Tortilla Mexican Grill warns on FY profits

24th Jul 2024 08:03

(Sharecast News) - Shares in fast-food restaurant chain Tortilla Mexican Grill slumped on Wednesday after the group warned that steps taken to boost profitability were taking longer than expected to bear fruit.

Tortilla said interim revenues had dropped 5.9% in the six months ended 30 June to £31.5m, something it said was principally due to the group's "strategic decision" to shift to a dual-delivery platform.

Despite the revenue drop, underlying earnings were in line with FY23 at £1.8m. The AIM-listed group also said full-year underlying profits were now seen lower than previous guidance at £5.0m.

Tortilla stated the switch in delivery platforms was enacted to improve profit conversion and increase focus on in-store revenues

As of 1415 BST, Tortilla shares were down 24.80% at 47.0p.

Reporting by Iain Gilbert at Sharecast.com