Tortilla Mexican Grill PLC on Monday reported a double-digit increase in revenue in the first half of its financial year, as it eyes future expansion following the acquisition of Chilango.
For the half year ended July 3, the London-based restaurant chain specialising in Mexican cuisine said revenue increased by 60% to £26.9 million, compared to the first half of financial 2019.
The firm posted full-year revenue of £35.4 million in financial 2019.
‘This performance was underpinned by growing customer demand for Tortilla’s healthy and value-for-money food as well as the group’s roll-out of new sites,’ the company explained.
Chief Executive Officer Richard Morris said: ‘We are pleased to report further strong growth and strategic progress during the first half supported by our strong reputation for great value and our growing UK presence. During the period we sold more than 3.2 million burritos and completed the exciting acquisition of Chilango to bolster our leadership position in the UK’s fast-casual Mexican market.’
In March, Tortilla Mexican Grill bought Chilango for £2.8 million from investment firm RDCP Group Ltd.
‘We have continued to outperform the sector according to relevant industry benchmarks and remain confident in the group’s long-term growth prospects. Our site-roll out continues as planned in line with the target set out at IPO, with further opportunities supported by the favourable rental environment,’ Morris continued.
Net cash as at July 3 stood at £3.1 million, which enables to the group to fund future expansion.
Looking ahead, Tortilla said it remains confident that it is well-positioned in the competitive landscape. It said it has taken steps to mitigate inflationary pressures.
‘This includes updating pricing, driving operational efficiencies, and adopting a multi-platform delivery proposition by partnering with Uber Eats and Just Eat, as well as Deliveroo, to access more customers choosing to stay at home,’ the company noted.
Shares were up 8.3% at 130.00 pence each on Monday afternoon in London.
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