Tortilla Mexican Grill PLC (AIM:MEX) shares fell 7.5% to 37p even as the chain posted robust growth in its home market.
Like-for-like sales in the UK rose 5% in the first half of 2025, well ahead of a 3% decline across the broader sector, and momentum has strengthened to 7% in the third quarter. UK profitability is now at record levels.
Panmure Liberum, however, noted that progress in France continues to lag, with more restaurant conversions delayed into 2026.
The broker cut its pre-IFRS 16 EBITDA forecast for 2025 to £4.1 million from £4.7 million and for 2026 to £6.7 million from £7.7 million. Management still expects France to turn profitable next year, creating a platform for European expansion.
Despite trimming forecasts, Panmure Liberum maintained its buy rating and 75p price target, arguing the stock looks undervalued at just 3.6x FY26 EBITDA.
Separately, the group unveiled Richard Haley as its new chief financial officer.
Haley, who joins on 6 October subject to regulatory checks, has held senior finance roles across a string of listed and private equity-backed companies, including Trainline, William Hill, Halma, Tesco and Future.
He began his career at KPMG and brings experience in financial reporting, M&A, IPOs and strategic transformation.