Tortilla Mexican Grill PLC (AIM:MEX) rose 3.5% after it revealed it had bought its largest European rival, Fres Burritos, for €3.95 million.
Fresh Burrito is the largest Mexican restaurant in France and the second largest in Europe, behind only Tortilla.
Today's acquisition is part of the AIM-listed group's growth strategy, which aims to bolster the brand across the globe while doubling down on franchises.
As part of the deal, Tortilla will acquire 13 company-owned restaurants and the rights to 19 franchised sites while creating a new European sub-board committee.
Andy Naylor, chief executive of Tortilla, said: “Tortilla's international ambitions are no secret, and acquiring Fresh Burritos is our gateway to mainland Europe.
"With Mexican cuisine surging in popularity, these prime French locations give us a solid launchpad. We're set to leverage this acquisition, just in time for the Paris Olympics.
"The brand synergies are clear, a new central kitchen is in the works, and our dedicated team is raring to go. We're primed for sustainable growth abroad.”