Tortilla Mexican Grill Posts Robust UK Growth and Accelerates French Turnaround Following Founder’s Return

FY25 Financial Results Highlight UK Strength and French Integration Challenges

Tortilla Mexican Grill recorded group revenue of a373.8m for the 52 weeks ended 28 December 2025, an 8.5% rise (a35.8m) compared to FY24. Total group system sales, including franchised and corporate stores across the UK, France, and the UAE, reached a398.3m, up 9.2% (a38.3m) year-over-year. Adjusted EBITDA on a pre-IFRS 16 basis was a31.1m, with the UK division contributing a36.3m, offset by a35.2m losses from the French operations due to accounting adjustments identified during the audit.

The company disclosed that accounting discrepancies in the French business led to operating costs being capitalized on the balance sheet instead of expensed in FY25, reducing French EBITDA by up to a32.5m. These issues stemmed from weak financial controls limited to the French division and did not impact the UK operations or group cash flow. Tortilla has since enhanced financial oversight in France to ensure rigorous controls and accurate reporting. The group refinanced its debt facilities with Santander during the year, ending FY25 with adjusted net debt of a310.8m on a pre-IFRS 16 basis.

UK Market Outperformance and Progressive Like-for-Like Sales Growth in 2025

The UK division exhibited strong momentum throughout FY25, delivering 6.2% like-for-like sales growth that significantly outpaced the CGA hospitality sector benchmark decline of 1.3%. Quarterly like-for-like sales growth progressed from 5.9% in Q1 to 7.8% in Q4, reflecting enhanced operational execution and sustained customer engagement.

In-store sales remained resilient in Q4 with 3.0% like-for-like growth despite sector-wide challenges. This was attributed to product quality improvements, investments in self-ordering kiosks, loyalty program enhancements, and targeted brand marketing. Stabilized in-store volume growth in H2 positioned Tortilla to enter 2026 with strong momentum.

Franchise Expansion and Fresh Burritos Integration Update

The franchise network performed well across all regions in FY25. UK franchises posted 4.5% like-for-like sales growth, UAE franchises surged 14.7%, and French franchises grew 2.6%. Seven new franchise outlets opened during the year—three in the UK and four in the UAE—with 13 franchise locations setting weekly sales records globally, underscoring the franchise model’s resilience and brand appeal.

The integration of Fresh Burritos, acquired in 2024 as Europe’s second-largest fast-casual Mexican chain, was a key strategic focus. Seven Fresh Burritos locations were rebranded to Tortilla, including the flagship Gare du Nord site in Paris. Early trading at converted sites was promising, with Q2 like-for-like sales rising 22.1%. However, management acknowledged ongoing challenges aligning the French division’s overall performance with the UK, as non-converted Fresh Burritos outlets continued to decline, weighing on divisional results.

Strategic Measures to Address French Underperformance and Optimize Operations

In response to accounting issues and mixed Fresh Burritos integration outcomes, Tortilla implemented decisive actions to improve French performance and reset priorities. Three Fresh Burritos sites in Nice, Grenoble, and Nantes were closed due to cash losses. Discussions are underway regarding the potential sale of additional non-converted Fresh Burritos locations. Investment is focused on the seven converted stores demonstrating strong unit economics and sales viability.

The company’s 13,000 sq ft central production kitchen in Lille now supports both corporate and franchise stores across France, providing a platform for further European expansion. Cost optimization measures have been applied to the French head office. Founder Brandon Stephens’ appointment as Group CEO in February 2026 aims to ensure focused leadership and operational discipline necessary for a successful French turnaround. Stephens noted that while the Fresh Burritos acquisition thesis remains valid, the required resources and oversight to transform an underperforming brand in a relatively new market had been underestimated.

Technology Enhancements and Self-Ordering Kiosk Rollout

Tortilla has launched a comprehensive technology upgrade across UK and French operations, migrating to Oracle’s EPOS platform for unified point-of-sale and data management. Integration of data feeds into a central warehouse enhances analytics and business intelligence. An agentic-AI reporting system has been introduced to streamline finance processes, and the French legacy Sage platform is being aligned with UK systems.

As of FY25 end, 38 UK restaurants had self-ordering kiosks installed, with two additional units deployed in Q1 FY26. All suitable UK stores now feature kiosks, reflecting the company’s technology-forward approach. Additional investments include upgraded facilities management and enhanced delivery reporting platforms, aimed at boosting operational efficiency, customer experience, and data quality.

