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Tortilla Mexican Grill Ltd. (GB:MEX)
LSE:MEX
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Tortilla Mexican Grill Ltd. (MEX) AI Stock Analysis

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GB:MEX

Tortilla Mexican Grill Ltd.

(LSE:MEX)

Rating:44Neutral
Price Target:
42.00p
▼(-3.67% Downside)
The overall stock score of 44 reflects significant financial challenges, including negative equity and net losses, which are the most impactful factors. Technical analysis indicates a bearish trend, while valuation metrics are unattractive due to negative profitability and lack of dividends. These factors collectively suggest caution for potential investors.

Tortilla Mexican Grill Ltd. (MEX) vs. iShares MSCI United Kingdom ETF (EWC)

Tortilla Mexican Grill Ltd. Business Overview & Revenue Model

Company DescriptionTortilla Mexican Grill Ltd. (MEX) is a UK-based fast-casual restaurant chain specializing in Mexican cuisine. The company operates a network of restaurants offering freshly prepared burritos, tacos, and other Mexican-inspired dishes. Known for its emphasis on fresh ingredients and customizable menu options, Tortilla Mexican Grill caters to both dine-in and takeaway customers, providing a vibrant and engaging dining experience.
How the Company Makes MoneyTortilla Mexican Grill Ltd. generates revenue primarily through the sale of food and beverages at its restaurants. The company's revenue model is based on direct sales to customers who visit its locations, with additional income from takeaway and delivery services. Key revenue streams include individual meal purchases, catering services, and potentially partnerships with delivery platforms to expand its customer reach. The company focuses on optimizing its operational efficiency and menu offerings to enhance profitability and maintain competitive pricing.

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
45
Neutral
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
30
Negative
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
55
Neutral
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue68.00M65.67M57.70M48.08M26.83M
Gross Profit52.10M50.79M44.09M38.28M20.78M
EBITDA7.65M8.87M6.71M9.78M1.68M
Net Income-3.33M-1.09M-638.22K1.36M460.18K
Balance Sheet
Total Assets58.28M51.41M52.36M46.07M46.66M
Cash, Cash Equivalents and Short-Term Investments2.76M1.64M2.38M9.65M10.09M
Total Debt45.98M38.15M39.65M34.57M43.80M
Total Liabilities58.77M48.52M48.76M42.20M48.71M
Stockholders Equity-485.98K2.89M3.59M3.87M-2.05M
Cash Flow
Free Cash Flow5.51M5.40M943.43K8.93M2.78M
Operating Cash Flow10.51M9.94M7.59M11.72M4.18M
Investing Cash Flow-6.27M-4.50M-8.33M-2.79M-1.40M
Financing Cash Flow-3.13M-6.16M-6.53M-9.36M1.71M

Tortilla Mexican Grill Ltd. Technical Analysis

Technical Analysis Sentiment
Negative
Last Price43.60
Price Trends
50DMA
44.25
Negative
100DMA
40.97
Positive
200DMA
44.57
Negative
Market Momentum
MACD
-0.03
Positive
RSI
42.84
Neutral
STOCH
14.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MEX, the sentiment is Negative. The current price of 43.6 is below the 20-day moving average (MA) of 44.51, below the 50-day MA of 44.25, and below the 200-day MA of 44.57, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 42.84 is Neutral, neither overbought nor oversold. The STOCH value of 14.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MEX.

Tortilla Mexican Grill Ltd. Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
£1.53B9.116.90%1.95%275.56%
61
Neutral
$17.64B14.17-5.22%3.04%1.43%-15.11%
55
Neutral
£20.22M-6.15%8.14%79.37%
55
Neutral
£5.09M-82.37%9.97%-21.54%
54
Neutral
£1.25M0.06
-21.95%
44
Neutral
£16.86M-277.22%3.54%-203.89%
44
Neutral
£87.30M-2.17%20.22%86.00%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MEX
Tortilla Mexican Grill Ltd.
43.40
-7.60
-14.90%
GB:COM
Comptoir
4.15
-0.50
-10.75%
GB:DPP
DP Poland plc
9.25
-1.75
-15.91%
GB:MAB
Mitchells & Butlers
260.00
-33.50
-11.41%
GB:TAST
Tasty plc
0.60
-0.80
-57.14%
GB:VARE
Various Eateries PLC ADR
11.55
-6.45
-35.83%

