Mitchells & Butlers PLC (LSE:MAB) has announced “continued strong trading” over Christmas, with sales in the five weeks to 7 January 2023 surging 19% higher year-on-year, as pubs and restaurants enjoyed a restriction-free festive season for the first time since pre-pandemic 2019 and despite industrial action in recent weeks.
In the first quarter to 7 January 2023, like-for-like sales grew by 10.4%, with total sales rising 13.3%, the owner of Harvester, All Bar One and Toby Carvery said in a trading update.
Comparing to the same period in FY2019, the last full financial year before COVID-19 struck, first-quarter like-for-like sales were up 8.9%, with 8.5% growth in the last five weeks.
"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,” commented Mitchells & Butlers chief executive Phil Urban in the statement.
However, he sounded a note of caution on the “very challenging” trading environment for the hospitality sector “with inflationary costs putting sustained pressure both on the industry's margins and disposable income of our guests”.
The company said it continues to focus on investment in its estate and has completed 43 conversions and remodels and opened one new site, a second All Bar One at Edinburgh Airport, in the year to date.