Mitchells & Butlers hails pick-up in sales growth

Mitchells & Butlers, the pubs group behind All Bar One, O’neill’s and Toby Carvery, has reported a late summer pick-up in sales.

In a trading update, the group said underlying like-for-like sales rose 2.2 per cent in the eight weeks to 22 September, stripping out an extra week of trading last year.

It noted that there had been a more even split between drink and food sales following the unusually hot summer and World Cup tournament, which had sent drink sales surging.

But M&B, which also owns Browns and Miller & Carter, reiterated its warning that high costs are likely to eat into profit margins over the full year.

Chief executive Phil Urban said: “We are pleased to have seen likefor-like sales growth improve following the period of sustained hot weather.”

Peel Hunt analyst Douglas Jack noted: “It appears that the company has resumed its outperformance of the managed sector after a tough summer for food-led operators.”