Burrito chain Tortilla full of beans as sales momentum continues

Burrito chain Tortilla has hailed “strong” momentum after revealing that sales jumped by more than three-quarters last year following the relaxation of pandemic restrictions.

The restaurant chain saw shares lift higher after it wrapped up its first year as a listed company.

The company said that revenues increased by 79.5% to £48.1 million for the year to January 2, compared with the previous year.

Like-for-like sales were 23.8% of pre-pandemic levels as the company reported increased demand for Mexican food.

It added that sales continued to improve over the first three months of the new financial year.

“Strong trading momentum delivered in the period has continued into 2022, with LFL growth of 20.1% year to date, in line with expectations,” the group said.

Richard Morris, chief executive officer of the business, told the PA news agency he believes Tortilla is well positioned despite pressure on customer finances.

“The market has been very resilient although we recognise that there is always potential for change,” he said.

“But businesses like ourselves do tend to do well amid a downturn because of our value proposition.

“We are always investing to make sure we remain good value for money but still want the product to feel indulgent and I think we could benefit if people are pricing down.”

He said the company has increased pricing on some products in recent weeks but stressed that it has “lower” exposure to particularly inflated products, such as sunflower oil, than competitors.

Mr Morris said: “We are seeing cost rises on things like poultry and dairy but, broadly speaking, we haven’t seen the levels of cost increases which are affecting others in the sector.”

The group, which currently has 68 sites, said it is still continuing to roll out more locations and expects 16 more openings by the end of the year.

It told investors on Monday that it believes it has the potential to grow to around 200 sites.

Shares in Tortilla moved 2.3% higher to 169.9p.