Mitchells & Butlers PLC (LON:MAB) toasted a strong start to its financial year as revellers flocked to its All Bar One, Nicholson's and O'Neill's chains over the Christmas period.
The FTSE 250 group, which also runs the Harvester and Toby Carvery inns, reported 2.6% like-for-like sales growth for the 14 weeks to 4 January, despite facing a tough comparison from the stellar start a year before.
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Over the core three-week festive period, LFL sales growth hit 5.6%, with the five key festive days showing growth of 6.5%.
Food sales were up 3% over the 14 weeks, while drink increased 1.8%.
Including the impact of changes to its estate, including 81 pub conversions and remodels and one new opening, total sales have increased by 2.7% over the year so far.
Chief executive Phil Urban said: “We are pleased with our trading performance over the festive trading season against a strong set of results last year, again demonstrating the breadth of appeal of our brands for special occasions.”
He said the progress reflects the ‘Ignite’ long-term strategy initiatives, “which will continue to be our focus for the year ahead”.
Broker Goodbody said: “The results are proof that management continue to perform very well operationally. A myriad of incremental initiatives and high levels of investment in its estate are combining to deliver consistent sales growth.”
He noted that M&B was the first of the big pubcos to report on the festive period and the update will be encouraging to the sector.
“The clouds which hung over October and November due to wider macroeconomic challenges seem to have cleared with consumers willing to go out and spend in December – hinting that sunnier skies could lay ahead.”