of upgrades to our core menu, focusing on recipe improvements and sourcing initiatives that enhanced the quality of many of our menu items. Seasonal menu rollouts have performed particularly well, with the new Summer Salad driving a 133% uplift in sales versus last year. New product innovation has also gained traction, most notably our protein pots which generated over £100k in incremental sales within the first eight weeks of launch.

We see a significant opportunity to drive growth through increased investment in brand awareness. Awareness of the Tortilla brand continues to build as a direct result of targeted campaigns and activations, with initiatives such as Live Guac Bars, seasonal promotions, and limited-time collaborations helping us to engage both existing customers and new audiences. Partnerships with like-minded brands, including Tubby Tom's, Sauce Shop and JAB gyms, have broadened our reach into new consumption occasions, with the JAB collaboration alone delivering 6.5m organic reach. Our creative strategy puts food as the hero through bold, authentic storytelling and visuals that highlight freshness, flavour and fuel, reinforcing Tortilla's positioning in a highly competitive market.

We continue to build long-term advocacy through loyalty initiatives, most notably The Burrito Society app. Since launch, the app has grown rapidly to over 200,000 active members, with features such as stamp collection, order-ahead functionality and exclusive rewards driving repeat purchase and frequency. Engagement remains high, and we see a significant runway to further leverage the app as a platform for personalised promotions, data-led marketing, and deeper customer connection.

Looking ahead, we are confident that the combination of food innovation, creative brand investment, community initiatives and loyalty growth will continue to increase awareness, drive customer frequency, and underpin sustainable long-term growth.

Invest in team and technology

We continue to place great importance on the development and retention of our people. Manager retention has improved by 7 ppt, supported by structured training and development programmes. During H1, 45 managers and team members were trained through our "Centres of Excellence", ensuring a consistent approach to onboarding. Our new induction model has already delivered tangible results, saving managers over three hours per new hire and increasing operational compliance training completion to 99%. Encouragingly, 40% of Assistant and General Manager vacancies in H1 were filled through internal promotion, underlining the strength of our internal pipeline.

As previously identified our guest feedback has also seen significant improvement since the implementation of our new guest experience management system, enhancing the ability of stores to monitor and respond to customer feedback in real time.

From a technology perspective, we continue to roll out self-order kiosks, with 25 new sites deployed so far in FY25 (34 in total), and more sites planned before year end. Early results remain highly encouraging, with kiosk sites consistently outperforming non-kiosk sites in like-for-like sales and achieving payback in less than six months.

We are also in discussions for a robotics partnership with Kaikaku, a hospitality robotics specialist. In parallel, we are evolving our data warehouse and business intelligence capabilities. These investments are enabling us to make more informed decisions and to remain agile in a fast-changing market environment.

Double down on franchise

Franchising remains a core pillar of the Group's long-term growth strategy, offering a capital-light route to expansion in both the UK and international markets. The model is supported by centralised production and established processes, ensuring consistent food quality and brand standards across a growing and diversified estate.

In the UK, SSP Group delivered strong growth, opening two new travel hub sites in the Period, and remains on track to more than double its Tortilla portfolio under the current five-year agreement with record sales achieved across multiple stores. Compass Group maintained stable performance across higher education campuses. The Group also signed Heads of Terms with Growth Kitchen, a specialist multi-brand operator, for a three-site pilot to drive delivery-led expansion in major metropolitan areas.

Internationally, Eathos continued to build momentum in the Middle East with further estate growth and a flagship site due to open in Dubai Mall in Q4. In Europe, the Group is progressing discussions with prospective franchise partners, building on the Fresh Burritos acquisition.

As at September 2025, the franchise estate totalled 37 sites globally (UK 14, Middle East 12 , France 11). The Group remains committed to working with high calibre partners and actively exploring additional opportunities across Europe. The recently completed 1,400 sqm Central Production Kitchen ("CPK") in Lille provides the scale and consistency to support this growth, mirroring the Group's established operations in the UK and creating a strong platform for expansion into neighbouring countries.

