Tortilla revenues surge to £68m in FY24

Fast-casual Mexican restaurant group Tortilla has seen a 3.5% increase in its FY24 group revenues to £68m, up from £65.7m in 2023, attributed to the strategic acquisition of Fresh Burritos in France, the addition of one UK company-owned site and a “strong” contribution from its franchise network.

For the 52 weeks ended 29 December 2024, the group LFL sales marginally declined by 0.1% (2023: +3.6%), impacted by a challenging Q1 and Q2, but strong rebound in H2 highlighted improving momentum.

Its UK like-for-like (LFL) sales also recovered strongly, improving from a 6% decline in March to a 6% increase by December.

While the group’s adjusted EBITDA decreased by £0.1m to £4.5m, its UK adjusted EBITDA increased from £4.6m to £5.2m.

The group stated that the increase in UK profitability reflects “steadily improving” LFL performance during the year aided by improvements to the food offer, and investment in technology, such as self-ordering kiosks and our loyalty app.

It also reflected better profit conversion year-on-year through improved delivery economics, improvements in buying margins and focus on cost control. Tortialla’s gross profit margin also held strong at 76.6%.

However, the group’s loss before tax was up from £1.1m in 2023 to £3.3m in 2024, driven by the one-off exceptional cost relating to the acquisition of Fresh Burritos, and an impairment charge recorded in the period in respect of a small number of UK locations

It also further strengthened the relationship with existing franchise partners. SSP, focused on travel hubs, achieved 5% LFL sales growth in 2024, opened three new stores, and signed a five-year extension to double the estate to 18 sites.

Looking ahead, the group’s strategic focus in 2025 on driving UK sales volumes, launching the refreshed brand in France, and leveraging new technology and loyalty initiatives for sustained profitable growth.

Andy Naylor, chief executive officer of Tortilla, said: “I am pleased to report good progress over the last 12 months towards our strategic goal of becoming a pan-European fast casual Mexican restaurant business. When I stepped into the CEO role in April 2024, my first priority was to return the UK business back to in-store sales growth and improve profitability and I am delighted we have seen a turnaround in in-store volume growth and UK market outperformance, through investments in food, brand and technology.

“The second priority was to commence our European growth plans with the Fresh Burritos acquisition in France last summer. We have made solid strides with the integration: hiring a strong management team, launching a central kitchen in Lille, and converting all corporate owned stores to Tortilla’s food offering. However, we have been delayed in our store conversion schedule, largely due to lengthy French planning approvals. These conversions are now due to commence shortly, with the vast majority of stores expected to be converted by the end of 2025.”