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Tortilla Mexican Grill PLC on Wednesday said its loss widened during its most recent financial year, as a result of increased expenses relating to its acquisition of the Fresh Burritos brand. The London-based fast-casual Mexican restaurant group said its pretax loss for the year that ended December 29 widened to £3.3 million from £1.1 million the year before. This was partly driven by one-off costs relating to its acquisition of Fresh Burritos in June, Europe’s second largest fast-casual Mexican restaurant group. The £4.0 million takeover had been part of Tortilla’s ’Vital Five’ growth strategy and was intended to act as a ‘springboard’ into the European market. Revenue grew 3.5% to £68.0 million from £65.7 million, boosted partly by the addition of one UK company-owned site and a ‘strong contribution’ from its franchise network. Cost of sales increased 6.7% to £15.9 million from £14.9 million, administrative expenses were up 6.4% to £53.3 million from £50.1 million, and finance expenses rose 22% to £2.2 million from £1.8 million. ‘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,’ said Chief Executive Officer Andy Naylor. ‘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.’ Shares in Tortilla Mexican Grill were down 2.1% at 37.00 pence each in London on Wednesday afternoon. The stock is down 31% over the past year. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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