Tortilla Mexican Grill Sees £73.8m Revenue Surge Driven by UK Sales Growth and French Division Overhaul

Founder Brandon Stephens Resumes Leadership to Drive Strategic Reset

Brandon Stephens, who founded Tortilla in 2007 to fill a UK market gap for fresh, Californian-inspired Mexican cuisine prepared rapidly to individual preferences, resumed the role of Group CEO in February 2026. Stephens' return reflects his passion for the brand and confidence in enhancing the concept, strengthening customer engagement, and scaling operations to their full potential. Previously, he appointed Richard Morris as CEO in 2014 but remained involved as a shareholder and Non-Executive Director. This leadership change is among the most significant decisions by the Board amid FY25's accounting and operational challenges.

Stephens’ return coincided with a comprehensive governance overhaul aimed at combining strong listed company oversight with hands-on experience in scaling fast-casual hospitality businesses. The CEO’s statement highlights his strong shareholder backing and the Board’s careful selection process, valuing his long-term shareholder alignment, deep brand and product knowledge, and international hospitality experience. He will implement a new 10-key objectives framework replacing the previous Vital Five, guided by principles of long-term thinking, quality over speed, outward benchmarking, product focus, and customer centricity.

French Division Accounting Issues and Share Trading Suspension

In May 2026, Tortilla revealed that certain operating costs in its French division had been incorrectly capitalised on the balance sheet rather than expensed in FY25, reducing Group Adjusted EBITDA (pre-IFRS 16) by up to £2.5m. The final correction added £2.7m of costs to French EBITDA. These issues stemmed from weak financial controls limited to France and did not impact the UK business or Group cash flow. Additional audit work delayed audited accounts publication beyond the AIM Rule 19 deadline.

As a result, trading in Tortilla shares was suspended by the London Stock Exchange on 1 July 2026. The Board took swift action to strengthen oversight of the French finance function, ensuring lasting financial control improvements. The Chair’s statement confirms a focus on completing the French turnaround while sustaining UK momentum. The company has requested lifting of the suspension following this Annual Report release, restoring AIM Rule 19 compliance. The governance reset includes a full review of Board composition, financial leadership, and operational discipline across the Group.

UK Market Outperformance and Recovery in In-Store Volumes

Tortilla’s UK division achieved strong like-for-like sales growth of 6.2% in FY25, substantially outperforming the broader restaurant sector, which saw a 1.3% decline per CGA data. UK sales momentum increased throughout the year, with quarterly like-for-like growth of 5.9% in Q1, 4.2% in Q2, 6.9% in Q3, and 7.8% in Q4. Notably, in-store volume growth returned in H2 FY25, supported by investments in food quality, self-ordering kiosks, loyalty programs, and brand initiatives. The company maintained resilient in-store like-for-like sales growth of 3.0% in Q4, demonstrating stability in a challenging market.

Key operational drivers include deployment of self-ordering kiosks in 38 UK restaurants (with two added in Q1 FY26), and a strategic shift to multi-aggregator delivery partnerships. From week 13 FY26, Tortilla listed simultaneously on Deliveroo, Uber Eats, and Just Eat, which has materially accelerated trading. Delivery sales growth has outpaced in-store expansion, significantly contributing to overall momentum.

French Division Restructuring and Fresh Burritos Brand Conversion

The French division underwent significant restructuring after acquiring Fresh Burritos in 2024. Seven Fresh Burritos stores were converted to Tortilla during FY25, including a flagship store at Paris Gare du Nord. Early trading from these converted locations is encouraging, with Q2 like-for-like sales up 22.1%. While further work is needed to align French performance with UK benchmarks, management is confident that a unified approach and a comprehensive "levelling-up" program will enhance sales and margins. These early successes highlight the Tortilla brand’s strength in France.

Conversely, non-converted Fresh Burritos sites have continued to decline, negatively impacting divisional results. The company is exiting underperforming locations, closing three sites in Nice, Grenoble, and Nantes to reduce losses, and is actively discussing disposal of others. A 13,000 sq ft central production kitchen in Lille supports both company-owned and franchised French stores, underpinning mainland European expansion. France reported an Adjusted EBITDA (pre-IFRS 16) loss of £5.2m in FY25, reflecting accounting adjustments and underperforming non-converted outlets.

Franchise Network Growth and System Sales Milestone

Tortilla’s franchise model shows resilience and growth across the UK, France, and UAE. UK franchise like-for-like sales rose 4.5% in FY25, UAE franchises grew 14.7%, and French franchises increased 2.6%. Seven new franchise stores opened in FY25—three in the UK and four in the UAE. Weekly sales records were set at 13 franchise locations during the year, underscoring the strength and scalability of the franchise partnership model. Total Group system sales surpassed £100m in June 2026, marking a significant business milestone.

The franchise approach offers capital-efficient geographic and operational expansion without heavy capital outlay. Tortilla partners with major hospitality operators including SSP Group plc, Compass UK & Ireland, and Eathos, facilitating multi-channel distribution. Francesca Tiritiello, who stepped down from the Board in 2026, remains involved as a Board Advisor leading UK and European franchise development through her firm Kikkirossi. Recent Non-Executive Director appointments with franchising expertise, such as Marta Pogroszewska, reflect strategic emphasis on leveraging franchise partnerships for sustainable growth. Total Group system sales for FY25 reached £98.3m, up £8.3m or 9.2% from FY24.

