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Mitchells & Butlers posts strong quarter sales on Covid-free Christmas

12th Jan 2023 10:10

(Alliance News) - Mitchells & Butlers PLC on Thursday hailed the returns of a restriction-free festive season, after posting a strong performance for the first quarter.

Mitchells & Butlers is a Birmingham, England-based operator of managed restaurants and pubs. Its portfolio of brands and formats includes Harvester, Toby Carvery, All Bar One, Miller & Carter, Browns, and O'Neill's.

In the five weeks to January 7, sales surged 19% higher year-on-year, as pubs and restaurants benefited from the first restriction-free Christmas since the start of the pandemic.

For the year to date, like-for-like sales increased to 10%, with total sales growth of 13%.

Compared to the same period in 2019, like-for like sales were up 8.9%, with 9.2% growth in the first ten weeks followed by 8.5% growth in the last five weeks.

Mitchells & Butlers also said it had continued to focus on investment over the quarter. 43 conversions and remodels have been completed in the year to date, while a second All Bar One was opened at Edinburgh Airport.

"We are encouraged by a strong performance through the first quarter and delighted to have been able to welcome our guests back over the festive trading season after three years of disruption due to Covid 19, setting sales records as we did so," said Chief Executive Phil Urban.

"However, we are mindful that the trading environment for the hospitality sector remains very challenging with inflationary costs putting sustained pressure both on the industry's margins and disposable income of our guests. We remain focused on our Ignite programme of initiatives and our successful capital investment programme, driving cost efficiencies and increased sales. Combined with our diverse portfolio of established brands, value proposition and enviable estate locations, we believe we are well positioned to meet the challenges of the year ahead," Urban added.

Mitchells & Butlers shares were trading 5.0% higher at 170.77 pence each in London on Thursday morning.

By Holly Beveridge; Alliance News reporter

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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