Mitchells & Butlers PLC (LSE:MAB), the owner of All Bar One and Toby Carvery, said today that it expects sales will be at the top end of expectations this year.
The manager of pubs and restaurants is optimistic that "overall cost pressures are now abating" and is unconcerned about the impact of a 9.8% increase in the National Living Wage in April.
Based on what it describes as the strong performance of the business so far this year, the company said, “the full year outturn will be towards the top end of current consensus expectations”.
Overall sales grew by 9.7% in the first 15 weeks of the current financial year after a "strong" trading period this festive season, Mitchells & Butlers said.
During the five key festive dates around Christmas and New Year, the manager of pubs and bars said sales growth was as high as 10.1%.
The company’s chief executive Phil Urban said: "We are delighted by the strong trading performance over the festive season, with very strong performances across our brands portfolio thanks to the hard work of our teams.
“Growth was particularly strong on key dates, with record sales for Christmas Day based on 229,000 meals served, supported by strong trading in the run up to Christmas, with the return of work parties and festive gatherings driving sales.”
Like-for-like sales surged by 7.2% in the first eight weeks of the company’s financial year, to 25 November 2023, and continued to grow, rising 8.2% in the seven weeks to 13 January this year.
In its trading statement for the 15 weeks to 13 January 2024, the company said sales growth since the start of the financial year has amounted to 7.7% on a like-for-like basis.
Mitchells & Butlers said the group continues to invest in its estate and has completed 34 conversions and remodels of existing properties, in addition to opening one new site in Germany.
In the UK, its bar and restaurant portfolio includes brands such as Harvester, Toby Carvery, and All Bar One.