Tortilla Mexican Grill Ltd. (MEX) AI Stock Analysis

• Market Cap: £14.69M
• Dividend Yield: N/A
• Average Volume (3M): 34.30K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: 12.39%
• EPS Growth: -627.32%
• Country: UK
• Employees: 1,300
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.05
• Shares Outstanding: 38,664,032
• 10 Day Avg. Volume: 63,364
• 30 Day Avg. Volume: 34,295
• PEG Ratio: -0.03
• Price to Book (P/B): -39.78
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 3.51
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): £5.55B

• Rating: 55 Neutral
• Price Target: 39.00p ▼(-2.50% Downside)

Tortilla Mexican Grill Ltd.'s overall stock score is primarily influenced by its financial challenges, including negative equity and profitability issues. However, positive technical indicators and strategic corporate events, such as leadership changes and strong UK EBITDA, provide some optimism. The negative valuation metrics, including a negative P/E ratio, weigh down the score.

Positive Factors

Revenue Growth

Stable revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and resilience.

Cash Flow Management

Positive cash flow from operations suggests effective capital management, providing a buffer against financial instability and supporting future investments.

Gross Profit Margin

A strong gross profit margin indicates efficient cost management and pricing power, essential for sustaining profitability in the competitive restaurant industry.

Negative Factors

Negative Equity

Negative equity highlights financial instability, posing risks to long-term viability and limiting the company's ability to secure financing or invest in growth.

Profitability Challenges

Ongoing profitability issues reflect challenges in managing costs and achieving sustainable earnings, which may hinder long-term financial health and growth.

High Leverage

High leverage increases financial risk, potentially limiting operational flexibility and increasing vulnerability to economic downturns or interest rate hikes.

Tortilla Mexican Grill Ltd. Business Overview & Revenue Model

Company Description

Tortilla Mexican Grill Ltd. (MEX) is a vibrant fast-casual dining establishment specializing in authentic Mexican cuisine. Founded in the UK, the company focuses on providing fresh, high-quality dishes such as burritos, tacos, and quesadillas, along with a variety of salsas and sides. Operating primarily in urban areas, Tortilla aims to deliver a quick yet satisfying dining experience that caters to both lunch and dinner crowds. The company's commitment to using sustainable ingredients and innovative recipes has positioned it as a leader in the fast-casual segment of the Mexican food market.

How the Company Makes Money

Tortilla Mexican Grill Ltd. generates revenue through multiple streams, primarily from in-store sales of its food and beverage offerings. The company's revenue model is anchored on a fast-casual dining experience, which allows customers to customize their meals, thereby increasing average ticket sizes. Additionally, Tortilla benefits from a growing trend of takeout and delivery services, which contribute to higher sales volumes. The company has also explored partnerships with delivery platforms, enhancing its reach to a broader customer base. Franchise opportunities may further augment revenue, offering a scalable model for expansion into new markets. Furthermore, Tortilla emphasizes cost management and operational efficiency, which helps maintain profitability while delivering value to customers.

Tortilla Mexican Grill Ltd. Financial Statement Overview

Summary

Tortilla Mexican Grill Ltd. faces significant financial challenges, particularly with profitability and high leverage. While revenue growth is stable, the negative equity and net losses are concerning. Cash flow management appears relatively strong, offering some resilience, but the overall financial health requires strategic improvements to achieve long-term stability.

Income Statement

Tortilla Mexican Grill Ltd. has shown a consistent increase in total revenue over the years, with a growth rate of approximately 3.5% from 2023 to 2024. However, the company struggles with profitability, as indicated by negative EBIT and net income in 2024. The gross profit margin remains relatively strong at around 76.6%, but negative net profit margin highlights challenges in managing operating and financing costs.

Balance Sheet

The company's balance sheet presents concerns with negative stockholders' equity in 2024, indicating potential insolvency risk. The debt-to-equity ratio cannot be calculated due to negative equity, emphasizing high leverage. The equity ratio is negative, further suggesting financial instability.

