Mitchells and Butlers investors raised a glass to the pub group’s fourth quarter and full-year trading update revealing solid revenue growth across the year and strong sales in both food and drink.
Group like-for-like sales jumped 9.1% for the full year year as drink sales grew 9.6%. Food sales in the fourth quarter surged 11.6%.
Mitchells and Butlers’ shares were 2.3% higher at the time of writing on Thursday.
“Pub giant Mitchells and Butlers has been making hay while the sun shines, and through some rain too. Like for like takings grew 9.1% for the 52 weeks as a whole,” said Derren Nathan, head of equity research at Hargreaves Lansdown.
“The out-performance against the rest of the market is impressive, particularly in a time when customers pockets are facing an unprecedented squeeze. Alongside the cheery update on sales, the news that cost pressures are starting to abate should also bring some comfort to investors.
“However with the valuation now sitting above the long term average, there’s not much room for disappointments. But for now customers are still prepared to spend a little more on their trip to the pub. If costs stabilise management may not need to ask punters’ to stomach more significant price rises.“