Mitchells & Butlers sees 5.7% sales uptick in year to date

Pub and restaurant group Mitchells & Butlers has reported good sales growth in the first three quarters of the year.

 

Revenue was up by 5.7% compared to the same period in 2023, and all of the group’s brands, including All Bar One, Harvester and Toby Carvery, are growing.

 

However, third quarter like-for-like sales growth (3.4%) was a little slower than the previous six months as a result of Easter landing in its fiscal first half this year, coupled with progressive inflationary easing through a wet weather period.

 

The current run rate of like-for-like sales growth over the most recent 13 weeks, to exclude Easter in both years, is 4.2%.

 

In the first half of 2024, food performed stronger than drink, with an average increase of 7.7% year on year, compared to 6% on beverages. However, that trend reversed in Q3, when food sales rose by 2.6% against drink’s 4%.

 

In the year-to-date, Mitchells & Butlers completed 139 conversions and remodels and opened six new sites in addition to the continued rollout of a number of initiatives to reduce energy usage, such as solar panels and sensors.

 

The firm anticipates net cost headwinds in the region of £55m this financial year with increases in labour costs due to the statutory National Living Wage rise, mitigated in part by deflation in energy costs, slowing food cost inflation and cost control at site level.

 

Chief executive Phil Urban commented: “We are pleased with the continued strong trading performance, which has remained ahead of the market through the year. As inflationary pressures have eased the level of price increase we have taken has reduced, leading to headline sales growth in line with more normalised levels as expected during the second half. The combination of easing inflationary costs and continued sales growth will ultimately benefit our profit levels for the year.

 

“With the unique strengths of our business, including a diverse portfolio of established brands, value proposition and enviable estate locations, we are well positioned to continue to grow profitability and market share into next year.”

 

In May, Mitchells & Butlers acquired the 10-strong Italian restaurant group Pesto Restaurants, following a 2023 buyout of Mediterranean-themed brand Ego Restaurants.

 

The group’s other brands include Miller & Carter, Premium Country Pubs, Sizzling Pubs, Stonehouse, Vintage Inns, Browns, Castle, Nicholson’s, O’Neill’s and Ember Inns. In addition, it operates Innkeeper’s Collection hotels in the UK and Alex restaurants and bars in Germany.