Trading Acceleration Following Multi-Aggregator Delivery Expansion

H1 2026 trading showed significant acceleration, driven by the launch of a multi-aggregator delivery strategy across Deliveroo, Uber Eats, and Just Eat. For the 52 weeks to 28 June 2026, UK like-for-like sales rose 13.9%, supported by 4.8% volume growth. In the 12 weeks to 22 March 2026, UK like-for-like sales increased 6.7%, with in-store sales up 6.0% and delivery sales up 8.2%.

Following the multi-aggregator launch in week 13, UK like-for-like sales surged to 19.7% over the subsequent 14 weeks, with in-store sales up 6.9% and delivery sales soaring 54.1%. This expansion resolved previous delivery channel limitations and drove substantial volume growth. Founder and CEO Brandon Stephens described the trading uplift as material, highlighting the delivery model expansion as a key growth catalyst.

System Sales Surpass a3100m Milestone, Strengthening Market Leadership

In June 2026, Tortilla achieved a major milestone with system sales exceeding a3100m for the first time. System sales represent total consumer sales (excluding VAT) from franchised and corporate stores across the UK, France, and UAE. This milestone reflects significant growth from a398.3m in FY25 and underscores the impact of strong UK trading, franchise network expansion, and emerging French conversions.

The company remains the largest fast-casual Mexican restaurant operator in the UK and Europe, combining corporate outlets, central production kitchens, and franchise partnerships. Through acquisitions such as Chilango (UK, 2022) and Fresh Burritos (France, 2024), alongside partnerships with SSP Group plc, Compass UK & Ireland, and Eathos, Tortilla continues to broaden its geographic reach and distribution. The business employs over 1,200 staff and is headquartered in London.

Leadership Renewal and Board Restructuring to Enhance Governance

Tortilla has implemented significant leadership and governance changes to bolster management quality and board oversight. Founder Brandon Stephens returned as Group CEO in February 2026 after serving as a shareholder and Non-Executive Director. The board determined that new senior leadership skills were essential for the company’s next growth phase. Stephens’ return received strong shareholder backing and was coordinated with the board. Richard Haley was appointed Chief Financial Officer, bringing extensive finance leadership experience in FTSE and AIM-listed hospitality, retail, and consumer companies.

The board was restructured to combine robust listed company governance with recent hospitality scaling experience. Dr Duncan Garrood joined as Non-Executive Chair in December 2025, bringing leadership experience from Punch Taverns, Ten Entertainment Group, Empiric, Bill’s Restaurants, and international franchising roles. Post-period, Marta Pogroszewska was appointed Non-Executive Director in February 2026, having previously led Bread Holdings and Gail’s Bakery expansion. Gregor Grant became Senior Independent Director and Audit Committee Chair in March 2026, with CFO experience at Loungers plc and deep hospitality sector expertise.

Strategic Reset and Governance Framework for Sustainable Growth

The leadership team introduced a strategic reset framework with Ten Key Objectives supported by five guiding principles: long-term thinking, quality over speed, outward benchmarking, product focus, and customer centricity. This replaces the previous Vital Five framework used during recovery and European expansion. The board emphasized that Tortilla’s 2026 profile necessitates a tailored strategic approach aligned with its current scale and market position.

Governance improvements include disciplined target-setting based on bottom-up forecasts, rigorous oversight, conservative assumptions, and clear risk identification. Long-term thinking is central to decision-making, prioritizing brand equity over short-term profits when necessary. Monthly executive reviews and quarterly board deep dives on key initiatives have been embedded, with customer metrics regularly reviewed. The board commits to transparent shareholder engagement, openly addressing challenges alongside successes.

Outlook and Upcoming Annual General Meeting

Tortilla published its Annual Report and Accounts for the year ended 28 December 2025 and announced its Annual General Meeting will take place on 25 August 2026 at CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London, EC4N 6AF. Shareholders are encouraged to attend and engage with the board. The audited results restore compliance following a temporary trading suspension on 1 July 2026, which allowed completion of additional audit work addressing French accounting issues. The company has requested lifting of the suspension.

Management expressed confidence in the company’s trajectory, citing a strengthening UK business, clearer French strategy, disciplined processes, a robust franchise platform, and refreshed leadership. The board aims to support management in executing strategic priorities with constructive challenge and disciplined governance. Despite ongoing market challenges, strong H1 2026 UK trading, early French conversion success, the a3100m system sales milestone, and leadership renewal position Tortilla for disciplined, sustainable growth.