MEX: Looking More Like an Acquisition Target with Each Passing Day

(LON:MEX) Tortilla Mexican Grill FY23 Trading Update for H2

Tortilla Mexican Grill

Weighting as of writing: 1%

20th December 2023 - FY23 Trading Update

When Tortilla released its interim report for H1 FY23 in October it was uninspiring. Revenue sat at £32.7 million (+22%) at the midpoint with +5% in LFL. Growth was good, but management commentary was weak; sounding more like an episode of the blame game. Inflation, rail strikes, and weather were noted as headwinds:

“The summer was unsurprisingly quiet, as seen in the wider market, with an increased demand for overseas holidays, ongoing industrial strike-action on the train network and uninspiring weather".

Other Points from the H1 Update

• Rewards customers hit 300,000, sporting an average of +12% in spend vs non-rewards members.

• Tortilla Sunsets campaign looks to increase evening trade with cheap cocktails in happy hour and an alternate menu.

• Keith Down joined as a new non-exec board member.

• Andy Naylor, CFO, was promoted to managing director.

• Expecting 8-12 new stores next year, 2024.

The earnings call …