Mitchells & Butlers returns to growth in Q4 on strong drinks sales

(Sharecast News) - Pub group Mitchells and Butlers returned to growth in the fourth quarter of its fiscal year driven by a 3.8% rise in drink sales on the back of the hot August weather. Total like for like sales for the year to date were up 2.1%, the company said in a trading update for the 51 weeks to September 19.

Fourth quarter like for like sales were up 1.4% compared with a flat previous three months.

"This improvement was supported by a strong August Bank Holiday weekend, during which like-for-like sales grew by 5.3% highlighting the resilience of guest demand. Pub and drink-led formats continued to perform well which is reflected in particularly strong drink sales growth," M&B said.

"We remain confident of a full year outturn in line with consensus expectations. Looking ahead to FY2027, we continue to expect cost headwinds to moderate from £120m in FY2026 to approximately £95m, equivalent to around 4% of our cost base."

Reporting by Frank Prenesti for Sharecast.com