Tortilla Mexican Grill (LON: MEX) shares have edged higher early Monday after it said trading since its last update in early October has been strong, and it sees FY22 revenue and profit in line with market expectations.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.
In a full-year and fourth-quarter update, Tortilla said its performance remained resilient throughout the year, despite macroeconomic challenges, with demand and its continued expansion helping the business to remain strong.
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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company's revenue increased 20% to £57.7 million for FY22, compared to £48.1 million in FY21. In addition, FY22 UK like-for-like revenue increased by 16.4% compared to FY19, with its growth driven by a net increase of 18 sites in FY22, taking the total to 82.
“Trading since our last update in early October has been strong,” the company said, adding that it is despite the challenging conditions experienced in December with poor weather and multiple train strikes having an impact.
However, favourable changes in input costs, alongside strong trade in most of Q4, give it confidence that FY22 revenue and profit will be in line with expectations.
Furthermore, Tortilla said that despite ongoing market and sector uncertainties, it remains confident in finding supply chain efficiencies to aid profitability, and it remains optimistic in its outlook for FY23 and beyond.
“During difficult economic times, restaurants that offer great, consistent food at competitive price points will be the winners, and we sit comfortably in this space,” said Richard Morris, Chief Executive Officer of Tortilla.
“We continued to achieve excellent strategic progress during 2022, in line with our long-term growth strategy,” he added. “We have also strengthened our market position in London through our strategic acquisition of Chilango. Looking ahead, we remain as motivated and enthusiastic as ever about Tortilla's significant organic growth opportunities in the UK, with the added excitement of growing our already successful franchise partnerships both in the UK and abroad.”
MEX shares are up over 3% at the time of writing.
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.