Update on FY25 Results and Current Trading

Tortilla Mexican Grill PLC

19 May 2026

 

Tortilla Mexican Grill plc

("Tortilla", the "Group" or the "Company")
Update on FY25 Results and Current Trading

19 May 2026

Update on FY25 Results and Current Trading

•     Accounting adjustment identified in the French business following review by new Board and management team

•     FY26 UK like-for-like sales of +12.0% for the 20 weeks ended 17 May 2026

•     FY26 France like-for-like sales of +16.6% in the seven converted stores for the 20 weeks ended 17 May 2026

•     France restructuring progress

Tortilla Mexican Grill plc, the largest fast-casual Mexican restaurant business in the UK and Europe, today provides an update on its results for the 52 weeks ended 28 December 2025 ("FY25") and on current trading.

FY25 and FY24 accounting adjustments

Following review by the new Board and management team of the Group's year-end financial position as part of the 2025 audit process, items of operating expenditure in the French business of up to £2.5 million have been identified which had been recognised on the Group's balance sheet during FY25 (and potentially FY24), but which were not expensed through the profit and loss account in the relevant period(s). The Company's review is ongoing and will be completed as part of the audit of the FY25 accounts.

As a result, Group FY25 Adjusted EBITDA¹ (pre-IFRS 16) is now expected to be up to £2.5 million lower than indicated in the trading update of 28 January 2026, with a corresponding adjustment to the FY25 closing balance sheet. Accordingly, the Board now expects Group FY25 Adjusted EBITDA (pre-IFRS 16) to be around £1.5 million. Guidance on FY25 Adjusted EBITDA for the UK business remains unchanged at around £6.5 million.

The adjustment relates to the classification of certain operating costs and has no impact on the Group's FY25 cash flow or its reported adjusted net debt position at the period end, which was £10.7 million as previously reported. While this adjustment now leads to potential retrospective covenant breaches, the Company is in discussion with its lender about appropriate waivers should that be the case. The Company has received increased facility headroom from its lender. As at 26 April 2026 net debt was £11.4 million.

The Company's auditors are continuing their work on the FY25 audit and the final figures remain subject to completion of that process. The Board, supported by the new finance leadership team under CFO Richard Haley and a strengthened finance team, is putting in place appropriate additional financial controls and review procedures in France. The Board will provide a further update with the Group's audited results, together with an update on the outlook for FY26, which the Board expects to publish in June 2026.

France: significant operational restructuring underway

Separately, and prior to the identification of the accounting matter described above, the new Board and management team had already initiated a structural reset of the French business to address its losses and accelerate the path to profitability. Actions taken in recent weeks include:

•     Head office cost reduction. The majority of a planned reduction in French head office personnel costs by approximately 50% has been implemented, with the remaining changes underway. Once concluded, the total reduction will materially lower the fixed overhead of the French operation, with ownership of several functions being transferred to the UK head office.

•     Estate rationalisation. A programme is underway to exit a number of underperforming Fresh Burritos stores in the French estate, focusing capital and management attention on the strongest locations, all of which have been converted to the Tortilla brand.

•     Driving further growth in converted stores. Stores already converted to Tortilla continue to perform strongly with like-for-like sales of +16.6% in the 20 weeks ended 17 May 2026.

Together, these initiatives, together with the Group's fully operational Central Production Kitchen in Lille, are expected to transform the economic profile of the French business and provide a credible operational platform for the next phase of the Group's European expansion strategy.

UK: strong current trading

Trading in the UK has been strong since the start of FY26. UK like-for-like sales are running at +12.0% in the 20 weeks ended 17 May 2026, ahead of the +7.8% achieved in Q4 FY25 and materially ahead of the wider sector CGA tracker benchmark. Performance has been driven by a balanced combination of:

•     In-store sales growth of +7.5%, reflecting continued improvements in food, brand, kiosk rollout and guest experience; and

•     Delivery sales growth of +25.0%, supported by the Group's multi-aggregator platform strategy, including the return to Deliveroo across 60 UK equity restaurants and continued strong performance through Uber Eats and Just Eat.

The strength of UK trading underpins the Board's confidence in the Group's underlying performance and in the trajectory of the business under the new leadership team.

Commentary

"The UK business has traded exceptionally well thus far in 2026, with like-for-like sales running ahead of both the wider sector and our own strong comparatives. LTM system sales² are expected to reach £100 million this month. In France, the operational reset we have put in place is on track, with sales at the stores converted to Tortilla trading strongly, and a leaner head office and rationalised estate setting us up for the next phase of European franchise expansion."

Brandon Stephens, Founder & Group CEO

¹ Adjusted EBITDA is defined as statutory operating profit before interest, tax, depreciation and amortisation (before application of IFRS 16 and excluding exceptional costs) and reflects the underlying trade of the Group.

² System sales represent the sum of all sales (excluding VAT) made by both franchised and corporate stores to consumers in UK, France and the UAE.

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

Brandon Stephens, Founder & Group CEO

Richard Haley, Chief Financial Officer

Panmure Liberum Limited (Nominated Adviser, Sole Broker)   Tel: [phone]

Andrew Godber

Edward Thomas

Gaya Bhatt

Eggmedia Ltd (Public Relations)                                        Tel: [phone]

Ian Edmondson                                                           [e-mail]

Ross Gow                                                                   [e-mail]

About Tortilla Mexican Grill plc

Founded in 2007, Tortilla is Europe's largest fast-casual Mexican restaurant brand. 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 mould 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.

 

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