EarningsQ2 2026 Earnings Report
DE:73D Q2 2026 EPS Results
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Consensus EPS―
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One Year Ago EPS-€0.06
DE:73D Q2 2026 Revenue Results
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Earnings Announcement Details
QuarterQ2 2026
Date09/29/2026
TimeBefore Open
Conference CallTuesday, September 29, 2026
DE:73D Upcoming Earnings
Tortilla Mexican Grill Ltd.'s next earnings date is estimated for April 12, 2027, based on past reporting schedules.
Q2 2026 Earnings Call Audio
No earnings call audio is available for this earnings event.
Q2 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was predominantly positive. Management reported strong U.K. and France like-for-like growth, improved delivery performance, U.K. profitability, French gross-margin progress, store turnaround actions, and a broad strategic and technology plan. These positives were tempered by France's prior accounting and operating problems, continuing negative French EBITDA in H1, labor and food-cost pressures, high debt utilization, constrained cash, a Middle East franchise sales dip, and the history of missed profit targets. Management nevertheless expressed confidence in the current trajectory and emphasized decisive corrective actions and a focus on deleveraging.Company Guidance
System Sales and Average Unit Volume Milestones
Last-12-month system sales reached GBP 100 million, with system-wide sales at GBP 103 million and average unit volumes exceeding GBP 1 million per site.
Strong Group and U.K. Like-for-Like Growth
Group revenue increased by 6%-38.5%, including group like-for-like growth of 13.3%. U.K. H1 like-for-like sales grew 13.9%, while U.K. revenue increased 7% to GBP 35.4 million despite operating with fewer stores.
U.K. Profitability and EBITDA Performance
The U.K. remained profitable, with adjusted EBITDA increasing from GBP 2.4 million to GBP 2.6 million. U.K. gross margin was 75.5%, and average unit volumes exceeded GBP 1 million per site.
Multi-Aggregator Delivery Driving Sales
Launching Deliveroo alongside Just Eat and Uber increased delivery sales by 50%, with delivery accounting for just over one-third of sales. Management said delivery growth also supported in-store footfall and that sales growth outweighed the approximately 1% margin impact from higher aggregator commissions.
France Like-for-Like Recovery
France delivered 18.2% overall like-for-like growth in H1 and 24.4% like-for-like growth in Q3. France delivery like-for-likes increased 88%, and management said the growth continued through Q3.
France Estate Rationalization and Cost Savings
The French estate was reduced to eight stores, seven of which have been converted to Tortilla. Closing underperforming stores reduced annualized losses by GBP 1.1 million, while restructuring the French head office reduced annualized head office costs by GBP 0.4 million, with management also referring to GBP 0.5 million of head office cost savings in the France financial discussion.
Improved French Gross Margin
France gross margin was 65.5% on average in H1 and reached 70% by June and into Q3, supported by better supply-chain and sourcing control and price adjustments.
French Store Profitability Progress
Two French stores were already in profitable territory, and management said the adjusted EBITDA loss had been halved moving forward for H2. The remaining estate was described as having significant potential to approach U.K. operating levels.
Turnaround of Underperforming U.K. Stores
Of the 15 sites opened during the 2022/2023 rapid rollout, 11 of the 13 remaining stores were profitable after delivery growth and other initiatives improved performance. The stores were tracking above GBP 18,000 in average weekly sales, and two stores, Gunwharf in Portsmouth and Canterbury, had been exited.
Free Cash Flow Improvement and Growth Investment
Free cash flow improved by GBP 1.6 million year over year in H1 as trading recovered. The company also invested in growth by opening two U.K. stores: a Leeds location with the new Tortilla 2.0 branding and a smaller Wembley Boxpark unit.
Technology and AI Rollout
The company launched generative AI and agentic AI initiatives, green-lit and began rolling out Oracle EPOS, and aligned its U.K. and French POS, Sage, data-warehouse, and other technology platforms through the One Tortilla program.
New Leadership and Multi-Year Value Creation Plan
Tortilla introduced a new board and added Mac Plumpton as U.K. Chief Executive Officer and Edson Diaz-Fuentes as a food and innovation leader. Management has put in place a multi-year, multi-department value creation plan containing approximately 250 initiatives.
Margin and Unit Volume Ambitions
Management said 2026 average unit volume is expected to be GBP 1.15 million per annum, with an ambition to reach GBP 1.5 million. The estate-wide EBITDA margin was 16.4%, mature stores were approximately 17.5%, and management believes a 20% restaurant EBITDA margin is achievable through gross-margin, delivery operations, labor scheduling, repairs and maintenance, and other initiatives.
Franchise Expansion Opportunity
Annual franchise sales were approximately GBP 27 million, including GBP 16 million from the U.K. The company has franchise relationships with SSP, Compass, and Eathos in the Middle East, is launching another Compass site at Addenbrooke's Hospital, has three potential U.K. franchisees under discussion, and is beginning early conversations about European expansion.
European Expansion Platform
Management identified the 14,000-square-foot central production kitchen in Lier, described as 2.5 times the size of the Tottenham Hale kitchen, as a potential platform to serve the Netherlands, France, and Western Germany. The company stated its ambition to develop a franchisable model for Western Europe and expand across Europe.
Product, Brand, and Channel Initiatives
The company is developing enhanced desserts, drinks, evening platters, breakfast options, corporate catering formats, family and kids delivery offerings, improved wraps and salsas, and refreshed packaging. Management cited the Hibiscus Lemonade becoming the third most popular drink, as well as strong performance from the Cali Caesar Wrap and ghost chili chicken limited-time offer.
Brand Refresh and New Store Format
The Leeds site introduced refreshed branding, a kiosk, a second assembly line, video screens, and separate digital and in-person customer journeys. Management plans to roll these features out across the estate as capital allows.
Franchise Economics and New-Site Returns
Management said new sites typically target approximately 35% return on capital employed, with Leeds performing exceptionally well early in its maturity curve. The company is increasingly focused on a franchise-led rollout rather than putting significant cash into equity stores.
U.K. Market White-Space Opportunity
A Hospitality Data Insights white-space report is being prepared for the U.K. Management said there could be a couple hundred Tortilla sites in the U.K., depending on the return-on-capital profile or threshold.
DE:73D Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed