25th Jul 2025 10:59
(Alliance News) - Mitchells & Butlers PLC on Friday reported quarterly sales growth "well ahead of the market", and said it expects full-year outturn to reach the top end of consensus ranges.
"The business continues to perform strongly, enabling us to meet the cost challenges facing the sector with confidence," Chief Executive Phil Urban commented.
The Birmingham, England-based restaurant and pub operator reported 5.0% total like for like sales growth in its third quarter, which ended on July 19. Food sales rose 4.9% and drink sales rose 4.8%.
For the year to date, or the 42 weeks ended July 19, total LFL sales growth was 4.5%, with 4.2% growth for food and 4.5% for drink.
"Total sales in the year to date have increased by 4.4%," Mitchells & Butlers added.
The company said its sales growth "remained well ahead of the market through the third quarter, benefiting from Easter and recent sunny weather".
Mitchells & Butlers also said it has refinanced its unsecured debt facility, with its new revolving credit facility reduced in size to GBP150 million from GBP200 million. It extends to July 2028 and is based on the same covenant structure at lower margins.
Furthermore, the firm noted that it has bought two freehold interests in existing sites, opened two new ones and completed 150 conversions and remodellings so far in the current year.
Looking ahead, Mitchells & Butlers stated that despite its sector's cost inflation challenges, "we remain encouraged by the continued strong performance of the business".
"We are confident that this will lead to an outturn result for the current year at the top end of consensus expectations," it added.
CEO Urban, meanwhile, said: "We will remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increasing sales.
"With the unique strengths of our business...we believe we are positioned to continue to grow profitability and market share."
Shares in Mitchells & Butlers were 1.0% lower at 285.53 pence each on Friday morning in London.
By Emma Curzon, Alliance News reporter
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