Tortilla reports 14% annual growth

Reporting on it's financial year end, the famous Mexican grill brand, Tortilla announced its revenue has increased by 14% to £65.7m. As they continue to build on the momentum from last year’s record and drive new openings.

The brand's adjusted EBITDA saw a 16% year-on-year increase to £4.6m (2022: £4.0m). While like-for-like sales have increased by 3.6%. 

Tortilla reported on the progress made on new store openings, with six group-operated sites and one franchise site added, taking the total to 87 UK sites. 

Furthermore, the brand has reported that over 1.5 million Tortilla meals were served through delivery partners in 2023.

Additionally, a new senior management team has been embedded and refined strategic priorities was launched for 2024 to capitalise on UK and international growth opportunity.

2024 strategy:

• New management team embedded: CEO succession announced in February 2024 with Richard Morris stepping down, replaced by Andy Naylor, previously CFO and UK Managing Director and CFO Maria Denny also appointed to the Board in Q1 of 2024.

• Launch of ‘Tortilla’s Vital 5’: A new strategic approach launched to drive disciplined profitable growth and expand Tortilla in the UK and overseas.

• Double down on franchising: Plans in place to accelerate growth via franchising, whilst continuing own store roll out in grade A locations, with at least five openings planned in 2024 with our partners.

• Current trading in line with management expectations: Delivery strategy and cost savings initiatives have resulted in improved profit conversion; Like-for-like sales for Q1 are in line with expectations. The outlook for demand is expected to improve as consumer finances recover in H2’24. Additionally, a minimum of three UK Tortilla operated sites planned for 2024, with Manchester Arndale to open in May. 

Commenting on the results

Andy Naylor, chief executive of Tortilla said: “Recent years have seen Tortilla expand strategically through a multi-channel approach, strengthening our operational model as a springboard for sustained, profitable growth. Throughout 2023, we dedicated ourselves to building resilience, especially enhancing profitability, as we recovered from macro events in 2022.”

“The appetite for Mexican cuisine is surging, and Tortilla, as the dominant market leader in the UK, has an unparalleled set of advantages to capitalise on this burgeoning opportunity across the UK and Europe. I'm pleased to unveil our reinvigorated strategic vision: 'Tortilla's Vital Five.' Building upon our proven track record, this strategy will create sustainable profitable growth in the years ahead, unlocking substantial value for our shareholders. Tortilla continues to have immense potential and I am excited to lead the business through the next chapter of the journey."

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