Tortilla Mexican Grill Ltd. Corporate Events

Business Operations and StrategyFinancial Disclosures
Tortilla Mexican Grill Reports Strong H1 2025 Performance Amid Expansion Efforts
Positive
Aug 6, 2025

Tortilla Mexican Grill plc reported a strong performance for the first half of 2025, with revenue increasing to £35.4 million, a £3.9 million rise from the previous year. The company’s UK like-for-like revenue growth outperformed the industry benchmark, and its franchise network showed significant growth in the UK and UAE. The company is expanding its technological capabilities with self-ordering kiosks and is actively working on converting locations in France to its brand. Despite a loss in its French operations due to ongoing investments, the company remains optimistic about its growth strategy, including new openings in the UK and its first site in Abu Dhabi.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Tortilla Mexican Grill Announces New Financing and CFO Transition
Positive
Jun 24, 2025

Tortilla Mexican Grill plc has announced a new £12.5 million financing arrangement with Santander UK plc, replacing its existing £10 million facility. This refinancing aims to support the company’s growth initiatives in the UK and Europe, particularly in France, where it plans to refurbish and rebrand sites under the Tortilla brand. Additionally, Maria Denny, the Chief Financial Officer, will step down, with Josie Whelan appointed as interim CFO. These changes are part of Tortilla’s strategy to strengthen its market position and expand its operations.

Business Operations and Strategy
Tortilla Mexican Grill Announces Share Awards Under LTIP 2021
Neutral
Jun 23, 2025

Tortilla Mexican Grill plc has announced the grant of nil cost options over ordinary shares to directors under its Long Term Incentive Plan 2021. This move is aimed at incentivizing key personnel by aligning their interests with the company’s performance targets, potentially impacting the company’s operational focus and stakeholder engagement.

Executive/Board ChangesShareholder MeetingsBusiness Operations and Strategy
Tortilla Mexican Grill Ltd. Successfully Passes All AGM Resolutions
Positive
Jun 19, 2025

Tortilla Mexican Grill Ltd. announced that all resolutions proposed at their Annual General Meeting were successfully passed. This includes the re-election of several directors and the appointment of new auditors, which indicates strong shareholder support and stability in the company’s governance. The approval of these resolutions is expected to positively impact the company’s operations and strategic direction, reinforcing its position in the competitive restaurant industry.

Shareholder MeetingsBusiness Operations and StrategyFinancial Disclosures
Tortilla Mexican Grill Publishes 2024 Annual Report and Announces 2025 AGM
Positive
May 27, 2025

Tortilla Mexican Grill plc has published its 2024 Annual Report and Accounts along with the notice for its 2025 Annual General Meeting. The AGM is scheduled for June 19, 2025, at a new location in London. This announcement marks a continuation of Tortilla’s strategic growth and operational transparency, reinforcing its commitment to stakeholders and its position in the fast-casual dining industry.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Tortilla Mexican Grill Expands European Presence with Fresh Burritos Acquisition
Positive
May 21, 2025

Tortilla Mexican Grill plc announced its annual results for 2024, highlighting a strategic focus on rejuvenating UK operations and expanding into Europe through the acquisition of Fresh Burritos in France. The company reported a 3.5% revenue increase to £68.0m, driven by the acquisition and strong franchise contributions. Despite a marginal decline in group LFL sales, UK sales showed significant recovery. The integration of Fresh Burritos faced delays due to French planning approvals, but store conversions are expected to be completed by the end of 2025. The company’s strategic initiatives, including technology enhancements and brand revitalization, aim to drive growth and profitability.

Business Operations and StrategyFinancial Disclosures
Tortilla Mexican Grill to Announce Year-End Results
Positive
May 12, 2025

Tortilla Mexican Grill PLC announced it will release its final results for the year ending December 29, 2024, on May 21, 2025. The company will host presentations for analysts and investors, highlighting its continued expansion and commitment to sustainability. This announcement underscores Tortilla’s strategic growth through acquisitions and franchise partnerships, positioning it as a significant player in the fast-casual dining industry.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 29, 2025