Tortilla Mexican Grill, a popular fast-casual restaurant in the U.K., has announced its expectation for strong earnings in 2023. Despite facing challenges such as unfavorable weather, industrial strikes, and a quiet summer season, the company remains confident in its ability to deliver adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) that align with expectations.
Resilient First-Half Performance and Cost Control
Tortilla Mexican Grill attributes its positive outlook to a combination of factors. The restaurant has implemented cost control measures and initiatives to improve evening footfall. These efforts have contributed to its resilient first-half performance and are expected to generate further benefits in the coming year.
Financial Results and Outlook
Although the company reported a pretax loss of £615,107 for the 26 weeks ending July 2, compared to a profit of £264,052 during the same period last year, revenue increased by 22% to £32.7 million. Furthermore, like-for-like revenue grew by 5%.
Adjusted EBITDA for the period fell to £1.8 million from £2.5 million, aligning with market expectations. Despite this decline, Tortilla Mexican Grill remains optimistic about its future projections.
With a strong focus on cost control, initiatives to enhance footfall, and a resilient first-half performance, Tortilla Mexican Grill anticipates robust earnings in 2023. The company is confident that the full-year benefit of its strategic initiatives will be realized next year.