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The Markets
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The Markets
by Proactive
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The Markets
by Proactive
Proactive UK has moved.
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Leisure, gaming and gambling

Investors toast good Christmas at Marston's

The stock rose 7.1p to 157.8p after like-for-like sales in pub restaurants increased 3%

Shares in Marston's (LON:MARS) frothed up by 4.7% after the publican and brewer had a good Christmas and New Year.

The stock rose 7.1p to 157.8p after the Midlands-based group said like-for-like sales in its pub restaurants in the 16 weeks to January 23 increased 3% against the same period a year ago.

Like-for-like food sales rose 2.5% and wet like-for-like sales lifted 3.4%. Like-for-like sales in the key Christmas fortnight to January 2 gained 4.9% despite a challenge to match last year's strong figures.

In its traditional managed and franchised pubs, like-for-like sales were 2.7% ahead of last year, with a 5% rise over the Christmas fortnight. In its leased pubs, profits are estimated to be around 3% ahead of last year.

Marston's, which brews its flagship Pedigree ale and Hobgoblin, said own-brewed volume was up 21% in the year to date, underpinned by a very strong performance in the off-trade.

Chief executive Ralph Findlay said: "Once again we traded well over the Christmas period with record sales over the key Christmas fortnight for the fourth year in succession, maintaining our record of market out-performance, including pub retail sales of more than £3mln on Christmas Day for the first time.

"In brewing, our principal brands and new beers contributed to an excellent first quarter."

Shore Capital, which has a 'buy' recommendation and target price of 150p on the stock, said in a note: "We see today’s update as further vindication of the group’s capital recycling and investment strategy."

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