Develop the brand internationally

On 25 June 2024, the Group announced the strategic acquisition of Fresh Burritos, the largest fast-casual Mexican restaurant group in France and the second largest in Europe, for a total consideration of €3.95 million. The acquisition provided Tortilla with a footprint in continental Europe through 13 company-owned leasehold sites in Paris and other major French cities alongside franchise rights to a current network of 11 franchised locations, and establishes a strong platform for further franchising growth across Europe.

Since completion in July 2024, conversion to the Tortilla brand and store format is underway with a focus on building the right foundations for long-term success. Progress has been impacted by the extended planning application processes in France, which has delayed the timing of site conversions. Notwithstanding these factors, good progress has been made: Tortilla food offerings have been rolled out across the estate and a full French head office team has been recruited, led by Managing Director Gilles Boehringer (former VP of Development & Franchise for KFC France). A fully fitted 1,400 sqm Central Production Kitchen ("CPK") in Lille was completed in February 2025, enabling consistent food production at scale for France and neighbouring markets, mirroring the Group's established UK model.

The conversion programme is progressing. Six sites are scheduled to be trading as Tortilla by early October, with further conversions planned through Q4 and into FY26. Converted locations are being delivered to the Group's refreshed brand and store design, supporting improved presentation and customer experience. The Board remains confident in the long-term potential of the project to deliver attractive returns and provide a springboard for wider European expansion.

Environmental, Social and Governance ("ESG")

ESG remains a key priority for the Group, and we continue to make strong progress in advancing our sustainability agenda. A major focus in H1 2025 has been the rollout of our AI-powered energy management solution across almost all of our UK sites. Following a successful trial in 2024, which delivered a 32% reduction in energy usage across the initial test group, the solution has now been scaled rapidly across the estate. This investment is already driving meaningful reductions in energy consumption and supports both our environmental goals and operational efficiency.

We are also seeing the ongoing benefits of the 60.68kWP solar PV system installed at our UK Central Production Kitchen in 2024, reducing our carbon emissions, underlining our commitment to minimising our environmental footprint.

Beyond environmental impact, ESG principles remain embedded in our business model, with continued emphasis on responsible sourcing, colleague wellbeing, and community engagement. These initiatives not only strengthen our sustainability credentials but also enhance operational resilience and long-term value creation.

 

Finally, the Board would like to extend its sincere thanks to all colleagues across the Group for their continued commitment, creativity and resilience. Their efforts have underpinned the progress achieved in the first half and will remain central to delivering on the Group's growth ambitions in the months ahead.

 

 

FINANCIAL REVIEW

Revenue

In H1 FY25, revenue increased by 14.3% to £36.0m (H1 FY24: £31.5m) which was attributable to the following factors:

·      Total UK LFL sales increased by 5.0% in H1 FY25, contributing £1.6m of incremental revenue.

·      Franchise income delivered an additional £0.3m relative to the prior period.

·      France contributed £3.1m, reflecting the consolidation of the Fresh Burritos acquisition and ongoing brand development in the region.

 

These increases were partly offset by the impact of site closures in the period, which reduced revenue by £0.2m.

Gross profit margin

Gross profit margin was 77.0% in H1 FY25 (H1 FY24: 77.7%). This includes a £0.6m statutory adjustment between revenue and cost of sales in relation to Franchise Income. This has no impact on Gross Profit in pound terms (£25.4m), but the reported Group margin rate appears lower at 77.0% compared with 78.2% on an underlying basis (UK H1 FY24: 78.3%).

The reduction in margin reflects the addition of our French operations together with UK inflationary pressures on core produce, partially offset by strong supplier negotiations which delivered savings on protein pricing.

Administrative expenses

Administrative expenses increased by 21.3% to £28.9m in H1 FY25 (H1 FY24: £23.8m). As a percentage of revenue, administrative expenses were 80.3% (H1 FY24: 75.5%).

