Mitchells & Butlers sales return to growth as weather normalised

Mitchells & Butlers PLC on Thursday said it remains confident it will finish 2026 in line with market expectations, with like-for-like sales returning to growth in the fourth quarter.

The Birmingham, England-based restaurant and pub operator said like-for-like sales rose 2.1% in the 51 weeks to September 19, with growth returning in the fourth quarter as weather-related pressures eased.

Like-for-like sales increased 1.4% in the fourth quarter, including growth of 5.3% over the August Bank Holiday weekend. In the third quarter, like-for-like sales were flat, as a 2.6% increase in drink sales was offset by a 2.4% decline in food sales.

Year-to-date drink sales rose 2.7% and food sales increased 1.8%, while total sales increased 1.2%. Mitchells & Butlers remains confident its full-year performance will be in line with consensus expectations, following a stronger fourth quarter in which drink sales rose 3.8%.

Mitchells & Butlers has completed 222 conversions and remodels in the year to date and acquired 11 new sites in Germany and the UK.

Chief Executive Phil Urban said the return to growth in the fourth quarter demonstrated the resilience of the company's portfolio.

He said: "Looking ahead, we enter the new financial year with confidence. Normalised cost headwinds, combined with our ongoing efficiency initiatives and a proven capital investment programme, provide a strong platform for further growth in earnings and long-term shareholder value."

Citing its Ignite initiative and capital investment programme, Mitchells & Butlers said it is well positioned to offset cost headwinds of about £95.0 million in 2027, down 21% from £120.0 million in 2026.

Shares in Mitchells & Butlers were up 2.2% at 278.00 pence on Thursday morning in London.

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