Tortilla Mexican Grill (MEX.L) H1 revenue rises 5.9% on UK demand, France conversions
H1 revenue rose 5.9% year-on-year, adjusted EBITDA turned positive and UK LFL sales rose 19.4% for 13 weeks to 27 Sep, as France LFL sales at converted stores rose 24.4%.
9% year on year, supported by strong UK like-for-like sales. Adjusted EBITDA was positive in the first half, reflecting improved trading and lower costs. The gross margin in converted French stores was 70% at the end of the half. 4% for the 13 weeks to 27 Sep.
4% for the 13 weeks to 27 Sep. Management said it expects a focus on average unit volume to help improve profit conversion. 17 mln. The shares are rated "buy".
The recommendations breakdown shows 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell". The average consensus recommendation for the restaurants & bars peer group is "buy". 00. The stock recently traded at 13 times the next 12-month earnings, versus a P/E of 21 three months ago.