Mitchells & Butlers gives confident outlook as festive sales jump

17th Jan 2024 07:59

(Sharecast News) - Harvester, Toby Carvery and All Bar One owner Mitchells & Butlers said it expects full-year results to be at the "top end" of expectations after a solid first-quarter performance with sales rising strongly over the key festive period.

Total like-for-like sales in the 15 weeks to 13 January were up 7.7% over the year before, with 7.2% growth in the first eight weeks of the period followed by 8.2% growth in the latter seven weeks.

Notably, LFL sales over the "five key festive days" were up 10.1% on last year, the company said.

"We are delighted by the strong trading performance over the festive season, with very strong performances across our brands portfolio thanks to the hard work of our teams," said chief executive Phil Urban.

"Growth was particularly strong on key dates, with record sales for Christmas day based on 229,000 meals served, supported by strong trading in the run up to Christmas, with the return of work parties and festive gatherings driving sales."

In a brief trading update to shareholders on Wednesday, M&B was optimistic about its outlook. Despite a 9.8% increase in the National Living Wage from April onwards, the company said that overall costs pressures are starting to ease.

"We remain mindful of uncertainties ahead but, based on the strong performance of the business so far this year we now believe that the full-year outturn will be towards the top end of current consensus expectations," the company said.

Shares were up 0.9% at 252.6p by 0832 GMT.