Tortilla Mexican Grill PLC (AIM:MEX) shares slumped 19% on a warning that changes to boost profits are taking longer than expected to show a benefit.
Revenues at the Tex-Mex food chain dropped 5.9% like-for-like to £31.5 million in the half year to June 2024.
A switch to a dual-delivery platform was blamed, with underlying earnings in line with last year at £1.8 million.
On the plus side, UK franchises excelled, said the AIM-listed group, with several seeing sales records while new sites have opened for its partnerships with SSP and Compass.
But Tortilla also warned that benefits from the switch of the platform and other initiatives are taking longer to come through than expected.
As a result, underlying profits this year will be lower than expected at £5 million or £4.5 million, including the Fresh Burritos acquisition.
Shares dropped 12p to 50.5p.