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The Markets
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The Markets
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Proactive UK has moved.
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Food & drink

Tortilla Mexican Grill eyes further expansion as cost pressures squeeze rivals

It sold more than more than 3.2mln burritos over the six months

Tortilla Mexican Grill PLC (AIM:MEX) said sales have been good over the past six months, but rising costs have put a question mark over results this year.

"Our site-roll out continues as planned in line with the target set out at IPO, with further opportunities supported by the favourable rental environment," said chief executive Richard Morris.

The Tex-Mex food chain added revenues in the first half of 2022 were 60% higher at £26.9mln compared to 2019, with like-for-like sales up 19%.

That included a small contribution from Chilango, acquired in May for £2.75mln, which added eight sites plus one delivery kitchen and takes the number of sites open throughout the UK to 84 (58).

Morris said he was pleased with the growth in the first half with more than 3.2mln burritos sold, while Chilango boosted its presence in London.

Cost inflation though had become more pronounced towards the end of the half, he added, and the headwinds are likely to persist over the remainder of the year.

To offset this, prices have been updated and a multi-platform delivery proposition adopted through a partnership with Uber Eats and Just Eat, as well as Deliveroo, to access more customers choosing to stay at home.

“We have continued to outperform the sector according to relevant industry benchmarks and remain confident in the group's long-term growth prospects," Morris added.

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