Tortilla Mexican Grill warns on FY profits
Tortilla Mexican Grill
50.50p
16:55 06/09/24
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.
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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