Mitchells & Butlers Reports Q4 Sales Growth, Expects FY26 Results to Meet Consensus

Mitchells & Butlers plc reported a return to like-for-like sales growth in its fourth quarter, stating that it expects full-year results for fiscal 2026 to be in line with market consensus. The pub and restaurant operator also signaled that it anticipates cost pressures to ease in the upcoming fiscal year, supporting profit growth.

Sales Rebound in Final Quarter

In a trading update for the period through September 19, the company announced that like-for-like sales rose 1.4% in the fourth quarter. This performance follows a period of weather-related disruption and contributed to a year-to-date like-for-like sales increase of 2.1%. Total sales for the period were up 1.2%.

The company noted a particularly strong performance over the August Bank Holiday weekend, when like-for-like sales climbed 5.3%. Drink-led and pub formats continued to lead the business, with drink sales rising 2.7% year to date, ahead of the 1.8% growth seen in food sales.

Outlook and Strategic Initiatives

Looking ahead to fiscal year 2027, Mitchells & Butlers projects that cost headwinds will moderate to approximately £95 million, a reduction from the estimated £120 million in FY2026. The company stated this is equivalent to around 4% of its cost base.

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Management expects that its "Ignite" efficiency program, combined with its capital investment plan, will help offset these cost pressures and support further operating profit growth. Chief Executive Phil Urban said the Q4 results reflected the "resilience of demand" and that trading had been "ahead of the market."

Investment Program Continues

The owner of brands including Harvester, Toby Carvery, and All Bar One confirmed it had maintained an accelerated pace of investment. Year to date, the company has completed 222 conversions and remodels across its estate.

Mitchells & Butlers also expanded its portfolio with the acquisition of 11 new sites. These additions include nine freehold properties in the U.K. and two leasehold locations in Germany.