Mitchells & Butlers PLC (LSE:MAB) shares jumped around 13.5% as investors grow hopeful that its recent strong performance will continue through the summer and into next year.
Interest in the stock was sparked after the group revealed profits had increased 170% in its first half, but shareholders were equally impressed by the group’s outlook.
Management explained earnings were expected to reach the top end of guidance for the full year, helped on by easing inflationary costs and robust demand.
Yet, the true benefit to the hospitality group’s financials is likely to come this summer, when punters flock to pubs to enjoy the warm weather and sporting events such as the Euros.
With over 1,700 sites including pubs and bars under brands such as O’Neils and Ember Inns, the group is well-positioned to exploit a warm summer, analysts said.
Earlier this week, industry data revealed warm weather at the start of May helped alcoholic drink sales surge by 13%, with beer rising by 14%.
Should Brits be treated to a sunny summer over the next few months, drink sales are likely to follow a similar trend, especially with both the football and Olympics taking place.
Last month, fellow pub group Marston’s saw its shares lift-off after it said upcoming sporting events would help the group grow its sales.
“With a number of ‘must not miss’ major sporting events, our massively upgraded pub gardens and much-loved food menus, we expect our pubs to be very popular this summer,” Martson’s boss Platt said.