Mitchells & Butlers returns to stronger sales growth and holds its outlook

Mitchells & Butlers ($MAB) reported like-for-like sales growth of 2.1% over 51 weeks, with fourth-quarter growth recovering to 1.4% after a flat third quarter. Drinks sales increased 2.7% over the year and food sales rose 1.8%. Management linked the recent improvement to more normal weather conditions and maintained its expectations for the full-year result.

The group estimates cost headwinds of approximately £95 million in the following year, compared with £120 million in the current year. That suggests a smaller additional burden, not a reduction in the overall cost base. Investment continued through 222 remodels and 11 new sites. The update shows improving late-year trading, while execution and cost control remain important to converting sales into earnings.

Sources:

• Alliance News / AJ Bell — Mitchells & Butlers trading