Harvester and Toby Carvery owner expects a lighter cost burden next year, helped by a late summer pick-up in trade
Mitchells & Butlers expects to keep growing profit next year as the cost pressures squeezing the pub and restaurant sector start to ease.
The company, which runs chains including Harvester, Toby Carvery, All Bar One and Miller & Carter, said the headwinds from wages, energy and other costs would fall to around £95 million in its 2027 financial year, down from £120 million this year.
That is equivalent to about 4% of its cost base, and the group reckons its efficiency drive and investment in refurbishing sites leave it well placed to absorb the hit and still lift operating profit.
For the current year, it expects results in line with City forecasts.
The update covered the 51 weeks to 19 September.
Like-for-like sales rose 2.1% over the period, a solid showing given a challenging backdrop dominated by poor weather earlier in the year.
Trading strengthened as those pressures faded, with fourth-quarter like-for-like sales returning to growth at 1.4% after a flat third quarter.
The August bank holiday weekend proved a highlight, with like-for-like sales up 5.3%.
Drink sales did much of the heavy lifting, growing 2.7% over the year as the group's pub and drink-led formats outperformed.
Food was softer, up just 1.8% and dipping into decline during the summer.
The company kept up an accelerated pace of investment, completing 222 conversions and remodels and buying 11 new sites, including two leasehold venues in Germany.
Chief executive Phil Urban said the return to sales growth in the final quarter showed the strength of the group's brands, and that it entered the new year with confidence.
