Tortilla shares plummet as chain takes revenue hit after quitting Deliveroo
Shares in Mexican fast food chain Tortilla have plummeted by more than a quarter as it revealed a slump in its revenue after cutting ties with Deliveroo.
The London-listed group‘s share price dropped 26 per cent by noon today to their lowest point since April as the group revealed its latest full year results.
Tortilla, which still offers delivery via Just Eat and Uber Eats, saw its revenue drop £1.2m to £31.5m during the first six months of 2024, with like-for-like revenue down 5.9 per cent.
Tortilla said the decision to remove itself from Deliveroo had been driven by a move to “improve profit conversion and increase focus on in store revenue”.
The chain delivered more than 1.5 million main meals across Uber Eats, Just Eat and Deliveroo in 2023, whilst maintaining an average of 4.6-star customer app rating.
Desipte a decrease in revenue the company’s adjusted EBITDA hit £1.8m, in line with the first six months of 2023 despite its revenue drop.
Andy Naylor, CEO at Tortilla, said: “We are now seeing the positive implementation of our strategy across all five pillars as we continue to strengthen Tortilla’s offering and position the business to capitalise on the long-term significant opportunities in our market as the dominant European market leader in fast-casual Mexican cuisine.
“In the first half of 2024, we have significantly improved the quality of our food and are driving exciting innovation with our new food director, James Garland now onboard.
“We have accelerated the deployment of kiosk-ordering technology and will be launching our new loyalty platform at the beginning of August. Whilst the timing of these initiatives has been slower than planned, the early signs are positive, and we look forward to updating shareholders on progress in September.”
In April Tortilla announced that it would “double down” on franchising to help capitalise on growth opportunities in both the UK and internationally.
The company currently has 10 franchise sites in both the UK and the Middle East, 12 in France and one in Korea.