Strong festive trading limits damage to Mitchells & Butlers

The FTSE 250 pub company issued a brief trading update ahead of its AGM on Thursday afternoon.

Total like-for-like sales for the nine weeks to 23 January were down 0.6%, with food sales down 1.0% but drink sales flat.

However the company highlighted sales growth of 2.0% in the two weeks of Christmas and New Year. In the eight weeks to 21 November, total sales were down 1.6%, with food sales dropping 2.1%.

That left total sales for the 17 weeks to 23 January down 1.0%. Total sales for the year to date have fallen by 0.8%, but Mitchells & Butlers said operating margins are ahead of the prior year.

Chief executive Phil Urban said trading conditions remain tough, particularly as into the post-holiday season.

“We are acting with pace to drive our business priorities - building a more balanced business, developing our commercial culture and increasing the speed of execution and innovation."

Despite this, shares in Mitchells & Butlers were up 6.7p (2.36%) to 290.10 at 0845 GMT.