Tortilla Mexican Grill, the U.K. restaurant chain, announced today that it foresees a 14% increase in revenue for the full year of 2023. However, the projected growth is expected to fall short of initial expectations due to weaker demand experienced in the fourth quarter of the year.
The company attributes the anticipated revenue boost to a 3.7% year-to-date like-for-like growth rate in the U.K., as well as the opening of new locations. Nevertheless, Tortilla Mexican Grill acknowledges that subdued consumer confidence has had a negative impact on demand within the eating-out market, particularly in the last quarter.
Benefiting from effective cost control measures, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are estimated to range between GBP4.5 million and GBP4.6 million. This represents an improvement over the preceding half-year period. The company anticipates that the full benefit of its cost control measures will be realized in 2024.
In response to the challenges posed by rising living costs, Tortilla Mexican Grill plans to allocate more resources to marketing efforts in order to enhance brand awareness. This strategic move aims to address the difficulties faced by the market outside London.
Tortilla Mexican Grill remains optimistic about its future prospects and is committed to delivering value for its shareholders.