Mitchells & Butlers sales have improved after more customers stepped out to acquire drinks and food at its pubs despite a high inflationary environment.
Cost headwinds, which pose a significant challenge for the UK hospitality industry, have also begun to abate, while high inflation has not deterred demand, the group reported to shareholders on Thursday.
While macroeconomic concerns put pressure on consumer purchasing, Mitchells reported robust sales and reaffirmed its annual forecast at the upper end of market expectations.
The organisation has modified its menus in the past in response to rising costs and inflationary pressures on food and energy.
The owner of the Toby Carvery, Harvester and All Bar One brands reported an increase in like-for-like sales of 9.1% for the year ending September 24 and 9.7% for the fourth quarter.
Compared to the same period in 2018, year-to-date like-for-like sales are up 10.5%, with growth driven by spend-per-head.
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The group stated, “Cost headwinds are diminishing and remain at the bottom of the previously identified range.”
“We remain cognizant of the challenging macroeconomic environment and consumer pressures; however, as trading remains robust, we are confident that the current year’s results will exceed consensus expectations, with momentum continuing into FY 2024.”
M&B reported that food sales increased 8.6% on a like-for-like basis, while drink sales increased 9.9%.
In the fourth quarter, like-for-like drink sales decreased from 7.4% in the previous quarter to 6.4%, as a rainy summer dampened business for many pub and restaurant chains.
This morning, Mitchells shares were up 3.35 percent, or 7.19 pence, to 221.79 pence, having risen over 64 percent in the past year.
Phil Urban, the chief executive officer of the group, stated, “We are thrilled to have maintained our strong like-for-like sales performance in the fourth quarter, which was supported by volume growth and reflected a growing outperformance against the market.”
Moving forward, we will remain focused on executing the drivers of this strong performance, our Ignite programme of growth and efficiency initiatives, and our capital investment programme, which, combined with our diverse portfolio of established brands and enviable estate locations, positions us well to continue to outperform the sector and improve profitability.
M&B reported that food sales increased 8.6% on a like-for-like basis, while drink sales increased 9.9%.
In the fourth quarter, like-for-like drink sales decreased from 7.4% in the previous quarter to 6.4%, as a rainy summer dampened business for many pub and restaurant chains.
This morning, Mitchells shares were up 3.35 percent, or 7.19 pence, to 221.79 pence, having risen over 64 percent in the past year.
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Phil Urban, the chief executive officer of the group, stated, “We are thrilled to have maintained our strong like-for-like sales performance in the fourth quarter, which was supported by volume growth and reflected a growing outperformance against the market.”
“Moving forward, we will remain focused on executing the drivers of this strong performance, our Ignite programme of growth and efficiency initiatives, and our capital investment programme, which, combined with our diverse portfolio of established brands and enviable estate locations, positions us well to continue to outperform the sector and improve profitability.”
