Mitchells & Butlers sees good growth over festive season

Pub operator Mitchells & Butlers issued a first quarter trading statement on Friday, covering the 15 weeks to 7 January, with like-for-like sales growth for the year-to-date improving to 1.7%.

The FTSE 250 company’s board said that was a continuation of the progress it reported earlier in the year.

It said trading over the festive period was particularly strong across all brands, with like-for-like sales growth of 4.7% for the four weeks to 7 January.

Total sales increased by 2.3% in the year-to-date, though as the firm had previously indicated, increased cost pressure is expected to lead to margins being lower than last year.

Mitchells & Butlers has opened one new site and completed 69 conversions and remodels in the financial year to date.

It said it expects to complete around 300 remodels and conversions in the full year.

“This is an encouraging performance, building on positive momentum from earlier in the year,” said chief executive Phil Urban.

“We are starting to benefit from the many initiatives we continue to put in place, which gives us confidence in successfully delivering our strategic priorities going into the new year and a performance in line with the board's expectations.”