Tortilla Mexican Grill plc (LON:MEX) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Tortilla Mexican Grill plc, together with its subsidiaries, operates, manages, and franchises Mexican restaurants under the Tortilla, Chilango, and Fresh Burritos brands in France, the United Kingdom, and the Middle East. The UK£15m market-cap company announced a latest loss of UK£3.3m on 29 December 2024 for its most recent financial year result. As path to profitability is the topic on Tortilla Mexican Grill's investors mind, we've decided to gauge market sentiment. We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

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Consensus from 2 of the British Hospitality analysts is that Tortilla Mexican Grill is on the verge of breakeven. They expect the company to post a final loss in 2025, before turning a profit of UK£2.1m in 2026. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 99%, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Tortilla Mexican Grill given that this is a high-level summary, however, bear in mind that typically a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

Check out our latest analysis for Tortilla Mexican Grill

One thing we would like to bring into light with Tortilla Mexican Grill is it currently has negative equity on its balance sheet. Accounting methods used to deal with losses accumulated over time can cause this to occur. This is because liabilities are carried forward into the future until it cancels. These losses tend to occur only on paper, however, in other cases it can be forewarning.

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This article is not intended to be a comprehensive analysis on Tortilla Mexican Grill, so if you are interested in understanding the company at a deeper level, take a look at Tortilla Mexican Grill's company page on Simply Wall St. We've also compiled a list of key aspects you should look at: