Source - Alliance News

Tortilla Mexican Grill PLC on Wednesday lowered its expectation of revenue growth this past year.

Tortilla shares were down 9.2% to 49.95 pence each in afternoon trade in London.

The London-based fast-casual restaurant chain said it expected revenue to grow by 14% to £65.7 million in 2023 from £57.7 million in 2022. For the first half of 2023, the company had booked annual revenue growth of more than 20%.

Explaining its new revenue guidance, Tortilla said: ‘This performance is slightly behind the board’s previous expectations due to subdued consumer confidence impacting demand across the eating out market, in particular during [the fourth quarter].’

Tortilla noted that delivery sales remained stable as a proportion of total revenue at about 31% in 2023.

Tortilla expects annual adjusted earnings before interest, tax, depreciation and amortisation of between £4.5 million and £4.6 million, up at least 13% from £4.0 million in 2022.

For 2024, the company ‘remains excited by the group’s franchise growth opportunities both in the UK and internationally. We are delighted to confirm at least four further new store openings with SSP in FY24 as we further expand the successful partnership.’

SSP Group PLC is a London-based operator of travel food outlets.

Tortilla Chief Executive Officer Richard Morris said: ‘We remain as confident and excited as ever about Tortilla’s long-term and sizeable profitable growth opportunities both in the UK and internationally.’

The company added: ‘Notwithstanding the challenging trading environment, the group is targeting robust adjusted Ebitda growth in FY24 on the back of the full year benefit of cost initiatives, the sales growth from the marketing investment and the group’s store rollout programme’.

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