Mitchells & Butlers (M&B), the FTSE 250 pub and restaurant operator behind chains together with All Bar One, Harvester and Toby Carvery, has reported robust like-for-like gross sales progress over Christmas, offset by weaker efficiency in early 2025 as a consequence of antagonistic climate.
The corporate loved a ten.4 per cent year-on-year enhance in key festive buying and selling weeks, protecting Christmas Day and New Yr’s Eve, whereas like-for-like gross sales for the complete 15-week interval to 11 January elevated by 3.9 per cent. Nonetheless, chief government Phil City mentioned that “cold and stormy weather over recent weeks has subsequently had a material adverse impact on trading”, softening the constructive momentum.
Regardless of these situations, City stays assured in M&B’s long-term prospects, noting that the group is properly geared up to handle a forecast rise of about £100 million in prices following the federal government’s price range. This extra stress consists of greater employers’ nationwide insurance coverage contributions and an elevated minimal wage, which M&B beforehand warned may pressure harder measures on pricing and effectivity.
Trade commentators stay optimistic. Jefferies analyst James Wheatcroft suggests M&B is properly positioned to outpace rivals, highlighting its robust money technology and the potential for additional debt discount. Anna Barnfather of Panmure Liberum agrees, calling M&B’s replace a “relief” in opposition to broader financial uncertainties and highlighting the operator’s resilience.
M&B, which emerged from the previous Bass brewing empire 20 years in the past, runs 1,726 venues underneath well-known manufacturers similar to Miller & Carter, Classic Inns, O’Neill’s, Browns and Nicholson’s. It’s majority-owned by Odyzean Group, a consortium led by outstanding buyers Joe Lewis, John Magnier and JP McManus, who collectively maintain 56.6 per cent of M&B’s shares.
Final 12 months, M&B’s income climbed to £2.61 billion, with working revenue surging from £98 million to £300 million and pre-tax income hitting £199 million.
