Mitchells & Butlers (M&B), the FTSE 250 pub and restaurant operator behind chains including All Bar One, Harvester and Toby Carvery, reported strong like-for-like sales growth over Christmas, offset by a weaker performance in early 2025 due to poor… weather. .
The company enjoyed a 10.4 per cent year-on-year increase in the key festive trading weeks, covering Christmas Day and New Year’s Eve, while like-for-like sales for the full 15-week period to 11 January rose by 3.9 per cent. However, CEO Phil Urban said that “cold and windy weather over recent weeks has had a material negative impact on trading,” dampening positive momentum.
Despite these circumstances, Orban remains confident in M&B’s long-term prospects, noting that the group is well equipped to manage an expected rise of around £100m in costs following the Government Budget. This additional pressure includes higher employers’ National Insurance contributions and an increase in the minimum wage, which M&B has previously warned could force tougher measures on pricing and efficiency.
Industry commentators remain optimistic. Jefferies analyst James Wheatcroft notes that M&B is well positioned to outperform rivals, highlighting its strong cash generation and potential for further debt reduction. Panmure Liberum’s Anna Barnfather agrees, calling the M&B update a “relief” in the face of broader economic uncertainties and highlighting the operator’s resilience.
M&B, which spun out of the old Bass Brewing empire two decades ago, operates 1,726 venues under well-known brands such as Miller & Carter, Vintage Inns, O’Neill’s, Browns and Nicholson’s. It is majority owned by Odyzean Group, a consortium led by prominent investors such as Joe Lewis, John Magnier and JP McManus, who together own 56.6 per cent of M&B shares.
Last year, M&B’s revenues rose to £2.61bn, with operating profits rising from £98m to £300m, and pre-tax profits reaching £199m.
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