Financial Health and Technology Enhancements

Adjusted EBITDA (pre-IFRS 16) for FY25 was £1.1m, including a £6.3m profit in the UK and a £5.2m loss in France after accounting corrections. Group adjusted net debt (pre-IFRS 16) stood at £10.8m at year-end. The company refinanced debt facilities with Santander during the year to support growth. The £2.7m French accounting adjustment did not affect cash flow or net debt.

Tortilla has launched a refreshed technology strategy focused on operational modernization. It is migrating to Oracle’s EPOS platform in both the UK and France, integrating data feeds into a centralized data warehouse, and deploying agentic-AI reporting to streamline finance operations. The French Sage platform is being aligned with the UK system, a new facilities management platform has been implemented, and an enhanced delivery reporting system is under development. These investments demonstrate commitment to efficiency, data-driven decisions, and standardized processes. Self-ordering kiosks are now operational in 38 UK restaurants, with all suitable locations equipped.

H1 FY26 Trading Momentum and Delivery Expansion

Early FY26 trading shows strong momentum, with UK like-for-like sales up 13.9% for the 26 weeks to 28 June 2026, supported by 4.8% volume growth. In the 12 weeks to 22 March, UK like-for-like sales grew 6.7%, with 6.0% in-store and 8.2% delivery growth. The most significant acceleration occurred after expanding to a multi-aggregator delivery model in week 13, listing simultaneously on Deliveroo, Uber Eats, and Just Eat. In the final 14 weeks to 28 June, UK like-for-like sales surged to 19.7%, including 6.9% in-store and 54.1% delivery growth, highlighting the impact of the multi-aggregator strategy.

This delivery expansion marks a strategic shift, with trading accelerating materially since implementation. The founder expressed confidence in sustaining momentum, supported by the resilient core proposition and operational improvements. System sales exceeded £100m in June 2026. In France, like-for-like sales for the seven converted stores reached 18.2% for H1 FY26 and 22.1% in Q2, reinforcing the brand’s appeal and conversion program success.

Board and Executive Leadership Revamp

The Board was extensively restructured to support leadership transition and governance renewal. Dr Duncan Garrood was appointed Non-Executive Chair in December 2025, succeeding Emma Woods. Garrood brings extensive experience leading consumer businesses through growth and transformation, including CEO roles at Punch Taverns, Ten Entertainment Group, Empiric, and Bill’s Restaurants, plus senior franchising roles at Alshaya and BAA, and a non-executive role at Eathos, Tortilla’s Middle East franchise partner. The Board valued his hospitality scaling, international brand management, and governance expertise to aid disciplined execution.

Post-period, two additional Non-Executive Directors joined: Marta Pogroszewska in February 2026, former MD and COO of Bread Holdings with Pret A Manger leadership experience, and Gregor Grant in March 2026 as Senior Independent Director and Audit Committee Chair, bringing hospitality finance leadership including CFO at Loungers plc. These appointments complement Usman Ali of Auctor Group, who joined in early 2025. The company thanked outgoing directors Keith Down and Francesca Tiritiello, the latter transitioning to Board Advisor.

Challenging Operating Environment and Strategic Outlook

The UK hospitality sector remained challenging through FY25 and into FY26. Tortilla’s 6.2% like-for-like growth versus a 1.3% CGA benchmark decline demonstrates its resilience. The Chair noted ongoing challenges but expressed confidence in the strategic plan based on a strengthening UK business, clearer French path, disciplined processes, established franchise platform, and refreshed leadership.

The new Ten Key Objectives framework replaces the Vital Five, anchored by long-term thinking, quality over speed, outward benchmarking, product focus, and customer centricity. Governance emphasizes balancing long-term brand equity with short-term profitability, disciplined target-setting, thorough oversight, conservative assumptions, and risk identification. Monthly executive reviews and quarterly Board deep dives are now standard, with customer metrics regularly reviewed. The Board commits to transparent shareholder engagement, acknowledging challenges and successes.

Founder’s Vision and Long-Term Strategy

Founder Brandon Stephens shared the philosophy behind the strategic reset. His original conviction in 2007 was that the UK lacked fresh, wholesome, Californian-inspired Mexican food served quickly and customized, reflecting his California upbringing. Nearly 20 years later, this core belief remains, with expanded opportunity due to broader European acceptance of Mexican cuisine and geographic growth. Stephens acknowledged the increased complexity of managing multi-market operations while maintaining brand integrity and discipline.

His return aims to focus resources on the French business while sustaining UK momentum. He is committed to leveraging brand assets, product quality, and operational models for disciplined growth. The appointments of Mac Plumpton as UK CEO and Edson Diaz Fuentes as Food Ambassador strengthen operational leadership supporting Stephens’ return as Group CEO.

AGM, Shareholder Engagement, and Compliance Restoration

The Annual General Meeting is scheduled for 25 August 2026 at CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London, EC4N 6AF. The Chair encouraged shareholder attendance and engagement, reflecting the company’s commitment to transparency. Publication of the Annual Report and Accounts on 27 July 2026, following the 1 July trading suspension, restores AIM Rule 19 compliance. The audited accounts conclude the additional audit work addressing French accounting issues. Monthly executive reviews and quarterly Board deep dives on key initiatives are now embedded, with customer metrics a standing agenda item.

The Board continues to follow the Quoted Companies Alliance Corporate Governance Code, appropriate for the company’s size and development stage. It recognizes long-term success depends on trust and engagement of stakeholders including customers, employees, franchise partners, suppliers, shareholders, and communities. The Chair’s statement highlights a detailed Section 172 statement in the full report describing stakeholder consideration. Tortilla employs over 1,200 people across restaurants, production kitchens, and support offices, headquartered in London.