Mitchells & Butlers (M&B), the FTSE 250 pub and restaurant operator behind chains including All Bar One, Harvester and Toby Carvery, has reported strong like-for-like sales growth over Christmas, offset by weaker performance in early 2025 due to adverse weather.
The company enjoyed a 10.4 per cent year-on-year boost in 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 increased by 3.9 per cent. However, chief executive Phil Urban said that “cold and stormy weather over recent weeks has subsequently had a material adverse impact on trading”, softening the positive momentum.
Despite these conditions, Urban remains confident in M&B’s long-term prospects, noting that the group is well equipped to manage a forecast rise of about £100 million in costs following the government’s budget. This additional pressure includes higher employers’ national insurance contributions and an increased minimum wage, which M&B previously warned could force tougher measures on pricing and efficiency.
Industry commentators remain optimistic. Jefferies analyst James Wheatcroft suggests M&B is well placed to outpace rivals, highlighting its strong cash generation and the potential for further debt reduction. Anna Barnfather of Panmure Liberum agrees, calling M&B’s update a “relief” against broader economic uncertainties and highlighting the operator’s resilience.
M&B, which emerged from the old Bass brewing empire two decades ago, runs 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 Joe Lewis, John Magnier and JP McManus, who together hold 56.6 per cent of M&B’s shares.
Last year, M&B’s revenue climbed to £2.61 billion, with operating profit surging from £98 million to £300 million and pre-tax profits hitting £199 million.