Mitchells & Butlers PLC (LSE:MAB) shares frothed up 7% to a year's high of 230p after the pub group reported improving sales growth and said cost inflation is "starting to abate".
Like-for-like sales were up 8.9% for the year to date, having improved to 9.7% in the third quarter from 8.5% in the first half.
Cost inflation is now expected to be at the bottom end of its 10-12% guidance range.
The owner of the Harvester, Toby Carvery, All Bar One, Stonehouse, Nicholson's and O'Neill's pub chains said it continued to outperform the market, with both food and drink volumes growing.
"We achieved a record-breaking Father's Day in June and sales performance across the quarter was relatively consistent outside of weeks impacted by industrial action on national transport systems."
Broker Peel Hunt said it now sees "upward pressure" on earnings forecasts for the full year in light of higher revenue and lower costs.