Mitchells & Butlers, a leading pub-and-restaurant operator in the UK, has announced a significant increase in like-for-like sales for the third quarter. Sales rose by 9.7% compared to the same period last year, with food and drink volumes experiencing robust growth.
On a year-to-date basis, like-for-like sales for the quarter ended July 22 were up 10% when compared with 2019. This positive performance can be attributed to increased spend-per-head by customers.
To support its operations and growth plans, Mitchells & Butlers secured a new loan that has expanded its unsecured debt facilities to £200 million ($258.8 million). Additionally, the expiry date of the loan has been extended to July 2026 from February 2024.
Addressing potential concerns about rising costs, Mitchells & Butlers stated that the projected cost headwind for fiscal 2023 is expected to be at the lower end (10%-to-12% range) due to signs of cost inflation starting to slow down.
Chief Executive Phil Urban expressed confidence in the company’s future prospects, citing their diverse portfolio of established brands, appealing value proposition, and prime estate locations. He believes these strengths position them well to outperform the sector and achieve strong performance for the full year.
At the time of writing, shares of Mitchells & Butlers were trading at 225.60 pence, up 4.8% from their previous closing price.