Harvester and Toby Carvery owner Mitchells & Butlers (LON:MAB) reported a good Christmas but said trade had dropped off in January.
M&B, which also owns bar chains All Bar One and O'Neill's, said trading over the festive period was encouraging, with like-for-like sales rising 2% in the two weeks of Christmas and New Year.
But total sales in the financial year to date fell 0.8% as the group faced tough trading in the first few weeks of 2016.
Total like-for-like sales in the 17 weeks to January 23 fell 1%, with food sales dropping 1.5% and drink sales declining 0.6%.
Chief executive Phil Urban said: "We had a good Christmas, recording growth across the period and also achieving our best-ever trading day.
"Whilst trading conditions remain tough, particularly as we go into the post-holiday season, we are acting with pace to drive our business priorities."
Shares in M&B rose 7.3p to 290.7p in early London trading.
Shore Capital analyst Greg Johnson said the 1% fall in like-for-like sales in the 17 weeks to January 23 was an improvement on the -1.6% after eight weeks with sales positive over Christmas.
But Johnson, who has a 'hold' recommendation on the stock, added: "We need to see evidence of improved trading before turning more positive."