25th Sep 2025 10:22
(Alliance News) - Mitchells & Butlers PLC on Thursday said it expects annual results to meet market expectations despite warning of GBP130 million in cost inflation next year.
Shares in Mitchells & Butlers were 5.2% lower at 250.00 pence each in London on Thursday morning.
The Birmingham, England-based company operates restaurants and pubs, owning chains such as Harvester, All Bar One, and O'Neill's.
Like-for-like sales rose 4.2% in the 51 weeks to September 20, with food up 4.1% and drink up 4.0%. Sales growth was broad-based, led by mid-market pubs and pub restaurants, though performance in London and more premium venues was slightly weaker.
Total sales for the year to date increased 3.9%.
Looking ahead, the company expects cost inflation of around GBP130 million in the next financial year, equal to about 6% of its cost base. However, it said its brands are well positioned to continue outperforming the sector, and its Ignite programme is delivering further efficiencies.
Mitchells & Butlers said it has stepped up its capital investment, completing 201 conversions and remodels, compared with 185 the year before. It also opened two new sites and acquired the freeholds of two existing sites.
Chief Executive Phil Urban said: "We are pleased with our performance over the year, in which we remained consistently ahead of the marketa, across all market segments. Sales growth has been broad based, with strong like-for-like performances in both food and drink across our portfolio of brands, supported by cost efficiencies and a capital programme which continues to deliver strong returns."
By Eva Castanedo, Alliance News reporter
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