Cash Flow

Cash flow from operations remains positive and has increased slightly from 2023 to 2024. The free cash flow growth rate is modest at around 2%, reflecting careful capital expenditure management. However, the high operating cash flow to net income ratio indicates reliance on non-operating income or adjustments.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	68.00M	65.67M	57.70M	48.08M	26.83M
Gross Profit	52.10M	50.79M	44.09M	38.28M	20.78M
EBITDA	7.65M	8.87M	6.71M	9.78M	1.68M
Net Income	-3.33M	-1.09M	-638.22K	1.36M	460.18K
Balance Sheet
Total Assets	58.28M	51.41M	52.36M	46.07M	46.66M
Cash, Cash Equivalents and Short-Term Investments	2.76M	1.64M	2.38M	9.65M	10.09M
Total Debt	45.98M	38.15M	39.65M	34.57M	43.80M
Total Liabilities	58.77M	48.52M	48.76M	42.20M	48.71M
Stockholders Equity	-485.98K	2.89M	3.59M	3.87M	-2.05M
Cash Flow
Free Cash Flow	5.51M	5.40M	943.43K	8.93M	2.78M
Operating Cash Flow	10.51M	9.94M	7.59M	11.72M	4.18M
Investing Cash Flow	-6.27M	-4.50M	-8.33M	-2.79M	-1.40M
Financing Cash Flow	-3.13M	-6.16M	-6.53M	-9.36M	1.71M

Tortilla Mexican Grill Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MEX, the sentiment is Positive. The current price of 40 is above the 20-day moving average (MA) of 37.18, above the 50-day MA of 37.09, and below the 200-day MA of 40.35, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 82.49 is Negative, neither overbought nor oversold. The STOCH value of 88.89 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:MEX.

Tortilla Mexican Grill Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAB	66 Neutral	£1.43B	8.52	6.58%	―	3.87%	18.31%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MEX	55 Neutral	£14.69M	-2.85	-9999.00%	―	12.39%	-627.32%
COM	52 Neutral	£6.75M	―	-19.96%	―	6.48%	88.46%
DPP	52 Neutral	£73.14M	―	-1.36%	―	11.73%	85.29%
VARE	49 Neutral	£23.63M	-12.98	-6.15%	―	8.14%	79.37%
BOW	39 Underperform	£10.11M	―	―	―	-26.54%	-164.52%

Tortilla Mexican Grill Ltd. Corporate Events

Tortilla Mexican Grill Appoints New Chair to Lead Growth

Tortilla Mexican Grill PLC has announced the appointment of Duncan Garrood as the new Non-Executive Chair, succeeding Emma Woods. Garrood, who brings extensive leadership and international franchising experience, is expected to guide the company through its next growth phase in the UK and internationally. This leadership change is seen as a strategic move to bolster Tortilla’s market position and support its expansion ambitions.

Tortilla Mexican Grill Announces Chair Succession Plan

Tortilla Mexican Grill PLC announced the upcoming departure of Emma Woods, the Non-Executive Chair, at the end of 2025. The company is searching for a new Independent Chair to guide its next growth phase, focusing on international expansion. Woods’ leadership over the past four years has been pivotal in the company’s growth, including its entry into the European market. The transition is expected to be smooth, with Woods staying on to ensure an orderly handover.

Tortilla Mexican Grill Appoints New CFO to Strengthen Leadership

Tortilla Mexican Grill PLC has appointed Richard Haley as the new Chief Financial Officer, following the completion of regulatory checks. This appointment is part of the company’s strategic efforts to strengthen its leadership team as it continues to expand its global presence and enhance its operational efficiency.

Tortilla Mexican Grill PLC Announces Interim Results Presentation

Tortilla Mexican Grill PLC announced that its CEO and interim CFO will present the company’s interim results for the first half of 2025 via the Investor Meet Company platform. This presentation is accessible to all current and potential shareholders, allowing them to engage with the company’s leadership and gain insights into its financial performance and strategic direction.

Tortilla Mexican Grill Reports Record UK EBITDA Amidst Strategic Expansion

Tortilla Mexican Grill plc reported strong interim results for the first half of 2025, with a record UK EBITDA and significant like-for-like sales growth, outperforming industry benchmarks. The company’s strategic focus on food quality, brand marketing, and technology investments has bolstered customer loyalty and operational efficiency. In France, the conversion of stores to the Tortilla brand is progressing, supported by a central production kitchen, although initial investment has impacted short-term profitability. Despite challenges, the company remains optimistic about its long-term growth prospects in Europe.

Tortilla Mexican Grill Appoints New CFO to Drive Growth

Tortilla Mexican Grill plc has appointed Richard Haley as its new Chief Financial Officer, effective from October 6, 2025. Haley brings extensive experience in finance leadership from various high-profile companies, which is expected to support Tortilla’s strategic growth plans and strengthen its position in the fast-casual dining industry.