Tortilla Group revenues rise 20% in FY22
The Californian-inspired Mexican group has strengthened its market position through the acquisition of one of its competitors, Chilango Ltd
Tortilla Mexican Grill, one of the most successful fast-casual Mexican restaurant groups in the UK, has reported a revenue increase of 20% to £57.7m, according to its FY22 results.
The increase, the group argues, is attributable to a variety of factors, including a 16.4% like-for-like revenue growth, the strategic acquisition of Chilango Ltd which added a revenue of £3.3m and the addition of ten new sites.
Tortilla’s gross profit margin in FY22 was 76.4%, slightly less than the previous year which the group attributed to “unprecedented levels of inflation”.
For the group, 2022 has been a year of record growth especially regarding its sites: a total of 18 new locations have been added to the portfolio. Ten of these new locations in the UK, including in cities such as Leicester and Coventry where the group opened its first sites.
In addition to that, the group’s market position was further strengthened by the acquisition of Chilango, one of its competitors, in May 2022.
Speaking on the new addition, chief executive officer Richard Morris said: “In line with our strategic plans following the acquisition, five Chilango sites have been rebranded to Tortilla. We have seen improved trading performances at these sites following conversion, which demonstrates the strength of the Tortilla brand and the success of the efficiencies found by utilising the group’s operating model.”
Despite the growth in revenues, the group’s adjusted earnings were £4m compared to FY21 which recorded earnings of £8.7m.
For the year ahead, Tortilla said that current trading remains in line with expectations while the group is already exploring several new franchise sites to enhance diversity of locations.
Morris said: “The beginning of 2023 has started well with like-for-like sales up 4% in the 8 weeks to 26 February. We remain highly motivated and excited about Tortilla’s continued growth potential in the UK as well as our opportunities to build on our proven franchise operations to expand overseas.”
