Mitchells & Butlers PLC (LSE:MAB) shares rose 2.3% to 219.48p after the company said it expects full-year earnings to be at the top end of expectations after a strong rise in sales and easing of cost headwinds.
The pub and restaurant chain said strong trading had continued through the fourth quarter, bringing year-to-date like-for-like sales growth to 9.1%, with total sales growth now of 10.5%.
Like-for-like sales in the fourth quarter increased by 9.7% supported by sustained growth in both food and drink volumes and reflecting an increasing outperformance against the market, the firm said.
The owner of Harvester, Toby Carvery, All Bar One and Miller & Carter said cost headwinds are abating and remain at the bottom end of the range previously identified.
“We remain mindful of the challenging macroeconomic environment and pressures on the consumer however, as trading continues to be strong, we have confidence that the current year outturn will be at the top end of consensus expectations, with momentum into FY 2024," M&B said in a trading update.
Liberum described it as a “strong trading statement”, while Peel Hunt expects to upgrade profit forecasts by around 7% “due to strong sales".