Investors in Harvester and Toby Carvery owner Mitchells & Butlers (LON:MAB) are toasting today after the group unveiled results, which beat expectations for the full year, and reinstated a dividend payment after an absence of seven years.
Two months ago, the pub and food group flagged that annual results would likely to be at the bottom of market expectations, but still ahead of last year's.
But today, pre-tax profit for the 52 weeks to September 26 came in at £184mln (2014: £172mln), compared to a consensus analyst forecast of £180mln. Revenue was £2.1bn against £1.9bn in 2014.
Due to performance and confidence on future prospects , the firm is recommending a dividend of 5 pence per share to be paid on February 9 next year.
The overall group estate grew with 16 new sites opened during the year and a £31mln increase in the property value.
However, the firm noted it remained a challenging consumer environment, in which the eating and drinking out market had changed. Between 2012 and 2015, there have been more than 3,500 restaurant closures, and many pub closures, it noted.
"Consumers' lifestyles are also changing. Alcohol consumption is reducing, and there is a broad trend towards health consciousness..," the group said.
Trading in the first eight weeks of the firm's new financial year have been soft, the firm added, with total sales down by 1.3% and like-for-like sales down by 1.6%, reflecting an increasingly competitive market.
Shares were down 1.55% to 342.6p at the time of writing.