Mitchells & Butlers customers go down the pub at Christmas

Like-for-like sales grew 4.7% in what is the first quarter of the FTSE 250 group's financial year. During the core two-week period around Christmas and New Year, LFL sales growth spiked to 12.3%.

Food LFL sales leapt from 1.8% in the first seven weeks of the period to 17 November to 6.9% in the seven weeks to 5 January.

Drink sales of 2.7% in the first seven weeks also jumped to 6.6% over the core festive period.

Taking account of two pub openings, 114 conversions as chief executive Phil Urban looks at "premiumising" where possible, total sales increased 5.1% over the 14 week period.

Urban said M&B had enjoyed "record trading on all key festive dates", with sales topping £12m on Christmas Day.

"The weather was milder than last year but the results were also due to the months of planning put in by our teams, and to several of our Ignite initiatives beginning to bear fruit," he said, referring to the longer-term strategy to improve sales growth, efficiency and cost saving to boost profitability in the face of industry cost headwinds.

"We now enter our toughest quarter and, given the success of the festive trading period, we would expect trade to be quiet at least until people get paid again.

"The ongoing uncertainty around Brexit will continue so we remain cautious about the outlook until the political and macroeconomic landscape becomes clearer. That said, we have made a good start to the year."

Broker Liberum upgraded its stance on the shares as a result of the update showing growth more evenly balanced between food and drink, moving to 'hold' from 'sell' and upping its target price to 270p from 210p.

"This improvement in trading, combined with the prospect of reducing pension payments flagged at the prelims, helps to allay some of our strategic concerns," analysts wrote, saying ongoing concerns around return on capital and the debt profile are reflected in the current rating.