Tortilla Mexican Grill (MEX) H1 2026 earnings summary

Executive summary

• Achieved group LFL revenue growth of 13.3% in H1 FY26, with system sales surpassing £100.9m for the first time in June 2026.

• UK operations delivered strong LFL revenue growth of 13.9%, with in-store up 6.5% and delivery up 32.7%.

• France division saw seven Fresh Burritos sites converted to Tortilla, driving LFL sales up 18.2% in H1 FY26 and a return to positive LFLs in converted stores.

• Strategic initiatives included closing underperforming stores, strengthening governance, rolling out AI and technology upgrades, and launching a multi-year Value Creation Plan.

• Head office restructuring and cost reductions implemented, especially in France.

Financial highlights

• H1 FY26 revenue rose 5.9% year-over-year to £38.5m; adjusted EBITDA improved to £0.5m from a £0.4m loss in H1 FY25.

• Group gross margin was 74.7% (vs. 75.2% H1 FY25); UK gross margin 75.5%, France gross margin improved to 65.5%.

• Loss before tax narrowed to £1.6m from £4.1m in H1 FY25, aided by a £0.9m non-cash gain on lease exits.

• Adjusted net debt increased to £12.4m (H1 FY25: £9.9m), with available facilities of £14.4m.

• Net cash from operations increased 80% to £3.6m.

Outlook and guidance

• Ambition to grow UK average unit volume (AUV) to £1.5m and increase restaurant EBITDA margin to 20%.

• UK LFL sales up 19.4% and France converted stores LFL up 24.4% for 13 weeks to 27 September.

• Focus on ten key objectives, including product parity, technology adoption, franchise expansion, and estate modernization.

• Continued investment in technology, brand refresh, and operational efficiency to drive future growth.

• No interim dividend declared; capital prioritised for strategic growth and balance sheet strengthening.