MEX: Tortilla MG Roll-Up Biggest European Competitor

(LON:MEX) Tortilla MG Acquire French Operator, Fresh Burritos, in €3.95 million deal

A few months ago, Tortilla Mexican Grill (MG) announced full-year 2023 results, which were generally positive. In addition to a newly promoted chief operating officer, the company announced a new strategic vision. Two of the core pillars of that vision were UK profitability and a concerted effort to “double down on franchising”. In a surprising announcement made last week, Tortilla looks to be making good on that promise with the acquisition of a French operator, Fresh Burrito. The roll-up target was previously the second-largest Mexican franchise brand in Europe, second only to its acquirer. The market has reacted positively to the news, with shares up ~22% since the close price preceding the announcement on June 25th. 

The news means that Tortilla will now control ~120 company-operated and franchised locations across the UK and France as it looks to make a stamp on a continent which has been left relatively untouched by gargantuan rivals like Chipotle. Who, as of April 2024, only has…