Mitchells & Butlers PLC (LSE:MAB) reported strong sales over the festive period and said it remains confident about managing around £130 million of extra costs expected in the year.
The pub company that owns the All Bar One, Harvester, Toby Carvery and Nicholson's chains revealed total sales were up 3.5% and like-for-like sales rose 4.5% in the 15 weeks to 10 January, the first quarter of its financial year.
It highlighted a 7.7% rise in like-for-like sales during the core three-week festive period, with the five key trading days over Christmas and New Year delivering growth of 10.5%.
Food sales rose 5.1% and drink sales were up 3.8% for the full quarter. This compares to LFL growth of 4.3% in its last year and 3.1% in the preceding quarter.
The pubco said it had completed 51 pub conversions and remodels so far this year and remained encouraged by the returns.
Chief executive Phil Urban said it was "another exceptionally strong festive trading period, marked by numerous record-breaking performances across our brand portfolio and continued market outperformance in every segment".
He added that Christmas Day saw the highest ever sales day in the company's history, surpassing last year's benchmark.
"We remain well positioned to further grow market share in the year ahead by leveraging the strength of our diverse portfolio of established brands and enviable estate locations."