Shares in Mexican restaurant chain Tortilla (LSE: MEX) fell 9% to 50p today after it warned that sales at its high street locations have been hit by low consumer confidence and footfall.
The group said in a trading update that total revenues are expected to rise to £65.7m this year, but underlying profits will be between £4.5m-£4.6m – slightly below expectations.
Tortilla said its London, shopping centre and travel sites continue to perform well, but demand at high street and smaller town locations is being impacted by economic uncertainty. Cost-cutting measures have been implemented, although the full benefit will mostly be felt in 2024.
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CEO Richard Morris said Tortilla remains confident in its long-term growth potential, with new openings continuing. But he admitted, “we are taking proactive actions to adapt to the changing market environment”.
The shares have now dropped 41.2% year-to-date.