In the UK, administrative expenses were 75.4%, a slight decrease of 0.1 percentage points compared to the prior period. Despite ongoing cost pressures from labour, National Insurance and utilities, the Group has managed to contain overhead growth through disciplined cost control. The movement also incorporates a year-on-year change in share-based payments, with a charge (£0.1m) recognised in the current period compared to a credit of £0.3m in the prior year.

 

In France, administrative expenses were higher due to investment in establishing the Central Production Kitchen ("CPK") and related infrastructure. This included pre-opening labour and project support from UK Head Office management during the mobilisation of the facility and the transition of sites to the new operating model. These costs have been separately disclosed as exceptional, as they are one-off in nature and not reflective of ongoing operations.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA (pre-IFRS 16)

 

Adjusted EBITDA (pre-IFRS 16) is the key performance metric that the Group utilises to assess the underlying trading performance. A reconciliation of this measure compared to profit from operations is as follows:

	H1 FY25	H1 FY24
	£m	£m
Adjusted EBITDA (pre-IFRS 16)	1.2	1.8
Pre-opening costs	(0.3)	(0.1)
Share-based payments	(0.1)	0.3
Depreciation and amortisation	(2.3)	(2.0)
Exceptional items	(0.2)	(0.1)
IFRS adjustment	0.5	0.8
Profit/(Loss) from operations	(1.2)	0.7

                               

Adjusted EBITDA (pre-IFRS 16) was £1.2m in H1 FY25 (H1 FY24: £1.8m). The UK business generated £2.4m adjusted EBITDA, an increase of 33.0% on the prior period (H1 FY24: £1.8m), reflecting strong sales momentum, disciplined cost management and a resilient gross margin. These improvements to profit conversion are expected to continue through H2 FY25.

The French business contributed an adjusted EBITDA loss of £1.2m in the period, as the Group continues to invest in the conversion of sites to the Tortilla brand and in broader brand-building activity across the continent, positioning the business for long-term growth.

 

Finance expense

 

Finance expense of £1.2m (H1 FY24: £1.0m) is comprised of £0.9m of interest charged in relation to Right of Use assets (a consequence of the accounting treatment of leases under IFRS 16) and £0.3m of interest on the Group's debt facility.

 

Cash flow and net cash

 

At 29 June 2025, the Group had borrowings of £11.8m (H1 FY24: £7.2m), drawn against total available facilities of £13.4m. This includes £0.9m of bank loans in France, rolled over as part of the Fresh Burritos acquisition in 2024.

 

In June, the Group entered into a new financing arrangement with Santander UK plc to refinance and extend its debt facilities. Under the terms of the refinancing, the Company has agreed a new £12.5m Senior Facility Agreement, replacing the existing £10.0m facility which was due to mature in September 2026. The new facility provides increased headroom, a longer maturity profile and greater flexibility to support the Group's next phase of growth. The Group's adjusted net debt[4] was £9.8m at period end (H1 FY24: £3.3m adjusted net debt).

 

Dividend

 

The Board did not recommend an interim dividend for H1 FY25. In line with the previously stated policy, the Group's capital will be focused on growth over the coming years with the dividend policy subject to re-assessment going forward.

 

 

Consolidated statement of comprehensive income
For the 26 weeks ended 29 June 2025
			Unaudited		Unaudited
			26 weeks ended		26 weeks ended
			29 June 2025		30 June 2024
	Note		£		£
Revenue			36,009,868		31,546,043
Cost of sales			(8,292,425)		(7,028,772)
Gross profit			27,717,443		24,517,271
Administrative expenses			(28,901,620)		(23,819,554)
Operating (loss)/profit	3		(1,184,177)		697,717
Finance income	4		8,027		23,862
Finance expense	4		(1,159,502)		(956,625)
Loss before tax			(2,335,652)		(235,045)
Tax on loss			281,325		-
Loss for the period and comprehensive income attributable to equity holders of the parent company			(2,054,327)		(235,045)
(Loss) / earnings per share for profit attributable to the owners of the parent during the year
Basic and diluted (pence)	5		(5.3)		(0.6)