Mitchells & Butlers PLC (LON:MAB) shares lost their fizz as the company posted a 0.9% rise in third-quarter like-for-like sales as the World Cup proved to be a double edge sword for the pub and restaurant owner.
The World Cup and hot weather boosted demand for drinks but foods sales fell as Britons chose its pubs over its restaurants.
The company, which owns All Bar One, Harvester and Toby Carvery, said like-for-like food sales dropped 1.8% and like-for-like drinks sales increased 3.9%.
READ: Mitchells & Butlers blames bad weather for slowdown in sales growth
"Sales performance since the half year was impacted by England's prolonged success in the World Cup and the sustained hot weather,” chief executive Phil Urban said.
“Trading was polarised across the company, with the wet-led part of the business delivering very strong growth, but some of the more food-led formats, particularly the carvery businesses, were negatively impacted.
“However, we have been encouraged to see sales recover now that the World Cup has finished and as we continue on our longer-term journey.
The group warned that higher costs would hurt margins more than last year. However, it expects its full-year performance to be in line with guidance.
“The second wave of transformation activity is beginning to bear fruit and momentum behind this programme of work continues to grow,” said Urban.
Shares fell 2.6% to 250p.