Tortilla Mexican Grill (MEX) Trading Update summary

UK trading performance

• FY24 UK revenue forecast raised to £64.0–£64.3m, exceeding previous guidance due to strong sales recovery and execution of the "Vital 5" strategy.

• Like-for-like in-store sales improved from declines in Q1 and Q2 to growth in Q3 (+0.6%) and strong Q4 (at least +4%).

• UK sales outperformed the CGA Coffer benchmark, which declined over the same periods.

• New initiatives include a revamped food offer, new Food Director, limited time offers, new equipment, loyalty system, and self-order kiosks in 11 more restaurants.

• Expansion with SSP continues, with new units opening at Stansted airport and Liverpool Street station.

France and group strategy

• French management team fully recruited; central kitchen in Lille to be operational from January 2025.

• Store rebranding in France delayed for a brand and interior refresh, impacting 2025 profitability but expected to strengthen long-term prospects.

• Acquisition of Fresh Burritos in July 2024 strengthens European presence; central team and infrastructure nearly complete.

• Group FY24 trading in line with management expectations; adjusted net debt at year-end expected to be £7.3m.

• Confidence expressed in long-term European expansion, leveraging refreshed brand and operational base in France.

Sustainability and company profile

• Operates 79 UK locations, 29 in France, and 9 in the Middle East, serving over 7 million meals annually.

• Menu is fully customisable, 70% plant-based, vegan-friendly, and uses higher welfare meats.

• Sustainability focus includes recycled/recyclable packaging, 100% renewable electricity, and zero landfill waste.

• Employs over 1,300 people and continues global expansion through acquisitions and franchise partnerships.

• Founded in 2007, headquartered in London, and positions itself as Europe’s largest fast-casual Mexican brand.