Mitchells & Butlers PLC (LSE:MAB) has reported a 5.2% yearly increase in like-for-like sales growth for the 51 weeks ending 21 September in a short trading update.
The owner of O’Neill’s, Harvester, All Bar One and other popular chains has generated positive coverage from City analysts this year, with the likes of Jefferies and Shore Capital Markets impressed by strong profits and cash generation.
According to today’s pre-close update, yearly food sales have surged 5.3% and drink sales 4.9%.
Mitchells & Butlers has completed 185 site conversions and remodels and opened six new locations this year.
Although a combination of drab summer weather, riots and a lingering inflation made for sluggish fourth-quarter sales, management claimed that sales growth “has remained ahead of the market”.
The latest CGA RSM Hospitality Business Tracker showed ear-on-year sales growth of 1.3% in August and 1.5% in July, compared to 2.5% at Mitchells & Butlers.